i - i -CABLE i -CABLE CABLE Communications Limited Communications Limited 2011 Final Results 12 March 2012
Results Highlights • Group revenue continued to rebuild, as it continued to strengthen programming, improve service offerings, expand product diversity, introduce value-added services, streamline operations & effect infrastructure improvements � Record high advertising turnover with growth in TV subscription base • Loss position improved in 2011. The operating environment remains challenging as the Group strives to return to profitability i-CABLE Communications Limited � Operating margin is under considerable pressure in the face of competition and rising costs. This situation would likely remain a challenge in the foreseeable time ahead as we continue to invest in and for the future 2
Subscription Services Television Television • Rebuilding nicely in many respects with higher viewership, subscription revenue, subscriber yield, especially advertising income and EBITDA growing noticeably faster than TV subscriber base • Effective marketing and promotional campaigns were executed to leverage prized content and strong HD services i-CABLE Communications Limited 3
Television 2011 2011 2010 2009 vs 2010 HK$M 1H 2H FY FY FY % chg. Turnover 874 875 1,749 1,561 1,228 12% Opex before dep’n (822) (858) (1,680) (1,625) (1,111) 3% EBITDA 51 17 69 (64) 117 n/a Depreciation (74) (90) (163) (158) (162) 3% Operating Loss (22) (72) (95) (222) (45) - 57% EBITDA Margin 6% 2% 4% -4% 10% i-CABLE Communications Limited Operating Margin -3% -8% -5% -14% -4% • Higher recurrent revenue mainly attributable to increase in higher yield subscriptions & airtime sales • Operating margin under considerable pressure in the face of competition & rising costs 4
Value-added Services HD Channels HD Channels • Committed to deliver more value- added services to enhance customer experience • Launched 9 HD Channels with best picture quality in town � 5 HD Sports Channels (hd200 – hd204) i-CABLE Communications Limited � 3 HD Movie Channels (hd241, hd243 & hd245) � 1 HD Entertainment (hd212) 5
Value-added Services 3D for TV D for TV 3 • Hong Kong’s first-ever 3D BPL matches broadcast live and exclusively on CABLE TV • Life-like excitement on 3D- capable TV sets at no additional charge to “HD BPL Pack” subscribers i-CABLE Communications Limited • Ten 3D live BPL matches in the 2 nd half of 2011/12 season 6
Value-added Services Pay- -Per Per- -Day BPL Day BPL Pay • Introduced Pay-Per-Day service, allowing football fans & viewers to watch up to 3 BPL live matches & related programmes on Channel 690 (SD) at $30 per day i-CABLE Communications Limited 7
London 2012 Olympics • The official broadcaster & exclusive holder of all media rights in Hong Kong • Unprecedented live coverage on multiple platforms enabling viewers to watch it at any time, from anywhere and through multiple devices • Carriage of high interest events as well as the opening & closing ceremonies i-CABLE Communications Limited • Leveraging on CABLE TV experience in broadcasting Beijing 2008 Olympics on new media, FIFA World Cups, Asian Games and Winter Olympics 8
Exclusive Sports Programmes Sports Sports • The leading sports platform in town • Successful renewal of the exclusive broadcasting rights to � UEFA Champions League & UEFA Europa League until 2015 � The German Bundesliga until 2015 i-CABLE Communications Limited • Comprehensive coverage of the 2011/2012 BPL season, boosting this platform to a total 11 HD & SD channels 9
Original Programming News News • Professional team maintained its leadership position, serving the community with fast, accurate & independent reports & updates 24X7 • Plans were underway to introduce HD capabilities to news platform and enrich the i-CABLE Communications Limited presentation of our newscasts 10
Original Programming 樂壇第一手 樂壇第一手 名廚 名廚 鄉土濃情甄文達 鄉土濃情甄文達 還看當年 還看當年 i-CABLE Communications Limited 日本泡湯趣 日本泡湯趣 大 Fun 享 大 Fun 享 11
Original Programming 12 i-CABLE Communications Limited
Viewership 940,000 440,000 127,000 78,000 i-CABLE Communications Limited Source: CSM Media Research Jan-Dec 2011, All Day All Time • CABLE TV is the most watched Pay TV with average daily reach of 940,000 13
Viewership 58% % 0 6 52% % 0 5 37% % 0 4 30% 2009 2010 2011 % 0 3 % 0 2 9% i-CABLE Communications Limited % 8% 0 1 4% 2% % 0 HKC Now TV TVBPV bbTV Source: CSM Media Research All Day All Time (Individuals aged 4+) • CABLE TV viewership almost 2X the closest follower • Leadership position going stronger than ever, as it continued to strengthen programming & improve service offerings 14
Subscribers Jun 2011 Dec 2011 149,000 157,000 Television Broadband Telephony 225,000 218,000 1,103,000 1,106,000 i-CABLE Communications Limited 15
New Acquired Channels • Phoenix Hong Kong Channel 鳳凰衛視香港台 • Hong Kong Satellite TV 香港衛視 • Liaoning Satellite TV 遼寧衛視 i-CABLE Communications Limited • Jiangsu Satellite TV 江蘇衛視 • Thrill 驚慄電影台 16
Cross-platform Opportunities • Strengthened service offerings to meet customers’ fast-changing needs and entertainment landscape not only TV services, but various alternatives available on the Internet & mobile platforms • Further upside will come from cross-platform opportunities including outdoor advertising, new media, content distribution & Free TV once approved i-CABLE Communications Limited 17
Cross-platform Opportunities Advertising & Outdoor Advertising & Outdoor • Substantial turnover increases in 2011, a record high surpassing even the years when there were high-interest mega programming such as FIFA World Cup • Newsline Express in MTRC’s trains also reported significant growth in advertising revenue • Taking this successful business venture further, an agreement was reached to cover additional lines under a phased scheme starting in December 2011 i-CABLE Communications Limited 18
Cross-platform Opportunities New Media New Media • Leveraging on CABLE TV experience on new media, we endeavor to make the best use of various platforms & technologies providing cross-media & cross-platform services � The London 2012 Olympic Games will be available on www.i-cable.com, enable citizens to watch it at any time from anywhere & through multiple means � Supply CABLE TV content to wireless operators i-CABLE Communications Limited • Launched 'Joemud?', a multi-functional mobile app combining the latest news in trends, entertainment, dining, shopping, TV programming, movie & social networking 19
Cross-platform Opportunities CABLE TV Goes Mobile CABLE TV Goes Mobile • Designated subscribers can watch programmes, anytime, anywhere at no additional fee • 5 streaming channels providing round-the-clock services � Live News � Financial Information � Entertainment News i-CABLE Communications Limited � BPL simulcast live matches � Soccer Betting 20
Cross-platform Opportunities CABLE TV Goes Mobile CABLE TV Goes Mobile • Promotional offers � Multimedia signals, direct links to premier offers • Programme guide � Programme search, user-set push alerts for favourite programmes, programme schedule for coming week i-CABLE Communications Limited • Personal interactive customer service � Instant booking of service offerings, account-related enquiries, technical support, frequently asked questions 21
Cross-platform Opportunities Free TV Free TV • Government is considering 3 applications for domestic free TV licences that may lead to an imminent introduction of free territory-wide channels, including 2 proposed by CABLE TV on behalf of Fantastic Television • Fantastic TV is all set for new licence and we are earnestly waiting for regulatory approval to provide viewers with more & better choice including London 2012 Olympics in unprecedented i-CABLE Communications Limited coverage 22
Subscription Services Internet Internet • Broadband business is still eroding & under competitive pressure from not only wire-line service providers but also wireless operators luring customers with aggressive service packages often bundled with multiple products � Roll-out of 130Mbps covering HK Island was completed earlier in the year and works for the rest of the territory were nearing completion � A plan is in place to arrest the erosion, with additional i-CABLE Communications Limited upgrade alternatives being implemented or under consideration � The resulting expansion in network capacity and improvement in service quality would help reduce customer attrition, protect revenue through up-selling to existing customers and attract new ones 23
Recommend
More recommend
