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Television Broadcasts (0511.HK)
18-03-2019, 11:42 AM.
Post: #1
Television Broadcasts (0511.HK)
Hong Kong broadcaster TVB warns it will lose HK$200 million for 2018 financial year
*The city’s most historically dominant broadcaster says loss is related to its holdings of bonds issued by mainland cinema group SMI Holdings

Louise Moon   
Published: 12:14am, 16 Mar, 2019

The parent company of Hong Kong’s oldest television station issued a profit warning on Friday, saying it expects a HK$200 million (US$25.48 million) net loss for the financial year ending December 31, 2018.

Television Broadcasts (TVB) said in a filing to the Hong Kong Stock Exchange after the close of trading it will write-off approximately HK$500 million on its holdings of SMI Bonds, issued by mainland theatre operator SMI Holdings Group.

The expected HK$200 million loss compares to a HK$243 million net profit from the prior year, TVB said.

The warning follows a round of lay-offs at the broadcaster in June, where about 100 staff were let go amid what it cited as a shift of strategy in a competitive market.

In September SMI Holdings was suspended from trading in Hong Kong over debt and management concerns, its Hong Kong shares having tumbled 39.8 per cent in the preceding 12 months.

SMI produces, distributes and licenses on-screen entertainment, and operates entertainment complexes in mainland China.

In a filing to the Hong Kong stock exchange in December, SMI Holdings said it was short of capital to maintain its business and had received letters demanding repayments of HK$400 million. The company chairman, Wai Yee-tai, and three executive directors resigned.

In the filing, SMI announced outstanding rent for its cinema sites of more than HK$200 million, and debts of 150 million yuan (US$21.7 million) for film distributors’ licensing fees.

The company said it also owed employee salaries totalling HK$108 million.

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