Dentsu Forecasts Record Profit as Overseas Sales Drives Growthby
Overseas growth, including China, driving advertising sales
Rio Olympics adding 20 billion yen to sales this year: CFO
Dentsu Inc. forecast record profit this year as the Japan-based advertising agency expects to benefit from promotions related to the Olympic Games in Rio de Janeiro and from overseas growth, including in China.
Operating income will be about 142 billion yen ($1.2 billion) this year, compared with the 142.8 billion yen average of analyst estimates. The previous record annual operating profit was 132 billion yen for the year ended March 2015, although year-on-year comparisons are indirect because the company has changed its fiscal year end to December. Profit was 128.2 billion yen in 2015, the company said.
Business related to the Rio Olympics will add about 20 billion yen to sales this year, Shoichi Nakamoto, Dentsu chief financial officer, said Monday at a briefing to discuss earnings.
Sales will climb 5.7 percent to 865.6 billion yen this year, the company said, compared with analyst estimates for 843.8 billion.
The company said it targets an 80 yen per share dividend for 2016, up from 75 yen in the previous period.