TVB expects up to HK$830m loss in 2022 due to weak advertising revenue

TVB is expecting a loss attributable to equity holders of the company of up to approximately HK$830m in the last financial year, as well as an EBITDA loss of approximately HK$338m compared to the financial year of 2021.

According to the official announcement on HKEX, TVB's unaudited consolidated revenue has grown by 24% from HK$2,899m for financial year 2021 to approximately HK$3,586m for financial year 2022. However, the company is also expecting a loss of approximately HK$338m for financial year of 2022 compared to the loss of HK$314m the previous year; as well as a loss attributable to equity holders of the company for the year in the range of approximately HK$790m to HK$830m.

Overall, the television advertising market in Hong Kong stayed weak for much of the financial year of 2022, dampening growth in the company’s advertising income. Meanwhile, widespread pandemic restrictions in mainland China in the later part of the Year also resulted in a slowdown of the company’s China co-production business.

In the financial year of 2022, the company also made non-cash impairment provisions to certain of its legacy investment assets. As a result, the company’s loss attributable to equity holders in financial year of 2022 increased as compared to the previous year. Despite recording a loss during the financial year of 2022, the group’s total equity was over HK$3.6bn, and unrestricted bank and cash balances amounted to over HK$1bn, as at 31 December 2022. 

While the company is in the process of finalising the annual results of the group for the year, it said the above information is only based on a preliminary assessment of the unaudited consolidated management accounts of the group for the year and information currently available to the board, which have not been agreed, audited or reviewed by the company’s auditor and its audit committee, and may be adjusted upon further review. An announcement setting forth details of the annual results of the group for the year is expected to be published in late March 2023.

MARKETING-INTERACTIVE has reached out to TVB for further information.

Don't miss: Survey: HK viewers slam TVB for lacking creativity in programmes, excessive boy groups exposure on ViuTV

Back in early March, TVB's share price surged after it garnered sales of $RMB 23.5m in just six hours of the debut of its first livestream shows done by its subsidiary company TVBC and Alibaba-owned live-streaming platform Taobao Live. This came as TVBC, a subsidiary of TVB, has reached an intent of cooperation with Taobao to jointly conduct at least 48 eCommerce livestreaming broadcasts in the coming year, which are expected to generate tens of millions of revenue for the company.

According to an official release, the first livestream show featured TVB actress Sharon Chan and actor Moses Chan promoting products such as food and cosmetics. The livestream broadcast has gathered over 3.2 million viewers, and number of viewers at peak exceeded 4.85 million.

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