{"id":1334,"date":"2023-11-14T12:48:12","date_gmt":"2023-11-14T12:48:12","guid":{"rendered":"https:\/\/mediafusedentsu.com\/?p=1334"},"modified":"2024-02-28T09:28:05","modified_gmt":"2024-02-28T09:28:05","slug":"dentsu-group-inc-q3-fy2023-consolidated-financial-results","status":"publish","type":"post","link":"https:\/\/mediafusedentsu.com\/?p=1334","title":{"rendered":"Dentsu Group Inc. Q3 FY2023 Consolidated Financial Results"},"content":{"rendered":"\n<p><\/p>\n\n\n\n<p><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>The Group continues with the implementation of One dentsu to address clients\u2019 needs for<br>agility and integration of capabilities. As a unified global network, dentsu will partner with<br>clients to deliver Integrated Growth Solutions centered in the convergence of Marketing,<br>Technology &amp; Consulting.<\/strong><\/li>\n\n\n\n<li><strong>Q3 FY2023 net revenue* +1.6% year-on-year (yoy), organic revenue decline* of -6.0%.<\/strong><\/li>\n\n\n\n<li><strong>Q3 performance impacted by the continued reduction in spend from technology and finance<br>clients; international markets experienced delays of larger transformational projects within<br>CT&amp;T, with the sales cycle remaining extended. CT&amp;T in Japan remains strong.<\/strong><\/li>\n\n\n\n<li><strong>Q3 operating margin 13.5% -180bp yoy. Cost mitigation continues to be enacted to reduce<br>the impact of the revenue declines. The third quarter margin was impacted by further<br>charges within the DACH cluster, excluding these charges, the Q3 FY2023 margin would<br>have been flat yoy.<\/strong><\/li>\n\n\n\n<li><strong>The Group revises FY2023 guidance: organic growth c.-5% with no change expected to client<br>spending in the fourth quarter. FY2023 operating margins guided to c.13.5% as the Group<br>anticipates additional costs in the fourth quarter relating to business simplification, to<br>streamline the cost base as the Group enters 2024.<\/strong><\/li>\n\n\n\n<li><strong>The Board has accelerated the dividend payout ratio for FY2023 to its long-term target of<br>35%, one year ahead of schedule, recognizing the importance of shareholder returns. The<br>FY2023 dividend is guided at JPY 137 per share.<\/strong><\/li>\n\n\n\n<li><br>Customer Transformation &amp; Technology (CT&amp;T) revenues reached 33% of Group revenues. In Japan,<br>CT&amp;T continued to report double digit growth driven by strong performances in Dentsu Digital and<br>Dentsu Consulting. Internationally, the lengthening of the sales cycle impacted the EMEA and APAC<br>regions, while the US CT&amp;T market saw revenue stabilization.<\/li>\n\n\n\n<li><br>The acquisition of Tag added market-leading capabilities and is yielding early results, with integration<br>ahead of schedule. Tag and dentsu\u2019s integrated offer of digital personalized, real-time content at-scale<br>has resulted in a number of client wins across sectors including health &amp; beverages.<\/li>\n\n\n\n<li><br>Integrated Growth Solutions at the convergence of Marketing, Technology, and Consulting remain at<br>the heart of dentsu\u2019s competitive strategy. The Americas has accelerated the implementation of One<br>dentsu, with the integrated client leadership model resulting in a 50% higher client pitch win rate. The<br>One dentsu model provides optimism and confidence around strategy, client offering and execution to<br>return the Group to growth.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"","protected":false},"author":3,"featured_media":1335,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[1,14],"tags":[18],"class_list":["post-1334","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog","category-latest","tag-mediafuse-dentsu-dentsu-nigeria"],"_links":{"self":[{"href":"https:\/\/mediafusedentsu.com\/index.php?rest_route=\/wp\/v2\/posts\/1334","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/mediafusedentsu.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mediafusedentsu.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mediafusedentsu.com\/index.php?rest_route=\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/mediafusedentsu.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1334"}],"version-history":[{"count":0,"href":"https:\/\/mediafusedentsu.com\/index.php?rest_route=\/wp\/v2\/posts\/1334\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mediafusedentsu.com\/index.php?rest_route=\/wp\/v2\/media\/1335"}],"wp:attachment":[{"href":"https:\/\/mediafusedentsu.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1334"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mediafusedentsu.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1334"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mediafusedentsu.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1334"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}