Dentsu Group sees organic growth uptick in India in Q2 after long period of underperformance

New Delhi: Dentsu Group's Q2 2024 earnings report highlighted a rebound in positive organic growth across all practices in India, following a prolonged period of underperformance, as client losses have stabilised.

It wrote in its Q2 earnings report, “There are some encouraging signs, including positive organic growth in all practices in India after a long period of underperformance, as client loss has bottomed out.”

The advertising network’s APAC Q2 organic revenue stood at -6.2% versus 7.1% Q1 degrowth. Last year, Denstu reported -7% organic revenue in Q2. Its H1 organic revenue was down by 6.6% in APAC. 

The APAC region added 9% to the overall revenue of Dentsu in the first half of the year 2024. 

In the second half of the year, Dentsu will focus on strengthening cross-selling across the APAC region as it rolls out the One Dentsu strategy and continue to expect results to be in line with initial forecasts.

Throwing light on the overall H1 revenue performance, it wrote, “Approximately half of this is due to the impact of internal realignment of revenues—highlighted last quarter—and this impact will continue for the rest of this year. The revenue realignment supports our simplified structure under One dentsu.” 

Having said that, Dentsu Group returned to growth in the second quarter, reporting an improvement of 0.2% organic revenues YoY. 

“The second quarter showed continued sequential quarterly improvement driven by a higher client pitch win rate across all four regions year to date. The One Dentsu strategy is driving the improvement in client wins as the group operates as a unified global network,” it said. 

Dentsu’s total net revenue from CT&T (Customer Transformation and Technology) is reported at 29% of Group net revenues in H1 FY2024. 

For the record, last year, Harsha Razdan, CEO, South Asia at dentsu, told BestMediaInfo.com that the agency’s overarching global objective is to have 50% of the business generated from CX by 2030. 

“My specific aim is to realise this goal in India by 2026, capitalising on the abundant growth opportunities prevalent in the region,” he said in the interview. 

Three years after the amalgamation of its creative agencies into a unified creative network, recently, Dentsu Creative opted to reintroduce Webchutney and Isobar – distinguished as a creative and a digital interactive agency, respectively – as distinct portfolio brands.

Dentsu Creative India now encompasses three portfolio brands: Dentsu Creative Webchutney, Dentsu Creative Isobar, and Dentsu Creative PR.