TVB earnings increase 15pc

PUBLISHED : Thursday, 22 March, 2007, 12:00am
UPDATED : Thursday, 22 March, 2007, 12:00am

Television Broadcasts, the largest television company in Hong Kong, said underlying profit rose 15 per cent to HK$1.19 billion, or HK$2.71 per share, last year as losses narrowed at its pay-television unit.

Turnover rose 1 per cent to HK$4.2 billion, with advertising revenue dropping 1 per cent due to property developers and cosmetics companies cutting back on expectations of a slowdown in sales, the company said.

Losses at TVB Pay Vision Holdings narrowed to HK$167 million from HK$187 million in 2005 as more subscribers signed on for the service. TVB holds a 49 per cent stake in the unit.

The company's cost of producing programmes and fees to air films rose 2 per cent to HK$1.17 billion.

Overall cost of sales dropped 1 per cent to HK$1.78 billion, the company said, without giving details.

Capital expenditure tripled to HK$821 million as the company prepares for the roll-out of digital and high-definition television later this year. TVB expects to begin trial transmission at its digital television broadcasting station in the third quarter.

TVB's Chinese chanel Jade attracted an average 85 per cent of prime-time viewers while Pearl, its English channel, attracted 75 per cent of prime-time viewers.

TVB raised its dividend 10 per cent to HK$1.70 a share