Major advertising company Dentsu Group's interim results showed a significant decline in operating income, which indicates profits from its core business, due to factors such as a review of the valuation of its local business following Russia's military invasion of Ukraine, and the recording of a loss.
The Dentsu Group announced on the 12th that the financial results for the entire group for the six months up to June this year showed that revenue equivalent to sales was 576 billion yen, an increase of 16% from the same period of the previous year. Profits decreased by 20% to 66.7 billion yen.
Although the advertising business in Japan and the service business overseas performed well, a loss of 15.1 billion yen was recorded due to a review of the evaluation of the Russian joint venture following the military invasion of Ukraine. .
The company is preparing to transfer the shares of the joint venture in the future.
CFO Arinobu Soga said at a press conference, "With the exception of Russia, our overseas business has grown very stably, and the overall impact is very limited."
In addition, the Tokyo District Public Prosecutor's Office special investigation department has been investigating a case in which the company of a former director of the Tokyo Olympic and Paralympic Organizing Committee is believed to have received a large amount of funds from the sponsor of the tournament, AOKI Holdings. Regarding the reception, CFO Soga said, "As a company, we are fully cooperating with the investigation by the Tokyo District Public Prosecutors Office. At the moment, we are not aware of the possibility or concern that the investigation itself will affect this term's performance." said.