Citing the continuing impact of a slowdown in ad spending from clients in the technology and financial services categories, Dentsu this morning reported sequentially weakening revenue for the second quarter of 2023.
Toal holding company revenue grew only 2.5% in the second quarter, less than half the 6.4% growth rate in the first quarter.
Dentsu's results, however, showed a sequentially improving revenue picture for most major media, with the exception of newspapers.
Out-of-home continued to show strong year-over-year results for both quarters, as well as the first half. And radio revenue moved into the net positive position for the second quarter.
“We expect to see an improving trend in organic growth in the second half with our focus on delivering growth and measurable business results for our clients," President and CEO Hiroshi Igarashi said in a statement.
Dentsu issued guidance to investors forecasting organic growth in the 0% to -2% range for fiscal year 2023.