This article was published on August 3, 2012

Japanese ad giant Dentsu’s Q2 2012: Profits up 350% year-on-year to $74.16 million


Japanese ad giant Dentsu’s Q2 2012: Profits up 350% year-on-year to $74.16 million

Japanese advertising giant Dentsu has announced its earnings for the second quarter of 2012, posting net sales of $5.72 billion (447.4 billion Yen) and net income of $74.16 million (5.8 billion Yen), up 11.3 percent and 349.8 percent year on year respectively.

That huge income increase comes just over a year after last summer’s tragedy in Japan, which effectively shout the country down for a considerable period of time. Dentsu says the results show “a gradual recovery” from the impact of the disastrous earthquake and the government’s focus on eco-friendly programs, such as an eco-car subsidy.

The company does, however, note that Europe’s debt crisis, the global economic slowdown and issues with the Yen all leave its situation “uncertain” for the time being.

The global ad giant had a busy last quarter. Key highlights from the three month period saw it expand its operations into Southeast Asia, with the opening of an office in Singapore, and notably strike a deal to buy British advertising giant Aegis for $5 billion.

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The Aegis deal is still going through but the UK firm has since expanded its own business in Asia. The company snapped up Chinese ad agency Catch Stone for $86 million last month, strengthening its presence in the Middle Kingdom.

The full financials and geographical breakdown are below:

The Group posted consolidated billings (net sales) of 447,469 million yen, an increase of 11.3% compared with the same period of the previous fiscal year; gross profit of 76,481 million yen, an increase of 12.2%; operating income of 9,571 million yen, an increase of 126.4%; and ordinary income of 11,497 million yen, an increase of 78.9%. The Group recorded net income of 5,886 million yen, an increase of 349.8%, for the three months ended June 30, 2012.

Looking at the results by geographic segment, net sales of 391,517 million yen, an increase of 11.4% compared with the same period of the previous fiscal year, and operating income of 8,843 million yen, an increase of 128.9%, were posted in Japan. In other countries, net sales of 58,532 million yen, an increase of 10.3% compared with the same period of the previous fiscal year, and operating income of 590 million yen, an increase of 27.0%, were posted.

Image via Wall Street Journal

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