Dentsu Australia, after years of cutting roles and costs, has emerged in 2026 in a better position.
The Japan-based global advertising group has just changed global CEOs after posting December quarter results and announcing massive write-offs on the value of the international business.
Takeshi Sano, who replaced Hiroshi Igarashi as CEO, wants to be closer to clients.
He’s got rid of the global COO position that looked after the international business. Regional CEOs will now report directly to Sano.
The just released December quarter results show Australia, which had been loss-making since 2023, returning to profit on an underlying operating profit basis.
For the year, Australia was still in negative growth but 2026 will be a different story, insiders said.
“This turnaround was achieved through rigorous cost efficiency initiatives, including front office optimisation and compensation revisions,” dentsu CFO Shigeki Endo told analysts.
Rob Harvey, the new CEO for ANZ, is forecasting the local business will be in positive territory this year.
"We are excited by the new global leadership. Sano‑san has been hugely successful in Japan, and the early strategic direction he has outlined is strongly aligned to our focus in ANZ: simpler, more agile, client‑centric, and more connected," he told AdNews.
"2025 required real focus and hard work from our team in ANZ, and I’m deeply grateful for how our people showed up for each other and for the impact they delivered for our clients.
"That effort has helped shift our culture, lift engagement, renew partnerships with longstanding clients, spark new ones, and move the needle on our performance. With those foundations in place, we’re entering 2026 with confidence and momentum."
Dentsu’s local Australia business reported a loss of $63.9 million in the year to December 2024, a big improvement from the $483 million red ink the year before.
The company, after more role cuts and keeping a tight rein on costs, has narrowed its losses, according to documents lodged with corporate regulator ASIC.
But the Australian business still had a net asset deficiency of $295 million, and growing, and negative cash flow in “difficult” market conditions. However, the Japan parent is resetting finances.
And Harvey, the CEO in ANZ, brought in from New Zealand in August last year, is upbeat about 2026.’
“We've significantly turned around the operating profit performance of the business this year, resetting the foundations of the business,” Harvey told AdNews in December.
“I'm really optimistic about the commercial performance for the business.”
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