TVB(HK:00511)2024-04-24 08:30Financial Performance - The total revenue of the company decreased by 7% or HKD 263 million to HKD 3.323 billion, primarily due to a significant drop in the e-commerce segment by HKD 377 million and a decline in international business revenue by HKD 27 million[42]. - The company recorded a loss attributable to shareholders of HKD 763 million, an improvement of HKD 44 million or 5% compared to the previous year's loss of HKD 807 million[45]. - The segment revenue for the year ended December 31, 2023, was HKD 7.29 billion, an increase of 4% compared to HKD 6.98 billion in 2022[58]. - The segment EBITDA decreased by 61% to HKD 630 million from HKD 1.60 billion in the previous year[58]. - Revenue from international business decreased by 7% to HKD 3.55 billion, primarily due to reduced income from traditional pay-TV partners[67]. - Other income fell from HKD 52 million in 2022 to HKD 21 million in 2023, mainly due to the absence of a one-time wage subsidy from the Hong Kong government[74]. - The company reported a non-cash impairment loss of HKD 6 million on its remaining bond portfolio during the year[106]. - The company's distributable reserves as of December 31, 2023, amounted to HKD 1,835,375,000, a decrease from HKD 2,301,300,000 in 2022[146]. Cost Management - The company is focusing on cost reduction and efficiency improvements, expecting to save over HKD 260 million annually in content spending by reallocating production resources to high-impact programs[1]. - EBITDA loss reduced from HKD 100 million in 2022 to HKD 49 million in 2023 through cost-cutting and focus on higher-margin products[26]. - The company implemented several cost-saving measures, resulting in an overall reduction of cash operating costs by 8%[75]. - The EBITDA loss improved from HKD 514 million in 2022 to HKD 272 million in 2023, a reduction of HKD 242 million or 47%[75]. - Total costs decreased by HKD 512 million or 12% to HKD 3.844 billion from HKD 4.356 billion[100]. Content Production and Strategy - The company has restructured its programming budget to focus on fewer but higher-quality shows, indicating a strategic shift in content production[1]. - The company is committed to producing high-quality content, as evidenced by multiple awards received for its documentary programs, reinforcing its reputation in the media industry[20]. - The company plans to increase the production of digital-first content and acquire third-party content to enrich its offerings, aiming to enhance its direct-to-consumer digital business[42]. - The company is focusing on creating local content to attract younger audiences and advertisers, including collaborations with local businesses in Malaysia[42]. - The drama "Invisible Team" achieved a high rating of 28.75, showcasing the company's ability to produce engaging content that resonates with audiences[5]. - The drama "The Queen of News" became the most searched TV series on Google in Hong Kong, highlighting its popularity and influence[7]. Digital and Advertising Revenue - The streaming service myTV SUPER generated revenue of HKD 356 million, a 2% increase from the previous year, driven by a 35% surge in digital advertising revenue[22]. - The company aims to enhance mobile device viewership, anticipating that increased engagement on mobile platforms will attract more advertising clients and contribute to digital ad revenue growth[25]. - Monthly active users on TVB's international YouTube channel reached 22.5 million, contributing to an 11% increase in overall social media revenue[36]. - The advertising revenue recorded a noticeable increase due to the launch of ad-supported free TV channels targeting English-speaking audiences in North America[42]. E-commerce and Consumer Trends - E-commerce revenue decreased to HKD 486 million and total order value dropped to HKD 544 million due to changing consumer habits post-pandemic[26]. - The segment revenue from e-commerce dropped significantly by 44% to HKD 4.86 billion, attributed to a shift in consumer shopping habits post-pandemic[75]. Corporate Governance and Shareholder Information - The board does not recommend the distribution of dividends for the year ending December 31, 2023[147]. - The company has adopted a dividend policy to provide stable returns to shareholders since December 6, 2018[152]. - The board consists of various directors who will be subject to re-election at the 2024 annual general meeting[154]. - The company maintains a policy of declaring dividends based on available profits, with the board having the discretion to declare interim and special dividends as deemed appropriate[171]. - The company has a significant stake in CMC Capital and Shaw Brothers Holdings, holding approximately 29.94% of the latter's shares, which may influence its operational strategies[176]. Employee and Talent Management - The company has implemented new measures to recruit and train talent in television production skills to ensure the sustainability of necessary skills[109]. - The company has a performance-based bonus system for high-performing employees, which may include discretionary bonuses[84]. Future Outlook and Strategic Initiatives - The company is actively seeking partnerships with new media companies to diversify revenue sources and enhance local content relevance[42]. - The company is adapting to changing media consumption trends by improving its mobile app offerings to increase daily active users[25]. - The company has not indicated any changes in its strategic direction or new initiatives in the recent financial report[177].