TVB sees mainland revenue hitting $1b

Television Broadcasts (0511) chairman Thomas Hui To expects revenue from the company's mainland business will be "comfortably" above the HK$1 billion mark this year thanks to drama co-productions and a strong recovery in advertising income.

Revenue from TVB's mainland operations rose by 4 percent to HK$729 million in 2023 from a year ago.

Hui expects a similar expanded cooperation with Tencent's (0700) video-streaming platform following a new agreement signed with Alibaba's (9988) Youku last month, which will see an increased number of co-produced drama titles through to 2026.

The Queen of News, a drama produced by TVB and Youku, rekindled enthusiasm among mainlanders for Hong Kong dramas last year and will start filming the second season early next year.

For this year, 10 dramas will begin filming from May to October.

TVB earlier said it expects a net profit for the second half of this year while reiterating a full-year target of positive earnings before interest, taxes, depreciation, and amortization.

In terms of advertising, TVB saw an increasing number of inquiries from local firms for ads through TVB in the Greater Bay Area since January this year after the broadcaster took back operating rights, along with advertising rights, of its Jade and Pearl channels in the Guandong province last July.

And in the first three months, TVB's streaming platform myTV Super saw digital advertising income grow by over 30 percent from a year earlier.

Since last Monday, TVB's J2 and TVB Finance, Sports and Information Channel have been merged to become TVB+ under Channel 82 while Channel 85 became the new Phoenix Hong Kong Channel airing Phoenix Television's productions, though TVB still owns the channel.

Regarding the main reason for teaming up with state-owned Phoenix TV, Hui said although it was not the only option TVB had, the firm ended up working with Phoenix based on a comprehensive consideration such as how TVB wanted to manage its channel, how it can be done under a certain time frame, and whether the Communications Authority would approve it.

Separately, TVB last Friday signed an agreement with Fudan University to jointly nurture journalistic talents.