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

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

May 28, 2023 566 likes •817 views

i - i -CABLE i -CABLE CABLE Communications Limited Communications Limited 2010 Final Results 15 March 2011 Results Highlights Achieved sustained growth for TV business in a challenging environment Operating margin came under severe

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SLIDE 1

Communications Limited Communications Limited

i-CABLE i i-

  • CABLE

CABLE

2010 Final Results

15 March 2011

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SLIDE 2

i-CABLE Communications Limited

Results Highlights

  • Achieved sustained growth for TV business in a

challenging environment Operating margin came under severe pressure, partly due to significant non-recurrent costs

  • Exclusive premier programming & the sharpest high

definition (HD) service in the market Stimulated significant increase in TV subscribers

  • by over 100,000
  • Broadband competition heightened

Cross poaching of subscribers continued as penetration reaching saturation levels

  • Continues to invest in network infrastructure to

enhance broadband’s competitiveness

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SLIDE 3

i-CABLE Communications Limited

Subscription Services

Television

  • Recovery in high-yield subscribers continued to

gain momentum, spurred by unrivalled exclusive content & HD initiatives, most notably 2010 FIFA World Cup & Barclays Premier League (BPL)

  • Expanded the spectrum of genres on HD platform.

Seven flagship channels broadcast in HD : HD Sports (5 channels) HD Movie HD Entertainment

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i-CABLE Communications Limited

Television

  • With the best HD quality & viewing

experience in town, HDTV has proven to be a big draw driving customer acquisition

Subscription Services

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i-CABLE Communications Limited

High Definition TV

  • HD Winter Olympics
  • HD 2010 FIFA World Cup
  • HD BPL (2010/13)

200+ matches in 2010/11 300+ matches in 2011/12 All Big 4 matches : Manchester United, Chelsea, Arsenal & Liverpool

  • HD Horse Racing

Trackwork Express Trackside & Racing Review

  • HD 2010 Guangzhou Asian Games

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Sports Sports

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SLIDE 6

i-CABLE Communications Limited

High Definition TV

  • Launched HD Movie & HD

Entertainment on 1 Jan 2011

  • Three months free viewing for

existing HD subscribers

  • Existing HD Subscribers :

HK$10 p.m. x 24-month contract

  • New HD Subscribers:

HK$20 p.m. x 24-month contract

Entertainment HD Pack Entertainment HD Pack

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i-CABLE Communications Limited

Original & Innovative Programming

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i-CABLE Communications Limited

Original & Innovative Programming

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i-CABLE Communications Limited

  • The most watched Pay TV with average

daily reach of 984,000

Viewership

S

  • urc e : CS

M Me dia Re se arc h Jan-De c 2010, All Day All T ime

984,000

470,000

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i-CABLE Communications Limited

Viewership

The most watched Pay TV in all categories

News : 44% higher than key competitor Sports : 80% higher than key competitor Entertainment : 6X key competitor Movie : 2X key competitor

10 Remarks: TVRs comparison with the same no. of channels in each category Source: CSM Media Research All individuals aged 4+, Jan-Dec 2010, All Day All Time

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i-CABLE Communications Limited

1,101,000 228,000 143,000

Television Broadband Voice

Subscribers

  • Total TV, broadband &

voice subscriber base grown to nearly 1.5 million

  • Television’s new

subscribers 11% higher than previous FIFA World Cup & churn rate 50% lower

  • Food & Beverage revenue &
  • no. of accounts 3.7X & 2.2X

2009’s respectively

  • Close to 40% of BPL

subscribers opt for HD

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i-CABLE Communications Limited

New Acquired Channels

  • CNC

新華社電視台

  • Disney Channel
  • Playhouse Disney Channel
  • AHTV

安徽衛視

  • Dragon TV東方衛視國際頻道

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i-CABLE Communications Limited

Television Subscribers

561,000 606,000 656,000 702,000 738,000 786,000 882,000 917,000 1,000,000 500 600 700 800 900 1,000 1,100 1,200 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

1,101,000 1,101,000

  • Surpassed 1.1 million milestone with over 100K net additions

‘000 Year

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i-CABLE Communications Limited

Subscription Services

Broadband

  • Cut-throat competition in pricing & service

continued in a saturated market

  • To enhance competitiveness, we are

speeding up the pace of service upgrade

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i-CABLE Communications Limited

Sundream Motion Pictures

  • Released 10 titles

theatrically, grossing over HK$20 million at the box

  • ffice
  • 14 films are in the 2011

line-up

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i-CABLE Communications Limited

Television

2010 2009 HK$M 1H 2H FY FY % chg. Turnover 725 836 1,561 1,228 27% Opex before dep’n (748) (876) (1,625) (1,111) 46% EBITDA (23) (40) (64) 117 n/a Depreciation (79) (80) (158) (162)

  • 2%

Operating Loss (102) (120) (222) (45) 391% EBITDA Margin

  • 3%
  • 5%
  • 4%

10% Operating Margin

  • 14%
  • 14%
  • 14%
  • 4%

2010

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  • Rebuilding high-yield subscribers with premier programming
  • Operating margin under sever pressure, partly due to

significant non-recurrent costs from 2010 FIFA World Cup, 2010 Guangzhou Asia Games & 2010 Winter Olympics

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i-CABLE Communications Limited

2010 2009 HK$M 1H 2H FY FY % chg. Turnover 231 201 433 522

  • 17%

Opex before dep’n (133) (116) (248) (273)

  • 9%

EBITDA 98 86 184 249

  • 26%

Depreciation (44) (44) (88) (87) 1% Operating Profit 55 42 96 163

  • 41%

EBITDA Margin 43% 43% 43% 48% Operating Margin 24% 21% 22% 31% 2010

Internet & Multimedia

  • Fierce competition continued with no sign of letting up

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i-CABLE Communications Limited

Operating Expenses

2010 2009 HK$M FY FY % chg. Programming 1,274 819 56% Network 233 244

  • 5%

Selling, CS, G&A 435 425 2% Cost of Sales 55 52 6% Sub-total 1,997 1,541 30% Depreciation 254 258

  • 2%

Total 2,251 1,799 25%

  • Higher programming costs primarily due to BPL, as well

as non-recurrent 2010 FIFA World Cup, 2010 Guangzhou Asian Games and 2010 Winter Olympics

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i-CABLE Communications Limited

Consolidated Results

2010 2009 HK$M 1H 2H FY FY % chg. Turnover 962 1,040 2,002 1,754 14% Opex before dep’n (944) (1,053) (1,997) (1,541) 30% EBITDA 18 (13) 5 214

  • 98%

Depreciation (126) (127) (254) (258)

  • 2%

Operating Loss (108) (140) (249) (44) 462% Share of profit less losses of associates (39) (2) (41) (0) n/a Net interest income & others 1 (2) (0) (3)

  • 88%

Loss before taxation (146) (144) (290) (47) 515% Taxation 1 23 23 7 227% Net Loss (145) (121) (267) (40) 567% 2010

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  • Exclusive premier programming boosted subscription & airtime

revenue but non-recurrent opex eroded operating margin

  • HK$447M net cash
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i-CABLE Communications Limited

New Opportunities

DOCSIS 3.0 Broadband Network

  • Helps in subscriber acquisition & retention,

also facilitates service upselling to existing subscribers to bring revenue benefits

  • HK Island mostly completed; proceeding in

Kowloon & New Territories

  • Activated 581K DOCSIS 3.0 homes today

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i-CABLE Communications Limited

New Opportunities

Free TV Licence application

  • Expanding to Free TV is an important step

for Group to monetize its programme investment, leveraging on content & infrastructure advantage

  • Working closely with regulator & expect

licence award in the first half of 2011

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i-CABLE Communications Limited

Outlook

  • The Group’s decision to reinvest in programming,

service & system upgrades despite adverse conditions spurred record growth in customer base & boosted recurrent revenue

  • With unrivalled exclusive premier contents & an

expanding HDTV service offering the best viewing experiences in the market, the Group is in a strong position to step up its drive to further push forward the growth momentum

  • While premier programming expenses will continue to

exert considerable pressure on the Group’s operating cost in the medium term, these investments are key to maintain a leading position in the market where competitive pressure is unrelenting

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i-CABLE Communications Limited

Outlook

  • Fantastic Television’s application for Free TV licence

will, once approved, enable the Group to tap new revenue from its well-regarded content production capabilities

  • We

are confident that the solid competitive advantages we have built up will enable us to more effectively capture opportunities in an improving economy and be fully reflected in the Group’s financial performance in due course

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i-CABLE Communications Limited HKSE Stock Code: 1097.HK

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