Upload
phamthien
View
214
Download
0
Embed Size (px)
Citation preview
2015 Business Overview
Domestic Free Television Programme Service License renewed for next 12years (2015-2027)
Maintaining leading market position with 5 digital channels. Audience shareof 82% during weekday prime time, engaging with over 3 million audience
A weak advertising market in Hong Kong
Competitive markets overseas, as piracy issue remains
Important developments to re-position ourselves:
Exited the operations in Taiwan (53% disposal in 2015 and 47% disposal in 2016)
Official launch of myTV SUPER OTT service in Hong Kong in April 2016
Invested in Flagship Entertainment (Warner Brothers, CMC and TVB)
2Note: HK TV population 6.46 million, about 2.4 million household
Some Key Numbers
Revenue : HK$4,455m (2014: HK$4,912m), down 9%
Total costs : HK$3,439m (2014: HK$3,335m), up 3%
Operating profit (before non-recurring items): HK$1,006m, (2014: HK$1,569m),down 36%
Profit attributable to equity holders : HK$1,331m (2014: HK$1,410m), down 6%
EPS: HK$3.04/share (2014: HK$3.22)
Final dividend: HK$2.00/share, giving a full year dividend of HK$2.60/share (levelwith FY14), a 85% payout
Non-recurring items booked :
A gain of HK$1,396m from disposed Taiwan operations (before related taxes) booked in 1H15;
Impairment loss re: HK pay TV business, TVB Network Vision of HK$695m, booked in 1H15;
Impairment loss on property of HK$88m re: a decision to terminate the construction of newproduction studios and related facilities in Hong Kong;
Exchange losses of HK$42m re: Renminbi fixed term deposits.
3
HK$ million FY15 FY14 yoy change
Continuing operations
Revenue 4,455 4,912 -9.3%
Cost of sales (2,009) (2,016) -0.3%
Gross profit 2,446 2,896 -15.6%
Other revenues 75 75 -0.1%
Selling, distribution and transmission costs (577) (556) 3.8%
General and administrative expenses (853) (763) 11.8%
Other losses, net (85) (83) 1.5%
Operating profit before non-recurring items 1,006 1,569 -35.9%
Exchange losses on Renminbi fixed term deposits (42) (4) NM
Impairment loss on property (88) -- NM
Finance costs (6) (3) 133.1%
Impairment loss on A/R due from associate, TVB Network Vision (695) --- NM
Segment profit 174 1,562 -88.8%
Share of losses of joint ventures (15) (7) 112.3%
Share of losses of associates (33) (72) -54.7%
Income tax expense (144) (221) -34.8%
(Loss)/profit after tax from continuing operations (18) 1,262 NM
Profit after tax from discontinued Taiwan operations 1,336 158 NM
Profit for the period 1,318 1,420 -7.2%
Consolidated Income Statement
4
2016 Outlook
• Hong Kong advertising market still weak. Segment profit under Hong Kong TV Broadcasting will continue to deteriorate. But, the Board believes that the market should resume normal growth in 2017 after a period of consolidation.
• Rio 2016 Olympic Games : possible under-recovery of costs in the region of HK$150m.
• myTV SUPER: Start-up deficit for the first year : HK$100m. However, the Board is confident on the prospects of this new business based on current cooperation with our business partners, Hutchison Telecommunications and Hong Kong Broadband. By November 2017, the subscribed number of screens through boxes and mobile apps will exceed 1,400,000.
• Disposal of remaining 47% in Liann Yee completed in March 2016. Proceeds approx. HK$1,017m received. No special dividend proposed. But, a steady dividend policy is maintained for foreseeable future.
5
Financial PositionHK$ million 31.12.15 31.12.14
Non-current assets 2,771 3,900
Current assets (other than bank deposits, cash and cash equivalents) 3,525 3,325
Bank deposits, cash and cash equivalents 2,817 3,332
Total assets 9,113 10,557
Total equity 7,836 8,704
Total liabilities 1,277 1,853
Total equity and liabilities 9,113 10,557
Current ratio 8.8 5.0
Gearing ratio 3.0% 4.5%
6
CAPEX in FY15 was HK$290m (FY14: HK$354m), mainly on maintenance & upgrade of existing equipment.
Turnover by Operating Segment
HK$ million FY15 FY14 yoy change
HK TV broadcasting 3,105 3,420 -9%
HK digital new media business (note 1) 170 196 -13%
Programme licensing and distribution (note 2) 951 1,085 -12%
Overseas pay TV operations (note 3) 186 243 -24%
Channel operations (note 4) 105 125 -16%
Other activities (note 5) 129 75 72%
Elimination (191) (232) NM
Total 4,455 4,912 -9%
Note: 1 Includes portal business under www.tvb.com and mobile apps. 2. Includes businesses in Malaysia, Singapore and Mainland China. 3. Includes platforms in USA, Australia and Europe. 4. Includes satellite channel operations under TVB8 and Xing He.5. Other activities include magazine publications and music publishing 7
HK TV broadcasting69%Programme
licensing & distribution19%
Overseas pay TV 4%
Channel operations2%
Others2%
HK digital new media4%
Turnover by Geographical Location
-
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
Hong Kong(75%)
Malaysia &Singapore
(12%)
MainlandChina (6%)
USA &Canada
(3%)
Australia(1%)
Europe(0.2%)
Vietnam(1%)
Othercountries
(1%)
FY15 3,325 549 271 145 62 9 48 46
FY14 3,625 555 383 168 90 30 30 31
In HK$ million
8
FY15 turnover totaled HK$4,455m (FY14: HK$4,912m).
New markets like Vietnam & Cambodia achieved encouraging growth in revenue.
Segment Profit
9
HK$ million FY15 FY14
yoy change
HK TV broadcasting 551 947 -42%
HK digital new media business 41 66 -38%
Programme licensing and distribution 410 618 -34%
Overseas pay TV operations (31) (27) 13%
Channel operations 17 32 -47%
Other activities & elimination 11 (3) NM
Subtotal 999 1,633 -39%
Less: Non-recurring items:
Exchange losses on Renminbi deposits, impairment losses on property & Network Vision
(825) - NM
Loss on liquidation of subsidiaries __-_ (71) NM
Total 174 1,562 -89%
HK TV broadcasting55%Programme
licensing & distribution 41%
Overseas pay TV -3%
Channel operations 2% Others1% HK digital new media 4%
10
3,105
3,420
551
947
18%
28%
0%
5%
10%
15%
20%
25%
30%
FY15 FY14
-
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
Revenue Segment profit Segment profit margin
HK retail sales fell 3.7% yoy. Jewellery, watches and valuable gifts sales plunged 15.6%. Other important revenue-generating categories also faced a cyclical downturn.
Revenue dropped 9% due to sluggish retail sales & absence of 2014 FIFA world cup ad revenue.
Audience share of TVB’s terrestrial TV channels aggregated to 82%.
Key categories – baby milk powder, skincare & supermarkets cut ad spending. But, online travel agents category, mobile apps, online property agents & personal care products increased spending.
Channel modification in early 2016.
Hong Kong TV BroadcastingHK$ million
Note: Broadcasting of five digital channels, namely Jade, HD Jade (renamed J5 in 2016), J2, Pearl and iNews through terrestrial TV network in Hong Kong and programme production
11
170
196
41
66
24%
34%
0%
5%
10%
15%
20%
25%
30%
35%
40%
FY15 FY14
-
50
100
150
200
250
Revenue Segment profit Segment profit margin
Revenue dropped 13% due to sluggisheconomy & absence of FIFA world cupadvertising revenue.
GOTV (paid VOD service) income rose asnumber of subscribers exceeded 116,000paid users.
Flagship service, myTV (free) hasundergone a major revamp for add-oncontent and new user interface to boostviewership. myTV has more than 2.7million unique browsers.
myTV SUPER OTT service will be officiallylaunched in April 2016.
Hong Kong Digital New Media Business
HK$ million
Note: Hong Kong digital new media business includes portal business under www.tvb.com and mobile apps.
12
951
1,085
410
618
43%
57%
0%
10%
20%
30%
40%
50%
60%
FY15 FY14
-
200
400
600
800
1,000
1,200
Revenue Segment profit Segment profit margin
Revenue dropped 12% due to lowerincome from Malaysia and China.
Malaysia & Singapore: hurt by piracy.We increased investment in locally-produced programmes to sustain ourleading position.
Depreciation of Malaysian Ringgitlowered our income.
New markets such as Vietnam &Cambodia posted good growth.
China revenue fell due to lower licensefee from digital new media.
Programme Licensing and Distribution
HK$ million
Note: Licensing of TVB programmes for distribution in Mainland China and overseas market (principally Malaysia and Singapore)
13
186
243
-31 -27 -16%
-11%
-18%
-16%
-14%
-12%
-10%
-8%
-6%
-4%
-2%
0%
FY15 FY14
-50
-
50
100
150
200
250
300
Revenue Segment profit Segment profit margin
Total revenues from our overseas pay TVplatforms in Europe, Australia and USAdeclined 24%. Piracy issue remains.
Anti-piracy measures are starting to payoff.
Expanded TVB Anywhere (OTT service)coverage to Australia in February 2015.
Switched from satellite transmission to acost-efficient OTT-based delivery.
Overseas Pay TV OperationsHK$ million
Note: Includes platforms in USA, Australia and Europe.
14
105
125
17
32
17%
26%
0%
5%
10%
15%
20%
25%
30%
FY15 FY14
-
20
40
60
80
100
120
140
Revenue Segment profit Segment profit margin
TVB8 and Xing He channels aredistributed through satellites toMainland China & as part of the channelofferings to Astro/MEASAT, Starhub andTelecom Malaysia.
Weaker advertising market in Malaysiaexplained the decline in revenue.
Some enhancements to provide viewers with new experience:
1) upgrade TVB8 & Xing He channels to high definition format
2) Invest in the locally-produced content
Channel OperationsHK$ million
Note: Includes satellite channel operations under TVB8 and Xing He.
myTV SUPER Addresses Changes in Viewing Habits
TVB aims to provide a radical change in TV viewing experience leveraging onhigh broadband connectivity.
myTV SUPER: via a TVB branded set-top-box and app promise unrivalledpicture quality, seamless catch-up and a rich content offering.
Over 30 TV channels. The VOD service provides vast volume of over 11,000hours and extensive choices of programmes ranging from premieres to classictitles, featuring TVB self-produced shows, Asian dramas and variety, Americandramas, the latest cartoons and animations.
Supported by two major ISPs, Hutchison Telecommunications and HKBroadband.
Target: subscribed number of screens exceeding 1,400,000 by November2017
Start-up deficit for the first year: HK$100m
Confident myTV SUPER will eventually yield positive contributions
15
16
DisclaimerAll information and data are provided for information purpose only. The financial information relating to the yearsended 31 December 2015 and 2014 included in this presentation do not constitute the Company's statutoryannual consolidated financial statements for those years. All opinion included herein constitute TVB’s judgmentas of the date hereof and are subject to change without notice. TVB and its subsidiaries and affiliates herebydisclaim (i) all express, implied and statutory warranties of any kind to user and/or any third party includingwarranties as to accuracy, timeliness, completeness, or fitness for any particular purpose; and (ii) any liabilitywhatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the information anddata contained herein.