Hong kongAsiaTelevisionAfter the collapse, another hong kong television giant also began to show decline。
On 7 december, tv broadcasts (00511. Hk) listed on the main board of the hong kong exchange — tvb tv, a hong kong radio view — issued a profit warning announcement that the board expected corporate shareholders to account for about 55 to 65 per cent of the profits by 2016。
This was the first time in 28 years that tvb had issued a profit warning announcement。
On 8 december, there was a marked decline in the value of the tvb stock, which fell by 2. 85 per cent by 16 p. M., reaching its highest record for a month and a half. The closing price was hk$27. 25 on the same day, and the lowest price was quoted as hk$26. 8 to update the lowest price in the three months。
According to the announcement, using a year-round profit performance of hk$ 1. 331 billion in 2015, in 2016 the tvb profit zone ranged from hk$ 730 million to hk$ 860 million, possibly the worst year since 2003。
Tvb explained in the announcement that the company's income had been adversely affected by the continuing decline in hong kong's economy since the fourth quarter of 2014 and the continued weakness of the advertising market throughout the year. Owing to the relatively fixed cost structure of the branch, the expected annual decline in returns of close to hk$ 400 million, or about 13 per cent, will directly affect the 2016 spillover。
This has been evident in the first half of the year. During the first half of this year, tvb's business income decreased by 3 per cent over the same period, with shareholders accounting for hk$302 million in excess, or 74 per cent over the same period。
Apart from the weakness attributed to the economic environment, the broadcasting of the olympic programme has also been a drag on the performance of the tvb。
Tvb wrote in a press release on the internet that the total number of hours, comprehensiveness, live broadcasting and hong kong athletes at the olympic games was unprecedented in hong kong's history. Tvb broadcasts more than 500 hours of olympics on three free channels, most of which are live。
Such “unprecedented” inputs have not received the expected returns. In its announcement of 7 december, tvb disclosed that the cost of the 2016 olympic games in rio de janeiro had not been recovered as a result of the broadcast of radio video。
The bulletin also disclosed that the roof box project, which had been launched during the year, although at an ideal pace, would result in significant losses during the start-up phase。
It is worth mentioning that in 2016, a poor tvb was selected for sale。
In this bulletin, tvb mentions that another reason for the fall in net profits in 2016 is that “in 2016 the company sold its property interests in the lake area of taipei, but the net proceeds were only hk$292 million”。
On 29 july, the company announced that it would sell properties under its flag located in lake taipei, at a cost of $nz 4 billion, or hk$ 960 million. This includes a land area of approximately 33. 75. 96 square metres and two buildings built on that land. Funds obtained from the sale of property will be used as general operating funds to maintain a stable dividends policy。
Despite the severe loss of pure water during the first half of the year, tvb was not soft in the interim and remained at the level of hk$0. 6 per share。
With regard to this profit-making early warning, osm analysed in the report that, although tvb would have many competitors in hong kong free television, management was not worried because it believed that the group had established a loyal audience. In 2016, in response to the challenge of mobile television for traditional television, tvb launched the ott mobile television platform, which is believed to be responsive to the needs of the audience。
The former tvb was officially launched in 1967 by television broadcasting ltd., the first free television station in hong kong. In november 1988, hk-tvb limited was restructured and tvb became an independent listed company. As an old television station in hong kong, tvb has not only played a major role in hong kong's television history, but has also had a considerable impact among some mainland viewers. For example, the hong kong miss election since 1973 has become hong kong's most representative pageant. Many of tvb's home-made programmes, such as "golden dynasty, heartstorm, heart plan, etc., are also popular in the interior。
Currently, the main shareholders of tvb are mainland capital, including young lion, a consortium led by chen guoqiang, and china cultural media and entertainment investment ltd。
