Dentsu explores sale of international operations
Japanese advertising group Dentsu is exploring the sale of its non-Japanese operations. Such a move would mark the end of its ambition to compete with other major players such as Omnicom/IPG, WPP, Publicis, and Havas, according to Financial Times (FT).
The consideration of a sale follows weaker performances by Dentsu.
Mitsubishi UFJ Morgan Stanley and Nomura Securities have been appointed to find potential buyers for its international media and creative divisions. The sale is expected to generate several billion euros. In 2012, Dentsu acquired Aegis and around 2020 rebranded those operations under the Dentsu name.
In the Netherlands and Belgium, the company operates with the media agency Dentsu, the creative agency Dentsu Creative, and the CXM agency Merkle. Collectively, the international operations generate around €4.4 billion in annual revenue. According to FT, Dentsu is considering not only a full sale but also the option of selling a minority stake.
Restructuring
Dentsu is facing declining advertising budgets and intensifying competition. Earlier this year, it announced a restructuring plan leading up to 2027. For the current calendar year (2025), the company aims to cut costs by ¥27 billion (€160 million). By 2027, total savings should reach ¥52 billion (€300 million). As part of this effort, a total of 3,400 jobs—or 8% of its workforce outside Japan—will be cut internationally.
Disappointing Results
In the first half of the year, the company recorded global net revenue of ¥561.99 billion (€3.27 billion), a 3.4% drop compared to the first half of 2024. It also reported a loss of ¥69.3 billion (€400 million).
In the Europe, Middle East, and Africa (EMEA) region, the company generated ¥121.3 billion (€710 million) in revenue, up 2.4%, with an operating profit of ¥5.7 billion (€33 million). However, this profit was down 36.3% compared to the first half of 2024.
In North and South America, revenue declined slightly with a modest drop in operating profit, while in Asia excluding Japan, revenue fell 12% and the region posted an operating loss. The Netherlands, the United Kingdom, France, and Denmark were described as “challenging,” while Spain and Poland were described as “solid.”
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