According to Dentsu’s results for the second quarter, the combined group made a loss before income taxes and minority interests of 412 million Yen in the second quarter, down from income of 10.26 billion a year earlier.
In the three months to 30 June 2013 Dentsu reported an operating loss of 717 million Yen, down from an operating income of 9.57 billion Yen a year earlier.
Dentsu said the consolidated billings and gross profit in the first and third quarters (three months to 30 June and three months to 31 December respectively) tend to be lower than the second and fourth quarters (three months to 30 September and three months to 31 March), but the amounts assigned to goodwill and intangible assets are amortized in equal proportions each quarter.
Operating income before amortization of goodwill and intangible assets came to 10.03 million Yen, a decrease of 4.9 per cent year on year. This includes the amortization of goodwill incurred through acquisitions, including Aegis, and other intangible assets.
Dentsu’s net sales were 514.23 billion Japanese Yen in the three months to 30 June 2013, up 14.9 per cent year on year.
In a statement, Dentsu said in the three months to 30 June, the global economy remained uncertain due to concerns about the prolonged European government debt crisis, as well as the slowdown in economic growth seen in China.
However, Dentsu said economic recovery was "picking up steam" in the US and measures taken by the Japanese government had weakened the Yen, with higher stock prices contributing to improving business and consumer confidence.
Trading in the three months to the end of June were in line with expectations and so Dentsu continues to expect revenues to rise by around 65.3 per cent across the fiscal year (from 1 April 2013 to 31 March 2014), with operating income to be largely flat.