Dentsu Group Inc. (DNTUY), a Japanese advertising and public relations company, on Friday reported a significantly wider full-year loss, as higher impairment losses and business transformation costs weighed heavily on results despite relatively stable revenue.
The company posted a loss before tax of 306.789 billion yen, compared with 139.759 billion yen loss in the previous year, mainly due to a sharp increase in impairment loss to 402.563 billion yen from 235.257 billion yen, along with higher business transformation costs of 33.046 billion yen versus 10.705 billion yen a year earlier.
Operating loss widened to 289.212 billion yen from 124.992 billion yen. Excluding one-time items, the company posted underlying operating profit of 172.536 billion yen, 2.1% down from 176.233 billion yen last year.
Loss attributable to owners of the parent was 327.601 billion yen or 1,262.04 yen per share, versus a loss of 192.172 billion yen or 734.56 yen per share in the prior year.
Underlying net profit was 93.548 billion yen or 360.38 yen per basic share, slightly up from 92.936 billion yen or 355.24 yen per basic share last year.
Revenue rose 1.7% to 1,435.245 billion yen from 1,410.961 billion yen a year earlier.
For 2026, the company expects revenue to increase 3.9% year-on- year to 1,491.500 billion yen. Underlying net profit is forecast at 85.200 billion yen, down 8.9% from the previous year. Underlying basic earnings per share is projected to be 328.21 yen.
Dentsu shares were trading at $2,952 yen, up 0.24%.
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