Dentsu Leads Global Agency Pack With 80% Profits Leap

19 November 2004

Tokyo-headquartered agency titan Dentsu (number five in AdAge's global rankings) is numero uno in terms of percentage profits growth.

The Japanese network, whose reach extends across much of the globe, reported Thursday that its earnings for the half-year to September 30 rose by 80% on the comparable 2003 period.

Group net profit in rose to ¥12.24 billion ($117.43m; €90.46m; £63.43m) from ¥6.8bn in the same period a year earlier. Group revenue rose 13% to ¥923.44bn from ¥816.74bn, while operating profit soared 49% to ¥24.76bn.

Dentsu also reported that pretax profit at its holding company rose 35% to ¥25.2bn on a 12% growth in revenue. Results at its internet-advertising unit also grew strongly.

Japan's advertising sector is particularly sensitive to changes in corporate sentiment as ads are often a target of cost-cutting in an economic slump. Despite the fact that corporate sentiment in the nation has steadily improved in recent months, Dentsu expects group net profit for the full year to drop 14% to ¥26.59bn on revenues up 8.5% to ¥1.899 trillion.

Data sourced from Wall Street Journal Online; additional content by WARC staff