TVB plans to lay off 350 as unrest undermines broadcaster"s bottom ldisney magic wristbandine

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A reporter takes a photo of a rioter throwing bricks at the police during in Mong Kok, Hong Kong. [Photo by EDMOND TANG/CHINA DAILY]

About 350 employees of Television Broadcasts Ltd (TVB), Hong Kong"s largest television broadcaster, will be laid off as soon as the end of this month, according to an internal memo on Monday from TVB"s executive director and group CEO.

Amid the over six months of violent anti-government protests and Hong Kong"s economic downturn, Mark Lee Po-on said in the memo that advertising and television industries have been hard-hit. To cope with the social unrest, which shows no sign of abating, the broadcaster needs to restructure part of its business to increase efficiencies, he said.

Shares of TVB responded with a 1 percent drop to HK$11.88 ($1.52) per share at the end of the day, falling to as low as HK$11.74 in Monday trading.

In the case of Hong Kong"s uncertain outlook, Lee said the company will accelerate the business development on the Chinese mainland and other cities of the Guangdong-Hong Kong-Macao Greater Bay Area, especially on expanding operating facilities and resources input.

The broadcaster already laid off 20 employees in August, explaining that the company has been hit by market uncertainties and local social unrest.

During the past few months, the city"s largest television broadcaster has been targeted by radical protesters who have vetted their anger at TVB,claiming the broadcaster favors the government in its protest reporting.

Two reporters were injured when corrosive liquid was splashed on them, and a cameraman was beaten and shoved, his camerasmashed.

TVB vans also fell victim to protest violence. Radicals reportedly smashed windows of cars at least three times, and blocked the crews" way to the protest area.

The company announced a 12 percent drop of revenues in its 2019 interim results due to the absence of co-production revenue and declining income from advertisers under Hong Kong TV broadcasting.

However, the broadcaster gained 37 percent more income from new media, including MyTV Super and the Big Big Channel business in the first half of this year. Lee said in the note that the number of registered users of MyTV Super service has increased to 9 million.

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