The Dentsu Group enters its first operating deficit since listing.
The Dentsu Group, a major advertising company, has revised its earnings forecast for the past year for the past year due to sluggish overseas business, and is expected to fall into the red for the first time since listing.
According to the announcement, the Dentsu Group revised its operating income forecast for the year to December last year to a deficit of 3.3 billion yen, reversing the previous forecast of a profit of 60.9 billion yen.
This was due to the loss of large customers in Australia, the expansion of businesses that do not pass through advertising companies in China, and the intensification of competition with local advertising companies, resulting in sluggish overseas business. The main reason is to post losses.
This is the third time that the Dentsu Group has revised down its business results last year, and it is the first time that the business has been in the red since its listing in 2001.
In addition, the company has revised its final profit and loss from a forecast of 6.2 billion yen in the past to a deficit of 80.8 billion yen, and is expected to be the largest final loss since listing.