Dentsu Jul-Sept quarter performance down 12.5% as APAC poor show continues

Dentsu posted a mixed performance for the September quarter of 2025, with modest topline pressure but a sharp turnaround in operating profitability. 

Revenue for the three months ended September fell 4.3 per cent to 330,412 million yen from 345,205 million yen a year earlier. Net revenue inched up 1.7 per cent to 289,338 million yen compared with 284,461 million yen. The group reported organic growth of 1.4 per cent, supported primarily by stronger momentum in its home market.

Japan remained the strongest performer in the portfolio. Net revenue rose 10 per cent to 120,765 million yen from 109,868 million yen, reflecting organic growth of 9.9 per cent versus 2.8 per cent last year. 

The Americas declined 5.7 per cent to 76,708 million yen from 81,324 million yen, with organic growth at negative 3.4 per cent compared with negative 3.1 per cent a year earlier. 

The EMEA region reported a 3.1 per cent rise in net revenue to 66,990 million yen from 64,938 million yen, though organic growth slipped to negative 1.1 per cent from positive 6.9 per cent. 

APAC continued to face the sharpest pressure, with net revenue falling 12.6 per cent to 23,157 million yen from 26,506 million yen, reflecting a deeper organic decline of 12.5 per cent compared with 11.6 per cent.

Operating profit surged to 29,098 million yen from 3,169 million yen, reversing last year’s weak base. Profit before interest and tax increased to 30,045 million yen from 3,470 million yen.

Profit before tax swung sharply to 24,339 million yen in 2025 from a loss of 2,810 million yen a year earlier. 

Profit attributable to non-controlling interests stood at 1,596 million yen versus 1,638 million yen in 2024.

Nine months ended

For the nine months ended September 30, 2025, revenue stood at 1,014,316 million yen compared with 1,026,142 million yen in the previous year. Cost of sales rose to 162,983 million yen from 160,084 million yen, pulling net revenue down to 851,332 million yen from 866,057 million yen.

Selling, general and administrative expenses eased to 758,675 million yen from 793,450 million yen. 

Business transformation cost jumped to 12,732 million yen from 2,375 million yen. Impairment loss rose sharply to 86,606 million yen from 18,932 million yen. 

Other income increased to 966 million yen from 692 million yen, while other expenses fell significantly to 1,732 million yen from 23,091 million yen.

As a result, operating performance swung into a loss of 7,447 million yen compared with an operating profit of 28,900 million yen last year.

Profit before interest and tax turned to a loss of 4,581 million yen from a profit of 30,571 million yen. 

The company posted a loss before tax of 19,035 million yen compared with a profit of 17,859 million yen last year.

Income tax expense rose sharply to 36,520 million yen from 10,048 million yen. The period closed with a net loss of 55,555 million yen versus a profit of 7,811 million yen a year earlier.