Dentsu reports Q4 loss, sees slow recovery this year

TOKYO May 11 (Reuters) - Dentsu Inc (4324.T), Japan's biggest advertising agency, reported a fourth-quarter loss of 24.6 billion yen ($250.2 million) on Monday amid a drop in advertising sales and shareholding losses, and forecast a weaker recovery than expected this year.

On top of a sales slump, Dentsu faced a 51 billion yen loss on its share investments, of which 38 billion yen was due to a sharp drop in shares of Publicis (PUBP.PA). Dentsu has a 15 percent stake in the French company.

In the current year to March 2010, Dentsu forecast a group net profit of 11.40 billion yen, short of the market consensus from 10 analysts by Thomson Reuters for a profit of 18.61 billion yen.

Dentsu, whose client companies include Toyota Motor Co (7203.T), had a net loss of 20.5 billion yen in the year ended March 31, its first annual loss since 1978, when it began reporting consolidated earnings. It had a 36.2 billion yen profit the previous year.

In the January-March quarter it had a net loss of 24.6 billion yen, against a 15.2 billion yen profit a year earlier.

(Reporting by Mariko Katsumura)