TVB gets a 49 per cent stock boost as Hong Kong broadcaster signs deal with Alibaba’s Youku platform

TVB surged 49.6 per cent in Hong Kong after signing a two-year deal with Youku, a move that will generate 700 million yuan in revenue

Stock has gained as much as US$542 million in market capitalisation since rallying from this year’s low of HK$3.71 to a high of HK$13.40 on closing basis

Reading Time:2 minutes

Exterior of Television Broadcasts Limited at TVB City in Tseung Kwan O, Hong Kong. Photo: Sam Tsang

Tracy Quin ShanghaiandJiaxing Liin Hong Kong

Published: 6:40pm, 23 Mar 2023

Television Broadcasts (TVB) enjoyed another big boost to its stock price after signing a two-year deal to supply dramas and give access to its film library to Youku, a dominant Chinese online video platform.

The stock surged 49.6 per cent to HK$11 in Hong Kong on Thursday, the biggest jump since an 85 per cent bump on March 8 when it hosted its first live-streaming sales event on Taobao Live. The agreement will generate 700 million yuan (US$102.5 million) in revenue, the company said in a filing, or about 22 per cent of its estimated revenue in 2022.

The latest news helped support the rally in TVB from this year’s low of HK$3.71 on February 28, expanding its market value by as much as HK$4.26 billion (US$542 million), according to Bloomberg data. The stock has appreciated 198 per cent this year, while the city’s benchmark Hang Seng Index has climbed 1.7 per cent.

A scene from The Mid-Autumn Wonderful Tour, a hit programme of Henan Satellite TV show on Youku platform. Source: Youku

Youku, whose services are akin to YouTube and Netflix, and Taobao Live e-commerce streaming service are platforms owned by Alibaba Group Holding, the owner of this newspaper.

The surge on March 8 followed an encouraging Taobao Live debut that generated about 24 million yuan in sales within the first six hours. TVB, which has garnered 158,000 followers, also announced a second live-streaming session to be held on March 30, according to its stock exchange filing.

Under the broadcaster’s e-commerce initiative, it will invite its TV stars to conduct live-streaming sessions across at least 48 shows this year, giving its stock an unexpected lift, despite an expected fifth straight year of losses in 2022.

Investors in other Hong Kong-listed companies have also reaped hefty gains just from live-streaming initiatives.

Koolearn Technology, which is 55.7 per cent owned by China’s biggest private tutoring group New Oriental Education & Technology, switched its business focus to live-streamed shopping after a state crackdown on for-profit online education platforms wiped out the industry.