Edison Investment Research - Dentsu Group Inc. (4324) Dentsu Group - Strong Q3 lifts full-year guidance further

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Edison Investment Research

Fiona Orford-Williams

Dentsu Group - Strong Q3 lifts full-year guidance further

Dentsu posted a very strong performance for Q321, with revenue less cost of sales (RLCoS) up 27.8% on an organic basis and a substantial uplift in operating margin to 23.5%, from 12.2% in Q221. Full-year guidance is raised, having been lifted in August, with an indication of a FY21 margin of 18.0% after greater intended investment in Q4. Proposed board changes for the new year split the chairman and CEO roles, with the existing CEO retiring and appointments of independent non-executives planned. The better performance and balance sheet strength support an uplift in DPS, with ¥113.5 now expected for the full year (previously ¥101).

16/11/2021 6 EN

Underlying

Dentsu Group Inc.

Dentsu is an advertising company. Co. provides a diverse range of services befitting a solution-building partner with the ability to address various client issues, including management, business activities and marketing plans, at both the corporate and organizational levels. Co. operates in two business segments. Domestic segment is engaged in the provision of domestic advertising, marketing and contents business services, as well as the information system development and consulting, and the provision of real estate and casualty insurance agency services. Overseas segment is engaged in the advertising and marketing services outside of Japan.

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JP3551520004 Japan

Provider

Edison Investment Research

Edison is an investment research and advisory company, with offices in North America, Europe, the Middle East and AsiaPac. The heart of Edison is our world renowned equity research platform and deep multi-sector expertise. At Edison Investment Research, our research is widely read by international investors, advisors and stakeholders. Edison Advisors leverages our core research platform to provide differentiated services including investor relations and strategic consulting.

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Analysts

Fiona Orford-Williams

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Dentsu Group - Strong Q3 lifts full-year guidance further

Dentsu Group - Still fighting market headwinds

PSA Strategy: Japan Stock Market Quarterly 2024 Q4

Dentsu Group - Positive momentum

Games Workshop Group - A notable acceleration in Q225

Altron - Further margin expansion in H125

Sayona Mining - Catching up with majors

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