Dentsu doubles profits ahead of flotation

LONDON - Dentsu, one of the world's largest advertising agencies, has reported a 50% increase in net profits boosting confidence in its planned flotation later this year.

Group net profit rose to Y41.4bn (£240m) in the year to March, up almost double the previous record of Y20.7bn (£120m) last time.

Group sales for the past 12 months rose 13.4% to a record Y1,800bn (£10.5bn), up from last time's Y1,600bn (£9.3bn).

A spokesman for the agency attributed the rise in spend partly to heavy information technology and internet expenditure, which is likely to be down significantly when the agency reports its next set of results.

No details have yet been released about the possible flotation but the agency stands in line to raise up to $2bn (£1.4bn) from any IPO.



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