Dentsu Group — New CEO to drive transformation

Dentsu Group’s underlying FY25 results were ahead of guidance that was upgraded with the Q325 results. However, there was also less positive news. First, a further write-down of the goodwill of the international businesses eliminates the ability to pay dividends in FY25 and FY26. Second, the new FY26 guidance points to limited improvement in organic net revenue growth and a lower underlying operating margin and, therefore, there is no progress towards the FY27 financial targets. Dentsu also announced that the current CEO of its Japan business, who is also deputy global COO, will become the new president and global CEO from end-Q126. There was no update on the strategic alliances for the international businesses, although management expects an improvement in performance in FY26. The company has also filed a shelf registration for the issuance of bond-type shares that do not result in equity dilution.