During the period, revenue fell 7% year-on-year to HK$3.323 billion. Among them, the Hong Kong TVB division recorded revenue of HK$1.4 billion, an increase of 8% year-on-year, while revenue from advertisers increased by 9%. Mainland business revenue increased by 4% to 729 million yuan, benefiting from the growth of revenue from co-production dramas and multi-channel network business. In addition, last year's OTT division revenue increased by 2% year-on-year to 356 million yuan, mainly benefiting from the growth of advertising revenue. E-commerce division revenue fell 44% to 486 million yuan, affected by the weak local retail market and changes in consumer habits.
The group said that it will transition from the existing 5 channels to a more streamlined 4 channels in the second quarter of this year, subject to approval by the regulatory authorities. The existing J2 channel and TVB Financial Sports Information Channel will be merged into the new "TVB Plus" channel, launching a series of diversified content, sports and information programs for young audiences. It is expected that the company will be able to save about $100 million in content and other operating costs each year.
The company's sales costs fell 11% year-on-year to $2.299 billion last year, a decrease of 11%, mainly due to the decline in sales of e-commerce business, which led to a decrease in sales costs. In addition, cost-saving measures have been implemented to reduce content costs by adjusting the quantity and nature of content production, stopping the filming of less influential programs, and cutting employee costs and indirect expenses.
The Group's outlook is that in addition to advertising during traditional TV broadcast time slots, it will further increase digital advertising revenue from various digital assets (including myTV SUPER), and digital advertising revenue is expected to record strong double-digit growth this year.
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