Fears over the continuing spread of atypical pneumonia may mean more viewers for Television Broadcasts but may also hit its advertising revenue, says Standard & Poor's Equity Research. 'Arguably, more people will stay at home and spend more leisure time watching TV (and hence increase TVB's viewership) rather than going to cinemas and crowded shopping or eating places,' S&P said in a research note yesterday. But the research firm also said the pneumonia outbreak could slow down economic activity in Hong Kong and have a negative impact on advertising spending. 'It would be interesting to see how severe acute respiratory syndrome will impact on the Hong Kong economy if the virus continues to spread throughout the region and uncertainty is prolonged,' it said. S&P revised its recommendation on TVB from 'avoid' to 'hold' after the dominant free-to-air broadcaster posted a better-than-expected result on Wednesday. TVB posted a profit for last year of HK$589.91 million, 18 per cent above its forecast after a significant turnaround in its Taiwan operation. S&P revised up its net profit forecast for TVB by 14 per cent this year and increased its six- to 12-month price target from HK$21.5 to HK$25. However, JP Morgan revised its forecasts over the stock down 4 per cent. Analyst Kristian Jhamb said in a research note he expected the company to spend HK$50 million last year and this on relocating to its new TV City facility in Tseung Kwan O. The expense was not included in last year's result. He also expected TVB to book a HK$15 million write-off this year for its aborted United States and Taiwan direct-to-home platforms.