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.
CT&T benefits from structural tailwinds as companies look to invest to optimise to meet the demands of their own customers, a process which may even accelerate as economic pressures become more pronounced. Dentsu’s latest global ad spend forecast is +3.8% for FY23, revised down from +5.4%, with 4.8% for FY24 and 4.5% for FY25 pencilled in. Digital spend is forecast at 57% of FY23 global ad spend. The Japanese ad market still lags the digital transition curve, with a digital share of 49%, and with TV remaining prominent at 26%.
Hiroshi Igarashi
President & CEO
Kate Stewart
IR director
Forecast net cash (¥m)
131257
Forecast gearing ratio (%)
N/A
% | 1M | 3M | 12M |
---|---|---|---|
Actual | (2.4) | (11.9) | (2.7) |
Relative | (6.1) | (13.0) | (4.1) |
52 week high/low | ¥5020.0/¥3965.0 |
Dentsu has restructured from 1 January 2023, removing the distinction between Dentsu Japan Network and Dentsu International. The reconfigured global management team reflects the group’s increasing diversity and includes the first non-Japanese CFO. Q322 results showed an organic net revenue decline of 3.7% (-4.7% including Russia), reflecting a particularly tough comparative with Q321 in Japan. This masks continuing good progress in building revenues from Customer Transformation & Technology (CT&T), which grew over 20% and now constitutes 32.6% of group revenues. A further small CT&T acquisition in Australia was made in December.
Y/E Dec | Revenue (¥m) | EBITDA (¥m) | PBT (¥m) | EPS (fd) (¥) | P/E (x) | P/CF (x) |
---|---|---|---|---|---|---|
2020A | 939242.0 | 91013.0 | 123471.0 | 249.0 | 16.2 | N/A |
2021A | 1085592.0 | 226326.0 | 146020.0 | 389.0 | 10.4 | 0.0 |
2022E | 1240000.0 | 221152.0 | 172461.0 | 437.0 | 9.3 | 0.1 |
2023E | 1264862.0 | 219840.0 | 172569.0 | 457.0 | 8.9 | 0.1 |
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