Dentsu Launches 'Comprehensive' Business Review, Reports 17% Q2 Organic Revenue Drop

Dentsu Group has a launched a “comprehensive” business operations review designed to lower operating expenses and accelerate its digital transformation. 

Word of the review comes following a tough COVID-19 impacted second quarter when the company’s organic revenue fell 17% including a 12.6% shortfall in Japan and a 20% decline for its international operating unit Dentsu Aegis Network. 

For the first half of the year, Dentsu said net revenue was down 9% to ¥408.9 billion ($3.9 billion) with an organic revenue decline of 8.9%. The results are in line with other holding companies which also posted sharp declines due to the pandemic. 

All regions were hit but the U.S. proved more resilient with an organic decline of 6.9% for the first half of the year. The broader Americas region was down 8.3% for the first half including a 17% dip in Q2. EMEA and APAC were also down double-digit percentages for both the first half and second quarter. 



The company said that Q2 will likely be the worst performing quarter of 2020 with the downturn continuing into the second half at a reduced rate “with a gentle recovery expected in 2021.” 

In addition to cutting costs, the review is aimed at simplifying the company’s business and strengthening its integrated solutions strategy. Toshihiro Yamamoto, president and CEO Dentsu Group stated that the review “is key to the future growth and profitability of our Group. It will not only respond to the economic challenges caused by the pandemic, but also focus on long structural growth opportunities.”


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