Dentsu Group (TYO: 4324)

Last close As at 19/06/2024

JPY3,946.00

30.00 (0.77%)

Market capitalisation

JPY1,066,072m

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 should benefit from structural tailwinds as companies invest in optimising their responses to the increasing demands of their own customers, although short-term economic uncertainty has slowed the sales cycle for larger projects across the industry. Dentsu’s December update on forecast global ad spend indicated growth of 4.6% for FY24, 4.2% for FY25 and 4.3% for FY26 pencilled in. Digital spend is estimated at 59% of FY24 global ad spend, from 58% in FY23.

Latest Insights

View More
Dentsu Group_resized

Sector

TMT

Equity Analyst

Fiona Orford-Williams

Fiona Orford-Williams

Director, TMT

Milo Bussell

Analyst, Consumer and TMT

Key Management

  • Hiroshi Igarashi

    President & CEO

  • Kate Stewart

    IR director

  • Yushin Soga

    CFO

Balance Sheet

Forecast net debt (¥m)

25700

Forecast gearing ratio (%)

3

Share Price Performance

Price Performance
% 1M 3M 12M
Actual (4.8) (4.6) (15.1)
Relative (3.7) (4.3) (28.1)
52 week high/low ¥4897.0/¥3586.0

Financials

Dentsu’s Q1 results indicate a slow start to the year, with organic net revenue down by 3.7%. However, prospects are improving, buoyed by new business wins and weighted to H2, which leave full year expectations (and our forecasts) unchanged. The One dentsu initiative, bringing together skill sets in consulting, technology, media and creative, is supporting improved pitch win rates, and giving greater coherence and consistency to the group product and service offering. We expect this to be a central element of the new management medium-term strategy, set to be unveiled during H2. The rating remains at a substantial discount to global peers, which we anticipate will narrow as evidence of renewed growth builds.

Y/E Dec Revenue (¥m) EBITDA (¥m) PBT (¥m) EPS (fd) (¥) P/E (x) P/CF (x)
2022A 1243883.0 217500.0 187589.0 485.0 8.1 0.1
2023A 1289301.0 175742.0 151315.0 337.0 11.7 0.1
2024E 1356700.0 203377.0 159804.0 380.0 10.4 0.0
2025E 1393000.0 218527.0 178741.0 403.0 9.8 0.0

thematic

TMT

MediaWatch – Still waiting…

thematic

TMT

MediaWatch – Targeting the opportunities

thematic

TMT

MediaWatch – Vision On

Digital Marketing and Internet Media Technology Platform

thematic

TMT

MediaWatch – Screening well

thematic

Consumer

IPO apocalypse

thematic

TMT

ESG, moving beyond the box tick

thematic

TMT

Direct tech investors

thematic

Consumer

Circular economy business models

thematic

TMT

Quantum dots – all the colours of the rainbow

thematic

TMT

Micro-LEDs – small is beautiful

thematic

Consumer

Illuminator: August Update

thematic

TMT

European video games

thematic

TMT

Diversification and scale for online success

thematic

TMT

UK video games – Heterogeneous not homogeneous

thematic

TMT

Mobile ecosystems

thematic

TMT

Mobile ecosystems

thematic

TMT

Mobile ecosystems

thematic

TMT

NZ – Edison talks tech

thematic

TMT

AUS – Edison talks tech

thematic

TMT

Mobile ecosystems

thematic

Consumer

Deutsche Börse Eigenkapitalforum 2014 Research Guide

thematic

TMT

Mobile ecosystems

thematic

Energy & Resources

ASX Spotlight Conference – London, 6 March 2014

thematic

Energy & Resources

ASX Small to Mid Caps Conference – London, 7 March 2013

thematic

TMT

The third pillar

thematic

TMT

The real disruptor

thematic

TMT

Merger mania is back