Dentsu Group

Overview
Price performance
Financials
Research
Thematics

Dentsu Group is a holding company, operating in over 145 countries. It provides a wide range of client-centric integrated communications, media and digital services.

Dentsu’s May release of its global ad spend forecasts saw it lift current year projections from 4.6% to 5.0%, with 4.2% (unchanged) for FY25 and 4.2% (was 4.3%) for FY26. The main uplift is in digital ad spend, up from +6.5% to +7.4% for FY24, putting it just shy of 60% of the total ad spend pie. Across the forecast period through to 2026, ad spend is forecast to increase at a CAGR of 4.5%, led by digital at +6.7%.

Latest Insights

TMT |
Update

17.05.24

Dentsu Group — FY24 prospects weighted to H2

TMT |
Update

20.02.24

Dentsu Group — Return to organic growth forecast for FY24

TMT |
Update

17.11.23

Dentsu Group — One dentsu initiative set to improve efficiency

TMT |
Outlook

18.08.23

Dentsu Group — Set for a stronger H223

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Sector

TMT

Equity Analyst

Fiona Orford-Williams

Director, TMT

Milo Bussell

Analyst, Consumer and TMT

Key Management

Hiroshi Igarashi

President & CEO
Kate Stewart

IR director
Yushin Soga

CFO

Balance Sheet

Forecast net debt (¥m)

25700

Forecast gearing ratio (%)

Share Price Performance

Price Performance
%	1M	3M	12M
Actual	(1.2)	(0.8)	(12.8)
Relative	(3.3)	(1.6)	(29.7)
52 week high/low	¥4897.0/¥3586.0

Financials

Dentsu’s Q1 results indicated a slow start to the year, with organic net revenue down by 3.7%. However, prospects are improving, buoyed by new business wins and weighted to H2, which leave full year expectations (and our forecasts) unchanged. The One dentsu initiative, bringing together skill sets in consulting, technology, media and creative, is supporting improved pitch win rates, and giving greater coherence and consistency to the group product and service offering. We expect this to be a central element of the new management medium-term strategy, set to be unveiled during H2. The rating remains at a substantial discount to global peers, which we anticipate will narrow as evidence of renewed growth builds.

Y/E Dec	Revenue (¥m)	EBITDA (¥m)	PBT (¥m)	EPS (fd) (¥)	P/E (x)	P/CF (x)
2022A	1243883.0	217500.0	187589.0	485.0	8.3	0.1
2023A	1289301.0	175742.0	151315.0	337.0	12.0	0.1
2024E	1356700.0	203377.0	159804.0	380.0	10.6	0.1
2025E	1393000.0	218527.0	178741.0	403.0	10.0	0.0