Dentsu Group is a holding company with two operational networks: Dentsu Japan Network (DJN) and Dentsu International (DI). Operating in over 145 countries, Dentsu Group provides a wide range of client-centric integrated communications, media and digital services.
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Dentsu has edged up its FY22 guidance for organic growth to a range of 4–5%, from 4% previously, following a strong Q122 performance, particularly at Dentsu International (DI). Customer Transformation & Technology (CT&T) continues to build, accounting for 31.5% of group net revenues in the period. Management remains confident of a good runway of growth. Group operating margin rose from 20.2% in Q121 to 21.2%, up 140bps at constant currency. FY22 guidance remains for a 17.7% operating margin, implying some circumspection on costs for the remainder of the year.
Y/E Dec |
Revenue (¥m) |
EBITDA (¥m) |
PBT (¥m) |
EPS (fd) (¥) |
P/E (x) |
P/CF (x) |
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2020A | 939243.0 | 90063.0 | 123470.0 | 249.0 | 17.9 | N/A |
2021A | 1085592.0 | 195006.0 | 146021.0 | 389.0 | 11.5 | 0.0 |
2022E | 1225000.0 | 207128.0 | 168635.0 | 414.0 | 10.8 | 0.1 |
2023E | 1275000.0 | 214528.0 | 176604.0 | 445.0 | 10.0 | 0.1 |
Industry outlook
In January, Dentsu lifted its global ad spend forecast to +9.2% for FY22, following a better-than-anticipated recovery in FY21, with further gains of +4.6% for FY23 and +5.8% for FY24 pencilled in. Digital spend is set to account for 55.5% of global ad spend in FY22, with linear TV the next largest media, making up 26.9% of global spend. The Japanese ad market still lags the digital transition curve, with TV prominent, but faster growth in digital will improve digital’s share of spend to 41.1% in FY21, still well below the global share.
Last updated on 24/05/2022Content on Dentsu Group















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Forecast net cash (¥m) | 160747 |
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Kate Stewart | IR director |