Dentsu growth slips as underlying operating profit hits new high

Japan-headquartered Dentsu has seen an organic growth of 4.1% in 2022, and forth quarter organic growth of 3.5%.

Group net revenue was JPY1,117 billion (AU$12 billion). The Asia Pacific (excluding Japan) was accountable for 10% of that.

In APAC (excluding Japan), full year 2022 organic growth was 2.5% and 2.1% in forth quarter.

“Despite economic headwinds, the Australia and New Zealand business delivered revenue growth in 2022 of 5.%. This was supported by the strength of the media business and growth in New Zealand. Customer Transformation & Technology capabilities were boosted through the recent acquisition of Aware Services and the business cemented its local leadership team by announcing Patricio De Matteis as chief executive officer for Australia and New Zealand.”

Global Group revenues had picked up somewhat in the fourth quarter rising 3.5% on year compared to a drop of nearly 5% in third quarter. However, the pace still represented a significant slowdown from the first half of 2022 when growth in Japan, Asia and the Americas had been much stronger. However, this is an improvement on the previous quarter and the previous full year result.

In recent weeks global competitors Interpublic Group, Omnicom Group and Publicis Groupe have reported their full annual growth rates in a range between 7% to 10%.

Net revenue increased due to organic growth of JPY 34 billon, currency positively impacted by JPY 75 billion, and M&A contributed JPY 30 billion.

Group underlying net profit (attributable to owners of the parent) increased by 19.1% yoy to JPY 130 bn. due to the increase of underlying operating profit.

Customer Transformation & Technology (CT&T) contributed 32.3% of group revenues in 2022, growing 17.5% year-on-year, led by ISID and Dentsu Digital in Japan and Merkle across the three international regions. The group remains “well positioned to benefit from the structural growth in Customer Transformation & Technology” with a robust outlook for long-term client spend on digital experiences.

The group has announced 5 acquisitions over the past 12 months, adding more than 1,800  new staff. The acquisitions bring a mix of consulting expertise, cloud engineering knowledge, and marketing technology capabilities and are in line with the stated strategy of reaching 50% of net revenues generated by CT&T. The acquisition pipeline remains active.

Clients remain focused on growth, investing in technology, data and media to enable business expansion. The outlook for client spend remains solid in 2023 and the Groups position at the convergence of marketing, technology and consulting ensures our services become embedded within our clients’ businesses.

President and CEO, Dentsu Group Inc  Hiroshi Igarashi, said:

“In 2022 Dentsu reported record high net revenues, record underlying operating profit, a record underlying basic EPS and a record dividend per share at JPY 155. Our transformation continues to deliver a simplified organization with a focused strategy of growing revenues in the structural growth area of our industry, Customer Transformation & Technology.

“In 2023 and ahead, we remain focused on the opportunity to further consolidate and strengthen our competitive position at the convergence of marketing, technology and consulting. This distinct market position will drive value for our clients, our people and our shareholders.”


Denstu financial results 2022 (JPY billion)






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