Dentsu posted a record 14.4% rise in net revenue for 2022 and organic growth of 4.1%, driven by demand for customer transformation and technology services.
Organic revenue slowed in the December quarter to 3.5%.
The global advertising group forecasts organic growth 4% in 2023, with underlying operating margins at 17.5%.
The forecast is within the range of industry analysts who note a slowing in growth this year following a surge post lockdowns of the pandemic.
Dentsu says clients remain focused on growth, investing in technology, data and media to enable business expansion.
And the outlook for client spend remains “solid” in 2023.
The Australia and New Zealand business, despite economic headwinds, delivered revenue growth in 2022 of 5%.
This was supported by the strength of the Media business and growth in New Zealand.
CEO Hiroshi Igarashi: “In 2022 Dentsu reported record high net revenues, record underlying operating profit, a record underlying basic EPS and a record dividend per share at JPY 155.
“Our transformation continues to deliver a simplified organisation with a focused strategy of growing revenues in the structural growth area of our industry, Customer Transformation & Technology.
“The future of brand loyalty and competitive advantage is the customer experience. To deliver against this, brands must continue to invest and keep pace with an ever-changing marketplace – and ever-growing consumer expectations.
“Together with our clients, Dentsu delivers a shared vision for how these investments will translate to customer value. Our unmatched skills in understanding consumer insights combined with strengths in consulting, creative, media, analytics, data, identity, CX/commerce, technology and loyalty ensure we can deliver growth for our clients through our integrated solutions.
Dentsu set a vision of ‘To be at the forefront of people-centred transformations that shape society.’ To realise this vision, we have already established a diverse Group Management Team and started to operate our business under one global management structure.
“In 2023 and ahead, we remain focused on the opportunity to further consolidate and strengthen our competitive position at the convergence of marketing, technology and consulting.”]
The 2022 numbers:
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