Television Broadcasts Limited · HKEX:511
Television Broadcasts — Investor Presentation (April 2020)
25 slides from Television Broadcasts's investor presentation, April 2020
Slide 1: Television Broadcasts Limited Corporate presentation April 2020
Television Broadcasts Limited (Stock code: 0511) Corporate presentation April 2020
Slide 2: TVB - an iconic brand
TVB - an iconic brand A leading vertically integrated TV broadcaster with largest audience share Commenced business in 1967 and listed on the Stock Exchange of Hong Kong in 1984 −First wireless commercial television station in HK (licence until 2027) −Largest free-to-air TV broadcaster in HK with
Slide 3: TVB a terrestrial TV broadcaster in Hong Kong for 52 years
TVB a terrestrial TV broadcaster in Hong Kong for 52 years Operates three media platforms of leading positions Since 1967 Terrestrial TV broadcasting (1st platform) Engages with 5.5 million viewers, captures 81% audience share Jade channel is the most watched TV channel in HK Co-produce programmes w
Slide 4: Group Structure
Group Structure Free float Young Lion The Late Mona Fong and Top institutional holders including Holdings Ltd Shaw Foundation − Silchester International (14%) − Dodge and Cox (9%) 26.0% 3.9% 70.1% TVB (00511.HKSE) 100.0% 100.0% 100.0% 100.0% 100.0% 11.98% associate 50% JV Programme Shaw Imagine Ho
Slide 5: Clear and focused strategies to drive long-term success
Clear and focused strategies to drive long-term success 1) Investing in digital platforms Launched OTT platforms and social media platform with notable results TVB now possess a complete spectrum of media platforms spanning terrestrial TV, OTT service and social media, which provides multi-platform
Slide 6: FY19 Results Highlights
FY19 Results Highlights Revenue decreased from HK$4,477 million to HK$3,649 million, a decline of 18%. Income from advertisers under Hong Kong TV broadcasting decreased from HK$2,440 million to HK$1,910 million, a decline of 22%. Income from new media, myTV SUPER and Big Big Channel businesses
Slide 7: FY19 Consolidated Income Statement
FY19 Consolidated Income Statement HK$ million FY18 FY19 yoy chg Revenue 4,477 3,649 -18% Cost of sales (2,337) (2,167) -7% Gross profit 2,140 1,482 -31% Other revenues & other gains/(losses), net (28) 44 NM Interest income 255 180 -29% SG&A expenses (1,725) (1,531) -11% Gain on disposal of bond sec
Slide 8: Segment Analysis
Segment Analysis FY19 FY19 External yoy Profit/ yoy HK$ million revenue change (loss) change Explanation HK TV broadcasting 2,190 -25% (304) NM Ad income dropped 22% due to adverse market in 2H19; fewer delivery of co- production drama due to industry-wide regulatory review in 2018/19 MyTV SUPER 442
Slide 9: Mainland China operations: promising growth opportunities
Develop Markets: Promising growth opportunities in Mainland China Operations Fueled by co-production business and licensing income from online platforms Mainland China business exhibited Traditional licensing robust potential; 15% of Group’s 17% Co-production 11% yoy turnover of drama serials 19% -6
Slide 10: Raising content standard: continued to invest in content creation
Raising content standard : continued to invest in content creation Investing in digital : myTV SUPER OTT contributes to significant TV ratings Developing new markets : co-produce content with Chinese online platforms These prime time blockbusters received high audience applause at home and abroad, a
Slide 11: Co-production drama serials, expect more in 2020 and beyond
Co-production drama serials, expect more in 2020 and beyond Strategic cooperation with leading online operators on production of platform- exclusive drama serials, deliver notable success Benefit : Increase TVB presence in Mainland China and provide higher production budgets. Business model: B2B. Un
Slide 12: myTV SUPER OTT business continues to grow
myTV SUPER OTT business continues to grow Expanding user base, increasing ARPU and new ad features As of 15 March 2020, registered users exceeded 8.3 million. 1.3 million via boxes (equivalent to 51% of 5.9 million via apps (equivalent household penetration) to 90% of TV audience) 1.1 million via po
Slide 13: Big Big Channel Business monetises both online and offline
Big Big Channel Business monetises both online and offline Product placement (Terrestrial TV), social media advertising (Big Big Channel), e-commerce (Big Big Shop) Lo and Behold (weekday sitcom), with an extended cast and popular guest appearance, TV ratings increased to 26.4 TVRs in 2019. This pop
Slide 14: Showing on TV, Selling in Big Big Shop
“Showing on TV, Selling in Big Big Shop” Stimulate consumer’s impulse to buy through showing products on terrestrial TV Popular cooking programme featuring kitchen appliance, frozen meat & seafood Little Miss Hong Kong Limited Edition Set available on Big Big Shop and Taobao 13
Slide 15: International Distribution: Diversifying from traditional B2B licensing to OTT
International Distribution: Diversifying from limited-reach traditional B2B licensing to OTT distribution (telco-supported B2B2C, B2C), earning sub & ad income TVB Anywhere, together with subscribers/users from third party platforms carrying TVB content, has a user base of over 13.7 million B2B lice
Slide 16: Priorities for 2020
Priorities for 2020 Mainland China as the key growth market Strengthen programme co-production pipeline to include both drama and variety programmes Digital platforms Grow subscriptions of myTV SUPER Widen distribute of TVB Anywhere+ with overseas telco partners Advertising on TV and dig
Slide 17: Appendix
Appendix 16
Slide 18: Balance Sheet
Balance Sheet HK$ million 31 Dec 2018 31 Dec 2019 Bond securities at amortised cost (current and non-current) 2,257 1,376 Property, plant and equipment 1,811 1,808 Trade and other receivables, prepayment and deposits 2,289 1,722 Cash and bank deposits 1,270 1,185 Programmes and film rights, stocks 1
Slide 19: Hong Kong TV Broadcasting (60% of revenue)
Hong Kong TV Broadcasting (60% of revenue) Maintain as the leading broadcaster serving HK with high viewership Business model: Free-to-air broadcasting of 5 terrestrial TV channels (Jade, J2, TVB News, Pearl, TVB Finance & Information), each with clear audience targets in return for advertising and
Slide 20: myTV SUPER (12% of revenue)
myTV SUPER (12% of revenue) Increased consumption translated into promising growth in sub revenue Business model: Combination of advertising and subscription model. Bundling arrangements with telco partners continued. Launched myTV Gold premium package to attract subscription. Use Data Management Pl
Slide 21: Big Big Channel Business (4% of total revenue)
Big Big Channel Business: (4% of total revenue) Turnaround Focus on events management, social media advertising and e-commerce Big Big Channel: Over 14 million followers, focus on content-based advertising via self-produced short videos. Big Big Shop: Earns commission income, adopting a “showing on
Slide 22: Programme Licensing and Distribution (20% of revenue)
Programme Licensing and Distribution (20% of revenue) Working closely with platform partners on new media licensing Business model: B2B. Licensing of TVB produced programmes to operators of pay TV, online videos for exhibition on their traditional and digital platforms. Programme Licensing and Distr
Slide 23: Overseas Pay TV and TVB Anywhere (4% of revenue)
Overseas Pay TV and TVB Anywhere: (4% of revenue) Extend TVB’s reach in overseas markets by way of digital services with TVB Anywhere OTT Business model of TVB Anywhere OTT service : TVB’s overseas OTT service currently covers territories outside of Hong Kong but excluding Mainland China (due to reg
Slide 24: Disclaimer
Disclaimer The information contained in this presentation is intended solely for your information. Such information comprises extracts of operational data and unaudited financial information of the TVB Group for the year ended 31 December 2019 and of certain comparative financial information of the
Slide 25: TVB 52nd Anniversary artist group photo
Television Broadcasts — Investor Presentation (April 2020) on 6ix