Taipei, 11 December 2017
Taipei, 11 December 2017
VHQ Media Holdings Ltd reported revenue of NTD100.475 million for November 2017, up 10.50% YOY; total revenue from January to November 2017 is NTD1,161.503 million, up 21.15% YOY. According to VHQ, robust growth from film and advertising service remain to be the key driver to increase revenue.
VHQ has put in place a team to capture more business in the internet content space. It’s 3rd Quarter revenue included an internet drama project and it expects to work on more internet dramas, directly benefiting from the explosive growth in China’s online content industry. The annual compounded growth of the online TV drama market for the past three years has been as high as 60%. With the exponential growth in paid subscription for internet content consumption, platform owners have substantially increased the production budget for online television dramas. VHQ is very well positioned to take on more business in higher- end internet dramas and movies.
VHQ has further commented that China film market is predicted to maintain an annual growth rate of 30%. For the first time in November this year, China box office market topped the benchmark of RMB50 billion, out of which China-made movies made up 52% of the box office. As consumers grow in sophistication and become more discerning in their tastes, the demand for well-made, good quality content is greater. Consumers in China have repeatedly proven that they will pay a premium to consume high quality content, such as Hollywood- made films. Local movie studios are striving to produce content to rival the west in terms of storylines and production values to capture this market, resulting in increased production spending. It is predicted that Chinese movie box office will surpass the United States by 2019.
VHQ has good reasons to remain optimistic about its business for 4Q of 2017. The movie “Mai Bing Bing”, a family comedy which VHQ has invested and worked on the post- production will soon be released in end of January 2018 in China. In addition, a drama movie that VHQ participated in the post-production – ”Forever Young” will soon be released in Jan 12, 2018 in China too. The movie is directed and written by “Li Fangfang”, starring A-listers, “Zhang Ziyi”, “Huang Xiaoming”, “Zhang Zhen” and “Wang Lee Hom”. The Company expects to increase its staff strength from 450 to 600 in 2018 and target to have 1000 by 2020 in China to anticipate the vigorous development in the post production businesses in film and web drama.
VHQ was established in Singapore in 1987 as a post-production studio. In 2001, its then Managing Director lead an MBO exercise and recapitalised the company operates a network covering Asean. In 2013, VHQ China was launched to service the ever increasing volume of work, mainly feature films, which originated from China. In 2014, VHQ Media Holdings Ltd was incorporated and was listed in December 2015 on the Taipei Exchange (Ticker – VHQ-KY 4803). VHQ’s core business is in the production of visual effects, animation, motion graphics and post production services for commercials & feature films.
VHQ celebrates its 30th anniversary in 2017 with thriving facilities in Singapore, Malaysia, Indonesia, Taiwan and China.
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