Hong Kong’s TVB reduces losses by 5.5% to HK$763 million last year, points to cost-cutting efforts

The firm’s e-commerce revenue shrank 44 per cent to HK$486 million on the backdrop of a weak retail market and shifts in consumer habits.

Efforts to reduce costs were reflected in layoffs and other means, with a 13 per cent drop in headcount, to 3,496 employees.

TVB chairman Thomas Hui To said conditions remained challenging in 2024.

“We are cautiously optimistic that our Hong Kong TV broadcasting business segment will see continued growth and recovery in this year,” he said.

“We 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,” he 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 of last year.

Struggling Hong Kong broadcaster TVB to cut 300 jobs, reduce number of channels

But TVB said it posted a strong recovery in its mainland Chinese operations in the second half of the year 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 revenues, 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 called a pro-Beijing bias in TVB’s news coverage.

But analysts said TVB might cash in on Alibaba Group’s new plan to invest at least HK$5 billion in Hong Kong’s culture and film industries over the next five years to help reinvigorate the 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 up the funds for Hong Kong-made TV dramas, movies, 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.