i- -CABLE CABLE i Communications Limited Communications Limited - - PowerPoint PPT Presentation

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• CABLE

CABLE Communications Limited Communications Limited

2007 Final Results

10 March 2008

Financial Review

i-CABLE Communications Limited

Consolidated Results

munications Limited

(HK$M) 2007 2006 %chg.

Turnover 2,304 2,548

• 10%

Opex before dep'n (1,759) (1,921)

• 8%

EBITDA 545 627

• 13%

Depreciation (367) (428)

• 14%

Operating profit 178 198

• 10%

Net interest income 21 12 +77% Profit before taxation 199 210

• 5%

Taxation (17) (29)

• 42%

Net profit 183 181 +1% Capex 175 200

• 13%

i-CABLE Com

• Successfully adjusted to the new competitive environment &

established a lower cost base to preserve profitability

3

Dividend

HK$ (cents) 2007

EPS 9.0 DPS 8.5 Payout ratio 94%

Dividend Yield *

(HK$) Dividend 8.5 cents Share Price 1.47 Dividend yield 6%

Free Cash Flow Yield *

(HK$M)

FCF**

293

Market Cap

2,968

FCF yield

10%

4 * Based on the latest results & average closing share price in February 2008 ** Before financial investment and financing activities

i-CABLE Communicati

• Robust free cashflow enables business diversification into film

productions, publishing & other cross media opportunities

• ns Limited

Subscribers

2002 2003 2004 2005 2006 2007 Pay TV Broadband Voice

606k 656k 702k 738k 786k 882k 226k 258k 291k 320k 328k 306k 29k 120k 151k 159k

ABLE Communications Limited

• New marketing strategy accelerated subscriber growth

Note: Voice subscriber no. is adjusted to reflect the number of lines-in-force between Wharf T&T and i-CABLE i-C

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Operating Expenses

(HK$M) 2007 2006 %chg.

Programming 950 1,005

• 5%

Network & Others 419 451

• 7%

S, G&A 390 465

• 16%

Sub-total 1,759 1,921

• 8%

Depreciation 367 428

• 14%

Total 2,126 2,349

• 10%

i-CABLE Communications Limited

• Improved operating efficiency with prudent cost control

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Pay TV

(HK$M) 2007 2006 %chg. 4Q 3Q %chg.

Turnover 1,595 1,895

• 16%

384 384 0% Opex before dep'n 1,196 1,411

• 15%

284 298

• 5%

EBITDA 399 484

• 18%

100 86 +16% Depreciation 220 236

• 7%

53 54

• 1%

Operating profit 179 248

• 28%

47 33 +43%

• Realigned sales channels to reinforce revenue engine
• Q4 revenue & operating profit improved on Q3, partly due

to seasonal factors

i-CABLE Communications Limited

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Internet & Multimedia

(HK$M) 2007 2006 %chg.

Turnover 588 596

• 1%

Opex before dep'n 266 279

• 5%

EBITDA 322 317 +2% Depreciation 142 188

• 25%

Operating profit 180 129 +40% EBITDA margin 55% 53% +2% Operating margin 31% 22% +9%

• Record operating profit
• Revenue & profit preservation preferred over market share gain
• Higher EBITDA & operating margin from enhanced efficiency

i-CABLE Communications Limited

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Business Review

i-CABLE Communications Limited

Locally Relevant Content

• Strategic investment in local

content pays off

• Most watched Pay TV platform
• Sticky local content a strong

retention tool

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Viewership

• CABLE TV viewership comparable to TVB Jade
• Over 80% of viewership from CABLE TV’s self-produced

channels

3% 45% 12% 39%

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TVB Jade CABLE TV Other Pay TV

CABLE TV channels viewership

Other Terrestrial Source: CSM Media Research 2007 59% 70% 19% 11% 22% 19% 0% 20% 40% 60% 80% 100% 120% 2006 2007 International Satellite Channels CABLE TV's Sports Channels CABLE TV's News, Entertainment & Movies Channels

Viewership among CABLE TV 4+ subs

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Entertainment

Building blocks reinforcing

• ne another, making

i-CABLE a robust entertainment platform

Entertainment Channels Sundream Motion Pictures Entertainment News Channel Sundream Music

i-CABLE Communications Limited

Artistes Management

Entertainment

• Locally produced programmes constantly topped the

most watched list

• CABLE No. 1 Channel better watched than ATV World

& closing in on TVB Pearl

• Secured top movies & dubbed Hollywood blockbusters
• Cemented relationship with the showbiz industry

globally

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怪談 怪談

i-CABLE Communications Limited

News

• Most watched news channel in Hong Kong with

42% past week reach*

• Most credible TV News in CU / HKU / RTHK

survey

CABLE Communications Limited

* 2007 Hong Kong Media Index

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News

Prestigious awards in 2007

• Gold World Medal: “Image Projects”

(神州穿梭 - 形象工程)

The New York Festivals 2008 International TV Broadcasting Best News Documentary Special

• Silver Plaque: “The Rising Cross”

(時事寛頻 - 中國教會系列之崛起的十架)

2007 Chicago International Television Awards Public Affairs / Video News Release

• Bronze Winner: “Underground Heaven”

(時事寛頻 – 中國教會系列之地下天國)

2007 Telly Award

• Bronze Winner: “A Unique Duo”

(無雙譜 – 三集人物特備系列)

2007 Telly Award

i-CABLE Communications Limited

15

Sports

Exclusive rights for the crown jewels

• f sports
• 2008 Olympics in Beijing

(New Media)

• 2010 FIFA World Cup in South Africa
• 2010 Winter Olympics in Vancouver
• 2012 Olympics in London

i-CABLE Communications Limited

16

Sundream Motion Pictures

• Award-winning films
• 5 titles received 35 nominations
• Awards

A Battle of Wits (墨攻)

• Best Film in the 12th Golden Bauhinia Awards
• Recommended Film by Hong Kong Film Directors’ Guild

Eye in the Sky (跟踨)

• Special Jury Prize in the 8th FILMex, Tokyo
• Recommended Film and The Best Actor award in the

14th Hong Hong Kong Film Critics Society

i-CABLE Communications Limited

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Sundream Motion Pictures

New releases:

• Le Grand Chef (食客)
• Three Kingdoms – The Resurrection
• f The Dragon (三國之見龍卸甲)
• Lost Indulgence (迷果)
• Ticket (車票)
• The Equation of Love & Death

(李米的遭遇)

• Plus Weinstein titles from Hollywood

(8 earmarked for 2008)

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i-CABLE Communications Limited

Monetization of Content

• Extensive international distribution
• The Mainland, New Zealand, Malaysia, Singapore, Vietnam,

Thailand, Taiwan, Japan, United States & Canada

• Established recognition in overseas market
• Programmes widely distributed in the Mainland
• Fujian, Guangzhou, Shanghai, Guizhou, Jiangsu, Liulang & Beijing
• New media platforms
• Mobile content to CSL, Peoples, 3 Hong Kong, 3 Australia and CTM
• Internet content to The Mainland, Taiwan and Japan
• Newsline Express on MTR East Rail, West Rail,

Ma On Shan Rail & Lok Ma Chau spur line

• Reaching over 1.1 million passengers everyday

i-CABLE Communications Limited

19

China Developments

• Ad On Media
• Exclusive advertising sales agent of Sanlian Life

Week Magazine 《三聯生活周刊》

• Readership top among all weeklies in the same

category

• Strong growth in advertising revenue
• Publications
• “Child Baby” 《孩子寶貝》 distributed across 40

mainland cities targeting young professional mothers

• “iSport”《i-體育》to be distributed in Beijing,

Shanghai, Guangdon and major 2nd tier cities

• Planning to launch《漫頭周報》in April 2008

Communications Limited i-CABLE

20

Outlook

• Scale up content production with local relevance
• Leverage on cross media business in Hong

Kong & Mainland China

• Target to open 10 retail shops in major

commercial districts

ABLE Communications Limited i-C

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i i-

• CABLE Communications Limited

CABLE Communications Limited

HKSE Stock Code: 1097.HK U.S. Over-The-Counter Symbol: ICABY

Disclaimer All information and data are provided for information purposes only. All

• pinions included herein constitute i-CABLE’s judgement as of the date hereof

and are subject to change without notice. i-CABLE and its subsidiaries and affiliates hereby disclaim (i) all express, implied, and statutory warranties of any kind to user and/or any third party including warranties as to accuracy, timeliness, completeness, or fitness for any particular purpose; and (ii) any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the information and data contained herein.

• mmunications Limited

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