News

Cogeco Cable Inc. marked the end of an era yesterday as controlling shareholder Henri Audet stepped down from the board, half a century after founding his Quebec media and cable empire.

Mr. Audet, 88, is in good health but is going out less and felt it was time to retire, according to his son Louis Audet. In the past fiscal year, Henri Audet missed most board meetings at both Cogeco Cable and its parent, Cogeco Inc. Henri Audet will also step down next week as a Cogeco Inc. director.

It was his father's decision, Louis Audet said yesterday in an interview before Cogeco Cable's annual shareholders' meeting. "He could see he had missed some meetings and that this was probably the right time. No one had to tell him this. He is a smart individual."

While Henri Audet's departure is a significant move symbolically, it won't affect operations because the family business has been preparing for it for some time.

In 1993, Henri Audet handed the reins to his son Louis, who had worked for the company for 12 years, naming him chief executive officer of Cogeco Inc. and Cogeco Cable. Three years later, Henri Audet gave up his role as chairman of the two firms. But his influence will still be felt as he remains the biggest shareholder through his 72-per-cent voting stake in Cogeco Inc., and his title of chairman emeritus.

Louis Audet acknowledged there is great pressure as the successor to his father. "But there are huge advantages if you can continue as a family company and keep stability and predictability and grow [while] making as few mistakes as possible," the younger Mr. Audet said.

It all started with a big bet.

Henri Audet was raised in Montreal, where his father worked as a salesman for a flour company. An engineer by training, Mr. Audet went to work for the Canadian Broadcasting Corp. But he left that job in 1957, selling his house and raising funds from investors to start a television station in Trois-Rivières.

"Those days were very exciting," Louis Audet said. "TV didn't exist . . . he wanted to be part of that."

The gutsy move paid off. Montreal-based Cogeco Inc.'s assets have swelled to include five radio stations, eight TV stations, and more than 800,000 basic cable TV subscribers.

Henri Audet leaves at a time when both the media and cable industries are experiencing a sea change. Both markets face greater competition as the Internet threatens to take away advertising dollars and cable customers because people are starting to watch videos online.

Cogeco itself recently embarked on an important chapter in its history, making its largest investment and first move overseas with this year's purchase of a cable company in Portugal.

"I know he's excited," Louis Audet said. "This is a person who in 1956 . . . essentially bet his house on a TV station.

"If you try to put yourself in his shoes today, he's got a company with revenues that by next August 31 will be about $1-billion, with a TV network covering all of Quebec, a radio network covering most of Quebec, and a cable company spanning two provinces and one European country. So I think there's a sense of satisfaction the creation he has engendered is growing and doing well."

As for the future of Cogeco, Louis Audet says it will remain a family business for a "long period." And there's no confusion about its future focus. "Grow it," Mr. Audet said. "Spread its influence."