MTR advertising revenue increases significantly in first half of 2021

MTR has made a profit of HK2.67 billion in H1 2021 thanks to Hong Kong's recovering economy and the improved situation amidst the pandemic. Its advertising revenue has increased by 61.5% thanks to the resumption of economic activities. 

Jacob Kam Chak-pui, CEO of MTR, said the company installed 61 digital advertising panels in H1 2021, with 6% of the advertising panels being digital now. Its advertising revenue increased by 61.5% from HK$213 million in H1 2020 to HK$344 million in H1 2021. The improvement was mainly due to improved market sentiment following the resumption of economic activities, and relaxing of social distancing measures.

As at 30 June 2021, the total number of advertising units in stations and trains was 49,307, including new advertising panels launched along the newly opened full Tuen Ma Line. When it comes to innovation, Kam said MTR continued to digitalise its advertising formats, introducing two new iconic LED screens at Tsim Sha Tsui and Causeway Bay stations.

"We also further extended our digital networks at the platforms and concourses of 22 stations and widened our real-time dynamic advertising distribution network to more rail lines to meet market demand for flexible display options, dynamic content creative, and geo- and micro-targeted advertising," he said. He added that the company’s total media solution of MTR station advertising plus MTR Mobile has gained popularity as a result, with more than 280 online-offline campaigns rolled out during the period.

When it comes to its total passenger boarding for Hong Kong transport operations, MTR recorded a net profit of HK$2.67 billion, a turnaround from its record loss last year as MTR lost HK$334 million H1 2020. Last year, MTR recorded a loss for the first time since its listing, posting a record deficit totalling HK$4.8 billion due to the pandemic and social unrest in 2019. 

Kam said the pandemic continued to affect MTR's Hong Kong business adversely. However, the number of domestic passengers continued to recover in H1 2021. It served 646.1 million in Hong Kong, increasing by 16.7% compared to H1 2020. However, as Hong Kong boundary remained restricted, MTR's cross-boundary service only handled 200,000 passengers in H1 2021, way lower than H1 2020 as there were 7.4 million passengers in total. 

The high-speed rail did not have any passengers as it was closed, while the Airport Express only served one million passengers in H1 2021 too, compared to 2.1 million in H1 2020. The number of passengers using its light rail and bus services was up from 73 million in H1 2020 to 88.6 million H1 2021 too. 

The total number of passengers increased by 15.7% from 636.2 million on H1 2021 to 739.2 million in H1 2021. 

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