Dentsu Group grows global revenues in strong year of new business wins

Arvind Hickman
By Arvind Hickman | 14 February 2018

Dentsu Group has increased global revenue by 10.8% to ¥928.8 billion (A$10.6 billion) and lifted EBITDA by 5.4% in FY17.

In Australia, this included a “strong performance” in Q4 after a “weaker” Q2 and Q3, although the advertising giant wouldn't break down Australian figures.

Most of Dentsu's growth is through M&A and new business wins as the group reported flat (0.1%) organic gross operating profit.

The 2017 fiscal was a record year for net new business at Dentsu Aegis Network, winning an additional $4.04 billion in net media billings.

In 2017, Dentsu Aegis Network, the international arm of Dentsu Group, made a total of 31 acquisitions and investments helping to to accelerate its growth strategy. 

In the Asia-Pacific region, excluding Japan, Dentsu Aegis Network had an organic gross profit decline of 0.6% in 2017, however it reported growth of 2.6% the final quarter, indicating the business has recovered.


Its 2018, forecasts are for operating profit growth of 3.1% outside of Japan and profit decline of 18.4% within Japan.

“In FY2017, Dentsu Group delivered a resilient performance in a challenging market. Following the pull back in performance in Q2 FY2017, Dentsu Group achieved sequential quarter on quarter improvement in organic gross profit growth across the business,” Dentsu Inc. chief executive and president Toshiro Yamamoto said.

“Clients are looking for a more data-driven approach with greater insights and addressability. Dentsu in Japan continues to deliver against our digital ambitions and remains focused on our People Driven Marketing (PDM) initiative - an integrated framework which executes full-funnel marketing through the integration of on-line and off-line activities.”

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