Hong Kong’s TVB reduces losses by 5.5% to HK$763 million, points to cost-cutting efforts
- TVB racks up sixth consecutive year of losses although total revenue excluding e-commerce business rises 4 per cent
- ‘We are cautiously optimistic that our Hong Kong TV broadcasting business segment will see continued growth and recovery this year,’ chairman Thomas Hui says
TVB published its financial results on Wednesday, with the figures marking its sixth consecutive year of losses. The broadcaster logged a record deficit of HK$807 million in 2022, HK$647 million in 2021 and HK$281 million in 2020.
Total revenue excluding e-commerce business rose 4 per cent to HK$2.83 billion last year mainly driven by growth in Hong Kong TV broadcasting and mainland China operations, the company said.
Struggling Hong Kong broadcaster TVB to cut 300 jobs, reduce number of channels
The firm’s e-commerce revenue shrank 44 per cent to HK$486 million amid the backdrop of a weak retail market and shifts in consumer habits.
Efforts to reduce costs were reflected in lay-offs and other means, with a 13 per cent drop in headcount, to 3,496 employees.
TVB chairman Thomas Hui To said conditions would remain challenging in 2024.
“We are cautiously optimistic that our Hong Kong TV broadcasting business segment will see continued growth and recovery this year,” he said.
“We [will] continue to optimise our cost structure in this coming year. Content costs will be closely monitored, and general and administrative overheads kept under tight control. As a result, we expect to achieve positive Ebitda over the whole year of 2024,” Hui said, referring to earnings before interest, taxes, depreciation and amortisation.
Last year, Ebitda losses narrowed by 58.6 per cent to HK$140 million from 2022 on higher revenue and greater cost savings in the second half.
TVB said mainland operations revenue increased by 4 per cent to HK$729 million with drama co-production revenue growing by 72 per cent as many co-productions and dramas were produced or aired across the border under a deal signed with platforms Youku and Tencent Video.
The company has grappled with plummeting viewer numbers and advertising revenue, with the Covid-19 pandemic exacerbating issues stemming from the 2019 anti-government protests.
During the social unrest, some internet users called for a boycott over what they claimed was a pro-Beijing bias in TVB’s news coverage.
But analysts said TVB might cash in on a new plan by Alibaba Group to invest at least HK$5 billion in Hong Kong’s culture and film industries over the next five years to help reinvigorate these sectors.
Alibaba media arm to invest HK$5 billion in Hong Kong’s film, culture sectors
Under the plan announced earlier, Alibaba Digital Media and Entertainment Group will partner with notable Hong Kong and mainland companies, including TVB, to produce film and television content, while also nurturing fresh talent.
Alibaba Pictures and other businesses under the larger company’s entertainment and media arm, alongside Youku, would divide the funds for Hong Kong-made TV dramas, films, events and the training of young creatives.
TVB said it would continue to work with Youku to roll out TV dramas such as Forensic Heroes VI: Redemption, Darkside of the Moon, The Queen of Castle and the highly anticipated The Queen of News 2.
Chan King-cheung, professor of practice in the journalism department at Baptist University, said it would be difficult for TVB to return to profitability amid plummeting e-commerce revenue and consumers’ shifting viewing habits.
“TVB should steer away from relying on traditional broadcasting for generating revenue such as advertising dollars. It should target e-commerce, social media and mainland operations for profits and an extension of its presence,” he said.
Chan added that the outlook was “very difficult” for the broadcaster and that it needed to “work a lot harder to see if it could return to the black again”.
