Interim Results 2011 Briefing to Analysts. Television Broadcasts Limited

Transcription

1 Interim Results 2011 Briefing to Analysts Television Broadcasts Limited 24 August 2011

2 Financial Highlights HK$mil 1H11 1H10 % change Turnover $2,365 $2, % Total costs * $1,338 $1,332 Neg. Profit attributable to equity holders $719 $ % Net profit % 30% 28% EPS (HK$/sh) $1.64 $ % Interim dividend (HK$/sh) $0.45 $ % 1H11: 6 months ended 30 June 2011 * Total costs include cost of sales, selling distribution and transmission costs, and general and administrative expenses. 2

3 Key Issues for the 6 months to 30 June 2011 Provisions relating to tax audit Management and IRD further communicated re the tax audit on TVB. An additional tax provision of HK$118m was made during the Period (taking the total tax provision to HK$324m). Investment in TVBPVH TVB bought back a 2% equity interest for HK$13.7m from a minority shareholder of TVBPVH taking its total equity and financial interest from 60% to 62% at 30 June Channel supply to TVB Pay Vision The 10 pay TV channels are increasingly used on TVB s terrestrial and overseas channels. TVB and TVB Pay Vision agreed to a lower channel supply licencefee for the 10 pay TV channels from HK$200m to HK$100m pa, effective on 1 January Based on the lower fee, TVB Pay Vision reported a loss of HK$29m (2010: HK$47m). Board and Management changes A 14-member Board formed, and General Manager International appointed 3

4 Consolidated Income Statement HK$mil 1H11 1H10 % change Turnover $2,365 $2, % Cost of sales ($840) ($850) -1% Gross profit $1,525 $1, % Other revenues $20 $11 +82% Selling, distribution and transmission costs ($232) ($237) -2% General and administrative expenses ($266) ($245) +9% Other gains, net $9 $9 - Finance costs ($2) ($2) - Share of (losses)/profits of jointly controlled entity ($1) $3 N/A Share of losses of associates (Note 1) ($29) ($47) -38% Profit before tax $1,024 $ % Taxation ($305) ($166) +84% Profit for the period $719 $ % Profit attributable to equity holders $719 $ % 1. Equity accounting of losses of TVB Pay Vision Holdings at 62% (whilst its voting rights remain at 15%) 4

5 Total Costs (Cost of Sales, Selling Distribution and Transmission Costs, General and Administrative Expenses) 1,332 + HK$22m -HK$16m 1,354 1,338 Total costs were kept stable when comparing with 1H10 and 2H10. 5

6 Cost of Programmes, Film Rights and Stocks + HK$23m -HK$33m Cost of sales decreased by HK$10m when compared with 1H10 and decreased by HK$33m when compared with 2H10. 6

7 Capex and Depreciation CapexHK$120m, which included the cost of a property in mainland China of HK$75m (1H10: HK$35m) Capital commitments HK$376m (30 June 2010: HK$355m) 7

8 Consolidated Statement of Financial Position at 30 June 2011 HK$mil % change Non-current assets $3,283 $3,367-2% Current assets (other than cash) $1,916 $1,775 +8% Cash & cash equivalents $3,000 $2,891 +4% Total assets $8,199 $8,033 +2% Total equity $6,492 $6,488 - Total liabilities $1,707 $1, % Equity and Liabilities $8,199 $8,033 +2% Current ratio Gearing ratio 4% 4% 8

9 Segment Results 9

10 Turnover by Operating Segment HK$mil 1H11 1H10 % change HK Terrestrial TV Broadcasting Programme licensing and distribution $1,237 $1, % $424 $ % Overseas satellite pay TV (note1) $193 $183 +5% Taiwan operations $419 $ % Channel operations (note 2) $115 $161-29% Others $62 $44 +41% Inter-segment sales ($85) ($79) +8% Total $2,365 $2, % Note: 1. includes platforms in North America (USA), Australia, and Europe. 2. Includes channel supply to Pay Vision and TVB8/Xing He 10

11 Turnover by Operating Segment (7%) (2%) (16%) (53%) (9%) (13%) % relating to 1H of 2010 are shown in brackets 11

12 Reportable Segment Profit by Operating Segment HK$mil 1H11 1H10 % change HK Terrestrial TV Broadcasting $542 $ % Programme licensing and distribution $285 $ % Overseas satellite pay TV (note 1) $54 $54 - Taiwan operations $146 $ % Channel operations (note 2) $21 $43-51% Others $6 ($6) N/A Total $1,054 $ % Note: 1. includes platforms in North America (USA), Australia, and Europe. 2. Includes channel supply to Pay Vision and TVB8/Xing He 12

13 Reportable Segment Profit by Operating Segment (5%) (-1%) (13%) (7%) (51%) (25%) % relating to 1H of 2010 are shown in brackets 13

14 Turnover (Geographical) + 33% -1% + 16% + 29% -1% + 29% + 20% + 7% 14

15 HK Terrestrial TV Broadcasting Turnover, Operating Costs and Reportable Segment Profit Turnover increased by 11% and reportable segment profit increased 34%. Operating margin changed from 36% 49% 44% 15

16 Programme Licensing and Distribution Turnover, Operating Costs and Reportable Segment Profit Turnover increased 26%, operating profit increased by 44%. Operating margin changed from 59% 75% 67% 16

17 Overseas Satellite TV Operations Turnover, Operating Costs and Reportable Segment Profit Turnover increased 5%, operating profit remained stable. Operating margin changed from 30% 26% 28% 17

18 Taiwan Operations Turnover, Operating Costs and Reportable Segment Profit Turnover increased 20%, operating profit increased by 42%. Operating margin changed from 30% 32% and 35% 18

19 Channel Operations Turnover, Operating Costs and Reportable Segment Profit Includes channel supply to TVBPV, satellite channels TVB8 and Xing He Turnover decreased 29%, operating profit decreased by 51%. Operating margin changed from 27% 24% and 18% 19

20 Television Broadcasts Limited HKSE stock code: Disclaimer All information and data are provided for information purpose only. All opinion included herein constitute TVB s judgment as of the date hereof and are subject to change without notice. TVB and its subsidiaries and affiliates hereby disclaim (i) all express, implied and statutory warranties of any kind to user and/or any third party including warranties as to accuracy, timeliness, completeness, or fitness for any particular purpose; and (ii) any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the information and data contained herein. 20