COVID-19’s impact on ad sales results in temp layoffs at Cogeco’s radio unit
Posted April 8, 2020 2:48 pm.
Last Updated April 8, 2020 2:54 pm.
This article is more than 5 years old.
MONTREAL — Cogeco Inc. says its Quebec-based radio business has temporarily laid off about one-quarter of its employees due to a significant decline in advertising from retailers affected by COVID-19 shutdowns.
Cogeco chief executive Philippe Jette says its radio stations have maintained good ratings during the pandemic by providing news, information and music during the crisis.
But Jette says those ratings aren’t expected to translate into revenue in the short term because most of its radio advertising is from retailers affected by the pandemic.
The number of employees affected by the layoffs wasn’t immediately available.
Jette says the overall company is in good financial shape.
He says its Cogeco Communications subsidiary, which provides internet, video and telephony services, had about $500 million of cash on hand and $948 million in unused credit facilities at the end of February.
Jette says Cogeco Communications has adjusted its spending priorities as many of its employees work from home or provide customer technical support by video.
In Quebec and Ontario, Cogeco’s internet and video business operates as Cogeco Connexion. In the United States, it operates as Atlantic Broadband brand in 11 states along the East Coast, from Maine to Florida.
This report by The Canadian Press was first published April 8, 2020.
Companies in this story: (TSX:CGO, TSX:CCA)
The Canadian Press
