Dentsu has published its financial results for the first quarter of FY2025, reporting an organic growth of 0.2%, in line with expectations.

However, net revenue decreased 0.6% year-on-year, which the Japanese holding company attributed to inclusion of the results of its since-divested Russia business in the consolidated results of the corresponding period.

Underlying profit increased by 13.7%, driven by measures such as SG&A expenses control, which led to an operating margin increase of 140bps.

Dentsu's Japan business saw net revenue grow 5.5% organically, due to growth in internet advertising, business transformation and sports and entertainment, with underlying profit up 11% year-on-year and operating margin at 29%.

The performance of the Japan region was offset by negative organic growth in all three of its international regions - the Amercias; EMEA, the Middle East and Africa; andAPAC.

In the Americas organic net revenue was down 5.1%, though underlying operating profit grew 3.5%. In EMEA, the Middle East and Africa, net revenue organic growth was down 0.9%, with strong performances in Germany and Switzerland offset by challenges in the United Kingdom, Netherlands and Denmark.

Meanwhile, the APAC market was down 4.6%, with strong results highlighted in Taiwan and India, and China identified as a challenging market.