Net organic growth reached 0.3% in the first half. Dentsu updated its turnaround plan and aims to eliminate losses in every market by 2027. The company is cutting costs, reducing staff, and investing in digital and AI capabilities.
Dentsu Group report a modest 0.3% net organic growth for the first half of the year, alongside a renewed push to end losses in all markets by 2027. The company posted net revenue of 583,068 million Japanese yen (about $3.7 billion), a 3.7% increase, and confirmed its full-year organic growth forecast remains between 0% and 1%.
Dentsu’s underlying operating profit rose 6.6%, with operating margin up 0.3%. Japan continued to outperform other regions, delivering 5% organic growth, driven by digital and TV advertising, business transformation, and sports and entertainment units. In contrast, the Americas division declined 5% in the first half and 6.9% in the second quarter, with creative operations falling by double digits due to prior year losses. Media in the Americas remained roughly flat. The company reported that its CXM unit is on track for full-year growth, while EMEA and APAC regions also posted declines in both the second quarter and first half.
Dentsu updated its midterm turnaround plan, setting a goal of having no markets operating at a loss by the end of 2027. The company has already achieved 50 billion JPY ($314 million) in operating cost reductions and halved its number of operating entities to just over 1,000. Plans call for eliminating another 70 to 80 entities this year and 50 to 80 more by 2028. Staff reductions totaled 900 in the first half, with 3,000 jobs cut to date and another 400 planned through 2027. Dentsu has invested approximately $77 million this year to upgrade operations, focusing on media, AI, data, and technology services.
The company is also reviewing costs related to restructuring or exiting unprofitable markets. Dentsu acknowledged that its new business pipeline in the Americas is not robust and intends to increase investment in its cross-practice proposition, spanning media, creative, and CXM. Dentsu Global CEO Takeshi Sano emphasized that overseas business remains a key management priority, while the Japan business will continue to drive growth and share its strengths across the global organization. Sano also highlighted a renewed focus on client-centricity, agility, and advanced collaboration across capabilities to deliver integrated solutions.
Founded in 1901, Dentsu Group is one of the world’s largest advertising and marketing agencies, with operations spanning more than 145 countries and regions. As of 2025, the company employed over 65,000 people globally and reported annual revenues exceeding $9 billion, according to its official filings.
