David Blecken
Nov 15, 2016

Dentsu sees healthy international growth, domestic business slows

Dentsu Group has posted total organic gross profit growth of 2.7 percent for the third quarter of 2016.

Tadashii Ishii, president and CEO, Dentsu Inc
Tadashii Ishii, president and CEO, Dentsu Inc

TOKYO - Dentsu Aegis Network grew 5.2 percent overall in the third quarter, and by 5.3 percent in Asia-Pacific. The figures are down from 6.6 percent and 9.3 percent, respectively, in 2015.

In Japan, Dentsu saw growth of 0.3 percent, down from 1.4 percent for the same period last year. Total organic gross profit for Japan and across Dentsu Aegis Network for the first nine months of 2016 stood at 5.7 percent.

Dentsu attributed its Japan growth in part to sponsorship sales around the Tokyo 2020 Olympic and Paralympic Games.

Dentsu made 27 acquisitions and investments in the first nine months of 2016. They include Merkle Group, the largest independent CRM agency in the US. Gross profit from digital businesses stood at 35.5 percent—19.7 percent in Japan and 50.5 percent across Dentsu Aegis Network. Dentsu Aegis Network aims to be 100 percent digital by 2020.

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