Japan's Dentsu Group reported a strong June quarter with organic growth of 8.2% and is confident of its prospects for the rest of the year.
The Japan network grew 7.9% and Dentsu International 8.4% as the company reported clients continuing to invest in brands, supported by technology, data and digital solutions to enhance their strategies.
The global advertising group now expects full year organic growth at the upper end of 4% to 5%. Dentsu announced a record interim dividend of 70.25 yen per share, up 39%.
Australia reported organic growth of 8%, benefiting from growing scope in gaming supported by CXM and media with strong pipeline conversion.
Dentsu joins WPP, Havas, Publicis, Omnicom, and IPG in posting better than expected June quarter results.
CEO Hiroshi Igarash: “Whilst the macro-outlook may remain uncertain, we enter the second half of the year with confidence.
“Our improved revenue mix, our deep client relationships, strong balance sheet underpinned by the transformation the Group has undertaken over the past two years positions us well for the future."
He says the strategy of growing our revenues in the fast growth area of our industry, Customer Transformation & Technology, brings a number of benefits - transforming the client offer, revenue profile and cost structure.
“We retain our ambition of generating 50% of our net revenues from this structural growth area as we shift our business to a hybrid agency / consultancy,” says Igarash.
All the numbers:
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