Dentsu restructures, names new chairman, records Q3 growth
Dentsu Group has announced the restructuring and promotion of Hiroshi Igarashi as the new President and CEO, while reporting a strong set of numbers for the third quarter of its financial year, as improved business sentiment helped boost performance of both its Japan and international businesses in this period.
For Q3, the world’s fifth largest ad network reported its revenue increased by 29.7% on year and operating profit by almost 161%. The change in leadership comes as the Group plans to build on its current momentum and lead it into the next phase of growth.
As part of its business transformation, the network announced that that after five years as CEO, Toshihiro Yamamoto will retire from the role, effective January 1, 2022 while Hiroshi Igarashi will be the President and also named long-time executive Tim Andree its chairman, marking the first time the 120-year-old Tokyo-based agency holding company and media conglomerate has been chaired by someone who is not Japanese.
Andree, a former professional basketball player, as well as former head of marketing and communications at the National Basketball Association (NBA), joined Dentsu in 2006 as CEO of Dentsu America, went on to serve as the first president-CEO of Dentsu Network West, and was a key player in the acquisition and integration of Aegis Group plc in 2013, which ultimately formed the basis for what it’s consolidated global media operations, now branded Dentsu International.
Meanwhile, Yamamoto, who has led the Group for five years, said his retirement is timely as it comes following its diversification, including the completion of Merkle’s integration; the pivot to data, insights, and consumer intelligence; and the transformation of the business and a return to growth.
His words: “We exist to realise a better society by contributing to the growth of our clients, partners, people, and all consumers. These changes are designed to strengthen governance and advance the reforms and transformation that dentsu has established, to achieve sustainable growth and increase corporate value for the agency. I am confident that under the Group’s new leadership, our people, our clients, and our business will enter a new and exciting chapter of change.”
Igarashi, currently executive officer at dentsu Japan network, and president and CEO of dentsu, said he was delighted and honoured to be appointed to the role and carry forward the strong legacy of an iconic global company with roots in Japan.
“We have a wonderful opportunity to continue building business in partnership with our clients, powered by our unique dentsu blend of creativity, innovation, and customer-centricity.”
Yamamoto will retire from his roles effective after approval at the Annual General Shareholders’ Meeting next March. Also effective from 1 January next year, Igarashi will become representative director, in addition to his executive roles of president and CEO. Meanwhile, the management of dentsu international will remain under the leadership of Wendy Clark, global CEO at dentsu international.
Additionally, dentsu promoted Michael Komasinski to the role of global CEO at Merkle, and a member of the dentsu international executive team, last month. In his new role, Komasinki reports to Clark, He replaces Craig Dempster, who will retire from the business at the end of the year.
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