The World: Tokyo - Dentsu announces 11 per cent increase in profits

Dentsu's profits grew by 11 per cent to £63.7 million for the half year up to 30 September.

The Japanese communications giant, led by its president, Tatsuyoshi Takashima, said the figure had been boosted by investment in Asian ad businesses and gains from investments in affiliates.

The company blamed a revenue drop of 3.6 per cent on the ongoing uncertainty about the Japanese economy. It said sluggish salary growth and worries about pensions had inhibited consumer spending and resulted in a consumption slowdown.

Dentsu acknowledged that the figures were not as positive as they had been for a similar period in 2006 when its fortunes had been boosted by events such as the World Cup.