TOKYO: Dentsu, the Japanese advertising group, has revised its profit forecast for the twelve months to the end of March, slashing its previous income predictions by two-thirds to ¥6.5bn ($71m; €55m; £49m), with net revenues also set to fall by 5.4% to ¥1,427 billion.

This seems to confirm estimates made earlier this year that the Japanese advertising market is set to contract by around 2.3% at current prices during 2009.

A statement issued by the company reported that one of the main factors behind the decision was "the increasingly cautious approach to advertising spending of its clients in response to the steep downturn in the economy."

Other factors Dentsu identified behind the decline include a loss incurred after a "revaluation of securities" at the end of last year, during the third quarter of the company's financial year.

Data sourced from Dentsu; additional content by WARC staff