Japan-based global advertising group Dentsu posted better than expected June quarter profit growth and increased its guidance for the full year.
Organic revenue growth saw a “significant rebound in performance” at 15% and the company expects high single digit organic growth for the 2021 financial year.
The results follow significant rises reported by other global advertising groups including Omnicom, WPP, IPG and Publicis.
Dentsu's second quarter jump contrasts to a negative 2.4% in the March quarter.
Organic growth for the six months to June was 5.4%.
June quarter organic growth was 12% at Dentsu Japan Network and 17% at Dentsu International.
The APAC region was driven by double digit growth from Australia, Indonesia, South Korea, Singapore and Thailand. Australia saw the expansion of a number of existing client relationships across service lines.
CEO Toshihiro Yamamoto says the strong second quarter performance reflects growing consumer and client confidence across all regions.
“Underlying profit growth continues to be strong, exceeding our expectations, and demonstrates our commitment to our margin targets,” he says.
“The greatest opportunity for brands today, as they build strategies to re-emerge from the pandemic, is customer experience transformation.
“Creating competitive differentiation through marketing strategies, supported by data, technology platforms, and analytics is where we see the greatest demand for our services.
“These services also transform our revenue profile, generating a higher level of recurring revenues through ongoing managed services whilst also transforming our ability to deliver services from lower cost locations.
“Whilst the future path of the pandemic remains uncertain, our full year guidance confirms our confidence in the outlook for the second half of FY2021, as well as our ability to meet our medium-term targets by 2024.”
The June quarter numbers:
And first half of 2021:
Have something to say on this? Share your views in the comments section below. Or if you have a news story or tip-off, drop us a line at adnews@yaffa.com.au
Sign up to the AdNews newsletter, like us on Facebook or follow us on Twitter for breaking stories and campaigns throughout the day.