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Consolidated Results Consolidated Results (HK$M) 1H06 2H05 %chg. - - PowerPoint PPT Presentation
Consolidated Results Consolidated Results (HK$M) 1H06 2H05 %chg. - - PowerPoint PPT Presentation
Consolidated Results Consolidated Results (HK$M) 1H06 2H05 %chg. 1H05 %chg. Turnover 1,274 1,218 +5% 1,223 +4% Opex before depn (970) (865) +12% (816) +19% EBITDA 304 353 -14% 407 -25% Depreciation (218) (229) -5%
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Consolidated Results Consolidated Results
3.5 7.7 155 (2) 157 1
- 156
(251) 407 (816) 1,223 1H05
- 59%
- 42%
- 45%
- 13%
- 25%
+19% +4% %chg.
- 85%
- 27%
+33%
- 31%
- 5%
- 14%
+12% +5% %chg. 5.0 3.5 DPS (HK cents) 21.1 3.1 EPS (HK cents) 427 64 Net profit 302* (27) Taxation 125 91 Profit before taxation (2) 1 Non-operating expense 3 4 Net interest expense 124 86 Operating profit (229) (218) Depreciation 353 304 EBITDA (865) (970) Opex before dep’n 1,218 1,274 Turnover 2H05 1H06 (HK$M)
- Provision for taxation is a non-cash item*
- Net deferred tax credits of $305M booked to recognize tax
losses brought forward
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Operating Expenses Operating Expenses
- Programme investment on
– FIFA World Cup – Sundream, movie & news platforms
- Higher marketing & sales spending for FIFA World Cup
1,067 251 816 198 197 421 1H05 +11%
- 13%
+19% +17% +9% +24% %chg. +9%
- 5%
+12% +5% +6% +18% %chg. 1,094 1,188 Total 229 218 Depreciation 865 970 Sub-total 221 232 S, G&A 201 214 Network & Others 443 524 Programming 2H05 1H06 (HK$M)
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Pay TV Pay TV
216 718 1H05
- 7
+5 2 chg. +1 +32 chg. 208 209 ARPU (HK$) 738 770 Subs (000) 2H05 1H06
- Refocused on sales of basic package in 1H06
- Sub growth & ARPU helped by FIFA World Cup
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Pay TV Pay TV
195 (131) 326 (622) 948 1H05
- 50%
- 6%
- 32%
+20% +2% %chg.
- 31%
- 5%
- 19%
+12% +3% %chg. 142 98 Operating profit (130) (123) Depreciation 272 221 EBITDA (664) (745) Opex before dep’n 936 966 Turnover 2H05 1H06 (HK$M)
- Higher programme investment
- Revenue & cost mismatch of FIFA World Cup
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Internet & Multimedia Internet & Multimedia
+77 69 +25 121 146 VoIP lines (000) 144 301 1H05
- 8
+20 chg. +2 +1 chg. 134 136 ARPU (HK$) 320 321 Broadband Subs (000) 2H05 1H06
- Moderate growth in a penetrated market
- ARPU has stabilised and is rising
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Internet & Multimedia Internet & Multimedia
53% 52% 54% EBITDA margin 31 (117) 147 (132) 279 1H05 +121%
- 21%
+9% +3% +6% %chg. +45%
- 6%
+10% +1% +6% %chg. 47 68 Operating profit (98) (92) Depreciation 145 160 EBITDA (134) (136) Opex before dep’n 279 296 Turnover 2H05 1H06 (HK$M)
- Opex remained stable
- Operating profit reached new record
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Capex Capex & Financial Position & Financial Position
- Capex maintained at low level of
$121 million
- Current ratio improved to 1.04
- Net cash was $325 million
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Pay TV Pay TV – – Competitive Landscape Competitive Landscape
NOW
- In the market for 3 years
- Change in de facto controlling shareholder
after weeks of speculation Galaxy
- In the market for 2.5 years
- Service rebranded again
- Channels launched on NOW platform
- Subscriber number not disclosed publicly
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Pay TV Pay TV – – Competitive Landscape Competitive Landscape
- Gained viewership against dominant FTA channel
49% 36% 10% 3% 1% 43% 41% 10% 2% 1% 0% 10% 20% 30% 40% 50% TVB Jade Cable TV ATV Home TVB Pearl ATV World 1H05 1H06
1H06 TV Viewership share
- CABLE TV Subscribers Aged 4+
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Pay TV Pay TV
- Investment in programme differentiation:
– FIFA World Cup – Relaunched the strongest news offering in HK :
- Cable Finance & Info, Cable News,
Live News & Top News channels – Strengthened Hollywood movie offering by launching HMC – Further enhancement of CEN channel underway – Enhanced children programming platform
- Self-produced programme continues to dominate
viewership
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Pay TV Pay TV
- Other programme enhancement:
– Boomerang – CNN Headline News – MTV SEA – MTV Mandarin – VH1 India
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Internet & Multimedia Internet & Multimedia
- Bundling continued to be main strategy
- Deepened integration of sales & marketing
with pay TV operation
- Launched multi-player online game to
differentiate broadband service
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Sundream Sundream Motion Pictures Motion Pictures
- First film (“49 Days”《犀照》)
– Exceeded all expectations – Awarded Grand Prize of the Fukuoka Asian Film Festival
- 3 other films expected to be released in 2H06:
– A Battle of Wit《墨攻》
- Andy Lau (劉德華), Fan Bing Bing (范冰冰),
Ahn Sung Ki (安聖基) – Eye In The Sky《跟蹤》
- Simon Yam (任達華), Tony Leung (梁家輝),
Kate Tsui (徐子珊) – Nothing Is Impossible《情意拳拳》
- Dayo Wong (黃子華), Cherrie Ying (應采兒),
Andy On (安志杰) & Debbie Goh (吳天瑜)
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Sundream Sundream Motion Pictures Motion Pictures
- Production for 3 other movies have begun or will
soon begin: – Let’s Steal Together《雙子神偷》
- Twins, Yuen Wah (元華), Sammo Hung (洪金寶),
Wu Jing (吳京) – Linger《蝴蝶飛》
- Vic Zhou (周渝民) & Li Bing Bing (李冰冰)
– Howling Arrow《響箭》
- Sammo Hung (洪金寶)
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New Development New Development
- First year to operate Newsline Express,
the multimedia service on KCRC’s trains
- Target audience of over 1.1 million daily
average passengers
- Passenger satisfaction rate reached 95%
- More than 85% of passengers found the
service attractive
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Summary Summary
- Continued to gain subs & viewers under
intense competition
- 1H06 profitability distorted by FIFA World
Cup
- Broadband profitability follows its uptrend
- Investment in differentiated programme
proven to be the right strategy
- Will continue to invest in innovative local
content
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i-CABLE Communications Limited
HKSE Stock Code: 1097.HK NASDAQ Symbol: ICAB
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