Local broadcaster TVB has shown significant improvement in its financial performance, reducing its first-half net loss by 65% from a year ago to HK$143 million. This positive outcome was primarily driven by a 21% surge in advertising income, showcasing the company’s ability to attract advertisers to its platforms.
According to the official announcement on HKEX, TVB’s digital advertising income experienced a notable 39% increase during the period. This growth can be attributed to the rising popularity of its myTV SUPER platform, which boasted two million monthly active users. The platform’s reach and engagement with viewers have made it an attractive option for advertisers looking to connect with a broad audience.
Despite the increase in advertising income, the total group revenue saw a slight decline of 3% from HK$1.56 billion to HK$1.51 billion. This decrease was mainly due to the downsizing of TVB’s eCommerce business segment, which offset the revenue growth in its core TV-related businesses. Additionally, the overall OTT segment revenue also experienced a 4% decline, attributed to adjustments in bundling arrangements with telco partners.
Nevertheless, TVB achieved positive EBITDA of HK$47 million, marking a significant improvement compared to the EBITDA loss of HK$186 million in the same period last year. This positive result signifies the company’s return to positive EBITDA for the first half period since 2019, reflecting its efforts to streamline operations and improve financial performance.
Looking ahead, TVB remains optimistic about the growth potential of its advertising business, particularly in the digital advertising space. The company expects further growth in 2024, as it continues to showcase the value and reach of its TV platforms to advertisers, including in the Greater Bay Area.
TVB’s Mainland China (MCN) operations segment also saw impressive growth, with a 22% year-on-year revenue increase reaching HK$383 million. The surge in revenue was driven by the drama co-production business, which more than doubled in revenue during the period. TVB’s expanded co-production deals with key platform partners, Youku and Tencent Video, contributed to this growth.
Furthermore, TVB expanded its presence in the Greater Bay Area market, leveraging the popularity of its Jade and Pearl channels in Guangdong province. The company launched new cross-border advertising products to enable advertisers on both sides of the border to reach these audiences, showcasing its commitment to regional expansion and audience engagement.
In light of its financial performance and strategic initiatives, TVB announced plans to optimize operating costs throughout 2024. The company aims to reduce total costs by 8 to 10%, excluding areas such as drama co-production where costs are expected to rise due to increased business volume. This cost optimization strategy aligns with TVB’s goal of improving efficiency and profitability in a challenging market environment.
In conclusion, TVB’s financial results reflect its resilience and adaptability in navigating the evolving media landscape. With a focus on digital advertising growth, expansion in Mainland China, and strategic initiatives in the Greater Bay Area, TVB is poised for continued success in the future.