i-CABLE Communications Limited · HKEX:1097
i-CABLE Communications — H1 2010 Earnings Presentation
18 slides from i-CABLE Communications's earnings presentation, Aug 10, 2010
Slide 1: 2010 Interim Results
i--CABLE CABLE Communications Limited 2010 Interim Results 10 August 2010
Slide 2: 2010 FIFA World Cup
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 t
Slide 3: 2010 FIFA World Cup
2010 FIFA World Cup 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 Conducted by Oracle Added Value i-CABLE Communicat
Slide 4: Exclusive Prized Content
Exclusive Prized Content • Barclays Premier League ¾ Exclusive live coverage of 380 matches ¾ HD – 5 channels & over 300 live matches ¾ SD – 6 regular channels & all 380 live matches ¾ HD BPL Pack: $80 p.m. X 24-month contract BPL Pack: $50 p.m. X 24-month contract ¾ Triple audio available in key ma
Slide 5: Exclusive Prized Content
Exclusive Prized Content • UEFA Champions League (HD) • UEFA Europa League (HD) • German Bundesliga (HD) • Asian Games (HD) i-CABLE Communications Limited 5
Slide 6: Original Programming
Original Programming • Most watched pay TV in all major program genres* • Expand HDTV offerings planned • Breaking free of the de facto monopoly of artistes & popular singers * CSM Media Research 28 Dec 2009 – 4 Jul 2010 i-CABLE Communications Limited 6
Slide 7: Viewership
Viewership Among all individuals aged 4+ Among i-CABLE 4+ subs 10% 10% 9% 8% i-CABLE 7% Other Terrestrial & Satellite TV 6% 6% i-CABLE 14% 5% 38% 43% 4% NOW TV 6% 3% 2% 2% 1% TVB Jade HD+SD TVBPV i-CABLE Communications Limited 1% Other Pay TV HKBN 0% Jan - Jun 2010 • Over 80% viewership from self-pr
Slide 8: Pay TV Net Additions
Pay TV Net Additions 86,000 32,000 39,000 1,000,000 1,086,000 738,000 770,000 561,000 600,000 i-CABLE Communications Limited 1H02 1H06 1H10 • The largest half yearly net gain ever • Over 70% of new subscribers take the BPL Pack • Net gain in F&B and commercial accounts ~2X 2006’s • Churn rate less t
Slide 9: Subscribers
Subscribers December 2009 June 2010 152,000 147,000 249,000 234,000 1,000,000 1,086,000 i-CABLE Communications Limited Pay TV Broadband Voice • Pay TV subscriber base expanded by 9% • Broadband subscribers shrank as cross poaching continues in a saturating market 9
Slide 10: Pay TV
Pay TV 2009 2010 HK$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% i-CABLE Communications Limited • Recognition o
Slide 11: Internet & Multimedia
Internet & Multimedia 2009 2010 HK$M 1H 2H 1H vs 1H09 Turnover 266 257 231 - 13% Opex before dep’n (136) (137) (133) - 3% EBITDA 129 120 98 - 24% Depreciation (49) (38) (44) - 10% Operating Profit 81 82 55 - 32% EBITDA Margin 49% 47% 43% Operating Margin 30% 32% 24% i-CABLE Communications Limited •
Slide 12: Consolidated Results
Consolidated Results 2009 2010 HK$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 & oth
Slide 13: Operating Expenses
Operating Expenses 2009 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% i-CABLE Communications Limited • Higher programming, mar
Slide 14: New Opportunities
New Opportunities • DOCSIS 3.0 Broadband Network ¾ Enhance competitive position ¾ Substantially completed Hong Kong Island ¾ Available to 18% homes today ¾ Target to complete 50% by December 2010 • Free TV Licence Application ¾ Develop a new revenue stream, leveraging on existing content production
Slide 15: New Opportunities
New Opportunities Fantastic TV HKTVE (PCCW) CTI $1,052M in the initial 6 years $1,007M in the initial 6 years Programming: $394M Total Investment Programming: $968M $600M in the first 3 years Network: $150M Network: $39M Other Opex: $478M Service Roll-out To reach 95% households Takes 48 months to r
Slide 16: Outlook
Outlook • 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
Slide 17: Q&A
Q&A 17 i-CABLE Communications Limited
Slide 18: Disclaimer
i-CABLE Communications Limited HKSE Stock Code: 1097.HK U.S. Over-The-Counter Symbol: ICABY 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-CA
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