Dentsu has raised its full-year earnings expectations after delivering stronger margins in the first nine months of 2025, even as its APAC business outside Japan remains the company’s weakest region globally.
Organic growth for the cumulative nine months sits at +0.3%, flat but within guidance. Underlying operating profit rose 14.1% to support a group margin of 13.0%, prompting management to meaningfully upgrade profit expectations for the financial year. Underlying net profit is now forecast at ¥83.4 billion ($542.1 million), up 32.4% from the previous outlook.
Statutory results remain loss-making, but the picture has improved. Dentsu now expects to post an operating profit of ¥17.6 billion ($114.4 million) rather than the ¥3.5 billion ($22.8 million) loss it had previously projected. The net loss has also narrowed—now expected at ¥52.9 billion ($344.0 million) versus the earlier ¥75.4 billion ($490.1 million) estimate.
Full-year forecast for APAC lowered
With +6.8% organic growth year-to-date, a 24.6% operating margin and 10 consecutive quarters of organic growth, the domestic business is the group’s de facto stabiliser. In Q3 alone, Japan hit +9.9%, powered by AI- and data-led marketing services, seven straight quarters of double-digit internet media growth, and even a return to TV ad revenue expansion.
However, Dentsu’s APAC (excluding Japan) business contracted 10.1% organically for the quarter ending September 30, 2025. It's the steepest decline of any region, worse than both the Americas and EMEA. And unlike those regions, where the company held guidance steady, Dentsu has now formally downgraded its full-year outlook for APAC.
The problems are broad-based. CXM and Creative are weak across the region, with Media “stable.”
China, Taiwan and Thailand are in the 0 to 5% organic growth range for Q3, whereas Australia and Singapore fall in the less than 10% grouping for Q3.
Americas reported 3.4% organic growth. CXM continues to face headwinds and creative work declined, while media activity was broadly stable.
In EMEA, the net revenue organic growth rate was negative 1.9%. By major market, results were challenging in the United Kingdom, Italy, the Netherlands, and Denmark. Spain was a notable outperformer, recording growth across multiple domains, whereas the UK continued to struggle, particularly in CXM.
Earlier this year, Dentsu South Asia carried out a leadership restructuring in India to integrate creative, media, and client services under a unified operational framework. Amit Wadhwa was appointed as CEO, Dentsu Creative & Media Brands, South Asia while Anita Kotwani was named chief client officer, South Asia. Kotwani recently stepped down, a company source confirmed.
Dentsu’s cost transformation programme remains a central pillar of its turnaround efforts. The company has booked ¥8.6 billion ($55.9 million) in restructuring and “business foundation rebuilding” expenses so far this year, and expects approximately ¥28 billion ($182 million) in total restructuring charges for FY2025.
Despite these near-term costs, Dentsu maintains its medium-term ambition to secure ¥52 billion ($338 million) in annual cost savings by FY2027 and achieve an operating margin of 16–17%.
- This article was originally published in Campaign APAC, but was updated for India.
