Dentsu Inc. Announces Consolidated Results for the First Quarter of the Fiscal Year Ending March 2015

Dentsu Inc. announced its consolidated and non-consolidated financial results for the first quarter of the fiscal year ending March 2015 (April 1, 2014 to June 30, 2014).

<Consolidated Results>
For the first quarter consolidated cumulative period, net sales were ¥538,256 million (up 4.7% year-on-year), gross profit was ¥134,916 million (up 9.8%), and operating profit before amortization of goodwill and other items was ¥12,062 million (up 20.2%). Seasonally, the first quarter cumulative period typically shows lower sales and gross profit compared to other quarters. Additionally, amortization of goodwill and similar items is recorded evenly. Consequently, operating loss was ¥153 million (compared to an operating loss of ¥717 million in the same period last year). However, increased equity method investment income, and a decrease in interest expense resulted in ordinary income of ¥3,463 million (up 138.8% year-on-year) and a net loss of ¥735 million (compared to a net loss of ¥3,698 million in the same period last year). Operating profit before amortization of goodwill, etc., is calculated by adding back the amortization of goodwill arising from acquisitions (including the acquisition of Aegis) and the amortization of other intangible fixed assets to the accounting operating profit.

<Non-consolidated Results>
For the first quarter of the current fiscal year, non-consolidated results showed net sales of ¥356,896 million (up 1.9% year-on-year), gross profit of ¥50,243 million (up 4.9%), and operating profit of ¥9,854 million (up 22.3%). Ordinary income was ¥26,979 million (up 73.2% YoY), and net income was ¥22,514 million (up 112.0% YoY), partly due to the recognition of approximately ¥8.1 billion in dividends from consolidated subsidiary Dentsu Holdings USA, Inc. as non-operating income.

＜Full-Year Consolidated Earnings Forecast＞
Consolidated results for the first quarter cumulative period were largely in line with expectations. Therefore, the earnings forecasts for the second quarter cumulative period and full year, announced on May 13, 2014, remain unchanged.

＜Upward Revision of Full-Year Non-Consolidated Forecast＞
Non-consolidated performance for the first quarter cumulative period included approximately ¥8.1 billion in dividends from consolidated subsidiary Dentsu Holdings USA, Inc. recorded as non-operating income. Consequently, the performance forecasts for the second quarter cumulative period and full year announced on May 13, 2014, have been revised. For the first half, ordinary income is revised upward from ¥28.9 billion to ¥37.0 billion, and net income from ¥17.2 billion to ¥25.2 billion. For the full year, ordinary income is revised upward from ¥61.0 billion to ¥69.1 billion, and net income from ¥35.0 billion to ¥43.0 billion.

Details of consolidated and non-consolidated results for the first quarter cumulative period
http://www.dentsu.co.jp/ir/

Dentsu Inc. News Release
http://www.dentsu.co.jp/news/release/2014/0812-003800.html