【TVB511】TVB Turned Profitable Last Year with 59 Million Yuan Earnings, No Dividend Distribution Xu Tao: AI Helps Reduce Production Costs by 30%, Renaming to "Wireless Group" Reflects Multi-Platform Entertainment Media Positioning (Second Edition)

TVB Broadcast Television (00511) Last year, EBITDA increased by 23.7% year-on-year to HKD 365 million, turning from a loss to a profit. Net profit for the year was HKD 59 million, with earnings per share of HKD 0.13. TVB did not declare a dividend.

Additionally, TVB’s board of directors proposed changing the company’s English name from “Television Broadcasts Limited” to “TVB Limited,” and the Chinese name from “電視廣播有限公司” to “無綫集團有限公司.” TVB stated that the proposed names better reflect the group’s business identity, market positioning, and future development direction, aligning more with the overall interests of the company and shareholders.

【Press Conference Update: Xu Tao Discusses Reform Achievements and Future Outlook】

Chairman Xu Tao mentioned that the HKD 59 million net profit in 2025 mainly reflects the results of reforms implemented over the past three years, including updates to management models, revenue structures, and development strategies. Xu Tao also described that profitability is entirely sustainable, but considering that media business, economic development, and international politics are closely linked, and given the current uncertain environment, he remains cautiously optimistic about the outlook.

Financial Health and Dividend Policy

TVB’s financial health has improved. CFO Li Fulai stated that the group will continue to pursue cost reduction and efficiency enhancement strategies. Xu Tao added that TVB decided not to declare a dividend for 2025, believing that reinvesting cash into business development or debt repayment is more beneficial for shareholders in the long term, especially in the current high-interest environment where the company still has a certain amount of debt to manage.

Free TV License and Regulatory Challenges

The free TV license for TVB will expire at the end of November 2027. When asked about license renewal, Deputy General Manager (Legal and International Business) Chen Shuhong said the company has maintained communication with the Communications Authority and other government departments. He revealed that authorities are studying different options to support the local free TV industry, and he expects future relaxation in advertising and broadcasting language restrictions.

Chen Shuhong admitted that the core challenge facing Hong Kong’s free TV industry is the regulatory asymmetry between traditional broadcasters and streaming platforms. The company has conducted internal research and noted that several countries have attempted to legislate to align regulatory standards and support local free TV. Measures include requiring smart TV manufacturers to preload local free TV apps and stipulating that overseas streaming platforms entering the local market must invest resources to support local startups. The company is currently consolidating relevant opinions and preparing to submit them to government authorities.

Reason for Renaming: Reflecting Multi-Platform Entertainment Media Positioning

Regarding the reason for the name change, Xu Tao explained, “Television Broadcasts Limited” has a history of nearly 60 years. The name mainly reflected the past business model of providing information and entertainment to Hong Kong citizens solely through free TV. However, now that the company has evolved into a multi-platform entertainment media group, renaming as “TVB Group” better reflects its current positioning. He also believes that “TVB” as a core IP has a strong brand effect, making the rebranding more conducive to brand management.

AI Applications: Reducing Long-Form Video Production Costs by 20% to 30%

On AI applications, Xu Tao believes that technology can significantly improve operational efficiency. TVB has begun integrating AI into production, and once the technology matures and is widely adopted, the cost of producing long-form videos could decrease by 20% to 30%. He emphasized that applying AI must not compromise program quality. Chen Shuhong gave an example: previously, filming car crash scenes required government permits for road closures and outdoor shooting, often sacrificing one or two cars. Now, with AI, the team can produce similar scenes for just over HKD 10,000.

【Performance Report Analysis: Digital Media to Drive Growth in 2026】

TVB expects that, despite a cautious advertising environment in 2023, advertising revenue for the TV broadcasting division will grow modestly in 2026. Digital media advertising and other revenue streams are expected to become the main growth drivers in 2026. Regarding mainland China operations, TVB stated that five co-produced dramas are currently in different production stages and are expected to be launched in 2026, so revenue from this segment is expected to be flat or slightly higher than 2025.

TVB Broadcast Division EBITDA Surges 226%

For 2025, TVB’s revenue decreased by 2% year-on-year to HKD 3.19 billion, mainly due to declines in mainland China and international business revenues offsetting growth in the broadcast and digital media segments. Total operating costs (including cost of sales, sales, distribution, broadcasting costs, and administrative expenses) decreased by 6% to HKD 3.07 billion.

The broadcast division’s EBITDA increased by 226% to HKD 220 million; revenue grew by 9.3% to HKD 1.9 billion, mainly driven by a 15% increase in advertising revenue from HKD 1.434 billion to HKD 1.648 billion.

Co-produced Dramas Decline; Mainland Revenue Drops 27.1%

In digital media, EBITDA fell 58% to HKD 43 million, while revenue increased by 3% to HKD 390 million. myTV SUPER streaming platform continues to serve about 1.9 million monthly active users. Other digital assets, including social media accounts and mobile content apps, saw strong traffic growth, with average monthly active users up 18% year-on-year to 35.3 million, and video views up 43% to 1.7 billion. Driven by various new initiatives, digital media advertising revenue increased by 22% annually.

Mainland China operations saw a 27.1% decline in revenue to HKD 620 million due to reduced co-produced dramas and overall market slowdown, with EBITDA down 41%. The company has subsequently launched more AI-generated dramas and plans to continue releasing related content in 2026.

Source: HKEX Announcement

(Second edition includes press conference)