Zhitong Finance App News, TV Radio (00511) announced that during the three-month period ending March 31, 2024 (this quarter), the company continued to maintain its leading position in the ratings of Hong Kong's terrestrial free TV channels. The total ratings of the company's flagship channel Feicui Channel, 24-hour wireless news station and other channels reached 79% of the market share.

The company's advertising revenue on the Hong Kong terrestrial free channel continued to show a positive trend during the quarter. Overall revenue from advertisers this quarter achieved a double-digit percentage increase compared to the same period last year. This is partly due to the company maintaining a high unit price level for prime time TV commercials on Feicui Channel for 3 months ending December 31, 2023, and the company welcomed more blue-chip corporate advertisers who had not advertised on the company's channel for a while. The company expects this continued trend, and the initial strong interest of potential customers in advertising until the company landed at the Emerald Terrace and Pearl Terrace in Guangdong Province, which will help the company achieve further revenue growth from advertisers this year compared to 2023.

During this quarter, the Group's OTT streaming business continued to grow steadily. Compared with the 3-month period ending December 31, 2023, Premium myTV Gold subscribers remained stable, and increased 11% over the 3-month period ending March 31, 2023, while the average number of monthly active users (MAU) across all service tiers remained around 2 million.

Revenue from digital advertising on the myTV Super platform increased by more than 30% over the three-month period ending March 31, 2023. As a result, the company expects digital advertising revenue to grow more strongly throughout 2024.

The company's biggest revenue and profit growth engine in mainland China this year was a co-production. In view of the success of the company's series “Queen of the News” broadcast in mainland China last year, the company signed a new and extended co-production agreement with Youku this quarter. This will allow the company to co-produce a larger number of episodes from the beginning of this year to 2026. Within this quarter, the company completed filming of four co-productions: “Forensic Pioneer VI,” “Anti-Black Heroes,” “Black Moonlight,” and “The Cliff of Female Heroes.” For the rest of 2024, the company plans to begin filming another ten series and deliver them to the company's partners Youku and Tencent Video in 2025, which will enable the company to further grow its co-production revenue over the next two years.

Meanwhile, in terms of the company's multi-channel network (MCN) business, the company continued to expand the company's e-commerce live streaming events (including the company's cooperation with Taobao and the company's Douyin live streaming store) during the quarter, although compared with the three-month period ending December 31, 2023, audience coverage declined due to seasonal reasons.

In view of this situation, the company reiterated its expectation that the Group would achieve a significant positive EBITDA for the full year of 2024. Furthermore, based on the current business momentum, without considering special one-time projects (if any), the company also expects to achieve positive net profit (profit attributable to the Company's shareholders) for the six-month period ending December 31, 2024.