Roadshow Holdings Ltd. (00888.HK) will end its advertisement broadcast on Kowloon Motor Bus Co. (KMB) buses from June 30.
In a statement in Mid-march, Roadshow said it would not submit a tender for a KMB bus-television licence when its current licence expires on June 30, hk01.com reports.
Roadshow, originally part of the KMB group, started broadcasting advertisements with the bus operator in 2000. KMB decided to spin off and list the new operation a year later after it successfully created a buzz in the market and generated significant profits.
The move was controversial. Many accused KMB of deliberately spinning off a money-making unit to weaken its overall profitability, which would then help the company apply for a fare increase to the government. On the other hand, Roadshow could continue to make money from KMB.
Roadshow recorded a loss of HK$47 million in 2015 after registering a net profit of HK$70 million a year before. The company said the loss-making performance was due to weakened markets and increased costs in licence, franchise and management fees.
A KMB spokesperson said the TV screens on the company’s buses will be mainly used to display passenger information, according to Ming Pao Daily.
Over the years, Roadshow has been the target of numerous complaints for broadcasting advertisements too loudly. Many passengers have urged KMB to gauge and monitor the volume levels and even mute the broadcast.
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