Dentsu has upgraded its outlook for the year after posting a 9.1% lift in organic growth for the March quarter.
The result is in line with other global advertising groups — WPP, Omnicom, Publicis Groupe and Havas — reporting better than expected March quarter results.
The record high first quarter included Dentsu Japan Network reporting 10% organic growth and Dentsu International 8.4%.
The global advertising group’s Australia business reported 12% organic growth with continued recovery with new client wins across Media, CXM and Creative.
Dentsu now forecasts organic growth at 4% to 5% for the full year, upgraded from 4% announced in February, with Dentsu Japan Network at 2% to 3% and Dentsu International 5% to 6%.,
CEO Hiroshi Igarashi: “Dentsu Group has seen a strong start to the year with organic growth ahead of expectations as clients continue to invest in brand experiences informed by data and analytics.
“The changing macro impact from the Russia-Ukraine conflict, inflation, interest rates rises around the world, and the continued COVID-19 restrictions in China are well reported – however, we feel confident in our ability to deliver growth in 2022.
“As we continue to grow our net revenues in Customer Transformation & Technology the Group becomes more exposed to a faster growing area of our industry, allowing us to deliver a truly differentiated offer to our clients as we shift our business to a hybrid agency / consultancy.
“Our strengths in first-party data, combined with identity resolution, data management, marketing technology, data sciences, loyalty, CRM, personalization, and media/creative services, have created differentiation against an evolving competitive landscape.
“We have our sights set on becoming the market leader enabling and activating the total customer experience as we look to grow Customer Transformation & Technology to 50% of our Group net revenue over time.”
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