Omar Sheikh's questions to PUBLICIS GROUPE (PUBGY) leadership • Q4 2022
Question
Omar Sheikh asked for quantification of the accretive growth from Sapient and Epsilon in 2023, details on where traditional marketing budget cuts are occurring, and commentary on the optimal long-term capital structure and potential for transformational M&A.
Answer
Chairman & CEO Arthur Sadoun confirmed Sapient and Epsilon will be accretive but said it was too early to quantify, noting that budget cuts are small and scattered, not indicative of a major shift in client behavior. He also emphasized the focus is on bolt-on M&A as the company's major transformation is complete. CFO Michel-Alain Proch described the capital structure as cautious and beneficial in the current interest rate environment, making the current allocation policy sensible for 2023.