Dentsu’s Growth Story Continues

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Dentsu Group has continued it growth story in 2015. The Group that operates through in two major entities -Dentsu Inc. and Dentsu Aegis Network – is aligned for the 2015 fiscal year. Dentsu Group’s gross profit for 2015 is at 761,996 million Yen. This was 12.6 percent higher from the prior year. The Group saw an overall organic gross profit growth of 7 percent. The organic gross profit growth for business in Japan was 3.9 percent. This was supported by business opportunities related to the 15th IAAF World Championships Beijing 2015, the 44th Tokyo Motor Show 2015, and sponsorship sales associated with the Tokyo 2020 Olympic and Paralympic Games. The subsidiaries that delivered strong performances were digital subsidiary, IT subsidiary and promotional subsidiary.

The organic gross profit growth for the international business was 9.4 percent. This was mainly due to growing its international client and new business profile and the building capability in the digital economy.

Tadashi Ishii, Dentsu
Tadashi Ishii, Dentsu

“In 2015, the third year of our medium-term management plan ‘Dentsu 2017 and Beyond,’ we continued to make steady progress in delivering on our strategic objectives, while producing another peer group-leading performance. Looking ahead, in addition to further growth in the Group’s core Japanese market, we will leverage our extensive global network to its fullest potential in order to contribute to the growth of all our clients. We will continue to invest in our business, particularly in integrating our digital capabilities, to ensure we take advantage of the opportunities that will arise in an increasingly fast-paced digital economy. With this in mind, and supported by our continued focus on our strategic objectives, we expect to continue outperforming the market in the year ahead and beyond,” said Tadashi Ishii, President and Chief Executive Officer, Dentsu Inc.

The Group’s underlying operating profit was 160,438 million Yen, an increase of 20.3 percent from the previous year. The basic earnings per share saw a 27.9 percent increase over the prior year.

Dentsu Aegis Network in EMEA delivered outstanding growth of 12.2 percent, including 11 percent in Q4. This is the sixth consecutive quarter of double-digit growth in the region. This was a strong performance, given the relatively low growth environment in a number of markets, particularly in Western Europe, where all of the major markets delivered double-digit growth during the year. There were also strong performances from the Middle East and Africa.

Dentsu Aegis Network’s performance in 2015 was driven by further momentum in new business. Total net new business won in 2015 was USD 3.6 billion in billings, including several successful outcomes from the major media reviews announced during the year, while management successfully retained client accounts worth around USD 4 billion in billings.

Moving forward, Dentsu plans to further invest in its digital capabilities, to ensure they continue to offer their clients a fully integrated offering, with specialist capabilities ingrained.

The Dentsu Group provides a widespread range of client-centric brand, integrated communications, media and digital services through its nine global network brands -Carat, Dentsu, Dentsu Media, iProspect, Isobar, mcgarrybowen, MKTG, Posterscope and Vizeum.

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