Dentsu Inc. Announces Consolidated Financial Results for the First Quarter of the Fiscal Year Ending December 2016 (IFRS)
Dentsu Inc. announced its consolidated financial results for the first quarter of the fiscal year ending December 2016 (January 1, 2016 to March 31, 2016) on May 16.
<Consolidated Results>
For the Group's performance during this first quarter, domestic operations saw gross profit reach ¥99,308 million (up 5.4% year-on-year), partly due to contributions from sponsorship sales for the Tokyo 2020 Olympic and Paralympic Games. Regarding overseas operations, the organic growth rate of gross profit by region was as follows: EMEA (Europe, Middle East, and Africa) increased 10.7% compared to the same period last year, Americas decreased 2.0%, and APAC (Asia-Pacific, excluding Japan) increased 5.2%. Overall, the decline in Americas was offset by growth in EMEA and APAC, resulting in a 4.5% increase. Overseas gross profit increased by 0.9% year-on-year to ¥87,702 million, primarily due to fluctuations in foreign exchange rates caused by the strong yen.
As a result, revenue for the first quarter consolidated cumulative period was ¥199,542 million (up 0.7% compared to the same period last year*1), gross profit was ¥186,990 million (up 3.2%), adjusted operating profit*2 was ¥35,769 million (up 6.3%), Operating profit was ¥31,796 million (up 44.7% year-on-year). Adjusted quarterly profit attributable to owners of the parent company*³ was ¥21,552 million (up 2.6% year-on-year), and quarterly profit attributable to owners of the parent company was ¥17,215 million (up 64.6% year-on-year).
<Reportable Segment Performance>
a. Domestic Business
Gross profit for Domestic Operations was ¥99,308 million (up 5.4% year-on-year), and adjusted operating profit was ¥33,218 million (up 19.8% year-on-year).
b. Overseas Business
Gross profit for Overseas Operations was ¥87,702 million (up 0.9% year-on-year), and adjusted operating profit was ¥2,545 million (down 56.9% year-on-year).
<Non-consolidated Results>
The company's non-consolidated results (Japanese GAAP) showed net sales of ¥436,019 million (up 7.9% year-on-year), gross profit of ¥66,927 million (up 9.3%), operating profit of ¥23,440 million (up 42.1%), ordinary profit was ¥45,674 million (up 140.4% YoY), and quarterly net profit was ¥37,994 million (up 417.8% YoY).
＜Consolidated Earnings Forecast for Fiscal Year2016＞
The full-year (January 1, 2016 to December 31, 2016) earnings forecast announced on February 15, 2016 was primarily revised based on recent yen appreciation trends, reflecting adjustments to the exchange rate assumptions. For details, refer to the consolidated results for the first quarter cumulative period.
*1 The same period of the previous year corresponds to the same period of the previous fiscal year (January 1, 2015 to March 31, 2015) for the first quarter cumulative period (January 1, 2016 to March 31, 2016). For the same period of the previous year, the consolidated period for the Company and consolidated subsidiaries with a March fiscal year-end was January 1, 2015 to March 31, 2015. For consolidated subsidiaries with a December fiscal year-end, the same period was used as the consolidated period.
※2 Adjusted operating profit is a profit metric measuring the performance of ongoing operations, derived by excluding from operating profit the amortization of intangible assets related to acquisitions, M&A-related expenses, impairment losses, and gains/losses on the sale of fixed assets, among other temporary factors.
※3 Adjusted quarterly profit attributable to owners of the parent is an indicator measuring recurring profit attributable to owners of the parent, derived by excluding from quarterly profit: adjustments related to operating profit, earn-out obligations, revaluation gains/losses on acquisition-related put options, and the related tax equivalents and non-controlling interest equivalents.
Was this article helpful?
Share this article
