Additional Information


Content

Dentsu half-year profit up after sale of Bcom3 shares

TOKYO - Dentsu, the Japanese advertising giant, has said that net profit for the group rose by 82.5% for the first half of the year, but that the rise came from a one-off sale of shares in Bcom3.

Share this article

Dentsu recorded group net profit of £152.5m, compared with a figure of £83.5m for the same period the previous year.

The company, which is now a shareholder in Publicis Groupe since its merger with Bcom3 in September, had predicted a strong second half because of the boost in advertising provided by the World Cup.

However, corporate advertising spend fell, resulting in a 24.9% decline in pre-tax profit, excluding extraordinary items, to £123.2m.

Despite its stake in Publicis, Dentsu remains weak internationally with only 5% of revenues coming from its international business while it holds 25% of the Japanese market.

Part of its problem is a lack of an international network and the lack of visibility of the Dentsu name. In the UK, Dentsu owns CDP-travissully.

On the back of the sale of shares in Bcom3 to Publicis, Dentsu is expecting the one-off boost to help sales. It has raised its end of year forecasts to reflect this.

Dentsu acquired 15% of Publicis following the French group's acquisition of Bcom3. The Japanese agency had formerly held 20% of Bcom3.

If you have an opinion on this or any other issue raised on Brand Republic, join the debate in the Forum here.

Before commenting please read our rules for commenting on articles.

If you see a comment you find offensive, you can flag it as inappropriate. In the top right-hand corner of an individual comment, you will see 'flag as inappropriate'. Clicking this prompts us to review the comment. For further information see our rules for commenting on articles.

comments powered by Disqus

Additional Information

Latest jobs Jobs web feed

Back to top ^