Dentsu Group reported a tough H1 FY2025, with strong Japan growth overshadowed by overseas struggles, leading to a ¥73.6 bn net loss and suspension of its interim dividend.
Japan delivered record-high net revenue of ¥236.7 bn (+5.1% organic growth) and ¥58.3 bn profit, but international markets dragged results. Revenues fell in the Americas (–1.6%), EMEA (–2.4%), and APAC ex-Japan (–8.9%), prompting an ¥860 bn goodwill impairment.
Key results: net revenue ¥562.0 bn (–2.1% YoY), underlying profit ¥67.5 bn (+7.2%), statutory operating loss –¥36.5 bn, net loss –¥73.6 bn. Debt improved to ¥190.2 bn, with leverage at 0.98x.
Full-year outlook was cut to flat organic growth and ¥63 bn profit, with a ¥52 bn cost-saving plan and 8% headcount reduction underway. Dentsu is also investing ¥45 bn in data, AI, and media platforms while expanding sports, entertainment, and anime solutions globally.
Despite headwinds, Dentsu secured new mandates (BMW, Dollar General, ServiceNow) and creative accolades, including 26 Cannes Lions. It also strengthened ESG standing with MSCI “A” rating and FTSE Russell improvements.