Dentsu Danmark A/S (Koncern)

Management's review

Financial reviewThe income statement for 2022 for the parent company shows a profit of DKK 124,893 thousand against a profit of DKK 38,417 thousand last year. The 2022 result includes income from investments of DKK 77,301 thousand against DKK 57,006 in 2021. As per 31 December 2022, the balance sheet shows an equity of DKK 332,969 thousand.In 2022, the group generated a profit of DKK 55,164 thousand versus DKK 21,829 thousand in 2021. The equity increased from DKK 243,857 thousand as per 31 December 2021 to DKK 297,310 as per 31 December 2022, which is caused by the result for 2022.Management considers both the Group’s and the parent company’s financial performance in the year satisfactory and outperforming the outlook set in the annual report last year. The growth compared to 2021 is driven by a combination of existing client buying more services as well as a number of new clients to the business.In 2022, the parent company has bought the remaining outstanding shares in subsidiaries and therefore is no longer minorities in the Group. The purchase price did not differ significantly for what was already recognized as of 31 December 2021.In late 2022, the company merged with its subsidiary Isobar Nordics A/S in an upstream merger with a full-year accounting effect. Isobar Nordics A/S’ only activity was as a financial holding company, now Dentsu Danmark A/S is holding the subsidiaries directly. Following the merger the company sold the subsidiaries Isobar Sweden AB, Merkle Norway AS and Isobar Finland Oy in Q2 2023 to a Dentsu company in each of the markets. All were sold at a higher price than the book value as of 31 December 2022, hence creating an extraordinary income (around DKK 70,000 thousand in the parent company and around DKK 85,000 thousand in the Group) which will be recognised in 2023.Principles for revenue recognition have been changed, cf. accounting policy, page 17.