DENTSU GROUP INC.
4324・Prime Market・Services
Japan
The largest domestic segment, accounting for approximately 44% of the Group's gross profit.
| Period | Current | Previous | Change |
|---|---|---|---|
| Revenue | ¥158,848 million (Q1 FY2026, ending December 2026) | ¥158,556 million (Q1 FY2025, ended December 2025) | — |
| Gross profit | ¥128,873 million (Q1 FY2026, ending December 2026) | ¥129,695 million (Q1 FY2025, ended December 2025) | ↓ |
| Adjusted operating profit (segment profit) | ¥39,754 million (Q1 FY2026, ending December 2026) | ¥37,638 million (Q1 FY2025, ended December 2025) | ↑ |
| Operating margin | 30.8% (Q1 FY2026, ending December 2026) | 29.0% (Q1 FY2025, ended December 2025) | ↑ |
| Gross profit organic growth rate | 4.7% (Q1 FY2026, ending December 2026) | – | ↑ |
Business Details
Centered on Dentsu Inc., this segment encompasses numerous subsidiaries including Dentsu Digital Inc., Dentsu Institute Inc., and Septeni Holdings Co., Ltd. It provides overall advertising operations, Marketing & PR, content services, and Information Services, with marketing business centered on internet and TV advertising, Business Transformation (BX), and Digital Transformation (DX) as its core pillars. It accounts for approximately 44% of the Group's total gross profit.
Recent Overview
Gross profit declined slightly due to the impact of CARTA HOLDINGS becoming an equity-method affiliate, but the margin improved due to reduced SG&A expenses.
As CARTA HOLDINGS became an equity-method affiliate in January 2026, gross profit decreased 0.6% year-on-year to ¥128,873 million, reflecting the impact of the company's results having been included in the same period of the prior year. On the other hand, growth in internet advertising, TV advertising, BX, and DX secured an organic growth rate of 4.7%. Due to reductions in SG&A expenses, adjusted operating profit increased 5.6% year-on-year to ¥39,754 million, and the operating margin improved to 30.8% (from 29.0% in the same period of the prior year).
Key Products
Growth Drivers
- Continued growth of the marketing business centered on internet and TV advertising
- Expansion of the Business Transformation (BX) and Digital Transformation (DX) domains
- Improvement in operating margin through SG&A expense reduction
- Strengthened competitiveness through the medium-term management plan's focus on priority investment in Japan and the United States
- Global expansion of the Sports & Entertainment business
Risks
- Structural decline in consolidated gross profit due to CARTA HOLDINGS becoming an equity-method affiliate
- Margin pressure risk from increased personnel and other costs associated with strengthening human resources
- Legal risk from antitrust violations related to the Tokyo 2020 Olympic and Paralympic Games
- Risk of economic fluctuations in the domestic advertising market and client budget cuts
- Risk of intensifying competition in the digital advertising market
- Risk of increased structural reform costs
Last updated: May 15, 2026