Dentsu reported a 4.7% drop in organic revenue in the June quarter as technology and finance clients turned cautious.
The Japan-based global advertising group now expects full year organic growth to be between zero and -2%, down from the 1%-2% guidance in May and 4% before that.
The company says the June quarter is expected to be the "trough" for organic growth.
Net revenue for the quarter was JPY 258.8 billion, down 0.1%.
The results were at the low end of the’ global holding company peers reporting June quarter results.
WPP also cut its full year revenue guidance, reporting slower than expected spending by its technology clients in the US.
Omnicom reported organic revenue growing 3.4% and Publicis Groupe 7.1%. Havas posted a 6.3% lift and IPG recorded a 1.7% drop.
Dentsu reported its Japan business returning to positive organic growth at 3.4%, despite high prior year comparables, with growth led by ISID and Dentsu Consulting.
Americas reported organic down 7.4%, EMEA dropped 12.7% and APAC (ex Japan) was 7% weaker.
Organic growth in Australia was said to be "less than" -5%.
CEO Hiroshi Igarashi says the company expects to see an improving trend in organic growth in the second half.
“As we look forward, we are confident in our positioning at the convergence of marketing, technology and consulting,” he says.
“Client pitches require ever-closer integration of our services and by accelerating our One dentsu philosophy and mindset we will encourage the collaboration required amongst our people to anticipate and exceed our clients’ expectations.
“The collective strength of our 72,000 employees brings dentsu its unique culture. Our ability to generate new ideas and innovate, by bringing together expertise and fostering creativity enables us to deliver integrated solutions that grow our clients’ businesses.”
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