New Delhi: Dentsu Group has witnessed a significant rebound in performance for the quarter ended June, recording organic revenue growth of 15 per cent. The Group has announced its results for the first half as well as the second quarter of 2021.
Dentsu Japan Network grew by 12 per cent while Dentsu International registered a growth of 17 per cent, showing strong sequential improvement over Q1 decline of 2.4 per cent.
“As we pass the anniversary of the start of the pandemic, revenues continue to recover across all regions with strong growth in digital solutions. Client confidence is restoring with spending levels more resilient and predictable,” said the group in its earnings statement. “Operating margin improvement continues to exceed expectations, substantially ahead of the prior year, with Q2 improving by 370 basis points year on year, showing the gearing effect of higher revenue together with cost reductions being implemented."
The Group expects high single-digit organic growth for FY2021, with a line of sight to delivering the long held 2022 margin targets of 20 per cent for Dentsu Japan Network and 15 per cent for Dentsu International one year early.
“Dentsu Group delivered a strong second quarter performance, reflecting the growing consumer and client confidence we see across all regions. Underlying profit growth continues to be strong, exceeding our expectations, and demonstrates our commitment to our margin targets,” said Dentsu Group Inc, CEO and president, Toshihiro Yamamoto.
APAC (excluding Japan) recorded a growth of 3.6 per cent. The APAC region reported double digit growth in the second quarter driven by double digit growth from Australia, Indonesia, South Korea, Singapore and Thailand. EMEA reported 8.7 per cent organic growth in H1, FY21, and 22 per cent in Q2, FY21.
“Whilst the future path of the pandemic remains uncertain, our full year guidance confirms our confidence in the outlook for the second half of FY2021, as well as our ability to meet our medium-term targets by 2024,” added Yamamoto.
