Facing intensifying competition from digital media, Television Broadcasts Limited announced its revenue from continuing operations dropped from HK$2.29 million to HK$2.03 million, a decrease of 11%.
Amid shrinking advertising budgets, advertising income from Hong Kong slumped 12 percent due to the weak local retail market.
High value products including jewellery, watches and clocks, and valuable gifts, a sector which is important for its advertising revenue reported a decline of approximately 16%.
"Slower growth in Mainland China, a strong US dollar, and the recent local stock market fluctuations have been contributing to dampened retail sales to date. Tension in local politics could also negatively impact on confidence and willingness to invest in advertising." according to the company's interim report.
Due to a continuing decline in advertising spending particularly from luxury brands, its upmarket magazine “Live”, alongside TVB Weekly, has been changed from weekly to monthly, since July.
Charles Chan, chairman of TVB, anticipated that the local TV market will become more competitive after government granted a new 12-year domestic free television programme service licence to HK Television Entertainment Company Limited, a member of the PCCW group, and approved in principle Fantastic Television Limited, a member of the Wharf group, to operate in the same marketplace.