Hong Kong-based Phoenix Satellite TV’s operating profits fell sharply by 28 percent last year, in the period to Dec 31st. Actual numbers were HK$ 901.78 million this past year, compared to HK$ 1.26 billion in 2013.
The company said its actual profit margins at the broadcasting division were higher, and those margins remained stable, despite the dip.
Revenue for the year fell by 3.9 per cent to HK$4.61 billion in 2014 as compared to HK$4.80 billion in 2013. “2014 saw a downward trend in the Chinese consumer economy and the significant diminution in the demand for luxury items, which in turn has led to a considerable reduction in advertising income. This downward trend has been influenced by the Chinese government’s campaign to counter corruption and also by the stagnation of the property market,” added the company.
Revenue from its TV broadcasting business has declined at a growth rate of 15.9 per cent year-on-year to HK$1.99 billion in 2014 from HK$2.37 billion in 2013. This segment accounts for 43.3 per cent of the total revenue of the group. The division reported profits of HK$883.6 million in 2014 as against HK$1.17 billion for 2013.
Phoenix Satellite TV started transmissions in March 1996 with the intention of providing Chinese (Mandarin) entertainment, news and movie channels. It has grown from a single channel to 19 different services based on 6 core TV channels, and claims a global audience reach of more than 250 million people.