Dentsu Group Inc. said Thursday it posted a net loss of 80.89 billion yen ($740 million) in the business year ended in December due to stagnant operations in China and Australia, marking its first fall into the red since going public in 2001.

Japan's largest advertising agency said it saw a rapid change in the competitive environment in the two countries, while costs linked to past acquisitions also increased. It booked an operating loss of 3.36 billion yen.

Dentsu expects to return to the black in 2020 due to improved domestic business toward the Tokyo Olympics in summer and cost reductions in overseas operations, forecasting a net profit of 46.70 billion yen.

The estimate does not factor in any possible impact of the outbreak of a new coronavirus, Dentsu said.

==Kyodo

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