- The Group continues with the implementation of One dentsu to address clients’ needs for
agility and integration of capabilities. As a unified global network, dentsu will partner with
clients to deliver Integrated Growth Solutions centered in the convergence of Marketing,
Technology & Consulting. - Q3 FY2023 net revenue* +1.6% year-on-year (yoy), organic revenue decline* of -6.0%.
- Q3 performance impacted by the continued reduction in spend from technology and finance
clients; international markets experienced delays of larger transformational projects within
CT&T, with the sales cycle remaining extended. CT&T in Japan remains strong. - Q3 operating margin 13.5% -180bp yoy. Cost mitigation continues to be enacted to reduce
the impact of the revenue declines. The third quarter margin was impacted by further
charges within the DACH cluster, excluding these charges, the Q3 FY2023 margin would
have been flat yoy. - The Group revises FY2023 guidance: organic growth c.-5% with no change expected to client
spending in the fourth quarter. FY2023 operating margins guided to c.13.5% as the Group
anticipates additional costs in the fourth quarter relating to business simplification, to
streamline the cost base as the Group enters 2024. - The Board has accelerated the dividend payout ratio for FY2023 to its long-term target of
35%, one year ahead of schedule, recognizing the importance of shareholder returns. The
FY2023 dividend is guided at JPY 137 per share.
Customer Transformation & Technology (CT&T) revenues reached 33% of Group revenues. In Japan,
CT&T continued to report double digit growth driven by strong performances in Dentsu Digital and
Dentsu Consulting. Internationally, the lengthening of the sales cycle impacted the EMEA and APAC
regions, while the US CT&T market saw revenue stabilization.
The acquisition of Tag added market-leading capabilities and is yielding early results, with integration
ahead of schedule. Tag and dentsu’s integrated offer of digital personalized, real-time content at-scale
has resulted in a number of client wins across sectors including health & beverages.
Integrated Growth Solutions at the convergence of Marketing, Technology, and Consulting remain at
the heart of dentsu’s competitive strategy. The Americas has accelerated the implementation of One
dentsu, with the integrated client leadership model resulting in a 50% higher client pitch win rate. The
One dentsu model provides optimism and confidence around strategy, client offering and execution to
return the Group to growth.