TVB (00511.HK) disclosed the latest business situation and unaudited operating data for the three-month period ending September 30, 2024.

1. Core television-related business

During the quarter, the company continued to maintain a leading position in the viewership of Hong Kong's free-to-air television channels, with a total market share of 77% for the flagship channel Jade, 24-hour TVB News channel, and other channels.

The company's advertising revenue on Hong Kong's free-to-air channels remains strong as we enter the second half of the year. Building on the growth achieved in the first two quarters of the year, the overall revenue from advertising clients in this quarter increased by over 8% compared to the same period last year. With the company's advertising bookings for the fourth quarter of the year solidifying, the advertising revenue is expected to achieve strong double-digit growth for the full year 2024. This is thanks to the stable prices of prime-time TV ads throughout the year, the return of many blue-chip corporate clients to the company's terrestrial TV platform, and the company's ongoing ability to create popular content. For example, the company's reality show 'The Voice of China' began its third season in this quarter, with contestants from Malaysia and Guangdong competing alongside Hong Kong contestants, once again attracting a large number of sponsors and advertisers due to its consistently high viewership.

Regarding the group's OTT streaming business, during the quarter, although high-end myTV Gold subscribers experienced a slight 3% decrease in churn rate due to customer losses from one of the company's telecommunication services partners, compared to June 30, 2024, and September 30, 2023, the average monthly active user (MAU) across all service tiers remained at around 2 million.

The digital advertising revenue from the myTV Super platform, which has performed well since the beginning of 2024, grew by over 30% in this quarter compared to the three-month period ending September 30, 2023. Therefore, the company's digital advertising revenue is also expected to achieve strong double-digit growth for the full year 2024.

2. Mainland China related business

In mainland China, the company's drama production team was busy filming and producing three co-produced dramas that began in the previous quarter: 'Crime Crackdown 12', 'After the Skyscraper', and 'Golden Forest'. At the same time, in this quarter, two co-produced dramas 'Anti-Corruption Heroes' and 'Corporate Titans' started airing on Tencent Video, while the third co-produced drama 'Forensic Heroes VI' premiered on Youku.

In addition, in the company's multi-channel network (MCN) business, the company continued to attract a large number of viewers through e-commerce live streaming activities during the quarter, although the number of sessions held slightly decreased compared to the three-month period ended June 30, 2024. This is due to the mainland online retail entering the seasonal off-peak period without major holidays. In the busier fourth quarter, especially during the november 11 shopping festival-related and november 12 shopping festival-related, the company expects to hold more live streaming sessions.

Given the above situation, the company expects to achieve a significant positive EBITDA for the full year 2024. In addition, based on the current business momentum, the company also reiterates its expectation of achieving positive net income (profit attributable to the company's shareholders) in the six-month period ended December 31, 2024, excluding special one-time projects (if any).