TVB advertising income improves with losses reduced to HK$284 million

TVB's advertising income in the first half of 2021 improved but the company lost HK$284 in total, according to its announcement of 2021 interim results. 

In a statement, TVB said its advertising income from Hong Kong TV broadcasting reported a 31% increase from HK$351 million to HK$460 million. myTV SUPER registered users further increased from 8.6 million to 9.5 million as of 30 June 2021, equivalent to a growth of 11%. Subscription revenue increased by 8% from HK$146 million to HK$157 million, driven by average revenue per user (ARPU) growth from an expanding pool of subscribers. TVB added that myTV SUPER would continue to invest in original and first-window content for its premium service myTV Gold.

Looking ahead, TVB said its advertising business under Hong Kong TV broadcasting and myTV SUPER will continue to be a challenge in the near term. but advertisers’ reception towards recent events, such as the 2020 Tokyo Olympics, the Stars Academy series and the implementation of the consumption voucher scheme is positive, giving the company much encouragement that a return to growth is in sight.

When it comes to eCommerce, TVB, together with Shaw Brothers Holdings, announced that the two listed companies will acquire approximately 75% of the issued shares in Ztore which owns and operates e-commerce platforms ztore.com and neigbuy.com. TVB said its e-commerce business is expected to scale up by over four times gross merchandise volume (GMV) after the acquisition, driven by an enlarged customer base, increased promotions and live-streaming e-commerce on TVB’s channels and platforms.

Meanwhile, travel restriction to and from mainland China since the COVID-19 outbreak has disrupted the progress in programme co-production business, which led to a reduction in total revenue from mainland China from HK$356 million to HK$298 million. TVB said it will continue active discussions with multiple Chinese online platforms on content production covering drama and variety show genres which are anticipated to generate a series of new work for 2022 and beyond, while expanding its content distribution directed at the mainland China market by means of diversified licensing and co-production models.

TVB recorded a loss of HK$284 million in the first half of 2021, a 3% reduction as it lost HK$293 million in the same period in 2020.

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