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COVID-19: Advertising sector loses EGP 250M in sales

COVID-19: Advertising sector loses EGP 250M in sales

ArabFinance: Advertising companies suffered a loss ranging from EGP 200 million to EGP 250 million in sales during the period from February to April, Head of Advertising Division at the Federation of Egyptian Industries (FEI) Ashraf Khairy told Shorouk News.

The loss incurred during the high season, which coincides with the holy month of Ramadan, is mainly due to the spread of COVID-19.

Khairy noted that the firms seek negotiations with the authorities granting advertising licenses in Egypt to be exempted from dues during the crisis.

The industry's recovery from the COVID-19 impact will take up to four months, he added.

The advertising division issued a statement obligating the companies not to lay off irregular laborers and day workers and to give them all their dues, Khairy said.

Meanwhile, the Secretary-General of FEI’s Advertising Division Haitham Erfan noted that the advertising season got impacted by the imposed curfew, as the majority of sectors decided to cancel their contracts with the advertising companies.

The cancellation rate reached 98%, Erfan added.

Mohamed el Shenawi, manager and partner of the advertising firm Three Angles, told Ahram Online, “We are facing a very big problem.”  

El Shenawi confirmed that several contracts in the billboards industry were canceled although all billboards were rented at the beginning of March. He added that contracts allowed cancellation in “compelling circumstances”.

On May 4th, a study showed that a 100% increase in empty large billboards across Cairo was realized in the first week of April.

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