Marketing group Dentsu has moved back the announcement of its first quarter financial results due to delays in accounting procedures that have resulted from the Covid-19 disruption.
The company also announced it is “in discussion with multiple banks to establish incremental credit lines in case it is required”.
The company’s Q1 results cover the three months to December 31, 2019. They were due to be announced in mid-May but have been tentatively moved back until the end of May.
In a statement, the group pointed out that it consisted of about 1,000 companies – including 130 in Japan and 900 in more than 145 other countries and region – and said “the spread of the Covid-19 has had a major impact on worldwide society and the economy. This, in turn, has caused some delays to accounting procedures for the consolidation of the Group’s first quarter results”.
The company was doing a large amount of work related to the Tokyo 2020 Olympics, including being the official marketing agency of the organising committee and taking charge of its record-breaking domestic sponsorship sales. Referring to this, it said: “The impact from the factors including the spread of and responses to the Covid-19 and the impact of the postponement of the Tokyo 2020 Olympic and Paralympic Games on Dentsu Group’s consolidated financial position and consolidated operating results for the fiscal year ending December 31, 2020 is under assessment. The business environment on which the full-year consolidated financial forecast announced on February 13, 2020 was based has changed significantly and we will announce the revised financial forecast as soon as we recognise the impact from factors mentioned above.”
Earlier this month, the company’s global network of advertising agencies, Dentsu Aegis Network, announced cost-cutting measures in response to Covid-19, including salary cuts and staff furloughs.
It has not been all bad news for Dentsu this month though, as it appointed Wendy Clark as chief executive of Dentsu Aegis Network, in what it called a “pivotal hire”, and took full control of US-based CRM company Merkle.