Hong Kong–based broadcaster TVB reported a narrower loss for the six months ended 30 June 2026, driven by aggressive cost containment that offset a double-digit revenue decline.
Revenue and Profitability • Group revenue fell 16.04% year on year to HK$1.26 billion, mainly reflecting a 61.32% contraction in Chinese Mainland Operations and continued scaling-back of loss-making e-commerce activities within TV Broadcasting. • Gross profit edged up 1.13% to HK$565.82 million as cost of sales dropped 26.26% to HK$691.69 million. Consequently, gross margin widened to 45.00% from 37.38% a year earlier. • Total operating costs were cut by 18.00% to HK$1.29 billion, lifting Group EBITDA by 32.42% to HK$73.10 million. • Loss attributable to equity holders narrowed 31.88% to HK$73.61 million; loss per share improved to HK$0.16 from HK$0.23. No interim dividend was declared.
Segment Performance • TV Broadcasting: Revenue slipped 3.51% to HK$789.59 million, but EBITDA swung to a HK$54.76 million profit from a HK$14.85 million loss, helped by lower content costs. • Digital Media: Revenue inched up 0.85% to HK$192.60 million; EBITDA decreased 10.11% to HK$17.51 million as subscription income softened. • Chinese Mainland Operations: Revenue plunged to HK$136.33 million (-60.33%), turning an EBITDA profit of HK$60.41 million into a HK$9.84 million loss due to a reduced co-production slate and weaker licensing demand. • International Operations: Revenue grew 2.20% to HK$138.99 million, with EBITDA improving to HK$10.68 million from a HK$9.65 million loss, aided by revised content-cost allocations.
Cash Flow and Balance Sheet • Operating cash inflow reached HK$241 million, nearly quadruple the prior-year level. • Cash and cash equivalents rose to HK$965.95 million (31 December 2025: HK$794.07 million); net debt to equity improved to 53.9% from 59.9%. • The current ratio stood at 1.7 versus 1.8 at end-2025. • Outstanding borrowings totalled HK$2.00 billion, including a HK$1.18 billion term loan with Shanghai Commercial Bank and HK$0.30 billion in other borrowings and convertible bonds.
Operational Metrics • The four free-to-air channels held a 78% share of Hong Kong TV viewership, reaching 4.8 million weekly in-home viewers; digital platforms and social media averaged 127 million monthly active users and delivered 4.1 billion video views during the period. • Terrestrial TV advertising was stable overall, with Greater Bay Area advertising up 39% and digital advertising revenue up 13%.
Strategic Developments and Outlook • Five mainland co-production dramas are in various stages of production, underpinning expectations for a stronger second-half contribution from Chinese Mainland Operations. • Following the debut of AI-generated micro-animation series “Yes, Boss,” the group announced plans for a potential joint venture with Gaw Capital to build an AI computing facility targeted to commence operations by end-2027. • Management forecasts full-year 2026 growth in EBITDA and net profit attributable to equity holders, supported by modest terrestrial TV advertising growth, double-digit expansion in digital advertising and disciplined cost management.
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