Japanese agency giant Dentsu has warned its net profits for the present fiscal year will not meet expectations, after the prolonged slump in the nation’s ad industry hit revenues.

At the time of its initial public offering in November, the agency group predicted sales of Y1.81 trillion ($59.4 billion; €67.8bn; £41.7bn) and net profits of Y30.5bn for the twelve months to the end of March. However, it expects to miss its profit targets by as much as Y30bn.

Dentsu – which is backing Publicis Groupe’s acquisition of Bcom3 Group – saw sales fall 15.2% year-on-year in January and 7.5% in February. However, it is hoping for a boost of up to Y70bn in revenues arising from the soccer World Cup, to be held in Japan and South Korea in May and June.

The profits warning pushed the ad giant’s stock down 7.5% to Y711,000, though this is still 169% higher than its IPO price of Y420,000.

Data sourced from: AdAgeGlobal.com; additional content by WARC staff