Robert Sawatzky
May 15, 2018

Digital revenues up, but profits down at Dentsu

Both Dentsu Inc and Dentsu Aegis Network are earning more from digital, but challenging markets, Japanese work reforms and planned investments weigh on Q1 profits.

Dentsu's Tokyo headquarters

Dentsu’s first-quarter revenues rose 5.7% from the same period last year, helped by new business wins at Dentsu Aegis Network DAN. Meanwhile, organic growth rose for the third straight quarter, by 2.1%. Digital's contribution to revenues continues to rise at both Dentsu Inc and DAN it now stands at 23% and 61%, respectively. That’s the good news.

Profits, however, remain under pressure in competitive markets that require continual investment, and underlying operating profit slid...

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