Television Broadcasts (511) H1 2026 earnings summary

Executive summary

• Revenue declined 16% year-over-year to HK$1,258 million, mainly due to a sharp drop in Chinese Mainland Operations and TV Broadcasting revenues, and a reduction in loss-making e-commerce activities.

• Gross profit increased 1% to HK$566 million, with gross margin expanding to 45% from 37% due to cost discipline and scaling down non-performing businesses.

• EBITDA rose 33% to HK$73 million, driven by an 18% reduction in total operating costs.

• Loss attributable to equity holders narrowed by 31% to HK$74 million; loss per share improved to HK$0.16.

• No interim dividend was declared for the period.

Financial highlights

• Cost of sales dropped 26% year-over-year, supporting margin improvement.

• Total operating costs reduced by 18% to HK$1,285 million.

• Operating cash flow reached HK$241 million, nearly four times higher than last year.

• Finance costs decreased to HK$50 million from HK$61 million.

• Basic and diluted loss per share was HK$0.16, improved from HK$0.23.

Outlook and guidance

• Advertising businesses expected to maintain positive momentum for the rest of 2026, with modest growth in terrestrial TV and double-digit growth in digital advertising.

• Chinese Mainland Operations anticipated to recover in H2 2026 with a larger co-production drama slate and five co-productions underway.

• AI expected to enhance production efficiency and content monetization; a joint venture for AI computing with Gaw Capital is planned for late 2027.

• Full-year 2026 EBITDA and net profit expected to grow versus 2025.