TVB sees profit growth due to strong advertising demand in HK and mainland

Local broadcaster TVB expects to see a positive net profit in the second half of the year, due to the strong advertising demand from local and mainland markets.   

According to a statement from TVB available on HKEX, the overall income from advertisers during the first quarter has seen a double-digit percentage increase compared to the same period last year. 

This was due partly to strong unit rates for prime time TV advertising spots on its Jade channel, as the broadcaster welcomed back yet more blue-chip corporate advertisers who had not purchased advertising on its channels for some time.   

With this continuing trend, together with early indications of strong interest from potential clients to advertise on the Jade and Pearl channel feeds into Guangdong province, TVB believes it will help the company achieve further growth in income from advertisers this year, as compared to 2023. 

On the other hand, the revenue from digital advertising on TVB’s myTV Super platform has increased by over 30% compared to the three-month period ended 31 March 2023. As such, the broadcaster expects further strong growth in digital advertising income for the full year of 2024. 

During Q1 2024, the group’s OTT streaming business continued to grow steadily, with premium myTV Gold subscribers holding firm compared to the three-month period ended 31 December 2023, and up 11% compared to the three-month period ended 31 March 2023.   

Average monthly active users (MAU) across all service tiers held steady at approximately two million. 

While in mainland China, TVB’s biggest revenue and profit driver this year is drama co-production. Building on the airing in mainland China last year of the drama series The Queen of News (新聞女王), it has signed a new and expanded co-production agreement with Youku during the quarter. This will see TVB co-producing an increased number of drama titles from this year through to 2026. 

Over the remainder of 2024, TVB is scheduled to start filming a further 10 drama titles for delivery to its co-production partners Youku and Tencent Video in 2025, putting itself on track for further growth in co-production revenue over the next two years.

In view of the above, TVB reiterates its expectation for the group to achieve significant positive EBITDA for the whole year of 2024.   

Don't miss: TVB to grow digital ad income in 2024 amid revenue growth

Back in April, TVB saw a 8% growth in revenue in 2023 thanks to a 9% rise in income from advertisers. It will further grow its digital advertising income from its various digital assets including myTV SUPER in 2024.

According to the official announcement on HKEX, TVB achieved 32% higher unit rates for its Jade channel prime time TV advertising slots in 2023, compared to the previous year. It said programmes such as The Queen of News (新聞女王) and Midlife, Sing & Shine! (中年好聲音) helped bring in advertisers for premium and luxury goods, as well as banking and financial services.

Furthermore, the revenue for TVB’s over-the-top (OTT) segment increased by 2% to HK$356m, driven by growth in advertising income. Its myTV SUPER streaming platform has recorded two million average monthly active users for 2023 and 2022. 

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