TELEVISION BROADCASTS LIMITED Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.
(Incorporated in Hong Kong with limited liability)
Stock Code: 00511Revenue from continuing operations decreased from HK$4,912 million to HK$4,455 million, a decrease of 9%.
Total costs (excluding non-recurring cost items) from continuing operations increased from HK$3,335 million to HK$3,439 million, an increase of 3%.
Operating profit before deducting (i) exchange losses on Renminbi fixed term deposits of HK$42 million, and (ii) impairment loss on property in the amount of HK$88 million relating to the cessation of construction of new production studios and related facilities in Hong Kong, as highlighted in the consolidated income statement, decreased from HK$1,569 million to HK$1,006 million, a decrease of 36%.
A gain of HK$1,396 million (as announced in the interim results announcement) and the related taxes of HK$53 million and HK$111 million were recognised, under discontinued operations, upon completion of the disposal of Liann Yee Group.
A total impairment loss of HK$695 million was recognised during the year (including the impairment loss of HK$654 million already announced in the interim results announcement), representing 100% of the Group's net interest in an associate engaging in Hong Kong pay TV business at 31 December 2015.
As a result, profit attributable to equity holders from continuing and discontinued operations decreased from HK$1,410 million to HK$1,331 million, a decrease of 6%. Earnings per share from continuing and discontinued operations decreased from HK$3.22 to HK$3.04.
A final dividend of HK$2.00 per share (2014: HK$2.00 per share) was recommended, making a total dividend of HK$2.60 per share (2014: HK$2.60 per share) for the year.
2016 OUTLOOKBy way of guidance, the Group forecasts the following adverse impact to the consolidated income statement for the year ending 31 December 2016:
Based on the latest assessment of the level of commitments from advertisers received and the spending pattern of advertisers in the first quarter of 2016, the revenue outlook under Hong Kong TV channels in 2016 remains weak. Should this condition prevail, the 2016 reportable segment profit under Hong Kong terrestrial TV broadcasting will continue to deteriorate. However, the Board believes that the advertising market should resume normal growth in 2017 after a period of consolidation.
As previously indicated, TVB shall broadcast the Rio 2016 Olympic Games in the summer. The programme costs will be expensed during 2016. Despite efforts made to seek advance commitments from advertisers for this event, the Group estimates that there is likely to be an under-recovery of costs for this Olympic broadcast in the region of HK$150 million. Management is reviewing the Group's policy of broadcasting major sporting events and under-recovery of significant programme costs will unlikely recur in the future.
myTV SUPER OTT service will be officially launched in April 2016. The start-up deficit for the first year relating to this new business is likely to be around HK$100 million. The Board is however confident on the prospects of this new business based on the current cooperation with our business partners, Hutchison Telecommunications and Hong Kong Broadband. The Board trusts that by November 2017, TVB's 50th Anniversary, the subscribed number of screens through our myTV SUPER OTT boxes and mobile apps will exceed 1,400,000.
The disposal of the remaining 47% equity interest in the Liann Yee Group (as announced on 4 January 2016) has been completed on 10 March 2016. Proceeds of NT$4,343 million (approximately HK$1,017 million) has duly been received. The Board does not intend to declare a special dividend in relation to this proceeds. However, the Group will utilise the proceeds from this transaction for maintaining a steady dividend policy in the foreseeable future.
The Board of Directors is providing the above guidance based on the latest available information, and shall provide an update of the outlook of 2016 upon release of the interim results in August 2016.
The Board of Directors ("Board") of Television Broadcasts Limited ("Company" or "TVB") is pleased to announce the consolidated results of the Company and its subsidiaries (collectively, "Group") for the year ended 31 December 2015 as follows:
CONSOLIDATED INCOME STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2015 | |||
Continuing operations | Note | 2015 HK$'000 | 2014 HK$'000 (Restated) |
Revenue | 3 | 4,454,725 | 4,912,061 |
Cost of sales | (2,009,187) | (2,016,098) | |
Gross profit | 2,445,538 | 2,895,963 | |
Other revenues | 3 | 75,330 | 75,251 |
Selling, distribution and transmission costs | (576,754) | (555,883) | |
General and administrative expenses | (853,477) | (763,254) | |
Other losses, net | 6 | (84,657) | (83,436) |
1,005,980 | 1,568,641 | ||
Exchange losses on Renminbi fixed term deposits | (42,136) | (4,109) | |
Impairment loss on property | (87,955) | - | |
Operating profit | 875,889 | 1,564,532 | |
Finance costs | 7 | (6,441) | (2,763) |
Share of losses of joint ventures | (15,143) | (7,134) | |
Share of losses of associates | (32,766) | (72,382) | |
Impairment loss on loan to and amount due from an associate | (695,099) | - | |
Profit before income tax | 5 | 126,440 | 1,482,253 |
Income tax expense | 8 | (143,952) | (220,935) |
(Loss)/profit for the year from continuing operations | (17,512) | 1,261,318 |
Note | 2015 HK$'000 | 2014 HK$'000 (Restated) | |
Discontinued operations Profit for the year from discontinued operations | 103,136 | 158,277 | |
Tax on dividend distributed prior to completion of disposal | (52,726) | - | |
Gain on disposal of discontinued operations | 1,395,770 | - | |
Deferred tax in relation to gain from disposal | (110,676) | - | |
13 | 1,335,504 | 158,277 | |
Profit for the year | 1,317,992 | 1,419,595 | |
Profit/(loss) attributable to: Equity holders of the Company - Continuing operations | (4,281) | 1,251,355 | |
- Discontinued operations | 1,335,504 | 158,277 | |
1,331,223 | 1,409,632 | ||
Non-controlling interests - Continuing operations | (13,231) | 9,963 | |
1,317,992 | 1,419,595 | ||
Earnings/(loss) per share (basic and diluted) for profit/(loss) attributable to equity holders of the Company during the year - Continuing operations | 9 | HK$(0.01) | HK$2.86 |
- Discontinued operations | 9 | HK$3.05 | HK$0.36 |
HK$3.04 | HK$3.22 |
TVB - Television Broadcasts Ltd. issued this content on 23 March 2016 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 23 March 2016 11:10:13 UTC
Original Document: http://corporate.tvb.com/_upload_/article/en/801d1cfd4e0694727583a93e8f75636d.pdf
