Note: This website was automatically translated, so some terms or nuances may not be completely accurate.
Dentsu Inc. Announces Consolidated Financial Results (IFRS) for Fiscal Year Ended December 2016
The text of the Dentsu Inc. news release distributed on February 14 is as follows.
February 14, 2017
Notice Regarding Consolidated Financial Results (IFRS) for the Fiscal Year Ended December 2016 and Dividend Distribution
― Dentsu Inc. Reports Increased Revenue and Profit for Fiscal 2016 ―
Revenue: ¥838.3 billion (up 2.4% compared to the same period last year*¹),
Gross Profit: ¥789.0 billion (up 3.5%),
Operating Profit: ¥137.6 billion (up 7.4%),
Net income (attributable to owners of the parent): ¥83.5 billion (up 0.5% YoY),
Adjusted operating income*2: ¥166.5 billion (up 3.8% YoY),
Adjusted net income*3 (attributable to owners of the parent): ¥112.9 billion (down 0.4% YoY)
Dentsu Inc. (Head Office: Minato-ku, Tokyo; Representative Director, Vice President and Executive Officer: Shoichi Nakamoto; Capital: ¥74,609.81 million) held a Board of Directors meeting today at the Dentsu Head Office Building in Shiodome, Tokyo, and finalized its consolidated financial results for the cumulative period ending December 2016 (hereinafter "the current period").
<Financial Results Overview>
In 2016, the Japanese economy showed signs of weakness in some areas due to the strong yen and weak stock market since the beginning of the year. However, it continued on a moderate recovery path, supported by improvements in employment and income conditions. Globally, while the U.S. economy remained robust, the overall outlook lacked strength due to issues such as the UK's Brexit, renewed financial instability in Europe, and slowing growth in emerging economies, particularly China.
Carat, our overseas media communications agency, announced its 2016 (calendar year) global advertising expenditure growth forecast in September 2016. It projected a 4.4% year-on-year increase. By region, Japan was forecast to grow by 1.8%, Europe, the Middle East, and Africa (EMEA) at 3.0%, the Americas at 5.5%, and Asia-Pacific (excluding Japan; APAC) at 4.8%.
Under these conditions, the Group's performance for the current period (January 1, 2016 to December 31, 2016) showed robust gross profit of ¥363,242 million (a 4.3% increase compared to the same period last year) for domestic operations. This was driven by improvements in Dentsu Inc.'s gross profit margin and contributions from domestic Group companies. The organic growth rate of gross profit for overseas operations increased by 5.7% year-on-year. By region, EMEA grew by 6.9%, Americas by 3.1%, and APAC by 7.9%, achieving positive growth in all regions. Excluding foreign exchange effects, gross profit for overseas operations increased by 18.1% year-on-year.
◇Consolidated Results
As a result, revenue for the period was ¥838,359 million (up 2.4% year-on-year), gross profit was ¥789,043 million (up 3.5%), adjusted operating profit was ¥166,565 million (up 3.8%), Operating profit was ¥137,681 million (up 7.4% year-on-year). Adjusted net income attributable to owners of the parent was ¥112,972 million (down 0.4% year-on-year). Net income attributable to owners of the parent was ¥83,501 million (up 0.5% year-on-year).
*1 The same period of the previous year refers to the corresponding period of the previous year (January 1, 2015 to December 31, 2015) for the current period (January 1, 2016 to December 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 December 31, 2015, and for consolidated subsidiaries with a December fiscal year-end, it was the same period.
※2 Adjusted operating profit excludes from operating profit: amortization of intangible assets related to acquisitions, M&A-related expenses, impairment losses, and gains/losses on the sale of fixed assets.
※3 Adjusted net income attributable to owners of the parent is an indicator measuring the recurring profit or loss attributable to owners of the parent. It excludes items affecting operating income, earn-out obligations, revaluation gains or losses on acquisition-related put options, the tax equivalent related to these items, and the non-controlling interest share of gains or losses.
The performance of the reporting segments for the current period is as follows.
Domestic Business
Gross profit was ¥363,242 million (up 4.3% year-on-year), and adjusted operating profit was ¥97,362 million (up 7.7% year-on-year).
Overseas Business
Due to the yen's appreciation against foreign currencies, gross profit was ¥426,014 million, an increase of only 2.9% compared to the same period last year. Adjusted operating profit was ¥69,059 million (a decrease of 1.6% compared to the same period last year).
(Reference: Scope of Consolidated Financial Statements)
The scope of consolidated financial statements includes 844 consolidated subsidiaries and 64 equity-method affiliates. The breakdown by reporting segment is as follows: for consolidated subsidiaries, 83 domestic and 761 overseas; for equity-method affiliates, 33 domestic and 31 overseas.
For detailed results for the current period, please visit http://www.dentsu.co.jp/ir /.
◇Non-consolidated Performance
The Company's non-consolidated results (Japanese GAAP) were as follows: Net sales were ¥1,600,196 million (up 2.6% year-on-year), gross profit was ¥234,846 million (up 3.6%), operating profit was ¥64,736 million (up 15.3%), ordinary profit was ¥97,131 million (up 17.3%), and net profit was ¥91,962 million (up 51.0%).
＜Consolidated Earnings Forecast for Fiscal Year 2017 (January 1, 2017 to December 31, 2017)＞
Our group's Carat forecasts global advertising expenditure growth for 2017 (calendar year) at 4.0% year-on-year. By region, it projects Japan at 1.2% growth, EMEA at 2.9% growth, Americas at 4.5% growth, and APAC at 5.5% growth.
Under these conditions, the Group forecasts consolidated performance for the next fiscal year as follows: Revenue of ¥978.5 billion (up 16.7% year-on-year), Gross Profit of ¥929.5 billion (up 17.8%), Adjusted Operating Profit of ¥168.9 billion (up 1.4%), operating profit of ¥151.5 billion (up 10.0%), and net income attributable to owners of the parent of ¥86.6 billion (up 3.7%).
For domestic operations, we anticipate a decrease in both revenue and profit in fiscal 2017 to advance labor environment reforms.
<Dividend from Surplus>
After careful consideration, taking into account the current period's performance, future performance outlook, and financial position, the current period dividend will be ¥85 per share (comprising an interim dividend of ¥40 and a year-end dividend of ¥45).
Furthermore, the dividend for the next fiscal year is planned to be ¥90 per share (comprising an interim dividend of ¥45 and a year-end dividend of ¥45).
End
Dentsu Inc. News Release
http://www.dentsu.co.jp/news/release/2017/0214-009163.html
Was this article helpful?
Share this article
