Dentsu reports revenue growth at home and abroad

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TOKYO, Thursday: Dentsu Inc has experienced significant global revenue growth – however, the company also reports declines in underlying profit, citing investments in work reforms and global systems.

The group reported 8% growth in revenue less cost of sales (on a constant-currency basis) and 4.4% organic growth, compared with the first nine months of 2017, according to a report in Campaign Asia Pacific.

The site says Dentsu’s Japan business delivered 4.1% revenue growth thanks to an increase in digital-related services, favorable results in subsidiaries and new business wins.

Meanwhile, Dentsu Aegis Network recorded 10.8% revenue growth on a constant-currency basis and 4.6% organically.

Revenue was 272.7 billion yen (US$2.39 billion), while DAN’s revenue figure came in at 396 billion yen (US$3.48 billion).

However, the company said underlying operating profit declined 4% (on a constant-currency basis), declining 1.4% in Japan and 10.5% internationally, compared to the first three quarters of last year. The company pinned the decline on “planned investments in the working environment reforms” in Japan and investments in global platforms and systems at the DAN level.

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