TVB reports ad sales recovery due to government and finance industry

Hong Kong broadcasting giant TVB reported its half year net profit decline of 43.7% to HK$170 million, and yet its advertising income exhibited signs of stabilisation with an increase of 0.6% to HK$1,130 million from HK$1,122 million in 2016.The increase was due to the ad spend from government/quasi-government organisations and finance companies - the former recorded a nearly 100% increase in revenue, while finance companies were aggressive spenders, recording more than 40% growth in advertising spend during the first half of 2017.The broadcaster said it also took advantage of the events celebrating the 20th anniversary of the establishment of the Hong Kong SAR to recruit governmental and related advertising budgets.However, traditional big spenders like milk powder and skin care brands did not perform so well, recording declines of 11% and 12%, respectively.TVB also said the increasing subscriber numbers and stream views on myTV SUPER are helping advertising sales growth and its negotiations with advertisers.It added that digital new media business remains one of its key growth drivers. During the period, segment revenue increased by 46% from HK$84 million to HK$122 million. Together with Big Big Channel, TVB anticipates further expansion of its digital new media business as it looks to cover a larger demographic of the viewing population.Meanwhile, revenue from continuing operations climbed by 3% to HK$2.02 billion. TV broadcasting revenue as a whole was HK$81.7 million.