Dentsu has confirmed it is considering replacing its CEO, Hiroshi Igarashi, as the Japan-based global advertising group prepares to announce more losses.
The Nikkei reported that dentsu is expected to record a huge loss for 2025, and set dividends at zero, and make a goodwill impairment related to its international business.
The company confirmed it is considering these matters, including a change in CEO.
“These items are scheduled to be submitted to the company’s board of directors to be held today,” dentsu said in a statement.
“Should the board determine any matters requiring disclosure, the company will make an announcement in a timely and appropriate manner.”
A proposal to record a 310.1 billion yen (AUD2.76 billion) goodwill impairment was to be submitted to the board.
"The company revised the assumption for impairment test, which is now set at a level where no further goodwill impairment losses are expected," dentsu said. "Accordingly, if this impairment is finalised, additional goodwill impairment losses in FY2026 and beyond will be limited."
Dentsu had been expected to announce its December quarter results today.
The Japan-based part of dentsu's business, making up 42% of net revenue, is doing well, but the international business has been tanking.
Japan saw organic growth at better than 5% in the September quarter.
All regions of the international business recorded negative organic growth rate for both the three months of the September quarter and the first nine months of the year.
That includes Australia, which continued to “face difficulties” and “continued to decline,” which is part of the APAC region which posted a 10.1% drop in growth.
Dentsu's search for buyers of its international business is reportedly close to collapse.
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