Dentsu cuts revenue and profit forecasts for 2017

Dentsu has amended its revenue and profit forecasts for the fiscal year ending 31 December, reducing its revenue forecast by 45.5 billion yen (US$414.2 million) and its operating profit forecast by 15 billion yen ($136.6 million). 

The advertising giant now forecasts revenue of 933 billion yen (US$8.4 billion), down from 978.5 billion yen ($8.9 billion).

Dentsu expects operating profit of 136.5 billion yen ($1.24 billion), down from its original guidance of 151.5 billion yen ($1.38 billion). However, the company has revised its net profit forecast slightly upwards, to 86.8 billion yen ($789.5 million) from 86.6 billion yen ($787.7 million).

In a statement, Dentsu attributed the reductions to the decision by clients in major sectors such as consumer packaged goods to reassess global marketing spend. This will particularly impact gross profit of overseas business, Dentsu said.