i-CABLE - CABLE i Communications Limited 2008 Interim Results - - PowerPoint PPT Presentation

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i-CABLE - CABLE i Communications Limited 2008 Interim Results - - PowerPoint PPT Presentation

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i-CABLE - CABLE i Communications Limited 2008 Interim Results 12 August 2008 Consolidated Results (HK$M) 1H08 1H07 %chg. Turnover 1,069 1,185 -10% Opex before dep'n (864) (884) -2% EBITDA 205 301 -32% Depreciation (165)

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SLIDE 1

i i-CABLE

  • Communications Limited

CABLE

2008 Interim Results

12 August 2008

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SLIDE 2

Consolidated Results

(HK$M) 1H08 1H07 %chg.

Turnover 1,069 1,185

  • 10%

Opex before dep'n (864) (884)

  • 2%

EBITDA 205 301

  • 32%

Depreciation (165) (194)

  • 15%

Operating profit 40 107

  • 63%

Net interest income 4 10

  • 61%

Non-operating income 1

  • 72%

Profit before taxation 44 119

  • 63%

Taxation (18) (2) +660% Net profit 26 116

  • 78%

Capex 68 71

  • 4%
  • A one-off non-cash adjustment ($15M) of the opening balance for deferred

tax due to the lowering of corporate profits tax rate

  • Interim dividend cancelled to re-invest in competitiveness to strengthen

market position

2

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SLIDE 3

Subscribers

Pay TV Broadband Voice

892,000 882,000 280,000 306,000 153,000 159,000

  • Bundling & creative packaging helped to reduce market share

erosion

June 2008 June 2008 December 2007 December 2007

3

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SLIDE 4

Pay TV

(HK$M) 1H08 1H07 %chg.

Turnover 699 827

  • 16%

Opex before dep'n (537) (615)

  • 13%

EBITDA 161 213

  • 24%

Depreciation (100) (113)

  • 12%

Operating profit 61 100

  • 39%

EBITDA margin 23% 26%

  • 3%

Operating margin 9% 12%

  • 3%
  • Mini packages drove penetration into mass market, maximizing the

value of local content investment

4

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SLIDE 5

Internet & Multimedia

(HK$M) 1H08 1H07 %chg.

Turnover 295 295 0% Opex before dep'n (140) (131) +7% EBITDA 154 164

  • 6%

Depreciation (62) (78)

  • 21%

Operating profit 93 86 +8% EBITDA margin 52% 56%

  • 4%

Operating margin 31% 29% +2%

  • Profitability improved to fuel Pay TV development

5

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SLIDE 6

Operating Expenses

(HK$M) 1H08 1H07 %chg.

Programming 413 492

  • 16%

Network & Others 241 207 +17% S, G&A 210 186 +13% Sub-total 864 884

  • 2%

Depreciation 165 194

  • 15%

Total 1,029 1,077

  • 4%
  • Re-investing programming savings to strengthen programming, sales

& marketing and customer experience

6

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SLIDE 7

Viewership

0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% TVB Jade CABLE TV Other Terrestrial Other Pay TV 1H07 1H08

Viewership among CABLE TV 4+ subs

46% 47% 38% 39% 12% 10% 4% 5% Source: CSM Media Research

  • CABLE TV viewership continued to rise
  • Second only to free-to-air TVB Jade & 2.6 times of all other channels

combined including competition’s

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SLIDE 8

Locally Relevant Content

News News

  • Established reputable brand in the market

CABLE News & Finance Info CABLE News & Finance Info Viewership Viewership Share* Share*

8% 8% 9% 10% 11%

4% 5% 6% 7% 8% 9% 10% 11% 12% 1H06 2H06 1H07 2H07 1H08

Source: CSM Media Research * News, Finance Info & Channel 18 among CABLE Subs 4+ 8

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SLIDE 9

Locally Relevant Content

Entertainment Entertainment

  • Top Programmes
  • Established presence with
  • ur own singers in the music scene
  • Staged 2 concerts in Beijing
  • Fung Shui Lecture of Master So

(峰生水起精讀班)

  • Unbelievable (怪談)
  • Maria’s Private Kitchen (肥媽私房菜)
  • So Real Time Cooking

(一粒鐘真人蘇)

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SLIDE 10

Locally Relevant Content

Sports Sports

  • Exclusive rights of top international sports

2008 Beijing Olympics (new media) 2009-2012 UEFA Champions League 2010 Vancouver Olympics 2010 FIFA World Cup 2010 & 2014 Asian Games 2012 London Olympics

10

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SLIDE 11

Service Enhancement

  • Integrated call centre instrumental to quality customer service
  • Same day on-site service
  • Opened 8 retail shops in prime locations
  • Service enhancement / locally relevant content

improved churn

Pay TV Churn Index

100 93 79 57 71 50 107 30 40 50 60 70 80 90 100 110 120 1H05 2H05 1H06 2H06 1H07 2H07 1H08

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SLIDE 12
  • Newsline Express
  • New media
  • Publications
  • Mobile TV
  • Film
  • Video & programs sales

Cross Media Development

12

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SLIDE 13

New Media Development

Special unit to exploit new media opportunities Special unit to exploit new media opportunities

  • One of the initiatives to leverage content on cross-media

platforms

2008 2008 Beijing Olympics, a show case for 2012 Beijing Olympics, a show case for 2012 London Olympics London Olympics

<http://2008.i-cable.com>

奧運 奧運

Anytime, Anywhere

Election Platform Election Platform

<http://election.i-cable.com>

One of the first in HK crossing

  • ver TV & new media

13

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SLIDE 14

Sundream Motion Pictures

Released Released

  • 13 titles with 16 awards
  • “A Battle of Wits” <墨攻> Top 4 among Chinese films in Taiwan
  • “Eye in the Sky”

<跟踨> Best Editor, Best New Performer & Best New Director awards

  • “Three Kingdom” <三國> Top 3 among Chinese films in HK

In the pipeline In the pipeline

  • Lost Indulgence <秘岸>
  • Ticket

<車票>

  • Champions

<奪標>

  • Love Dog Doc

<妙狗仁心>

  • Now Showing

<是日公映>

  • Plastic City

<蕩寇>

  • The Equation of Love & Death <李米的猜想>
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SLIDE 15

Diversification

Pay TV 65% I&M 27% Unallocated 8%

Revenue Mix Revenue Mix 1H08 1H08 Unallocated Revenue Trend Unallocated Revenue Trend

1 2 3 4 5 6 7 8 9 1 1 H 4 2 H 4 1 H 5 2 H 5 1 H 6 2 H 6 1 H 7 2 H 7 1 H 8 HK$'m

  • Diversification expanded revenue stream
  • Built solid revenue outside Hong Kong & across platforms in TV, outdoor,

mobile, film, music, Internet & print

  • Content distribution continued to make good progress in the mainland &
  • verseas

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SLIDE 16

Outlook

  • War of attrition is an opportunity given our lower cost base
  • Invest to enhance products and promotion
  • Streamline operationally
  • Invest in new encryption system to secure Pay TV revenue
  • Strengthen market position and market share

16

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SLIDE 17

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 opinions included herein constitute i-CABLE’s judgment 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.