Dentsu postpones Q1 financial results due to COVID-19 impact

Dentsu has delayed the announcement of its Q1 financial results, which were scheduled for mid-May, due to delays in accounting procedures caused by the impact of COVID-19.

The holding company stated on Friday that it tentatively plans on posting results for the first quarter of the fiscal year later in May.

Dentsu is currently in discussions with "multiple banks to establish incremental credit lines in case it is required," the company stated.

The impact of coronavirus and the postponement of the Tokyo 2020 Olympic and Paralympic Games on Dentsu’s financial positioning for the full year is under assessment. The company plans on announcing a revised financial forecast for the year.

Earlier this month, Dentsu – along with all of adland’s major holding companies – implemented a series of cost-cutting measures across the business amid the COVID-19 crisis.

Despite the pandemic, the Japanese holding company was able to poach Wendy Clark, global CEO of DDB, to be global chief executive of Dentsu Aegis Network in what the company called a "pivotal hire."

Dentsu also took full control of Merkle this month earlier than it had originally planned, paying about $108 million (£86.4m) to buy shares from the agency’s staff and shareholders.