Transmit Entertainment 2021/22 interim results achieve turnaround, revenue more than doubles to HK$587 million
HONG KONG, February 25, 2022 – (ACN Newswire) – Transmit Entertainment Limited (“Transmit Entertainment” or the “Company”, together with its subsidiaries, the “Group”; stock code: 1326) today announced its interim results not audited for the six months ended December 31, 2021 (the “Review Period”).
During the Review Period, the Group advanced the “Home Economy” and its brand diversification development strategy. Mainland China remained the main source of growth for the Group’s turnover and activity. The proportion of the Group’s revenues from Mainland China recorded a year-on-year increase of 17.7 percentage points to approximately 96.8%. The Group recorded exceptional results during the reporting period, amounting to approximately HK$587.2 million, an increase of approximately 265.2% compared to the corresponding period last year. The Group’s turnaround was mainly due to the airing of “The Ideal City”, an inspirational urban workplace television series and “The Detectives’ Adventures”, a hit mystery-solving reality show, which resulted in significant year-on-year revenue growth of approximately 1,296.4% to approximately HK$502.2 million for the film, television series and drama production and distribution segment variety shows; and the Group completed the divestiture of partial interests in the cinema exhibition business in May 2021, which reduced both the sales and distribution expenses of the related cinema exhibition business. During the reporting period, the Group recorded a profit attributable to owners of the Company of approximately HK$10.6 million.
Keeping up with the development of the industry and the entertainment tastes of young viewers, the Group has continued to focus on the development and production of outstanding movie, TV series and variety show content, while actively exploring innovative business models such as web series, online movies and short videos. “The Ideal City” was released on the iQIYI video website and many leading TV channels across the country, ranking No. 1 in the CSM63 TV series viewership chart, and received more than ten industry accolades and awards, including being shortlisted for the 2018-2022 List of National Radio and Television Administration’s Key Television Series Planning and Theme, and was recognized as “2021 Outstanding Show Broadcasting Overseas” by the National Radio and Television Administration. “The Detectives’ Adventures” creatively reinterprets a classic film and television copyright through live-action role-playing, introducing a production model for a detective-themed variety show that appeals to audiences of all ages, successfully winning multiple industry awards, including the 2021 Internet Viewing+ Rankings for Internet Variety Show of the Year and Innovative Variety Show of the Year for Sixth new recess. New consumption, etc. On the other hand, the group’s scriptwriting team has participated in such popular TV shows as China Media Group’s Lantern Festival Gala and variety show “Super Sketch Show”, continuously stimulating related discussions and becoming a trending topic. on multiple platforms.
Considering that the COVID-19 pandemic has resulted in a difficult business environment for the film exhibition business, the Group has divested partial interests in the film exhibition business in order to reallocate financial resources to other activities with greater development potential, thereby generating greater returns for the shareholders of the Company (the “Shareholders”). The sale transaction was finalized on May 26, 2021. Subsequently, in accordance with a management agreement and a supplementary agreement entered into by the Group with Cinema City (WL) Limited and Mandarin Motion Pictures Limited, the Group receives royalties for the operation of Langham Place Cinema during the term of the agreements. Management believes that the aforementioned strategic measures will proactively have a positive impact on the future results and financial performance of the Group.
The Group continued to improve its industry chain and expand its revenue base, and its artists and Internet celebrities continued to be more influential in market segments. During the review period, the artists of the group have acted in many television series and films and participated in many sponsorship activities. Among which, Yang Chaoyue starred in two costume TV series “Chongzi” and “The Seventh Generation”, and Li Yitong starred in TV series such as “Warm Cold Nights In The Nine Heavens”, “Spy Game” and “Punch Out”.
In the future, the group will continue to focus on developing the film and television series production business as well as the internet artist and celebrity agency business in mainland China, and strive to create a pan-entertainment ecosystem and integrate upstream and downstream industrial chains, while being proactive. expand various realization channels from the downstream industrial chains with the aim of achieving the strategic deployment of the fusion of its strengths and resources. Leveraging the vast resources of online platforms, the Group will continue to focus on producing quality film and TV series content, while actively diversifying the revenue base by continuously identifying business opportunities related to home economy” on four aspects, including online stream, short videos, internet celebrity culture and traffic monetization.
The Group is currently producing several projects, including an urban crime television series “Frozen Surface” and the third season of the variety show “I Love You, Me Too”. With the good ratings performance and online popularity of the work, the group plans to create a self-developed multi-season variety show brand by producing the third season of “I Love You, Me Too” and the second season of “The Detectives’ Adventures”. In addition, the Group will develop and produce films and television series based on a number of popular copyrighted works of fiction, including “Love Destiny”, “Wishful Egg”, “Romance in the City”, “Peach Blossom Debt”, “Queen of the Mer” and “Locard’s Theory”.
Ms. Zhao Wen Zhu, President and Executive Director of Transmit Entertainment, said, “Although the industry is still plagued by the COVID-19 pandemic and market sentiment, the group has achieved a turnaround during the period. review, benefited from the support on the “stay at-home economy” and brand diversification development strategies. The significant growth of the TV series and variety show production segment has fully demonstrated the exceptional competitiveness of our production team, which helps the Group proactively seize huge business opportunities in the Chinese market and continue to Transmit Entertainment will further utilize the capabilities of its entire industry chain to continuously improve its profitability and expand our competitive advantages in the industry, and generate sustainable and satisfying returns for our shareholders.
About Transmit Entertainment Limited (stock code: 1326)
Transmit Entertainment Limited is a fully integrated media and entertainment company empowering the consumer industry. It is mainly engaged in (i) the production and distribution of motion pictures, television series and variety shows; (ii) exhibition of films; and (iii) pan-entertainment (including internet celebrities and talent agencies, and pan-entertainment businesses across the value chain). The Group strives to implement the development strategy related to stay-at-home economy and brand diversity by combining the resources of screenwriting, directing and stardom to cultivate, explore and create popular movies and television copyrights by continuously providing quality content and nurturing talented artists. in order to develop its own complete industrial chain model and build a unique soft power moat.
Leveraging online platforms to cultivate new artists and celebrities, the Group is proactively exploring and developing a stand-alone retail brand targeting young consumers to further diversify the revenue base by identifying business opportunities related to the global economy. focus on four aspects, including online stream, short videos, celebrity culture and traffic monetization, which ultimately form a business model, the group being the center supported by film, television and variety shows . The Group is also expanding its business through partnerships and enriching its industrial chain with self-developed products, forming an integrated upstream and downstream industrial chain to fully grasp the new opportunities arising from the pan-entertainment business.
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