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

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

May 27, 2023 128 likes •385 views

i - i -CABLE i -CABLE CABLE Communications Limited Limited Communications 2012 Interim Results 7 August 2012 Results Highlights 2012 is a period of consolidation fortifying hard-earned inroads amidst looming economic uncertainties and

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SLIDE 1

2012 Interim Results

7 August 2012

i-CABLE i i-

  • CABLE

CABLE

Communications Communications Limited Limited

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SLIDE 2

Results Highlights

  • 2012 is a period of consolidation fortifying hard-earned inroads

amidst looming economic uncertainties and a challenging

  • perating environment
  • Competitive pressure remained high across business segments

affecting our overall performance

  • Across the main product lines, negative subscriber growth was

reported & rising costs eroded flat turnover to result in larger losses

2 i-CABLE Communications Limited

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SLIDE 3

Television

  • Keen competition from both within and outside the Pay TV market

remained a major factor behind the attritions. Other causes included customers’ changing viewing habits and ever-increasing range of entertainment choices. Staying ahead of competition has become more challenging than ever

  • Substantial increases in premium and general programming costs,

rising costs of sales, costly investments in service and system upgrades and the consolidation of our TV customer growth affected the Group's performance and slackened the pace of our return to profitability

Subscription Services

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SLIDE 4

Television

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  • Lower turnover mainly attributable to a decrease in higher yield

subscriptions as well as network related project income

  • Higher operating costs primarily due to the higher cost of major

soccer leagues in the new season

2012 HK$M 1H 2H 1H vs 1H11 Turnover 874 875 855

  • 2%

Opex before dep’n 822 858 836 2% EBITDA 51 17 20

  • 62%

Depreciation (74) (90) (79) 7% Operating Loss (22) (72) (59) 167% EBITDA Margin 6% 2% 2% Operating Margin

  • 3%
  • 8%
  • 7%

2011

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SLIDE 5

London 2012 Olympics

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  • Official Broadcaster of the London

2012 Olympics

  • Full range of media rights covering pay

TV, new media and free TV

  • Cross-platform coverage designed to

bring the excitement of the Games covering 26 sports and spanning 17 days to Hong Kong citizens via home TV, computer screen and mobile device

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SLIDE 6

London 2012 Olympics

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  • Over 1,600 programming hours in

multiple TV formats, of which over 900 hours were live broadcasts

Licensed to free-to-air to enrich

viewers’ choice and address those who had access to analogue TV

  • nly
  • 9 Olympic channels

(5SD + 4HD)

Olympic One

(CH61 / hd201)

Olympic Two

(CH62 / hd202)

Olympic Soccer Channel (CH63/ hd203) Olympic Three

(CH64)

Olympic 3D Channel (hd204) CABLE No. 1

(CH01)

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SLIDE 7
  • First time extensive live broadcasts of

the Olympics in 3D TV

  • Over 10 hours of games programming

everyday totaling more than 200 hours

  • ver

17 days with professional commentary in English

Opening & Closing Ceremony Swimming Artistic Gymnastics Diving Basketball Synchronized Swimming Rowing

London 2012 Olympics

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Olympics in 3D Live Olympics in 3D Live

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SLIDE 8
  • Free public access, viewers can watch

it at any time, from anywhere & through multiple devices

http://2012.i-cable.com “joemud?” mobile app

  • Progress of other competitions, footage

archives, interviews of athletes & coaches and news clips are also available on the website

Cross-Platform Coverage

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New Media New Media

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SLIDE 9

CABLE TV On Mobile CABLE TV On Mobile

  • Designated subscribers can watch

programmes anytime, anywhere at no additional fee

  • Available in both iOS & Android
  • 6 streaming channels providing round-

the-clock services

Live News Finance Information Entertainment News Olympic One Olympic Soccer Olympic Three

Cross-Platform Coverage

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SLIDE 10

Outdoor & Advertising Outdoor & Advertising

Cross-Platform Opportunities

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  • Hong Kong Cable News Express, the

exclusive commercial airtime sales distributor & content provider of MTR’s Newsline Express recorded growth in advertising revenue

  • Extended to Kwun

Tong Line, in addition to MTR East Rail, West Rail & Ma On Shan Lines

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SLIDE 11

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Exclusive Sports Programmes

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SLIDE 12

i-CABLE Communications Limited

Flagship Programming

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SLIDE 13

Flagship Programming

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SLIDE 14

i-CABLE Communications Limited

HD Entertainment Programming

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SLIDE 15

New Acquired Channels

  • Jiangsu Satellite TV

江蘇衛視

  • Thrill

驚慄電影台

  • TJTV

天津衛視

  • Hubei TV

湖北衛視

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SLIDE 16

0% 10% 20% 30% 40% 50% 60% 70% HKC Now TV TVBPV bbTV

Viewership

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Source: CSM Media Research All Day All Time (Individuals aged 4+)

  • CABLE TV viewership widened its lead

3% 10% 6% 35% 29% 52% 61% 2H10 1H11 2H11 1H12 4% 1H10

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SLIDE 17

Customers

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1,094,000 1,106,000 205,000 218,000 135,000 149,000

Jun 2012 Dec 2011

Television Broadband Telephony

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SLIDE 18

Internet

  • Competition in the Broadband & Telephony sectors was fierce

during the period and is not expected to ease in a saturated market

  • Fixed line services are being threatened by the phenomenal growth

in mobile services

  • We would continue with network upgrades and enhancements to

ensure a full range of offers catering for the respective needs of different customers including fibre-to-the-home services for top-end users, attractively priced packages for customers wanting high- speed connections and affordable plans for those requiring more casual uses only

Subscription Services

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SLIDE 19

Internet & Multimedia

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  • Competitors’ aggressive pricing and the fast-growing mobile

broadband users lead to lower subscribers and margin

  • Higher operating costs mainly due to higher cost for Telephony

business upon the acquisition of i-CABLE Telecom Limited

2012 HK$M 1H 2H 1H vs 1H11 Turnover 167 172 169 1% Opex before dep’n (98) (116) (111) 13% EBITDA 70 57 58

  • 16%

Depreciation (39) (48) (46) 17% Operating Profit 30 9 12

  • 59%

EBITDA Margin 42% 33% 35% Operating Margin 18% 5% 7% 2011

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SLIDE 20
  • Released 13 titles in the first half of

2012, with 9 titles in the pipeline

  • First time UEFA Champions League

Final 3D Live in cinemas

Joint initiative with leading local

cinema circuits including Broadway Circuit, Orange Sky Golden Harvest Entertainment, Multiplex Cinema & UA Cinema Circuit

Sundream Motion Pictures

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SLIDE 21

Consolidated Results

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  • Competitive

pressure remained high across business segments

  • Negative subscriber growth eroded flat turnovers and resulted

in losses

2012 HK$M 1H 2H 1H vs 1H11 Turnover 1,051 1,059 1,038

  • 1%

Opex before dep’n (983) (1,048) (1,010) 3% EBITDA 68 11 28

  • 58%

Depreciation (117) (142) (129) 10% Operating Loss (49) (131) (100) 105% Net interest income & others (2) (1) 2 N/A Loss before taxation (51) (132) (99) 93% Taxation (4) 7 2 N/A Net Loss (55) (125) (97) 77% 2011

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SLIDE 22

Operating Expenses

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  • Higher operating expenses due to increases in programming

costs, rising costs of sales, costly investments in service and system upgrades

2012 HK$M 1H 2H 1H vs 1H11 Programming 637 668 657 3% Network 113 113 114 2% Selling, CS, G&A 189 220 186

  • 2%

Cost of Sales 45 47 52 17% Sub-total 983 1,048 1,010 3% Depreciation 117 142 129 10% Total 1,100 1,190 1,138 3% 2011

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SLIDE 23
  • Following our strong Pay TV customer growth in recent years, achieving

similar growth in the foreseeable future would be very unlikely in a highly saturated and competitive TV market

  • We expect airtime sales to improve during the second half of the year

when the major English & European football leagues will be back in action and consumer spending will normally go up during the festive days running up to the end of the year

  • High programming cost is expected to put pressure on the Group’s

profitability in the second half but we would continue to invest in premier programming across our flagship platforms, HD capabilities expansion, territory-wide broadband upgrades, customer service improvements and new media initiatives to drive customer and revenue growths and unleash hidden revenue potential across platforms

  • There is no development on Fantastic TV’s application for domestic free

TV licence

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Outlook

i-CABLE Communications Limited

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SLIDE 24

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.