Dentsu Explores Structural Changes

Dentsu announced today that it is considering splitting its Japanese operation, Dentsu Inc. into two entities: an operating company and pure holding company.

The firm said the change would go into effect in 2020, subject to approval by shareholders. The company said the new structure would enable fast decision making in the rapidly changing advertising and marketing sector.

If the move is enacted, the pure holding company would hold shares of the company’s stock, similar to the way the WPP and Omnicom holdings are structured.

Commenting on the development, company president and CEO Toshihiro Yamamoto stated the aim of the restructuring is to “ensure that Dentsu Group’s governance and organization is fit for purpose, aligned with demands of a fast-changing environment and rapidly evolving client needs.”

Separately, Dentsu published its first half financial results, reporting revenue growth of 8.6% to ¥481,7 billion ($4.3 billion). Operating profit fell 5.6% to ¥40.5 billion ($365 million).



Organic growth for the period was 4% with 4.7% growth in Japan and 3.7% at Dentsu Ageis Network, which oversees the company’s operations outside of Japan.

The Americas region posted particularly strong organic growth — 6.5% in the second quarter and 5.5% for the first half. The company said that Q2 Americas growth was the strongest in over three years.




Next story loading loading..