Dentsu Aegis Network’s (DAN) Asia-Pacific results have recovered in Q2 of 2018, including a “strong result” in Australia.
The network reported 0.8% organic growth in APAC this quarter after a 2.9% decline in the Q1.
Total quarterly revenue for the Dentsu Group, which includes DAN and Dentsu Inc in Japan, grew by 11.6% YoY to ¥239,546 million (A$2.98 billion).
Revenue for the first half of 2018 was up 8.1% to ¥445,739 million, with an operating profit of ¥40,533 million.
"We continue to build our own momentum in a market which remains challenging," Dentsu Group president and CEO Toshihiro Yamamoto said.
“2017 and 2018 have seen internal investment for both Dentsu in Japan and our international business, Dentsu Aegis Network. Investments have left the group in a stronger position, more efficient and more streamlined.
“By leveraging our enhanced infrastructure, we intend to grow the businesses in 2019 and 2020. At the same time, for the Dentsu Group, the term marks a vital phase for the transformation of our entire group businesses toward 2020 and beyond.”
Yamamoto said the group would undergo a review of its governance structure that will enable the holding group to make “more unified and cross-sectional decisions within a set of shared values”.
In other words, a structure that allows greater regional alignment, rather than restrictions currently in place within each operating company.
Dentsu Aegis Network’s APAC region (aside from Dentsu Japan) saw a return to growth, although China is still in decline.
“India posted double-digit organic growth in the second quarter and Australia showed a strong result,” the announcement stated.
Dentsu said new business wins have tracked behind last year, although the pitch pipeline is healthy and 10% larger than this time last year with over 85% offensive.
In Australia, DAN recently defended the Disney and Microsoft accounts and picked up Beacon Lighting.
Dentsu X picked up Jaguar Land Rover but lost the Federal Government, which was its largest account.
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