Global advertising group dentsu reported 2021 full year results ahead of guidance, with operating profit up 44% and organic growth of 13.1%.
The Japan-based group announced a record dividend of JPY117.5 per share and a share buyback, up to JPY 40 billion in 2022.
Dentsu says fourth quarter revenue came in ahead of expectations due to increased spend from existing clients with consumer confidence growing as the effects of the pandemic subside.
The Dentsu Group forecasts organic growth at 4% for 2022, with Dentsu Japan Network at 2% to 3% and Dentsu International 4% to 5%.
CEO Hiroshi Igarashi: “With the strong recovery in 2021 we will look forward in 2022 and beyond to unlock even more value within the Group, leveraging our competitive positioning, our strong product offering and the 65,000 talented individuals within the organisation.”
Growth in Australia was 12.1% for the 12 months and 20% in the December quarter.
Dentsu: “The Australian market saw good growth across all three service lines as the impact from the refreshed management team is beginning to show, with Q4 growing over 20%.”
Hiroshi Igarashi: ”This performance is testament to the return to growth in our industry, the cyclical recovery in advertising as well as continued investment clients are making in commerce & experience.
“We remain confident in the long term growth outlook for the Group and upgrade our medium term targets.
“In the structural growth area of Customer Transformation & Technology we see a long period of investment as our clients look to understand their customers better than ever.
“The greatest opportunity for brands today, as they build strategies for re-emergence from the COVID 19driven recession, is customer experience transformation.
“This is the transformation of a company into a market leader through the implementation of a customer centred strategy and infrastructure.
“In order to capture this opportunity, we announce a JPY 250 to 300 bn investment fund for the years 2022: 2024. This acquisition fund will be spent growing our exposure to Customer Transformation & Technology – our aim is to reach 50% of our revenue (LCoS) from Customer Transformation & Technology over time.
“This reflects our vision of where the future growth in the industry lies: data, technology integrated with creativity and innovation to deliver top line growth for our clients.”
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