The Dentsu Group has published its third quarter results and reports that the period has been ” solid ” in line with expectations, with an organic decline in revenue of -3.7%, impacted by the exceptionality of the previous year in Japan. Dentsu International reported organic growth of 5.4% , led by continued demand for digital experience services and customer-centric transformation. These Dentsu results show the impact of the Russian war, which was -4.7%. The structural growth area of Customer Transformation and Technology grew more than 20% (cc) in the first nine months, reaching 32.6% of the Group’s revenues, thanks to the demand for technology, data services and Activation through media remains strong.
The Group's operating margins
230 bps year-on-year , also affected by the comparables of the third quarter in Japan in fiscal 2021, but the Group’s margins remain 520 bps higher industry email list than those of fiscal 2019 thanks to the continued simplification and transformation that the Group has undertaken in the last three years. The Group today further announces the One dentsu leadership team , which will simplify the Group’s structure, enabling the business to foster agile decision-making, strategic focus and clarity across the board. the entire group, while promoting operational excellence in all functions. The global leadership team will ensure greater integration of the group’s diverse capabilities to deliver top-line growth to our clients while enabling the Dentsu Group to achieve sustainable corporate value growth.
Expectations for 2022
For fiscal 2022 , the group expects organic growth of between 4 and 5% , with expected margins of 18% excluding Russia. Assuming that the Caseno Data current exchange rates are maintained until the end of the year, the underlying core FY2022 EPS of 439.70 yen would increase by 10%. The group maintains its confidence in the group’s medium-term organic growth objectives of 4 to 5%, with 18% margins, with a dividend payout ratio of 35% for the financial year 2024. The Group today announces the cancellation of the 6.33% of the total shares outstanding.