Dentsu reports 20% growth in Aus and lifts FY guidance after ‘exceptional’ quarter
Dentsu’s Australian business reported organic growth of more than 20% in the third quarter, driven by a strong performance in its creative division.
The local growth outstripped the 13.4% increase at Dentsu International – itself a strong result – which saw an improved performance across its media services.
Clients are continuing to “recognise the importance of brand investment to drive growth”, the company said.
Overall, the global advertising giant reported organic growth of almost 28% in the three months to 30 September as it continued its recovery “across the group”.
“Strength in the structural growth areas of commerce and experience continued, with demand strong for technology implementation, data services and activation, through creative and media,” it said.
President and chief executive Toshihiro Yamamoto, who will stand down at the end of the year after 40 years’ service, said: “Over the past 12 months we have laid the foundation for the company to achieve sustainable growth and the third quarter results show a company that’s recovering, capitalising on the market opportunities with rebounds across all business lines.”
The improving performance saw the group raise its guidance, with Dentsu now expected to deliver 12% organic growth in FY21.
“For the third quarter, in line with a global recovery from the pandemic, business confidence and consumer sentiment has steadily increased, boosting demand for TV and digital (internet) advertising across all markets.” the company said.
In Japan, Dentsu exceeded expectations with organic growth rising almost 50%, with television and digital particularly strong.
APAC: Organic revenue less cost of sales
declined -18.0% in FY2020. The revenue less cost
of sales organic growth rate saw sequential
improvement from the second quarter onward. India saw significant
improvement in the fourth quarter versus the
nine-month stage with a mixed picture across the
rest of the region.