By Jeff Pao
© South China Morning Post Publishers Limited, Hong Kong
Liu Changle, who holds a 26 per cent stake in Asia Television, yesterday said he would continue financial support for the loss-making broadcaster.
Mr Liu said he had not heard that any shareholder would stop injecting cash, as had been rumoured.
“I support the new direction and strategy {hellip} which will focus more on the middle-class and top-end market,” he said. “I have never heard that any shareholder will stop providing financial support to ATV. Running a media company is difficult. Without cash, it cannot operate.”
In 2002, Mr Liu was the largest shareholder with a 46 per cent stake. Despite injecting cash there was no big improvement in the broadcaster’s financial situation. Last year, he sold part of his stake to become the second-largest shareholder.
Market speculation has focused on whether the Cha family, the company’s largest shareholder, or Mr Liu would back out if ATV’s financial situation continues to worsen.
Mr Liu yesterday cleared up the doubts. He said he hoped all shareholders and the management would support ATV in these hard times.
New chairman Linus Cheung Wing-lam said ATV needed to grow by itself but added the Cha family did not rule out putting up new cash.
In June, ATV chief operating officer Ho Ting-kwan said the company might need two more years to break even despite recording double-digit growth in revenue last year after changing owners in April.
“Although our advertising revenue stopped declining last year, we also had more capital expenditure to meet the growing number of channels we offer,” Mr Ho said.
The company employs about 1,000 people, up from 900 last year.
Research firm Media Partners Asia estimated ATV had 15 per cent of the television advertising market while Television Broadcasts had 75 per cent.
Meanwhile, Phoenix Satellite Television Holdings, the Hong Kong-based broadcaster on the mainland owned by Mr Liu, yesterday transferred its listing to Hong Kong’s main board from the Growth Enterprise Market.