Dentsu exceeds expectations, posts strong earnings
Dentsu International has released its earnings for 2021 which beat expectations with record net revenues, operating profits, and share dividend for the 2021 financial year, marking a welcome rebound from a $1.33bn loss in 2020.
The company’s operating profit was up 44% and organic growth grew by 13.1% leading Dentsu to offer a record dividend of JPY117.5 per share and a share buyback, up to JPY 40 billion in 2022.
Dentsu attributed the rise in fourth-quarter revenue to increased spending from existing clients as consumer confidence returns as the pandemic looks to be subsiding.
Looking ahead, the Dentsu Group forecasts organic growth at 4% for 2022, with Dentsu Japan Network at 2% to 3% and Dentsu International 4% to 5%.
CEO, Hiroshi Igarashi, said: “With the strong recovery in 2021 we will look forward in 2022 and beyond to unlock even more value within the Group, leveraging our competitive positioning, our strong product offering and the 65,000 talented individuals within the organization.”
Japan was Dentsu’s best performing market with organic growth up 17.9 percent, while APAC as a whole was up 4.7 percent despite a two percent decline in the Chinese market. The US grew by 10.6 percent and Europe, Middle East and Africa were up 11.1 percent.
Wendy Clark, the Global chief executive, Dentsu International, said in a statement: “2021 has been a defining year for Dentsu International, with positive performance and restoration of growth across all regions and all service lines, as well as achievement of our long-held operating profit margin target of 15 percent, one year ahead of plan.”
This performance is testament to the talent, focus and resilience of our people who delivered our topline growth through more than 4000 new business wins and expanded assignments with our largest clients. Today, 83 of our top 100 clients are now working with us across two or more service lines. At the same time, our transformation and cost restructuring efforts have delivered a 30 percent YOY improvement in our underlying profit.
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