Dentsu Group (TYO: 4324)

Currency in JPY

Last close As at 06/12/2023


45.00 (1.18%)

Market capitalisation


Dentsu Group is a holding company, operating in over 145 countries. It provides a wide range of client-centric integrated communications, media and digital services.

Customer Transformation and Technology benefits from structural tailwinds as companies invest in optimising their responses to the increasing demands of their own customers, although short-term economic uncertainty is slowing the sales cycle for larger projects across the industry, particularly for clients in the tech sector. Dentsu’s latest FY23 global ad spend forecast is +3.3%, with 4.7% for FY24 and 3.8% for FY25 pencilled in. Digital spend is forecast at 58% of FY23 global ad spend, with the growth rate slowing.

Latest Insights

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Dentsu Group — Set for a stronger H223

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Dentsu Group_resized



Equity Analyst

Fiona Orford-Williams

Fiona Orford-Williams

Director, TMT

Milo Bussell

Associate Analyst, Consumer and Media

Max Hayes

Max Hayes

Associate Analyst

Key Management

  • Hiroshi Igarashi

    President & CEO

  • Kate Stewart

    IR director

  • Nick Priday


Balance Sheet

Forecast net debt (¥m)


Forecast gearing ratio (%)


Share Price Performance

Price Performance
% 1M 3M 12M
Actual (14.0) (14.8) (8.0)
Relative (14.7) (13.5) (23.5)
52 week high/low ¥4960.0/¥3819.0


Dentsu’s Q323 trading update described demanding trading conditions with continuing spending constraint from customers in technology and finance, and ongoing delays to larger digital transformation projects. Full year organic revenue guidance was revised to -5% (from 0% to -2%), with an operating margin of 13.5%, depressed by one-off factors from 15.0%. The outlook is improving, albeit patchily, and initiatives to streamline the business and structure it more effectively to meet client needs should benefit the operating margin in FY24. We have pencilled in an improvement to 15.4%, which may prove overly cautious, dependent on the timing of improvement in demand levels.

Y/E Dec Revenue (¥m) EBITDA (¥m) PBT (¥m) EPS (fd) (¥) P/E (x) P/CF (x)
2021A 1085592.0 196917.0 146020.0 390.0 9.9 0.0
2022A 1243883.0 216831.0 186478.0 482.0 8.0 0.1
2023E 1260700.0 204177.0 121851.0 333.0 11.6 0.1
2024E 1316000.0 233361.0 162870.0 433.0 8.9 0.0




MediaWatch – November 2023: Still waiting…



MediaWatch – July 2023

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