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November 16 2007
Asia Television Expects to End Losses in 2009 on Digital TV
By Mark Lee
BLOOMBERG
Asia Television Ltd., the smaller of Hong Kong’s two free-to-air broadcasters, said it expects to end losses in 2009 as the introduction of digital TV channels helps generate higher advertising revenue.
“Our sales next year should show a big improvement, ” Chief Operating Officer Ho Ting Kwan told reporters in Hong Kong today, without providing details. The TV company’s operations this year “weren't satisfactory,” he said.
The Hong Kong-based company will invest at least HK$400 million ($51 million) by 2009 to add digital channels and install signalling stations to attract advertising. Ho, a former executive at larger rival Television Broadcasts Ltd., joined Asia Television this year after investors including ABN Amro Holding NV and Citic Group bought control.
The unprofitable broadcaster is aiming to achieve break-even before interest, tax, depreciation and amortization in 2009, Ho said. ATV, as the company is known, plans to offer seven digital channels from Dec. 31, compared with two traditional analog broadcasts it has at present.
In June, a group including ABN Amro, Citic, the family of HKR International Ltd. Chairman Payson Cha and former Television Broadcasts managing director Louis Page bought a 47.6 percent stake in closely held Asia Television.
Television Broadcasts' advertising sales of $285 million last year accounted for 78 percent of Hong Kong TV ad market, according to research company Media Partners Asia. That compared with Asia Television’s 14 percent and i-CABLE’s 8 percent.
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