The owner of Carat and Vizeum noted an absence of large-scale events that fuelled revenues last year, including the 2016 Summer Olympics and Paralympic Games in Rio de Janeiro. 

Dentsu Aegis Network’s organic gross profit growth declined by 0.2% for the three months ending 30 September. This follows a second-quarter decline of 2.7%.

However, profits bounced back to growth in EMEA to 5.9%, after last month’s marginal decline, with Russia, the Nordics and Southern Europe singled out as the best performing regions.

Last month the company's UK and Ireland operation made its surprise choice of hiring Mother co-founder Stef Calcraft as chairman. Calcraft is effectively replacing Tracy De Groose, who has stepped down as UK & Ireland chief executive after three-and-a-half years.

The Americas and Asia-Pacific regions both posted organic gross profit declines for the period, by -2% and -5.5% respectively. 

Parent company Dentsu Group’s profit declined by 2.1% over the three months, with operations in Japan showing a profit decline of 5%.

Toshihiro Yamamoto, president and chief executive of Dentsu, said: "Although market conditions remain challenging, the Group has continued to deliver strong new business momentum with some key global wins for Dentsu Aegis Network, which will be realised through Q4 FY2017 and FY2018."