Dentsu expects its ANZ business, which has recorded three years of negative numbers and had to ask its parent company for an injection of capital, to return to organic growth by the end of this year.
The Japan-based global advertising group, releasing March quarter results, said it expects low-single-digit growth in ANZ through various business “transformations”.
Overall, the company posted 0.8% organic growth in the March quarter, with a positive 4.7% in Japan, negative 7.5% in APAC and negative 3% in the Americas.
The exact fall in Australia isn’t known but it was double digits.
Dentsu now forecasts overall underlying net profit for the full year to December to be down -8.9%.
The company, according to papers lodged with the March quarter financials, said it had reshaped the CXM (customer experience management) business in ANZ and will divest certain parts of it, with resulting savings in overheads of more than $22 million.
“It will also create room to reduce function costs related to the business," dentsu said.
“Within our CXM business, its Experience, Commerce, and Data & Technology capabilities will not be divested and will be integrated into the Media and Creative businesses.”
Dentsu had already announced the consolidation of media business brands, ending the separate operation of its Carat and iProspect brands locally.
“These measures will enable cross-functional collaboration across media, creative, and data, creating a structure capable of delivering the best possible services to our clients,” dentsu said.
Rob Harvey, chief executive officer of dentsu ANZ, has said the restructure was designed to sharpen accountability and scale.
"This is a confident, strategic decision, driven by a belief that a simpler, more focused business is a stronger one,” he said.
“Uniting our media capability under a single brand creates clearer accountability, greater scale and a more compelling proposition for clients. It's the right structure for where dentsu is heading, and the right move for the Australian market."
Dentsu, recording extraordinary losses and failing to hit forecasts, early this year changed global CEOs after writing down the value of its international business by billions of dollars.
CEO Hiroshi Igarashi resigned to be replaced by Takeshi Sano, the CEO of dentsu Japan, where he has delivered growth year after year.
Losses at dentsu Australia widened in 2025, despite substantial cuts to staff costs, but its Japan based parent is still financial supporting operations here.
According to financial statements lodged with corporate regulator ASIC, dentsu Australia had revenue of $196 million in 2025.
However, the company still posted a loss of $76.9 million in 2025, up from $63.9 million the year before.
Staff costs were down in 21% to $148.2 million in 2025, from $187.6 million the year before.
The company received a $100 million injection from its parent in September last year, repaying some borrowings. m
Dentsu numbers for the March quarter 2026:
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