Dentsu reported flat organic growth at just 0.3% but managed to lift profit and its operating margin on the back of cost cutting and restructuring.
Net revenue was up 3.7% to ¥583,068 million in the half year to June, underlying operating profit was 6.6% higher at ¥71,982 million, helped by the sale of the Dentsu Ginza Building, and the operating margin was 12.3%, up 30 basis points.
The company said about 3,000 roles, representing 88% of a planned 3,400 headcount reduction, have been cut.
The Japan-based global advertising group is forecasting full year revenue up 3.9% and underlying operating profit down 3.6%.
Japan recorded organic growth of 5%, the Americas fell 5% and APAC was down 3.8% with Australia, China, and Taiwan posting falls.
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