(25 August 2026, Hong Kong) TVB Limited ("TVB" or the "Group", stock code 00511.HK) today announced its interim results for the period ended 30 June 2026 (the "Period").
Results Highlights
- Group revenue of HK$1,258 million (2025: HK$1,498 million) or a 16% decline.
- Group gross profit of HK$566 million (2025: HK$560 million) or a 1% increase, resulting in Group gross margin of 45% (2025: 37%).
- Total operating cost of HK$1,285 million (2025: HK$1,568 million) or an 18% reduction.
- Group EBITDA of HK$73 million (2025: HK$55 million) or a 33% increase.
- Loss attributable to equity holders of the Company of HK$74 million (2025: HK$108 million) or a 31% reduction.
Business Highlights
- TVB's four terrestrial TV channels retained a 78% share of television viewership in Hong Kong during the Period, reaching 4.8 million in-home viewers weekly. In the Chinese Mainland, our channels reached more than 22 million viewers monthly in Guangdong province. Meanwhile, in Hong Kong and overseas, our digital platforms and official social media accounts served over 127 million average monthly active users and generated nearly 4.1 billion cumulative video views over this Period.
- Terrestrial TV advertising revenue was broadly stable, with a 39% year-on-year growth in our Greater Bay Area revenues and strong advertising demand in Hong Kong from the banking and financial services sector. Meanwhile, digital advertising revenue increased 13% year-on-year.
- Revenue from Chinese Mainland Operations declined 61% year-on-year due to a smaller co-production drama slate and a softer market for content licensing.
- Gross profit grew by 1% during the Period, driven by a 26% reduction in our direct cost of sales arising from continued cost discipline and scaling-down of non-performing businesses. Our gross margin expanded to 45% (from 37% in 2025).
- Total operating costs fell by 18% year-on-year, enabling us to boost EBITDA by 33% for the Period despite softer revenues. We also delivered HK$241 million in cashflow from operations for the Period, a nearly four-fold increase from the same period last year.
- In AI content development, we passed another key milestone during the Period with the release of our first AI micro-animation series Yes, Boss (社畜求生101). Created by our in-house AI content lab First Frame Studio, this micro-animation was positively received by audiences across television, digital streaming and social media, and attracted significant sponsorships.
Outlook
- We expect our terrestrial TV advertising income to maintain modest growth for the rest of 2026 driven by continued momentum in our GBA advertising income. We also expect to maintain a double-digit growth rate in digital advertising income for the remainder of the year.
- In our Chinese Mainland segment, we expect a stronger second half of 2026 driven by a bigger co-production slate. As of 30 June 2026, we had five co-production dramas at various stages of production, including Mrs. Revenge (夫妻的博弈), I Only Live Twice (模仿人生), The Ideal Lawyers (模範律師團), Wars of Roses (玫瑰戰爭) and Undertable (枱底).
- Following positive results from our trial use of AI tools to enhance creative workflows, we expect AI to play a growing role in our content production as we continue to integrate AI tools and applications into our creative processes. While human creativity and talent remain front and center of our content production, AI enhances and shortens our production cycles and brings down costs. At the same time, AI can help us enhance the value of our vast content library by enabling new applications such as model training and new content generation. With such goals in mind, on 10 August 2026 we announced a potential joint venture with Gaw Capital to create a new AI computing facility and to offer advanced computing resources as a subscription-based service. As our own AI needs grow, having such a resource in-house will greatly boost our efforts. This potential joint venture, if successfully formed, will likely begin operations at the end of 2027.
- Based on the current business momentum, we expect to achieve growth in EBITDA and net profit attributable to equity holders of the Company for the full year of 2026 compared to 2025.
Ian Lee, CFO of TVB Limited, said, "For the first half of 2026, both gross profit and gross profit margin recorded growth, with the latter expanding by 8 percentage points year-on-year to 45%. Driven by our diversification strategy, advertising revenue from the Greater Bay Area surged by 39%, emerging as one of our key growth drivers. Despite macroeconomic headwinds, the Group's diversified portfolio has proven instrumental in mitigating single-market concentration risk. Alongside a decisive realignment of resources to phase out underperforming operations, this diversity not only insulates the Group from market volatility, but also solidifies our foundation for sustainable, long-term growth."
Results Announcement:
https://www1.hkexnews.hk/listedco/listconews/sehk/2026/0825/2026082500432.pdf