Television Broadcasts Ltd. (TVB) said Wednesday that its 2014 advertising revenue suffered from uncertainty triggered by last year’s protests.
It blamed slow retail sales for dampening advertisers’ appetite as consumers held back due to the uncertain atmosphere during the 79-day street occupation, Ming Pao Daily reported Thursday, citing TVB general manager Cheng Sin-keung.
The report did not give specific figures.
The slowdown was felt across the media industry, especially in the past four months, Cheng said in the company’s annual report.
However, he expects the advertising market to rebound in June or July after legislators vote on a political reform bill.
TVB revenue was up 2 percent to HK$5.77 billion (US$744.2 million) from HK$5.69 billion a year earlier, according to a March 31 stock exchange filing.
Net profit fell 19 percent to HK$1.4 billion from HK$1.74 billion due to extra expenses related to the 2014 FIFA World Cup Brazil.
Cheng said TVB could get a bigger share of advertising dollars after the government denied rival Asia Television Ltd.’s license renewal application.
Meanwhile, chief executive Mark Lee said free-to-air newcomers Hong Kong Television Entertainment Co. Ltd. and Fantastic Channel are not a serious threat to TVB.
He said online piracy is a bigger problem.
It is a threat to the whole industry and the government should step up efforts to stop it, he said.
Hong Kong Television Entertainment is owned by PCCW, which is controlled by Richard Li who also owns the Hong Kong Economic Journal, the parent of EJ Insight.
Fantastic Channel is owned by Cable Television.
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