HKTVmall to increase advertising rate in 2023 due to increase in demand

Hong Kong Technology Venture Company has seen a gain in profits due to increase in multimedia advertising income on its subsidiary eCommerce platform HKTVmall, and it is now aiming to achieve the annual target of HK$120 million by end of 2022. 

To cope with the increasing demand of digital advertising services, HKTVmall has introduced ten new advertising formats in 2022 and will introduce more in 2023, according to the interim results of HKTVmall. The company has also just confirmed an increase to the 2023 advertising rate card with popular advertising formats to reach as high as 40% increment.

Furthermore, HKTVmall’s multimedia advertising income increased by HK$16.8 million reaching HK$64.8 million, representing an increase of 35% versus first half of 2021 and is on the right track to achieve annual target of HK$120 million in fiscal year of 2022, according to the results.

The company has achieved the third consecutive interim profit in first half of 2022 with a net profit of HK$127.8 million compared to HK$95.8 million in the same period of 2021. Its turnover has increased by approximately 26.6% to HK$1,922.1 million in first half of 2022 including multimedia advertising income and licensing of programme rights of HK$64.8 million, as well as strong balance sheet with net cash and liquidity position of HK$970.2 million.

Back in March this year, Hong Kong Technology Venture Company has recorded a profit of HK$14.3 million for the financial year of 2021. The platform is also planning to launch a project to shorten the delivery lead time for customer orders, sustaining its position in the city.

In its annual results for the year ended on 31 December 2021, the company said its net profit for 2021 amounted to HK$14.3 million from HK$183.6 million in 2020. The decrease in profit was due to the HK$86.6 million promotional coupon expenses incurred for the launch of the $350/$500 eGift voucher programme in response to the fierce competition in the retail market; and a one-off non-recurring government subsidy of approximately HK$70.9 million received in 2020. The Hong Kong government did not offer any subsidies last year.

Last year, the company's gross merchandise volume achieved 10.4% growth, reaching HK$6,573.1 million (2020: HK$5,953.7 million). Average daily orders increased to 41,400 orders per day in December 2021 (December 2020: 36,300 orders per day), with the average order value decreasing to about HK$462 in 2021 (2020: approximately HK$504).

The number of unique customers who made purchases at HKTVmall increased by 16.3% in 2021 to 1,287,000 from 1,107,000 in 2020.

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