Dentsu has reported that organic revenue fell 3.5 per cent across its global agencies for the first quarter of 2021, while underlying profit grew 20.8 per cent.
The Tokyo-based holding company reported a 1.8 per cent decline in total revenue less cost of sales (LCOS) on a constant-currency basis. Topline revenue was ¥248.9 billion ($A2.93 billion).
Dentsu’s Australian operations are figured in its APAC numbers which experienced organic growth of 3.1 per cent from January through to March.
Underlying operating profit increased 20.8 per cent year on year to ¥44.9 billion yen ($A530 million), as underlying operating margins improved by 20.2 per cent.
Commenting on the result, Toshihiro Yamamoto (main photo), president and CEO of Dentsu Group, said: “Our first quarter results showed a continued progressive improvement in our organic performance despite the pre-COVID-19 comparators facing the Group for most of the quarter.
“Consumer and client confidence is returning, and this is reflected in the positive momentum in our revenue growth. Profit has been particularly strong, demonstrating our relentless focus on costs and commitment to growing our margins.
“We are tracking ahead of many of our internal targets and demonstrating that we are prepared to take unprecedented action to transform our service to clients and give returns to shareholders. This includes radical rationalisation of brands and divestment of assets,” Yamamoto said.
