What the broker says...
Television Broadcasts (TVB) is Hong Kong's dominant free-to-air broadcaster, dealing principally in broadcasting, programme production and other related activities.
In line with market expectations and due to the tough economic conditions, TVB's net interim profit, announced earlier this week, fell 35 per cent to HK$162 million.
As expected, the hardest hit area was TVB's ad revenues, which tumbled 21 per cent to HK$759.4 million.
In a recent report, KGI Asia said the slowdown was expected to persist and warned that TVB's ad revenues would continue to be weak.
'Our medium-term outlook will be on whether or not their overseas operations will be able to continue to compensate for their weak ad revenues,' KGI said.
'We will continue to focus on their Galaxy satellite state sales and whether or not they will be granted Guangdong broadcasting rights.'
In light of these factors, KGI recommended a 'neutral' stance.
Graphic: THEN08gwz
