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

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

Jan 09, 2023 388 likes •607 views

i - i -CABLE i -CABLE CABLE Communications Limited Limited Communications 2011 Interim Results 9 August 2011 Results Highlights Efforts to rebuild revenue & profitability have started to pay off TV subscriber base sustainable,

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SLIDE 1

2011 Interim Results

9 August 2011

i-CABLE i i-

  • CABLE

CABLE

Communications Communications Limited Limited

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SLIDE 2

Results Highlights

  • Efforts to rebuild revenue & profitability have started to pay off

TV subscriber base sustainable, making healthy contributions

to recurrent revenue driven by strong content & new services

Advertising revenue remained strong, attributed mainly to a

stronger economy, attractive programming across flagship platforms & more effective marketing

  • Increase in programming costs and lower Broadband turnover

adversely affected performance & slowed the return to profitability

  • Net loss position has substantially improved in the first half

2 i-CABLE Communications Limited

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SLIDE 3

Television

  • Higher recurrent revenue created noticeable improvement in

financial performance

  • Successful marketing & promotional campaigns maximized the

leverage of prized content & strong HD service

  • Continue to invest in premier content to reinforce & expand market

share under well-tested strategy

  • Strengthen & improve the attractiveness of packages to meet

customers' fast-changing needs & fast-evolving electronic entertainment landscape on the Internet via both fixed & mobile platforms

Subscription Services

3 i-CABLE Communications Limited

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SLIDE 4
  • The best HD quality & viewing experience in town is the biggest

draw card for customer acquisition together with premier content across flagship channels

  • Expanded the spectrum of genres on HD platform to 9 flagship HD

channels:

5 HD Sports channels 3 HD Movie channels 1 HD Entertainment channel

Expanded HDTV Offerings

4 i-CABLE Communications Limited

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SLIDE 5

HD Sports (HD200 HD Sports (HD200 HD204) HD204)

Barclays Premier League UEFA Champions League German Bundesliga Copa America Barclays Asia Trophy ATP Qatar Open Tennis Asian Winter Games The Sudirman Cup FINA Swimming World Championships HD Horse racing

Expanded HDTV Offerings

5 i-CABLE Communications Limited

HD Olympics 2012 HD Olympics 2012

Preparing for London Games available exclusively

  • n i-CABLE in unprecedented coverage

Started 1-year countdown with daily footages recapping the unforgettable moments from the Beijing Olympics

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SLIDE 6

Cine p. (HD245) Cine p. (HD245)

i-CABLE Communications Limited

Expanded HDTV Offerings

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  • A brand new movie channel, with

award-winning & controversial titles for a mature audience

  • A wide range of genres, many of

which not theatrically released or first run on TV in Hong Kong

  • Broadcast in original uncut, unrated

versions that cannot be exhibited on Free TV

  • No additional fee for basic pack

subscribers

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SLIDE 7

HMC 1 (HD243) HMC 1 (HD243)

i-CABLE Communications Limited

Expanded HDTV Offerings

  • Available in HD starting from 30

June 2011

  • A

24-hour non-stop Hollywood movie channel featuring action adventure mega hits

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SLIDE 8

i-CABLE Communications Limited

Expanded HDTV Offerings

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Entertainment Channel (HD212) Entertainment Channel (HD212)

  • Features popular drama series as

well as repackaged game & variety shows, music & artistes features & hottest talkshows

  • A 24-hour local movie channel with

first run blockbusters

Movie 1 (HD241) Movie 1 (HD241)

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SLIDE 9

9 i-CABLE Communications Limited

Self-Produced Programmes

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SLIDE 10

Self-Produced Programmes

10 i-CABLE Communications Limited

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SLIDE 11
  • CABLE TV viewership share bigger than all other Pay TV combined
  • CABLE TV viewership share continued to gain ground at the expense
  • f the closest rival which lost nearly 20% in the past two years

Viewership

11 i-CABLE Communications Limited

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

52% 46% 42% 34% 10% 9% 2% 4%

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SLIDE 12

Subscribers

12 i-CABLE Communications Limited

1,101,000 1,103,000 228,000 225,000 143,000 137,000

Dec 2010 Jun 2011

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SLIDE 13

Broadband

  • Despite competition pressure, we are speeding up network

investment to slow down subscriber loss & protect market share

  • Next generation DOCSIS 3.0 roll-out on HK Island completed; works

for Kowloon & New Territory currently underway in earnest

  • Expansion in network capacity & improvement in service quality

would help stem subscriber attrition & protect revenue through upselling to existing subscribers

Subscription Services

13 i-CABLE Communications Limited

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SLIDE 14

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Newsline Express

i-CABLE Communications Limited

  • A strong brand taking advantage
  • f MTR's extensive rail network

& CABLE TV's leading news

  • ffering
  • A massive platform reaching 1.6

million passengers each day on board trains of MTR East Rail, West Rail & Ma On Shan Lines*

* Synovate AsiaBUS

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SLIDE 15
  • Firmly

established itself as a discerning production & distribution company

  • Released 3 titles theatrically in the

first half of 2011, with 9 titles in the pipeline

  • The King

s Speech ()

A major box office & critical

success both locally & around the world

  • My Ex-wife

s Wedding ()

  • Scream 4 ( 4)

Sundream Motion Pictures

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SLIDE 16

Television

16 i-CABLE Communications Limited

  • Higher recurrent revenue mainly attributable to increase in higher

yield subscriptions

  • Advertising revenue remained strong, attributed mainly to a strong

economy, attractive programming across platforms & more effective marketing

2011 HK$M 1H 2H 1H vs 1H10 Turnover 725 836 874 20% Opex before dep n (748) (876) (822) 10% EBITDA (23) (40) 51 N/A Depreciation (79) (80) (74)

  • 6%

Operating Profit/(Loss) (102) (120) (22)

  • 78%

EBITDA Margin

  • 3%
  • 5%

6% Operating Margin

  • 14%
  • 14%
  • 3%

2010

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SLIDE 17

Internet & Multimedia

17 i-CABLE Communications Limited

  • Price wars lowered turnover & subscribers
  • Speed up DOCSIS 3.0 rollout to protect subscriber base with service

& infrastructure improvements

2011 HK$M 1H 2H 1H vs 1H10 Turnover 231 201 167

  • 28%

Opex before dep n (133) (116) (98)

  • 26%

EBITDA 98 86 70

  • 29%

Depreciation (44) (44) (39)

  • 10%

Operating Profit 55 42 30

  • 44%

EBITDA Margin 43% 43% 42% Operating Margin 24% 21% 18% 2010

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SLIDE 18

Consolidated Results

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  • Net loss position substantially improved & back to positive EBITDA
  • Broadband competition & high programming costs slowed the return

to profitability

2011 HK$M 1H 2H 1H vs 1H10 Turnover 962 1,040 1,051 9% Opex before dep n (944) (1,053) (983) 4% EBITDA 18 (13) 68 275% Depreciation (126) (127) (117)

  • 8%

Operating Profit/(Loss) (108) (140) (49)

  • 55%

Share of profit less losses of associates (39) (2)

  • N/A

Net interest income & others 1 (2) (2) N/A Loss before taxation (146) (144) (51)

  • 65%

Taxation 1 23 (4) N/A Net Profit/(Loss) (145) (121) (55)

  • 62%

2010

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SLIDE 19

Operating Expenses

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  • Premier programming costs remained high but attracting high yield

subscribers with upselling opportunities

2011 HK$M 1H 2H 1H vs 1H10 Programming 546 728 637 17% Network 119 115 113

  • 5%

Selling, CS, G&A 250 185 189

  • 24%

Cost of Sales 29 26 45 53% Sub-total 944 1,053 983 4% Depreciation 126 127 117

  • 8%

Total 1,070 1,180 1,100 3% 2010

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SLIDE 20
  • Investing in & for the future is the Group's long-standing & well-proven
  • strategy. It includes service offerings, customer service as well as

infrastructure to enrich customers' experience & satisfaction

  • Competitive pressure is not expected to ease, we are cautiously
  • ptimistic that the renewed growth momentum is solid & will be reflected

in financial performance in due course

  • The free TV landscape is about to undergo revolutionary change with the

Government considering three applications for new licences. The imminent introduction of many channels in Hong Kong looks set to pose challenges to both free & pay TV operators, the full implications of which remain to be seen

  • The Group awaits the award of a Free TV licence to Fantastic Television

to enable the Group to tap new revenue, leveraging on its content & infrastructure advantage

  • Handheld devices are a new agent for drastic change. This development

presents both opportunities & threats and the Group is keen to unlock & exploit any possible potential for new market share & business growth

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Outlook

i-CABLE Communications Limited

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SLIDE 21

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-CABLEs 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.