Ad agency Dentsu Inc. forecast record profit this year as the Japan-based agency "expects to benefit from promotions related to the Olympic Games in Rio de Janeiro and for overseas growth, including in China," according to Grace Huang of BLOOMBERG. Operating income will be about 142B yen ($1.2B) this year, compared with the 142.8B yen average of "analyst estimates." The previous record annual operating profit was 132B yen for the year ended March, although year-on-year comparisons are "indirect because the company has changed its fiscal year end to December." The company said that profit was 128.2B yen in '15. Dentsu CFO Shoichi Nakamoto said that business related to the Rio Olympics "will add about" 20B yen ($1.7M) this year (BLOOMBERG, 2/15). THE DRUM's Seb Joseph reported Dentsu "hailed its defense of accounts" worth $4B in billings last year for its ability to get through a testing period. The business was able to retain accounts for brands such as Mondelez, Coca-Cola and the Department of Health "following a spate of unprecedented media reviews" in '15. That "flurry of reviews" also saw the agency network pick up new business last year worth $3.6B in billings, with Honda among the more high-profile advertisers to "move its media business over to the Japanese network." Dentsu posted gross profit of 761,996M yen, up 12.6% year-on-year "for the nine month reporting period." Three key businesses "drove that growth" -- digital subsidiary CCI through its programmatic buying business, IT subsidiary ISID through its development of systems for financial institutions and promotional subsidiary Dentsu Tec through business associated with "large-scale exhibitions and government policy measures" (THE DRUM, 2/15). CAMPAIGN LIVE's Omar Oakes reported Dentsu Group said that it had made a "record number of acquisitions" during '15, around half of which were digital businesses. Out of 36 in total, 34 "were made by Dentsu Aegis Network." Dentsu President and CEO Tadashi Ishii said, "Looking ahead, in addition to further growth in the Group's core Japanese market, we will leverage our extensive global network to its fullest potential in order to contribute to the growth of all our clients" (CAMPAIGN LIVE, 2/15).
