TVB’s ad income up 31% as H1 losses narrow to HK$284m

Hong Kong television broadcasting company TVB’s advertising income in the first half of 2021 improved while losses narrowed, amid encouraging signs that a return to growth is in sight.

Why it matters

COVID-19 travel restrictions to and from mainland China may have affected TVB’s program co-production business and reduced total revenue from China, but the company expects to scale up its e-commerce business by over four times gross merchandise volume (GMV) after acquiring two e-commerce platforms because of an enlarged customer base, increased promotions and livestreaming e-commerce on TVB’s channels and platforms.

Key insights

• TVB’s H1 ad income from HK TV broadcasting posted a 31% increase to HK$460m, from HK$351m previously.
• Its OTT platform’s registered users grew 11% from 8.6 million to 9.5 million as of June 30, 2021.
  
• Subscription revenue rose 8% to HK$157m on average revenue per user (ARPU) growth from increase in subscribers.
• The company is encouraged by advertisers’ reception to the Olympics, Stars Academy series and the consumption voucher scheme.
  
• TVB and Shaw Brothers Holdings will acquire 75% of Ztore, an owner and operator of e-commerce platforms.