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

Jan 01, 2024 134 likes •326 views

i - i -CABLE i -CABLE CABLE Communications Limited Limited Communications 2010 Interim Results 10 August 2010 2010 FIFA World Cup World Cup a major draw card to rebuild business momentum World Cup has jump-started business

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SLIDE 1

2010 Interim Results

10 August 2010

i-CABLE i i-

  • CABLE

CABLE

Communications Communications Limited Limited

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SLIDE 2

2010 FIFA World Cup

  • World Cup a major draw card to

rebuild business momentum

  • World Cup has jump-started business

growth to build up to the opening of Barclays Premier League & UEFA Champions League, the most popular football leagues in the world today

  • The best HD picture quality in town

also thrilled our subscribers

  • Selected games & highlights shown
  • n Digital Free TV

i-CABLE Communications Limited 2

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SLIDE 3

2010 FIFA World Cup

i-CABLE Communications Limited 3 Conducted by Oracle Added Value July 2010

Netherland vs Brazil Argentina vs Germany Date 02 July 10 (Fri) 03 Jul 10 (Sat) Kickoff Time 22:00 22:00 Number of Audience 1.6M 1.5M Target Group People aged 15-59 People aged 15-59 Average Viewing Duration 76 minutes 78 minutes

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SLIDE 4
  • Barclays Premier League

Exclusive live coverage of 380 matches HD – 5 channels & over 300 live matches SD – 6 regular channels & all 380 live matches

i-CABLE Communications Limited

Exclusive Prized Content

4

HD BPL Pack: $80 p.m. X 24-month contract BPL Pack: $50 p.m. X 24-month contract Triple audio available in key matches Broadcast English ancillary programs including weekly highlights, magazine programs and half-hour preview programs New media online clips on www.i-CABLE.com

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SLIDE 5
  • UEFA Champions League (HD)
  • UEFA Europa League (HD)
  • German Bundesliga (HD)
  • Asian Games (HD)

i-CABLE Communications Limited

Exclusive Prized Content

5

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SLIDE 6
  • Most watched pay TV in all major

program genres*

  • Expand HDTV offerings planned
  • Breaking free of the de facto

monopoly of artistes & popular singers

6 i-CABLE Communications Limited

Original Programming

6 * CSM Media Research 28 Dec 2009 – 4 Jul 2010

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SLIDE 7

10% 6% 2% 1%

0% 1% 2% 3% 4% 5% 6% 7% 8% 9% 10%

i-CABLE NOW TV TVBPV HKBN

Among all individuals aged 4+

38% 14% 6% 43%

Viewership

7 i-CABLE Communications Limited

Among i-CABLE 4+ subs

i-CABLE TVB Jade HD+SD Other Terrestrial & Satellite TV Other Pay TV

Jan - Jun 2010

  • Over 80% viewership from self-produced channels

Source: CSM Media Research 1 Jan 2010 – 30 Jun 2010

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SLIDE 8

8

Pay TV Net Additions

i-CABLE Communications Limited

  • The largest half yearly net gain ever
  • Over 70% of new subscribers take the BPL Pack
  • Net gain in F&B and commercial accounts ~2X 2006’s
  • Churn rate less than 30% of previous World Cups

561,000 600,000 738,000 770,000 1,000,000 1,086,000

1H10 1H02 1H06

39,000 32,000 86,000

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SLIDE 9

Pay TV Broadband Voice

249,000 1,000,000 152,000 234,000 1,086,000 147,000

December 2009 June 2010

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Subscribers

i-CABLE Communications Limited

  • Pay TV subscriber base expanded by 9%
  • Broadband subscribers shrank as cross poaching continues in a

saturating market

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SLIDE 10

10

Pay TV

i-CABLE Communications Limited

2010 HK$M 1H 2H 1H vs 1H09 Turnover 595 633 725 22% Opex before dep’n (508) (602) (748) 47% EBITDA 87 30 (23) N/A Depreciation (86) (76) (79)

  • 8%

Operating Profit/(Loss) 1 (46) (102) N/A EBITDA Margin 15% 5%

  • 3%

Operating Margin 0%

  • 7%
  • 14%

2009

  • Recognition of recurrent revenue from long term subscriber commitments

lags seriously the substantial non-recurrent programming costs booked in the period, resulting in a large operating loss

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SLIDE 11

11

Internet & Multimedia

i-CABLE Communications Limited

2010 HK$M 1H 2H 1H vs 1H09 Turnover 266 257 231

  • 13%

Opex before dep’n (136) (137) (133)

  • 3%

EBITDA 129 120 98

  • 24%

Depreciation (49) (38) (44)

  • 10%

Operating Profit 81 82 55

  • 32%

EBITDA Margin 49% 47% 43% Operating Margin 30% 32% 24% 2009

  • Competition heightened in the period
  • Taking proactive steps to improve bandwidth, service & quality
  • Technology upgrade substantially completed for Hong Kong Island to

enhance competitiveness

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SLIDE 12

i-CABLE Communications Limited 12

Consolidated Results

  • Top tier programs boosted subscription & airtime revenue
  • Mismatch of revenue & opex recognition distorted 1H10 P&L
  • Provision for a non-recurring loss on film investments
  • HK$539M net cash

2010 HK$M 1H 2H 1H vs 1H09 Turnover 862 893 962 12% Opex before dep’n (722) (819) (944) 31% EBITDA 139 74 18

  • 87%

Depreciation (139) (119) (126)

  • 9%

Operating Profit/(Loss) 1 (45) (108) N/A Share of profit less losses of associates 1 (1) (39) N/A Net interest income & others (2) (1) 1 N/A Loss before taxation (0) (47) (146) N/A Taxation 6 2 1

  • 86%

Net Profit/(Loss) 5 (45) (145) N/A 2009

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SLIDE 13

2010 HK$M 1H 2H 1H vs 1H09 Programming 379 440 546 44% Network 121 124 119

  • 2%

Selling, CS, G&A 202 223 250 24% Cost of Sales 21 32 29 41% Sub-total 722 819 944 31% Depreciation 139 119 126

  • 9%

Total 861 938 1,070 24% 2009

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Operating Expenses

i-CABLE Communications Limited

  • Higher programming, marketing & acquisition costs primarily due to

special events including World Cup & Winter Olympics

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SLIDE 14

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New Opportunities

i-CABLE Communications Limited

  • DOCSIS 3.0 Broadband Network

Enhance competitive position Substantially completed Hong Kong Island Available to 18% homes today

  • Target to complete 50% by December 2010
  • Free TV Licence Application

Develop a new revenue stream, leveraging on existing content production capability & infrastructure Has begun pre-mobilization to enable service to reach 95% households within 6 months from licence award

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SLIDE 15

New Opportunities

15 i-CABLE Communications Limited 15

Fantastic TV HKTVE (PCCW) CTI

Total Investment

$1,007M in the initial 6 years Programming: $968M Network: $39M $600M in the first 3 years $1,052M in the initial 6 years Programming: $394M Network: $150M Other Opex: $478M

Service Roll-out from Licence Award

To reach 95% households within 6 months Takes 48 months to reach 90% households Takes 45 months to reach 66% households

Service

1 Cantonese Channel 1 English Channel 1 Cantonese Channel 12 Channels (increase to 20 channels within 3 years & 30 within 6 years of launch)

Daily Broadcast Hours

24 hours 24 hours 12-24 hours

Compliance with Statutory Requirements

Yes No (disqualified persons and unqualified voting controllers) Yes

Compliance with Positive Programming

Yes No No

Prime-Time Programs

Over 70% locally produced programs Substantially all are first-run programs Not mentioned 1-3 hours locally produced programs per day 1.5 hours first-run programs per day

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SLIDE 16

Outlook

16 i-CABLE Communications Limited

  • As economy recovery began to take hold during 1H10, our investments

have started to pay off as attractive content drove strong subscriber & revenue growth

  • Continue to persevere our strategy of investing in content &

infrastructure for future growth & success

  • Cost pressure will continue in the face of competition. Will continue to

drive subscriber & revenue growth to meet the cost pressure

16

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SLIDE 17

17 i-CABLE Communications Limited

Q&A

17

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SLIDE 18

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.

i-CABLE Communications Limited HKSE Stock Code: 1097.HK U.S. Over-The-Counter Symbol: ICABY