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Consolidated Results Consolidated Results ( HK$ M) 1 H0 5 1 H0 4 - - PowerPoint PPT Presentation
Consolidated Results Consolidated Results ( HK$ M) 1 H0 5 1 H0 4 - - PowerPoint PPT Presentation
Consolidated Results Consolidated Results ( HK$ M) 1 H0 5 1 H0 4 % chg. Turnover 1,223 1,154 + 6% (816) (731) + 12% Opex before depn EBI TDA 407 423 -4% Depreciation (251) (274) -8% Operating profit 156 149 + 5% Net
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Consolidated Results Consolidated Results
( HK$ M) 1 H0 5 1 H0 4 % chg. Turnover 1,223 1,154 + 6% Opex before dep’n (816) (731) + 12% EBI TDA 407 423
- 4%
Depreciation (251) (274)
- 8%
Operating profit 156 149 + 5% Net interest expense
- Non-operating expense
1 (1)
- Profit before taxation
157 148 + 6% Taxation (2) (1) + 100% Net profit 155 147 + 5% EPS ( HK cents) 7.7 7.3 + 5% DPS ( HK cents) 3.5 3.0 + 17%
- Revenue and profit growth continued
notwithstanding intensified competition
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Operating Expenses Operating Expenses
- Programming cost increased by 15% YoY but was
flat HoH
- Depreciation decreased 8% YoY due to expiry of
depreciation cycle on network and CPE assets
( HK$ M) 1 H0 5 2 H0 4
% chg. vs 2 H0 4
1 H0 4
% chg. vs 1 H0 4
Program m ing 421 424
- 1%
367 + 15% Netw ork & Others 197 192 + 3% 187 + 5% S, G&A 198 196 + 1% 177 + 12% Sub-total 816 812 + 0% 731 + 12% Depreciation 251 258
- 3%
274
- 8%
Total 1,067 1,070
- 0%
1,005 + 6%
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Pay TV Pay TV
1 H0 5 1 H0 4 chg. Subs ( 0 0 0 ) 718 682 + 36 ARPU ( HK$ ) 216 222
- 6
- Sub growth continued in a seasonally weaker
first half in the absence of special events (e.g. Euro 2004)
- ARPU declined 3% due to aggressive marketing
- f lower yield mini packages to meet market
demand
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Pay TV Pay TV
( HK$ M) 1 H0 5 1 H0 4 % chg. Turnover 948 920 + 3% Opex before dep’n (622) (540) + 15% EBI TDA 326 380
- 14%
Depreciation (131) (145)
- 10%
Operating profit 195 235
- 17%
- Opex before depreciation increased by 15% YoY
(mainly due to higher programming costs) but
- nly 4% HoH
- EBITDA and operating profit declined due to
Opex increase
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Internet & Multimedia Internet & Multimedia
1 H05 1 H04 Chg. Broadband Subs ( 00 0 ) 301 263 + 38 ARPU ( HK$) 144 142 + 2 VoI P lines ( 0 0 0 ) 69
- + 69
- Sub surpassed 300K due to service
enhancement thru network upgrade, bundling strategies and continued introduction of value- added services
- ARPU rose marginally notwithstanding intense
competition
- VoIP lines grew by almost 40K during 1H05
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Internet & Multimedia Internet & Multimedia
( HK$ M) 1 H05 1 H04 % Chg. Turnover 279 232 + 20% Opex before dep’n (132) (133)
- 0%
EBI TDA 147 99 + 48% Depreciation (117) (126)
- 7%
Operating profit/ ( loss) 31 (27)
- EBI TDA m argin
53% 43%
- Turnover increased by 20% to reach new high
- Record EBITDA and operating profit generated
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- Capex decreased 47% YoY to HK$125M due
mainly to lower spending on digital and broadband upgrade migration
- Free cashflow continued to trend upwards
Capex Capex and Cash Flow and Cash Flow
- 50
100 150 200 250 300 350 400 450 500 1H00 2H00 1H01 2H01 1H02 2H02 1H03 2H03 1H04 2H04 1H05 HK$ Million
- 50
100 150 200 250 300 350 400 450 500 EBITDA CAPEX
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Pay TV Pay TV -
- Competitive Landscape
Competitive Landscape
- Bundling of pay television, broadband and voice
was the main battlefield
- NOW
- In the market now for almost 2 years
- Continue to be aggressive in marketing and
content acquisition
- Galaxy
- In the market now for one and a half years
- Renamed SuperSUN TV
- Secured new funding
- More aggressive in marketing
- Reached agreement to distribute over HGC’s
network and to bundle with HGC’s voice and data services
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Pay TV Pay TV -
- Our Response (1)
Our Response (1)
- Mini packages with lower price point marketed to
segments targeted by the competition and enable greater subscription flexibility
- News Platform
- News 1 Channel transformed to financial
service channel during trading hours
- Live News Channel launched to provide live
carriage of events in full length
- Sports Platform
- Exclusive carriage of EPL and the new Soccer
Betting Channel have been well received
- Preparation for FIFA World Cup 06 under way
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Pay TV Pay TV -
- Our Response (2)
Our Response (2)
- Entertainment Platform
- Increase emphasis on self production
- Parenting programme launched in Children
Channel in July
- Nightly primetime life-magazine programme
to be launched on Entertainment Channel in August
- New programming initiative intended to
enhance “stickiness” of platform
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Internet & Multimedia Internet & Multimedia
- Bundled packages proven to be competitive
in the market
- Continue to enhance multimedia content
- imusic, a new music download portal just
launched with participation of major music labels
- Will continue to improve after-sale service
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New Opportunities New Opportunities
- Horizon Channel continued to expand its
distribution in China
- Secured deal to supply entertainment video
content to the mobile phone market in Mainland China
- Newsline Express, the multimedia service on
Kowloon-Canton Railway Corporation’s trains, has launched in August
- Sundream Motion Pictures:
- shooting of first film (“Twilight of the
Uncertainty”* ) to begin in August
- production of several more films including
(“A Battle of Wits”* ) starring Andy Lau expected to commence during the remainder of 2005
* working title
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Summary Summary
- Continued to achieve growth in subscription,
revenue and profit notwithstanding intensified competition
- Brunt of cost pressure on pay TV business has
been taken
- Broadband business returning to a profitable
growth track
- Will continue to look for opportunities to
expand beyond our core businesses
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i-CABLE Communications Limited
HKSE Stock Code: 1097.HK NASDAQ Symbol: ICAB
19
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