Dentsu Q1 2016 Results warn of slower 2016 as Aegis growth stutters
Dentsu has reported gross profit growth of 7.2% in the first quarter of 2016, 5.4% at its operations in Japan and 9.2% at international business Dentsu Aegis network.
Claimed organic growth is 5.1%, good in comparison to its big marcoms rivals but a slowdown from last year.
Dentsu Aegis Network’s organic gross profit was 4.5% in Q1 2016, compared to 13.7% for the same period last year.
Since Dentsu bought Aegis for £3.6bn Aegis has put some much-needed impetus into its Japanese owner but life seems to be getting tougher at the media buyer. One of its biggest global accounts, Diageo, is reviewing its media and media clients across the board are trying desperately to cut costs. Dentsu is warning of slower full year growth this year.