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New channels drain Phoenix gains

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SCMP Reporter

Phoenix Satellite Television Holdings saw its earnings growth slow down in the second quarter following the launch of two new channels.

The Growth Enterprise Market-listed Chinese satellite television operator posted a HK$46.18 million net profit for the three months to December 31 compared with a HK$51.38 million net profit from the previous quarter to September 30.

The December quarter's revenue also dropped slightly on a quarter-to-quarter basis to HK$188.98 million. It recorded HK$192.3 million revenue in the September quarter. Chairman Liu Changle said earnings were held down by investment in new businesses during the year.

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However, on a half-year basis, Phoenix TV still achieved strong growth of 67.3 per cent in net revenue, due to healthy gains in advertising sales.

In the six-month period, its turnover climbed 67.3 per cent to HK$381.32 million, up from HK$227.91 million a year ago.

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While half-year profit amounted to HK$97.56 million, the company made net losses of HK$1.9 million in the previous corresponding period.

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