Profit at Hong Kong broadcaster TVB drops 62 per cent amid economic slow down
Television Broadcasts announced on Wednesday net profit plunged 62 per cent last year amid a lingering economic slowdown in Hong Kong and lower advertising revenue, sparked by sluggish retail sales.
The city’s premier free-to-air terrestrial television broadcaster said earnings amounted to HK$500 million (US$64.4 million) last year, compared HK$1.33 billion in 2015.
“The market outlook for 2017 remains uncertain and advertising sales may take time to recover,” the company said, according to a filing to the stock exchange.
The firm attributed the fall in profit to four key factors.
“A decline in revenue of HK$398 million from Hong Kong TV broadcasting; an under-recovery of HK$150 million from broadcast of the Rio 2016 Olympic Games; net start-up costs of HK$44 million for the new myTV SUPER service; and a smaller net exceptional gain in 2016 relating mainly to the disposals of the remaining interest in Taiwan operations and the impairment loss relating to pay TV business, TVB Network Vision, making up to an amount of HK$115 million,” it said.
We are experiencing one of the most difficult operating environments in our history
Revenue saw a year-on-year 5 per cent decline to HK$4.21 billion last year.