TVB (00511) is expected to achieve positive net profit in the second half of 2024 and has promising prospects for 2025.

TVB (00511) announced that as of the three-month period ending on December 31, 2024, the company continued to maintain a leading position in viewership on Hong Kong terrestrial free television channels. The combined market share of the company's flagship channel, Jade Channel, 24-hour TVB News Channel, and other channels reached 81%. The company ended the year with strong advertising revenue on Hong Kong terrestrial free channels. In the current quarter, the overall revenue from advertising clients increased by over 10% compared to the same period last year. Despite a soft overall advertising market in Hong Kong, the company achieved double-digit growth in advertising revenue for the full year of 2024. With more large corporate advertising clients returning to the company's television platform, the company expects further growth in advertising revenue in 2025. A positive indicator is the response to the company's "early bird" program, where clients can commit to purchasing advertising packages on the company's television platform in 2025 at discounted prices. The amount of commitments received in the current quarter increased by a double-digit percentage compared to the early bird program in 2024. As these commitments represent a significant portion of the company's total advertising revenue for the year, the early bird program for 2025 is a positive indicator for the company's advertising revenue outlook. Last year, the company reached a new commercial arrangement with its signal transmission partner in Guangdong. Starting from January 1, 2025, the company also began selling advertising space for its TVB Jade and Pearl channels broadcast in Guangdong Province, aiming to extend the market to Hong Kong's Greater Bay Area. Hong Kong advertising clients have shown strong interest in this new product, and the company expects to benefit from this new initiative in its advertising revenue in 2025. In terms of the group's OTT streaming business, the average monthly active users across all service tiers remained around 2 million. Due to measures introduced in the current quarter to attract new viewers, the number of high-end myTVGold subscribers increased by 9% and 6% compared to as of September 30, 2024, and December 31, 2023, respectively. Additionally, digital advertising revenue on the myTVSuper platform grew by over 10% annually in the current quarter compared to the three-month period ending on December 31, 2023. Therefore, the company achieved strong double-digit percentage growth in digital advertising revenue for the full year of 2024 compared to the previous year, complementing the growth in advertising revenue on its terrestrial television platform. In the current quarter, the company began filming four new co-production dramas: "Game of Couples," "Justice Goddess Themis," "Imitation Life," and "Rose Wars." In addition to these, the company is also in production for "Crime Crackdown 12," "After the Towers," and "Golden Forest," totaling seven series in different stages of production. Furthermore, the co-production dramas "The Heroic Woman of the Cliff" and "Black Moonlight" began airing on Tencent Video and Youku in the current quarter. The company reaffirms its expectation to achieve a significant positive EBITDA for the full year of 2024 and anticipates achieving a positive net profit (profit attributable to company shareholders) in the six-month period ending on December 31, 2024, excluding special one-time projects.