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.

Dentsu: 2011 work for client Tetley by Dentsu London
Dentsu: 2011 work for client Tetley by Dentsu London

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.

America grew faster than the company’s operations in China, up 12.5% to 51.2m yen.

Dentsu Europe bulked up in June last year with the acquisition of digital agency Steak.

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


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