Dentsu Group - Edison Group

Overview
Price performance
Financials
Research
Thematics

Dentsu Group operates in around 120 countries. It works with leading organisations to deliver experience transformation, through media, customer experience and creative services, and business transformation 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% (previously 4.3%) for FY26. The main uplift was 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

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TMT |
Update

18.11.24

Dentsu Group — Still fighting market headwinds

TMT |
Update

16.08.24

Dentsu Group — Positive momentum

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

Dentsu Group_resized

Sector

TMT

Equity Analyst

Fiona Orford-Williams

Fiona Orford-Williams

Director, TMT

Key Management

Hiroshi Igarashi

President & CEO
Sayako Fujimura

Head of IR
Yushin Soga

CFO

Balance Sheet

Forecast net debt (¥m)

187742

Forecast gearing ratio (%)

20

Share Price Performance

Price Performance
%	1M	3M	12M
Actual	(22.2)	(14.3)	(6.3)
Relative	(22.5)	(15.2)	(17.7)
52 week high/low	¥4861.0/¥3557.0

Financials

Dentsu posted Q324 organic net revenue growth of 0.3%, making a decline of 1.1% over the nine-month period. This is slightly below expectations at the half-year and, as the market for larger, transformational projects is still stagnant, management has trimmed full year organic revenue growth guidance to 0% (was 1%) and that for adjusted operating profit by 7%. There are positive elements to these figures, in particular continuing progress in Japan and good new business boosted by the ‘one dentsu’ initiative. The unveiling of the mid-term management plan has been delayed to February 2025, with the FY24 figures. Post the reaction to the Q3 figures, the shares now trade at a 10% discount to peers on EV/EBITDA.

Y/E Dec	Revenue (¥m)	EBITDA (¥m)	PBT (¥m)	EPS (fd) (¥)	P/E (x)	P/CF (x)
2022A	1246401.0	217519.0	187608.0	485.0	7.6	0.1
2023A	1304552.0	178127.0	151631.0	338.0	10.9	0.1
2024E	1400100.0	190189.0	151362.0	348.0	10.6	0.1
2025E	1440000.0	206086.0	165139.0	382.0	9.7	0.0

Research

Update

TMT

15.08.22

Dentsu Group — Edging forecasts to higher end of range

Update

TMT

18.05.22

Dentsu Group — Guidance edged up

TMT

Update

Dentsu Group — Solid Q3 and new One dentsu group structure

Update

TMT

15.02.22

Dentsu Group — Upgrade to organic growth guidance

Update

TMT

16.11.21

Dentsu Group — Strong Q3 lifts full-year guidance further

Update

TMT

16.08.21

Dentsu Group — Growth and margin progress ahead of plan

edison tv

TMT

01.07.21

ESG Conversation one: Dentsu

Update

TMT

18.05.21

Dentsu Group — Progressive quarterly improvements

edison tv

TMT

24.02.21

How is Dentsu International (4324:TYO) transforming as a global communications agency?

Initiation

TMT

23.02.21

Dentsu Group — Simplification to boost growth and margins

edison tv

TMT

28.01.21

Dentsu Group – executive interview

thematic

Consumer

21.11.23

Deutsches Eigenkapitalforum (EKF) 2023 consumer and media

thematic

TMT

21.11.23

Deutsches Eigenkapitalforum (EKF) 2023 technology

thematic

TMT

07.11.23

MediaWatch – Still waiting…

thematic

TMT

28.07.23

MediaWatch – Targeting the opportunities

thematic

TMT

25.04.23

MediaWatch – Vision On

Digital Marketing and Internet Media Technology Platform

thematic

TMT

31.01.23

MediaWatch – Screening well

thematic

Consumer

05.10.22

IPO apocalypse

thematic

TMT

10.08.22

ESG, moving beyond the box tick

thematic

TMT

11.05.22

Direct tech investors

thematic

TMT

21.04.22

Seven things every investor needs to know about SenSen

thematic

Consumer

24.03.22

Circular economy business models

thematic

TMT

29.09.21

Quantum dots – all the colours of the rainbow

thematic

TMT

09.09.21

Micro-LEDs – small is beautiful

thematic

TMT

14.07.21

Five things every investor needs to know about Mynaric

thematic

TMT

16.08.20

Semiconductor winners – European companies with strong positions

thematic

TMT

24.06.20

The small satellite market – Small is beautiful

thematic

TMT

08.04.20

European video games: A safe haven in troubled times

thematic

TMT

27.02.20

Blockchain adoption: Implications for the financial services sector

thematic

Consumer

14.08.19

Illuminator: August Update

thematic

TMT

05.08.19

European video games

thematic

TMT

10.07.19

Diversification and scale for online success

thematic

TMT

08.05.19

5G – Strategic importance, but lacking a near-term commercial driver

thematic

TMT

26.02.19

UK video games – Heterogeneous not homogeneous

thematic

TMT

24.02.17

Mobile ecosystems

thematic

TMT

08.02.17

Mobile ecosystems

thematic

TMT

13.10.15

Mobile ecosystems

thematic

TMT

23.03.15

NZ – Edison talks tech

thematic

TMT

23.03.15

AUS – Edison talks tech

thematic

TMT

18.03.15

Mobile ecosystems

thematic

Consumer

11.11.14

Deutsche Börse Eigenkapitalforum 2014 Research Guide

thematic

TMT

15.10.14

Mobile ecosystems

thematic

Energy & Resources

04.03.14

ASX Spotlight Conference – London, 6 March 2014

thematic

Energy & Resources

01.03.13

ASX Small to Mid Caps Conference – London, 7 March 2013

thematic

TMT

24.09.10

The third pillar

thematic

TMT

10.09.10

The real disruptor

thematic

TMT

27.08.10

Merger mania is back