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i-CABLEi--CABLECABLECommunications LimitedCommunications Limited
2008 Final Results13 March 2009
Consolidated Results2008 2007
HK$M 1H 2H FY FY %chg.
Turnover 1,069 1,011 2,080 2,304 - 10%Opex before dep’n (864) (939) (1,803) (1,759) 2%EBITDA 205 72 277 545 - 49%Depreciation (165) (193) (358) (367) - 2%Operating (loss)/profit 40 (121) (81) 178 N/AShare of profit less losses of associates - (17) (17) - N/ANet interest income & others 4 (2) 2 21 - 90%(Loss)/profit before taxation 44 (140) (96) 199 N/ATaxation (18) 3 (15) (17) - 10%Net (loss)/profit 26 (137) (111) 183 N/A
Capex 68 75 144 175 - 18%
2008
Reflected one-off:• accelerated depreciation on existing set-top-boxes in
anticipation of new conditional access system• provision for losses on film investments
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Cash Position
Solid financial positionNet cash HK$690 millionFree cashflow HK$150 millionFCF yield* 14.1%
Final dividend cancelled to preserve cash for economic downturn & competition
* Based on the closing share price on 12 March 2009
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Subscribers
December 2008
917,000
149,000
267,000
Pay TV Broadband Voice
December 2007
159,000
882,000
306,000
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Pay TV
2008 2007HK$M 1H 2H FY FY %chg.Turnover 699 656 1,355 1,595 - 15%Opex before dep’n (537) (578) (1,115) (1,196) - 7%EBITDA 161 78 239 399 - 40%Depreciation (100) (133) (233) (220) 6%Operating profit/(loss) 61 (55) 6 179 - 97%
EBITDA margin 23% 12% 18% 25% - 7%Operating margin 9% -8% 0% 11% - 11%
2008
• Mini packages help to popularize CABLE TV in the mass market
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Internet & Multimedia
2008 2007HK$M 1H 2H FY FY %chg.Turnover 295 281 576 588 - 2%Opex before dep’n (140) (168) (308) (266) 16%EBITDA 154 114 268 322 - 17%Depreciation (62) (58) (120) (142) -15%Operating profit 93 55 148 180 - 18%
EBITDA margin 52% 40% 47% 55% - 8%Operating margin 32% 20% 26% 31% - 5%
2008
• Included 2008 Beijing Olympics costs
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Operating Expenses
HK$M 2008 2007 %chg.Programming 893 950 - 6%Network & Others 487 419 16%S, G&A 423 390 9%Sub-total 1,803 1,759 2%Depreciation 358 367 - 2%Total 2,161 2,126 2%
• Step up marketing & sales activities
• Establish prominent presence through retail shops
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Operating Environment & Competition
Strategies:-• Continues to lead local content
production• Bundled packages maximizing
triple-play advantages• 9 retail shops in prime locations
to sharpen sales & marketing
Global economic downturn affecting the whole industry
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10%
6%
2%
0%
0%
1%
2%
3%
4%
5%
6%
7%
8%
9%
10%
2008
Viewership
Source: 2008 CSM Media Research9
CA
BLE TV
NO
W TV
TVBP
• The most watched Pay TV in town
• Yesterday viewership reaching an average of 1,056,000 viewers
Viewership ShareAll individuals aged 4+
NO
W TV
TVBPV
HKBN
Programming
NewsNews• Multiple round-the-clock channels
• Earned long-standing trust through consistent and high journalistic standards
• CABLE News & Finance Info viewership share was more than 50% higher than key competitor *
Source: 2008 CSM Media Research * News, Finance Info & Channel 18 among all individuals
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Programming
EntertainmentEntertainment• Popular programmes & hosts
• 5th Anniversary of CEN
• CABLE Entertainment & Movie viewership share was nearly 3 times higher than key competitor *
Source: 2008 CSM Media Research * CABLE No.1, Entertainment, CEN, Movie 1 & 2, HMC 1 & 2
among all individuals
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Programming
SportsSportsOfficial broadcaster of top world sports events
2009-2012 UEFA Champions League2010 Vancouver Olympics2010 FIFA World Cup2010 & 2014 Asian Games2012 London Olympics
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Monetization of Content
• Monetized our programming to diversify revenues from a multitude of sources
Newsline Express on MTR trains
Mobile Services in HK & Macau
IPTV Services in Singapore & USA
Programs sales distributed internationally
Film, Video & Music
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Breakthroughs• Fast rise of Internet platform changes the face of industry
landscape
• Internet proliferation, mobility, capability developing fast
• Successfully maximized TV-New Media synergy
2008 2008 Olympics a successful experience:Olympics a successful experience:
2008.i-CABLE.com
Full ControlFull Control
140 million hits during the 17 days 500 hours of live events & over 2,000 clips
What to watch Where to watch When to watch
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Sundream Motion PicturesReleased 21 films with many international awards
In the pipeline:
• The Reader 《讀愛》
• Plastic City 《蕩寇》
• Love Dog Doc《妙狗仁心》
•《怪談》
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New Developments
• Conditional Access System to complete by end-09
• HDTV
Launch HDTV Service in 2H09
• DOCSIS 3.0 – Broadband Network
Technology / field tests in progress
Commercial strategy being evaluated
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Outlook
• Expect more challenges ahead
• Reorganize to compete cost effectively
• Continue to acquire attractive content & produce locally relevant content
• Put in place a new defence system against piracy
• Prepare for high definition TV
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Q & A
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i-CABLE Communications Limited
HKSE Stock Code: 1097.HKU.S. Over-The-Counter Symbol: ICABY
DisclaimerAll 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.