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Technology Stocks : PCW - Pacific Century CyberWorks Limited -- Ignore unavailable to you. Want to Upgrade?

To: ms.smartest.person who wrote (1058)	4/12/2001 12:21:57 AM
From: ms.smartest.person	Read Replies (2) \| Respond to of 2248

Restructuring boosts TVB earnings 53pc DENISE TSANG and BEN KWOK A non-recurring gain propelled the year on year net profit of Television Broadcasts (TVB) 53 per cent higher to HK$774.15 million for the year to December 31. The gain of HK$129.39 million was generated from the restructuring of publishing and Internet operations and a share placement of online division TVB.com. The record performance was also helped by a lower government royalty and mild growth in advertising income. Stripping out the gain, the results generally came in line with analysts' forecasts. TVB, a dominant local free television service provider, said: "The year 2000, though not characterised by any dramatic upswings, nevertheless brought overall improved economic and market conditions." Marisa Ho, director of Asian equity research at Credit Suisse First Boston, said TVB's estimated advertising income grew 11 to 12 per cent last year. Turnover rose 7.3 per cent to HK$3.48 billion. Ms Ho said the new broadcasting bill, which took effect last year, helped TVB reduce royalty charges by 44 per cent. TVB paid HK$104.71 million in government royalty last year compared with HK$188.13 million previously. Earnings per share soared 51.28 per cent to HK$1.77. A full-year payout of 95 HK cents was proposed, including a final dividend of 75 HK cents. TVB said it remained "an active participant" in the Internet industry but would strive to cut costs by relocating operations across the border. It said it might serve as a channel or programme supplier to one or more of the three new licensees of pay television. Galaxy Satellite Broadcasting, TVB's pay-television arm, confirmed yesterday it was in talks with network provider Pacific Century CyberWorks for possible co-operation. "We are actively discussing forms of co-operation," Galaxy general manager Stanley Tang See-tin said. Analysts said the co-operation, if it materialised, would allow instant and extensive penetration of TVB services in local households, given CyberWorks' well-established backbone and last-mile networks and TVB's rights to broadcast via satellite. CLSA analyst Edison Lee said: "This seems to be a natural fit. [CyberWorks] will get content and TVB will secure the distribution network." Market sources said Galaxy was seeking other strategic partners to fund the pay-television business while seeking network support from CyberWorks. Funding is needed as Galaxy has to pay a performance bond of HK$88 million by September or its pay-television licence will be revoked. Galaxy has committed to invest HK$5 billion in pay-television services. Shareholders are expected to contribute HK$1 billion and the rest is to be funded by recurring income. -------------------------------------------------------------------------------- SCMP.com is the premier information resource on Greater China. With a click, you will be able to access information on Business, Markets, Technology and Property in the territory. Bookmark SCMP.com for more insightful and timely updates on Hong Kong, China, Asia and the World. Voted the Best Online newspaper outside the US and brought to you by the South China Morning Post, Hong Kong's premier English launguage news source. biz.scmp.com