Dentsu India records 10% organic growth between January-September 2022

Dentsu’s India business has reported over 10% organic growth between January and September 2022. Overall, the APAC region, excluding Japan, grew by 2.7% and contributed 10% to the net revenue of Dentsu, between January and September 2022. 

The advertising company said that the growth in India was mainly “driven by new client wins and increased scope from existing media clients”.

Including the impact of the Russian business, the Group's organic revenue decline in Q3 was 4.7%.

Group operating margins were reduced to 14.7% from 23.5% in Q3FY23, while net profits are down 27.6%. 

Group’s net revenue rose 7.7% to Y275.41 billion.

Dentsu’s overall operating profit in Q3 was Y40.4 billion, down by 32.8% in comparison to the previous year. 

The group still expects to see 4-5% organic growth for the year overall, with an 18% operating margin; its margin for the nine months to September was 17.7%.

While Dentsu’s India business performed well, the APAC region saw an organic revenue decline of 1.1% (excluding Japan) in the third quarter due to the continued impact of the Covid-19 pandemic in China. The Q3 FY21 revenue growth of the APAC region was 7.6%. In Q2 FY22, the APAC region revenue growth stood at 4.5% (excluding Japan).

In a press statement, Dentsu added, “CXM grew double-digit across the region and the outlook for growth remains strong. The South East Asian cluster continues to perform well with both Indonesia and Taiwan growing in high single digits.” 

Recently, the APAC leadership team was strengthened with the appointment of Rob Gilby as CEO of the region.

Customer Transformation and Technology is Dentsu’s fastest-growing segment contributing 32.6% of revenue to the Group. 

Hiroshi Igarashi, President and CEO, Dentsu Group Inc., said, “The nine-month results delivered a strong performance across all service areas, despite results impacted by exceptional prior year comparables in Q3 2021. Dentsu Japan Network was flat at the nine-month stage, while Dentsu International delivered 7.6% (ex-Russia) organic growth.”

He further said, “Whilst the macro-outlook may remain uncertain, our improved revenue mix, our deep client relationships, and strong balance sheet underpinned by the transformation the Group has undertaken over the past two years positions us well for the future. As always, I would like to express my deep gratitude to all our talented individuals across the Group for their continued dedication to our clients and to Dentsu Group.”

Dentsu Group has announced an integrated leadership team to drive its global business forward from FY2023. The creation of a new global management structure follows dentsu’s intention to integrate Dentsu International and Dentsu Japan Network into a single dentsu organisation around the world from January 1, 2023.

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