Dentsu Group Shares Slump After It Cuts Profit Guidance

By Kosaku Narioka

Dentsu Group shares fell sharply Tuesday morning after the Japanese advertising company posted disappointing second-quarter results and cut its full-year profit forecast.

The company's shares were recently 7.1% lower at 4,224 yen after falling as much as 7.6% earlier.

Dentsu said Monday after market close that net profit dropped 81.5% from a year earlier to Y3.4 billion ($23.4 million) for the quarter ended June. That fell short of the estimate of Y14.00 billion compiled in a poll of analysts by FactSet.

Its second-quarter operating profit margin deteriorated by 5.2 percentage points from a year earlier to 8.7%.

Net revenue decreased from a year earlier for all geographic regions except Japan.

Dentsu lowered its net-profit forecast for 2023, taking a more cautious outlook for the second half after worse-than-anticipated first-half results.

It now expects net profit to rise 16% to Y69.20 billion, down from its previous forecast of Y77.10 billion.

Write to Kosaku Narioka at kosaku.narioka@wsj.com

(END) Dow Jones Newswires

August 14, 2023 22:06 ET (02:06 GMT)

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