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dentsu group NEWS RELEASE DENTSU GROUP INC . Group Corporate Communications Office 1-8-1 , Higashi - shimbashi , Minato - ku , Tokyo 105-7050 , Japan https://www.group.dentsu.com/en/ FOR IMMEDIATE RELEASE May 14 , 2021 Dentsu Group Inc. Q1 FY2021 Consolidated Financial Results ( The first quarter ended March 31 , 2021 - reported on an IFRS basis ) Q1 FY2021 organic revenue growth saw a further progressive improvement as client confidence returned and spend increased . Organic revenue decline of -2.4 % was expected for Q1 FY2021 , reflecting pre - COVID - 19 comparators . However , there was progressive recovery during the quarter , with March showing a return to growth at 2.5 % . Underlying operating margin was substantially ahead of the prior year reflecting one time operating cost reductions in Japan and the continued impact of cost actions that took effect from the second quarter in FY2020 in the international business . Good progress has been made against the Comprehensive Review to accelerate the Group's transformation . Looking ahead , the Group remains well positioned to benefit from the post - pandemic recovery in media & digital solutions and structural growth in Customer Transformation & Technology . Q1 FY2021 total revenue less cost of sales ( LCOS ) declined -1.8 % ( on a constant currency basis ( cc ) ) and organic revenue declined -2.4 % . In Q1 FY2021 , Dentsu Japan Network organic revenue declined -0.9 % and Dentsu International organic revenue declined -3.5 % . Q1 FY2021 Group underlying operating margin increased +400 bp ( cc ) yoy to 20.2 % due to continued cost actions across the Group . Statutory operating profit was JPY 28.8 bn due to an increase in underlying operating profit , partially offset by an increase of business transformation costs previously announced in Q4 FY2020 . Net cash flows from operating activities increased JPY 30 bn due to a decrease of working capital . The Group has had a very encouraging start to the year , with improving trends across the business , yet given the macro uncertainty in a number of major markets , retains its FY2021 guidance of delivering positive organic revenue growth on a full year basis with underlying operating margin broadly flat on a constant currency basis . The Group expects to be able to share FY2021 financial forecasts at the H1 FY2021 results in August . Q1 FY2021 Financial Results Summary Consolidated Group ( million yen ) Revenue Revenue less cost of sales * * See page 8 for definitions ΥΟΥ Constant Q1 FY2021 Q1 FY2020 change , currency % basis , % 248,850 252,737 ( 1.5 ) 222,478 227,170 ( 2.1 ) ( 1.8 ) Underlying results * • operating profit 44,996 37,237 +20.8 +22.4 operating margin 20.2 % 16.4 % +380 bp +400 bp • net profit ( attributable to owners 27,155 20,358 +33.4 of the parent ) • basic EPS 96.53 yen 74.09 yen Statutory results operating profit 28,811 24,694 +16.7 net profit ( attributable to owners of the parent ) 4,885 15,356 ( 68.2 )