TVB expects double-digit growth in ad income for 2024

Local broadcaster TVB is expecting to see double-digit growth in its advertising income for the full year of 2024, along with a positive EBITDA for the entire year.

According to the official announcement on HKEX, TVB’s overall advertising income rose by over 8% in the third quarter compared to the same period last year. 

The positive forecast for advertising revenue is bolstered by a general firmness in TVB’s unit rates for primetime TV advertising spots this year, supported by the return of many blue-chip corporate advertisers to its terrestrial TV platforms, as well as hit content such as the talent show Midlife, Sing & Shine! (中年好聲音), according to TVB.

“The talent show, which we began airing in its third season this past quarter with contestants from Malaysia and Guangdong joining those from Hong Kong for the first time, once again attracted substantial sponsorship and advertising due to its consistent high viewership," said the statement.

Additionally, TVB expects strong double-digit growth in revenue from digital advertising on its myTV Super platform for the full year of 2024. It was up by over 30% during the quarter compared to the three-month period ending 30 September 2023.

However, the group’s over-the-top (OTT) streaming business experienced a mid-decline in premium myTV Gold subscribers, dropping by 3% and 2% compared to the three-month periods ending 30 June 2024, and 30 September 2023, respectively. This decline was attributed to higher churn rates from one of its telco service bundling partners during the quarter. Meanwhile, the average monthly active users (MAU) across all service tiers held steady during the quarter at approximately two million.

In terms of multi-channel network (MCN) business, TVB said it held slightly fewer sessions compared to the previous three-month period ended 30 June 2024, as it was a seasonally quieter period for online retail in the mainland with no major festivals on the calendar. Meanwhile, it said it continued to reach a sizeable audience through its livestream eCommerce activities during the quarter. 

In the busier fourth quarter of the year, the group expects to hold more livestream sessions, especially around the “Double 11” and “Double 12” retail festivals.

In terms of mainland China-related businesses, TVB said it is filming and producing three co-production titles D.I.D. 12 (刑偵12), The Queen of Castle (巨塔之后), and The Fading Gold (金式森林). Meanwhile, during the quarter, two of its co-production titles No Room For Crime (反黑英雄) and Big Biz Duel (企業強人) began airing on Tencent Video, while a third series Forensic Heroes VI (法證先鋒 VI ) premiered on Youku. 

Don't miss: TVB reduces losses due to recovery in advertising income

Back in August, TVB reduced its first-half net loss by 65% from a year ago to HK$143 million, driven by a 21% surge in advertising income.

However, the total group revenue fell by 3% from HK$1.56 billion to HK$1.51 billion, as revenue growth in its core TV-related businesses was offset by the decline arising from the downsizing of its eCommerce business segment.

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