[ET Net News Agency, 15 October 2018] Deutsche Bank lowered its target price for
Television Broadcasts (TVB)(00511) to HK$20.3 from HK$28.32, and downgraded its rating to
"hold" from "buy" as it sees that adex growth for its OTT (over-the-top) business has not
picked up as much as expected, while adex growth for its traditional media is unlikely to
have breakthrough due to structural change of the advertising market.
The research house lowered TVB's net profit forecasts for 2018/19/20 by 14/29/31% on
sales estimate reductions of -0.6/-6/-9%. DB believes advertising revenues will slow on
slower retail sales.
For 2019, it expects traditional advertising revenues (63% of total sales) will have no
growth and new media might still have 20% increase (11% of total sales). Weak consumer
spending will result in brands spending less, especially on traditional media. (KL)