Dentsu Group posted revenue growth (less cost of sales) of 6.8% in 2018, the company reported earlier today. Organic growth was 3.4%.
The Japan business delivered 2% revenue growth and 2.1% organic growth, while the international business — Dentsu Aegis Network — had a 10.2% revenue growth and 4.3% organic growth. Fourth-quarter organic growth was 3.4%. The company said DAN now contributes about 60% of the firm’s overall business, up from about 58% in 2017.
A sharp slowdown late last year in the APAC region impacted full-year group profitability. “Restructuring in the region is already underway to mitigate any further impacts in FY2019 and new management is in place in Australia, one of our key markets,” the firm said in a statement.
In the Americas, Dentsu Aegis Network reported 4.9% organic growth in 2018 and 3.5% in the fourth quarter.
The company said it expects some organic growth next year, including in all DAN regions, but did not say how much growth.
Toshihiro Yamamoto, president and CEO, Dentsu Inc., said that the company achieved its organic growth targets for 2018 largely due to digital activities.
“2019 heralds a new stage for the Dentsu Group,” Yamamoto said. "The achievement of the working environment reform targets in Japan allows the business to focus on both transformation and growth in 2019 and beyond."
That’s a reference to the death-by-overwork scandal the company had to deal with following the suicide of a young female worker in Japan who routinely worked 100-hour weeks for months on end. The company was prosecuted and the draconian work environment was ruled to be a contributing factor in the death, and reforms ensued.
“Our continued focus on people-driven marketing and the differentiation of our client offer through innovation, technology, data and analytics will drive our success,” Yamamoto added.