Japan’s global advertising giant, Dentsu, reported a record net loss of 159.60 billion yen ($1.5 billion) for the fiscal year 2020 according to the latest financial earnings report, said Kyoto News. The annual loss for 2020 was nearly doubled from 80.89 billion yen in fiscal 2019.
Sales fell 10.4 percent to 939.24 billion yen and an operating loss of 140.63 billion yen was reported in the 12 months through the end of 2020. Dentsu did not release an earnings outlook for fiscal 2021, blaming uncertainty due to the ongoing pandemic.
Dentsu, which previously announced it will cut 6,000 staff, reducing its headcount by around 10%, is currently amid a reorganization of its operations into four operating pillars and six global agency brands.
“We simply have too many brands, almost 300 across both Japan and internationally,” stated Toshihiro Yamamoto, president and chief executive officer at Dentsu Group in November of last year.
Sources told Kyodo News in January that Dentsu was considering the sale of its 48-story building for upwards of 300 billion yen. If that sale took place it would make it the highest-priced building ever to be sold in Japan.
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