Television Broadcasts (TVB) expects to post a net profit of about HK$600 million for the year, representing a 22.4 per cent fall compared with the same period last year. Ronald Jones, senior manager of business development, told analysts that TVB would report a contraction of 10 per cent in local advertising sales this year. He estimated the company would post a 2 per cent to 5 per cent decline in turnover this year to between HK$33.15 million and HK$34.2 million. Last year, TVB posted net profits of HK$774.15 million on a special gain of HK$129.39 million. The gain was made through the sale of a stake in online unit tvb.com to Measat Broadcast Network Systems and investment holding company Home Net. TVB's profit projections were in line with market expectations. Excluding any exceptional one-off gains, analysts had expected a decline in net earnings of about 7 per cent. The broadcaster is conducting an advertising roadshow to secure commitments from advertisers for next year. It is offering a scheme that allows existing advertisers to reduce their advertising expenditure next year by 15 per cent and still enjoy the same discount rate they paid this year. The annual roadshow, during which TVB usually secures up to 60 per cent of next year's revenue, will end on Friday. Market buyers, acting as agents for advertising firms, said advertisers were reluctant to increase their ad expenditure for next year, despite the sweeteners being offered by TVB. Zenith Media, which acts as an agent for advertising companies, expects a contraction of 5.8 per cent to HK$27.26 billion in the local advertising market next year, of which revenue from television commercials is projected to contract 4.4 per cent to HK$12.43 billion. Analysts said pay television project Galaxy still remained the most important factor but they had been kept in the dark on progress so far. Yesterday, sister company Shaw Brothers, also controlled by Sir Run Run Shaw, reported a decline in net profit to HK$64.61 million for the six months to September 30. The movie studio has released seven home-grown productions this year and is producing another two films. The films are produced on small-to-medium-size budgets, with a romance, Fighting For Love - in which Tony Leung Chiu Wai plays the male lead - recording the biggest box office revenue for the period. An official with Shaw Brothers attributed the fall in net profits this year due to a comparison with an exceptional income last year.