Television Broadcasts (511) H1 2024 earnings summary

Executive summary

• Core TV-related business revenue rose 12% year-over-year to HK$1,445 million, led by 20% growth in Hong Kong TV Broadcasting and 22% in Mainland China Operations.

• Group revenue declined 3% to HK$1,513 million due to a 75% drop in e-Commerce revenue after downsizing.

• EBITDA turned positive at HK$47 million, a HK$233 million improvement from last year’s HK$186 million loss, marking the first positive first-half EBITDA since 2019.

• Net loss attributable to equity holders narrowed by 65% to HK$143 million; loss per share improved to HK$0.33 from HK$0.93.

• No interim dividend declared for the period.

Financial highlights

• Hong Kong TV Broadcasting revenue grew 20% to HK$756 million, with advertising income up 21%.

• Mainland China Operations revenue increased 22% to HK$383 million, mainly from drama co-production.

• OTT Streaming revenue declined 4% to HK$162 million, but digital advertising income rose 39%.

• Group operating costs dropped 16% to HK$1,622 million, driven by cost-saving initiatives and e-Commerce downsizing.

• Gross profit increased to HK$564 million from HK$399 million year-over-year; gross margin improved to 37% from 26%.

Outlook and guidance

• Advertising business expected to grow in Hong Kong, Greater Bay Area, and Macau, with digital advertising in OTT segment set for further gains.

• Mainland China drama co-production and MCN/livestreaming commerce to drive continued revenue growth.

• Cost optimization to continue, targeting an additional 8-10% reduction in 2024 (excluding drama co-production costs).

• Management expects significantly positive EBITDA for full year 2024 and net profit in the second half, before extraordinary items.