Dentsu Sees Q2 Revenue Increase From Client Wins, World Cup Advertising

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dentsuDentsu reported steady quarterly earnings Tuesday both in Japan and abroad. The Japanese holding company saw Q2 revenue rise to $1.3 billion, a 9.8% increase YoY.

The company saw 10.6% organic growth in Europe, the Middle East and Africa, 4.7% in the Americas and 14.8% in Asia-Pacific.

The modest growth was driven by new client wins within the Dentsu Aegis Network and a boost in advertising revenue, aided in part by the FIFA World Cup.

Income from advertising hit about $5 billion, a 4.8% increase from the same period last year. Television beat out all other Dentsu business-sector categories by a landslide, at 51.4% of total business. Creative business came in second, at 13%.

Although interactive media only accounted for 4.6% of total business, the sector saw the highest percentage of growth – an impressive 19.3% YoY and a potential signal of the ad world’s digital evolution.

Dentsu is also looking to tap opportunities in India. At the end of July, Dentsu acquired a majority stake in Milsetone Brandcom, India's largest out-of-home company. The buy came just before rumors swirled in early August that the holdings company planned to expand its sports ventures in India.

“Over $18 billion will be invested in sports marketing in Southeast Asia this year, up 4.4% from the previous year,” the Economic Times reported in early August. “Of this, $12 billion is being spent on sports sponsorship.” As interest in sports grows in the region, so too will opportunities for marketers.

Looking forward for the year in full, the firm forecasted a 4.9% revenue gain, which would total about $6.1 billion.

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