TOKYO: Dentsu, the planet's fifth largest marketing agency group, suffered a 43.8% fall in net income in the half-year to September 30, posting $76.5 million (€61.04m; £51.06n) based on average exchange rates. Gross revenue at $1.48 billion was down by 5.7%.
The overwhelming majority (91%) of these revenues were generated in Japan.
Tokyo-headquartered Dentsu said its results were dragged down by weakening private consumption as consumers contend with price increases in gas, groceries and "daily necessities".
Added the spokesman: "Furthermore, corporate income decreased due to the effect of an increase in the cost of raw materials and disruption in the U.S. economy, which is causing uncertainty about the future.
"In the advertising industry as well, clients are remaining cautious with their advertising spending, and therefore difficulties in the business environment will continue."
The group's full-year forecast predicts that net income will drop 30.5% in the year to March 31, 2009, with a 5.4% decline in billings.
· Despite the dent in its bottom line, Dentsu confirms that the acquisition of New York agency McGarryBowen is still on course. The shop is America's 38th largest agency ranked by 2007 billings.
Data sourced from AdAge.com; additional content by WARC staff