Dentsu Group Inc. has reported that it recorded a fall in its revenue for the just concluded second quarter while downgrading expected results for the full year.

On the other hand, the renowned agency recorded an organic net revenue decline of 4.7% for Q2.

It pointed out that the impact of the devastating challenge of client struggles in  technology and financial setbacks as some of the propelling factors dwindling the growth despite kicking off the year with a positive business outlook.

The company revealed that as a result of this trend, it is presently forecasting flat performance at best for the full year 2023 and up to a 2% decline in organic revenue.

Dentsu said it began  the year projecting 4% organic growth for 2023 but reduced that figure to between 1% and 2% at the end of the first quarter, adding that its shares were 3%  down in its earnings performance.

Optimistically, the firm indicated that H2 is expected to be the “trough” for this year’s organic revenue decline, with some pickup in the second half of the year, partly as a result of one-off events like the Rugby World Cup and easing comparables.

Hiroshi Igarashi, President and CEO, Dentsu Group Inc., noted that the second quarter performance reflects the continued impact of the slowdown in spend from clients in the technology and finance sectors

“We expect to see an improving trend in organic growth in the second half with our focus on delivering growth and measurable business results for our clients.As we look forward, we are confident in our positioning at the convergence of marketing, technology and consulting. Client pitches require ever-closer integration of our services and by accelerating our One dentsu philosophy and mindset we will encourage the collaboration required amongst our people to anticipate and exceed our clients’ expectations.”

The agency affirmed that both its media and customer transformation and technology practices witnessed a decline in some regions like the Americas due to reduced client spending and year-ago comparables. It noted that the consumer goods client sector was a relative bright spot.