TVB (00511) has announced its interim results for 2026, revealing a 16% year-on-year decline in revenue to HK$1.258 billion. Despite the top-line pressure, the company managed to improve its gross profit by 1% to HK$566 million, while the loss attributable to shareholders narrowed significantly by 31.92% to HK$73.612 million.
The company reported a loss per share of HK$0.16 for the period. According to the announcement, the revenue decrease was primarily driven by lower contributions from its mainland China operations, alongside a reduction in television broadcasting income as the group continued to scale back loss-making activities such as e-commerce.
Gross profit growth of 1% was achieved despite the revenue dip, benefiting from rigorous cost containment measures and the streamlining of underperforming business segments. These actions led to a 26% reduction in direct sales costs, which in turn boosted the gross profit margin to 45%, up from 37% in the prior corresponding period.
Total operating expenses for the period declined by 18% year-on-year, a key factor that enabled the group to post a 33% increase in EBITDA even as revenue softened. This operational efficiency also translated into a robust cash flow performance, with cash generated from operations reaching HK$241 million—a nearly fourfold increase compared to the same period last year.
The improved financial metrics underscore the effectiveness of the group's strategic focus on cost discipline and portfolio optimization, positioning TVB to navigate a challenging revenue environment while strengthening its cash generation capabilities.
Comments