Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  Equities  >  Tokyo Stock Exchange  >  Dentsu Group Inc.    4324   JP3551520004

DENTSU GROUP INC.

(4324)
  Report
SummaryChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisions 
SummaryMost relevantAll NewsPress ReleasesOfficial PublicationsSector newsMarketScreener Strategies

Dentsu : Olympics sponsors in limbo as year-end contract expiration looms - sources

share with twitter share with LinkedIn share with facebook
09/08/2020 | 04:35am EDT

TOKYO, Sept 8 (Reuters) - Tokyo 2020 Olympics organisers have not extended sponsors' contracts set to expire at the end of the year, sources said, leaving some questioning whether to continue after COVID-19 forced a delay of the world's largest sporting event.

Postponing the Games for a year has created additional costs for sponsors, including fees to extend contracts, and some wonder whether it's worth doing so, three of the sources said, declining to be identified because the information is not public.

At the same time, sponsors fear damaging their image by abandoning a politically important national project.

"The delay threw financial plans for the Games into disarray and many companies really don't want to pay any more," said one of the sources, an Olympics insider. Sponsors expect the contract extension negotiations to be fraught, said two more of the sources, both from sponsors.

Tokyo 2020 raised a record $3.1 billion in sponsorship money from across corporate Japan through the intercession of sports marketing heavyweight Dentsu, but many companies are reeling from economic damage wrought by the pandemic.

Reuters was not able to establish the potential size of the extension fees. Local sponsors' contracts cover only Tokyo 2020, unlike a smaller number of worldwide sponsors.

Tokyo 2020 is "asking our partners for their ongoing support in the process of extending the contracts," organisers said, adding that although the pandemic has "had a certain impact... we will continue to make every effort to seek understanding and cooperation going forward."

Dentsu did not immediately respond to requests for comment.

Faced with sliding support for the Games - just 24% of Japanese are in favour of holding the event next year, according to a July poll by Kyodo news agency - the national mood further discourages Olympics promotional activity, said another source, an Olympics insider, and a fifth source from a sponsor.

Companies are already trying to cut spending in the face of an economic slowdown, and some sponsors question what benefit there is to backing the event.

"While some sponsors see benefits even with reduced attendance at the Games, for others its hard to see the point," said one of the sponsor sources.

The sponsorship contracts are one of many problems for Olympics organisers as they scramble to demonstrate the viability of the delayed Games and ensure safety for athletes and spectators.

The success of the Tokyo 2020 is likely to be a top priority for the successor to outgoing Prime Minister Shinzo Abe. Chief Cabinet Secretary Yoshihide Suga, considered a favourite for the job, this week emphasized Japan's resolve to hold the event.

The status of the Games as a national project continues to exert pull over worried sponsors.

"If other sponsors extend and only we don't cooperate, that'll make waves - that's what we want to avoid," said one of the sponsor sources.

(Reporting by Sam Nussey, Makiko Yamazaki and Maki Shiraki. Editing by Gerry Doyle)


share with twitter share with LinkedIn share with facebook
All news about DENTSU GROUP INC.
10/15DENTSU : and SeeHer Partner to Champion Gender Equality
BU
10/15DENTSU : Japan?s Dentsu lobbied for and funded campaign for Tokyo games, documen..
RE
10/15DENTSU : Japan’s Dentsu lobbied for and funded campaign for Tokyo games, documen..
RE
09/23Procter & Gamble Calls for Change to Annual TV Ad-Buying Process
DJ
09/23Streaming TV Is Surging, but the Ads Remain on Repeat
DJ
09/16TOYOTA MOTOR : Dentsu Group to set up firm to enhance advertising
AQ
09/16TOYOTA MOTOR : to Launch New Companies for Marketing and for Creating Mobility B..
AQ
09/16Toyota, Dentsu team up to improve marketing strategy
RE
09/16DENTSU : Announces Capital and Business Alliance with Toyota Motor Corporation t..
PU
09/08DENTSU : Olympics sponsors in limbo as year-end contract expiration looms - sour..
RE
More news
Financials
Sales 2020 950 B 9 027 M 9 027 M
Net income 2020 39 205 M 373 M 373 M
Net Debt 2020 145 B 1 375 M 1 375 M
P/E ratio 2020 22,9x
Yield 2020 2,94%
Capitalization 864 B 8 181 M 8 207 M
EV / Sales 2020 1,06x
EV / Sales 2021 1,05x
Nbr of Employees 66 400
Free-Float 74,2%
Chart DENTSU GROUP INC.
Duration : Period :
Dentsu Group Inc. Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends DENTSU GROUP INC.
Short TermMid-TermLong Term
TrendsNeutralBullishNeutral
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus HOLD
Number of Analysts 11
Average target price 3 222,73 JPY
Last Close Price 3 070,00 JPY
Spread / Highest target 43,3%
Spread / Average Target 4,97%
Spread / Lowest Target -28,3%
EPS Revisions
Managers
NameTitle
Toshihiro Yamamoto President & Representative Director
Yushin Soga Chief Financial Officer & Director
Timothy Paul Andree Director & Executive Vice President
Toshiaki Hasegawa Independent Outside Director
Kentaro Koga Independent Outside Director
Sector and Competitors