TVB(HK:00511)2024-03-27 08:32Revenue Performance - Total revenue for the core television-related business (excluding e-commerce) increased by HKD 114 million or 4% to HKD 2.837 billion, driven by growth in Hong Kong and mainland China segments[3]. - The group's total revenue decreased by HKD 263 million or 7% to HKD 3.323 billion, primarily due to a decline in e-commerce segment revenue[3]. - Revenue from mainland China operations increased by 4% to HKD 729 million, with co-production income rising by 72% following agreements with Youku and Tencent[4]. - Segment revenue from Hong Kong TV Broadcasting increased by HKD 103 million or 8% to HKD 1.397 billion, driven by a 9% increase in advertising revenue[23]. - The OTT segment revenue grew by 2% to HKD 356 million, with an average monthly active user count of 2 million for the myTV SUPER streaming platform[4]. - E-commerce segment revenue fell by 44% to HKD 486 million, influenced by a weak local retail market and changing consumer habits[4]. - Revenue from the Hong Kong television broadcasting, OTT streaming, and mainland China businesses increased by HKD 103 million, HKD 7 million, and HKD 31 million respectively, totaling a growth of 6%. However, the e-commerce segment saw a significant decline of HKD 377 million, and the international business segment decreased by HKD 27 million, leading to a total revenue drop from HKD 3.586 billion to HKD 3.323 billion, a decrease of 7% or HKD 263 million[39]. Financial Losses and Improvements - EBITDA loss narrowed by HKD 198 million to HKD 1.40 billion, compared to a loss of HKD 3.38 billion in the previous year[3]. - The company reported a decrease in loss attributable to shareholders by HKD 44 million to HKD 763 million, with an adjusted loss of HKD 607 million, down from HKD 679 million in the previous year[3]. - EBITDA improved from a loss of HKD 338 million in 2022 to a loss of HKD 140 million, a 59% reduction, with a positive EBITDA of HKD 46 million in the second half of the year[18]. - The group reported a loss before tax of HKD 818,468 in 2023, compared to a loss of HKD 962,363 in 2022, showing an improvement[131]. - The adjusted loss attributable to shareholders was HKD 607 million, an improvement of HKD 72 million (11%) compared to HKD 679 million in 2022[85]. - The company reported a net loss of HKD 838 million for the year ended December 31, 2023, compared to a loss of HKD 807 million in 2022[100]. Cost Management - Total cash operating costs decreased by HKD 458 million or 12% to HKD 3.470 billion, with administrative expenses reduced by HKD 125 million[4]. - Total costs decreased by HKD 512 million or 12% to HKD 3.844 billion, including sales, distribution, broadcasting costs, and administrative expenses[17]. - Sales cost decreased from HKD 2.578 billion to HKD 2.299 billion, a reduction of 11% primarily due to a decline in e-commerce sales[16]. - The total administrative and general expenses decreased by 13% from HKD 959 million to HKD 834 million due to cost-saving measures implemented during the year, particularly in the Hong Kong television broadcasting and e-commerce segments[40]. - Employee benefits expenses (excluding directors' remuneration) decreased to HKD 1,397,371,000 in 2023 from HKD 1,524,231,000 in 2022, a reduction of about 8.3%[157]. - Depreciation expenses decreased to HKD 293,525,000 in 2023 from HKD 337,305,000 in 2022, a decrease of around 13.0%[157]. Cash and Debt Management - As of December 31, 2023, the company had unrestricted cash and bank balances of HKD 714 million, down from HKD 1.02 billion as of December 31, 2022[63]. - Total bank borrowings amounted to HKD 1.731 billion as of December 31, 2023, compared to HKD 2.150 billion a year earlier, with a capital debt ratio of 59.0%[64]. - The company’s net cash used in operating activities was HKD 155 million for the year, down from HKD 303 million in 2022[75]. - The company has a total outstanding loan balance of HKD 1,567,200,000 as of December 31, 2023, with a maturity date set for July 6, 2025[148]. - The interest rate on the company's term loan with Shanghai Commercial Bank was approximately 7.7% as of December 31, 2023, compared to 6.6% in 2022[148]. Strategic Initiatives - The company plans to streamline its terrestrial television channel lineup from five to four channels, merging existing channels to create a new "TVB Plus" channel, which is expected to save approximately HKD 100 million annually in content and operational costs[44]. - The mainland China market remains a significant growth driver, with strengthened partnerships for co-production of series, including the highly anticipated "News Queen 2," set to begin filming next year[45]. - The company is expanding its multi-channel network business by increasing its artists' presence on platforms like Taobao and Douyin, aiming to create new revenue streams beyond traditional television[45]. - The company has established a subsidiary in Macau to capitalize on the growing opportunities in the entertainment service sector within the gaming resort market[43]. Shareholder Returns - The company does not recommend a dividend for the year, consistent with the previous year[3]. - The company did not recommend the payment of dividends for the year ended December 31, 2023[86]. - The company has not declared dividends for the years ended December 31, 2023, and December 31, 2022[138]. Impairments and Provisions - The company recognized an impairment loss of HKD 126 million related to its investment in Shine Investment Limited during the year[79]. - The recoverable value of the investment in Shine Investment Limited was adjusted to HKD 34 million, a decrease of HKD 126 million from the original book value of HKD 160 million[80]. - The company recorded an additional provision for expected credit losses of HKD 86,300,000 for the year, raising the cumulative provision to HKD 311,600,000[141]. - The group applied a higher expected credit loss rate of 39.4% on promissory notes, compared to 28.8% in 2022, resulting in an additional provision of HKD 86 million, raising the cumulative expected credit loss provision to HKD 312 million[81]. Governance and Compliance - The company has adopted the corporate governance code as per the Hong Kong Stock Exchange's listing rules, ensuring compliance with high standards of business ethics and governance[185][197]. - The audit committee reviewed the consolidated financial statements for the year ending December 31, 2023, confirming that the figures in the preliminary results announcement are consistent with the financial statements[199]. - There were no repurchases of the company's listed securities during the year, and neither the company nor its subsidiaries bought or sold any listed securities[200].