TVB narrows loss by 5pc to $763m

Hong Kong’s leading broadcaster Television Broadcasts (0511) said its net loss last year only narrowed 5 percent to HK$763 million, partly due to a slump in e-commerce revenue amid a weak retail market.

A major local producer, TVB’s core business revenue rose 4 percent to HK$2.8 billion, thanks to revenue growth in Hong Kong and the mainland.

Revenue from mainland operations rose by 4 percent to HK$729 million, with revenue from drama co-production and multi-channel network businesses soaring 72 percent and e-commerce live streaming recording sales 570 million yuan (HK$617 million).

However, income from its e-commerce segment plunged 44 percent to HK$486 million, amid a weak local retail market and shifts in consumer habits.

As a result, total revenue contracted by 7 percent to HK$3.3 billion last year.

Meanwhile, its earnings before interest, taxes, depreciation, and amortization loss narrowed by HK$198 million to HK$140 million, as cash operating costs excluding depreciation and amortization fell by HK$458 million.

Chairman Thomas Hui To said the goal this year is to swing to a positive EBITDA, but TVB did not say whether it will return to profit within the year.

Hui’s comments were more tempered compared to earlier predictions in January, when he said he was confident that company could “rise” this year.

To further narrow its losses, Hui said TVB will cancel programs that don’t generate much money.

Hui also didn’t rule out the possibility of further layoffs, though he stressed that there is no plan for now.

Last year, TVB dismissed 13 percent of its staff to cut costs and ended the year with 3,496 employees.