HAKUHODO DY HOLDINGS INCORPORATED
2433・Prime Market・Services
Hakuhodo DY Holdings (single segment)
One of Japan's largest integrated marketing services corporate groups (single segment)
| Period | Current | Previous | Change |
|---|---|---|---|
| Revenue (full year) | ¥861,003 million | ¥953,316 million | ↓ |
| Operating profit (full year) | ¥44,675 million | ¥37,581 million | ↑ |
| Gross profit (full year) | ¥406,037 million | ¥399,598 million | ↑ |
| Ordinary profit (full year) | ¥46,061 million | ¥42,660 million | ↑ |
| Profit attributable to owners of parent (full year) | ¥16,775 million | ¥10,768 million | ↑ |
| Operating profit before goodwill amortization (full year) | ¥57,401 million | (not disclosed) | ↑ |
| Operating margin (revenue basis) | 5.2% | 3.9% | ↑ |
| Equity ratio | 36.0% | 37.2% | ↓ |
| Earnings per share | ¥46.09 | ¥29.32 | ↑ |
| Cash and cash equivalents at end of period | ¥233,077 million | ¥207,520 million | ↑ |
| Overseas revenue | ¥238,223 million (27.7% of consolidated revenue) | ¥257,899 million (27.1% of consolidated revenue) | ↓ |
| Total assets | ¥1,081,132 million | ¥1,050,191 million | ↑ |
Business Details
Centered on Hakuhodo, Daiko, Yomiko Advertising, Hakuhodo DY ONE, SO-ON HOLDINGS, and the strategic business unit kyu, the group provides integrated marketing solutions in Japan and overseas, including handling of advertising media such as newspapers, magazines, radio, television, and digital media, as well as advertising production, consulting, research, sales promotion, PR, and events. The group comprises 385 subsidiaries and 66 affiliated companies, and in December 2025 made Digital Holdings (including Opt, Inc.) a consolidated subsidiary.
Recent Overview
Revenue declined but operating profit rose sharply; structure strengthened through consolidation of Digital Holdings
For the full year of FY2026 (ending March 2026), revenue decreased to ¥861,003 million (down 9.7% year on year) due to the deconsolidation of United, Inc. and a rebound decline in government-related business. On the other hand, profitability improvement measures in Japan and overseas were successful, and operating profit increased significantly to ¥44,675 million (up 18.9% year on year). Although extraordinary losses of ¥10,559 million (including structural reform-related expenses) were recorded, profit attributable to owners of parent rose to ¥16,775 million (up 55.8% year on year). In December 2025, the company made Digital Holdings a consolidated subsidiary (acquiring 51.15% of voting rights at an acquisition cost of ¥19,248 million), strengthening its digital marketing structure. For FY2027 (ending March 2027), the company forecasts revenue of ¥910,000 million (up 5.7% year on year), operating profit of ¥46,700 million (up 4.5% year on year), and net profit of ¥26,000 million (up 55.0% year on year).
Key Products
Growth Drivers
- Steady trends in the domestic advertising market (supported by a recovery in personal consumption and capital expenditure amid improving employment and income conditions)
- Improved profitability driven by strong gross profit growth in the second half (October 2025 to March 2026) (adjusted gross profit up 2.4% year on year, adjusted gross profit margin up 1.1 percentage points)
- Strengthened digital marketing capabilities and accelerated cross-sell proposals through the consolidation of Digital Holdings (including Opt, Inc.)
- Establishment of a system for sustained profitability improvement through Hakuhodo DY ONE's business integration effects
- Success of cost-control measures in overseas operations (overseas operating profit before goodwill amortization up 47.9% year on year)
- Enhanced added value and improved win rates in large competitive pitches through proprietary in-house developed technologies such as the original AI "Virtual Consumer"
- Transformation of the business structure toward a "Creativity Platform" through the formulation of the global purpose "Aspirations Unleashed"
- Structural reforms aimed at achieving the medium-term management plan (FY2025 (ending March 2025) to FY2027 (ending March 2027)) targets of an average annual growth rate of over 10% in adjusted operating profit before goodwill amortization and an ROE before goodwill amortization of over 10%
Risks
- Structural decline in revenue due to the deconsolidation of United, Inc. (transition to equity method) (impact continuing into FY2026 (ending March 2026))
- Impact on the advertising market from geopolitical risks such as resource price spikes and supply chain disruptions amid tensions in the Middle East
- Sluggish growth in Greater China and ASEAN stemming from tariff issues, and foreign exchange fluctuation risk
- Revenue volatility due to dependence on specific industries and projects, including a rebound decline in government-related business
- Risk of prolonged structural reform in the North American business (under kyu) (management structure renewal and shared-servicing efforts underway)
- Future amortization burden of Digital Holdings goodwill (¥2,806 million, amortized evenly over 15 years) and acquisition-related expenses (¥565 million)
- Risk of continued recording of extraordinary losses including structural reform-related expenses (extraordinary losses of ¥10,559 million in FY2026 (ending March 2026))
- Risk that heightened cost-consciousness among consumers amid inflation leads advertisers to cut budgets
- Reputational risk from matters such as the Tokyo 2020 Olympics-related antitrust violation case
- Declining trend in the equity ratio (37.2% → 36.0%) and an increase in long-term borrowings due within one year (¥585 million → ¥22,985 million)
Last updated: June 25, 2026