Dentsu hit by 4.2% fall in European net sales
Dentsu's European operation made up less than 1% of the Japanese group's net sales for the April-December period last year, after a 4.2% year-on-year fall in net sales.
Net sales (a figure equivalent to billings) in Europe for the final nine months of 2011 totalled 11.1bn yen (£90m).
Worldwide gross profit (equivalent to revenue) rose 2.7% year on year to 234.7bn yen (£1.91bn) and net income surged 52.4% to 13.3bn yen (£108.1m).
Dentsu has historically struggled to diversify beyond its home market, which accounted for 88% of its 1.36trn yen net sales in the same period.
Although the contribution of its overseas divisions has been hampered by a strengthening yen, Dentsu made better progress in America, where net sales increased 28.6% to 60m yen.
For its latest push into Europe, Dentsu hired RKCR/Y&R founder Jim Kelly to lead as regional director in 2009, after rebranding its UK agency CDP as Dentsu London.
Follow Daniel Farey-Jones on Twitter @danfareyjones
This article was first published on campaignlive.co.uk
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