I-cable Communications Limited · HKEX:1097
I-cable Communications — 1H 2005 Earnings Presentation
20 slides from I-cable Communications's earnings presentation, Aug 8, 2005
Slide 1: i-CABLE Communications Limited Interim Results Announcement
Slide 2: Review of 1H05: One Million Subscribers and a Record Half
REVIEW OF 1HOS REVIEW ONE MILLION SUBSCRIBERS AND A RECORD HALF
Slide 3: Consolidated Results
Consolidated Results (HK$M) 1H05 1H04 % chg. Turnover 1,223 1,154 +6% Opex before dep’n (816) (731) +12% EBITDA 407 423 -4% Depreciation (251) (274) -8% Operating profit 156 149 +5% Net interest expense - - - Non-operating expense 1 (1) - Profit before taxation 157 148 +6% Taxation (2) (1) +100% Net
Slide 4: Operating Expenses
Operating Expenses % chg. % chg. (HK$ M) 1H05 2H04 vs 2H04 1H04 vs 1H04 Programming 421 424 -1% 367 +15% Network & Others 197 192 +3% 187 +5% S, G&A 198 196 +1% 177 +12% Sub-total 816 812 +0% 731 +12% Depreciation 251 258 -3% 274 -8% Total 1,067 1,070 -0% 1,005 +6% • Programming cost increased by 15
Slide 5: Pay TV
Pay IV Brunt of Cost Pressure due to Competition has been taken ‘S) Ae 2005 Interim Results
Slide 6: Pay TV
Pay TV 1H05 1H04 chg. Subs (000) 718 682 +36 ARPU (HK$) 216 222 -6 • Sub growth continued in a seasonally weaker first half in the absence of special events (e.g. Euro 2004) • ARPU declined 3% due to aggressive marketing of lower yield mini packages to meet market demand
Slide 7: Pay TV
Pay TV (HK$ M) 1H05 1H04 % chg. Turnover 948 920 +3% Opex before dep’n (622) (540) +15% EBITDA 326 380 -14% Depreciation (131) (145) -10% Operating profit 195 235 -17% • Opex before depreciation increased by 15% YoY (mainly due to higher programming costs) but only 4% HoH • EBITDA and operating prof
Slide 8: Internet & Multimedia
Internet & Multimedia Record Profit even as Competitors are in search of their First Breakeven . G3 Fie 2005 Interim Results - Financial Review
Slide 9: Internet & Multimedia
Internet & Multimedia 1H05 1H04 Chg. Broadband Subs (000) 301 263 +38 ARPU (HK$) 144 142 +2 VoIP lines (000) 69 - +69 • Sub surpassed 300K due to service enhancement thru network upgrade, bundling strategies and continued introduction of value- added services • ARPU rose marginally notwithstanding i
Slide 10: Internet & Multimedia
Internet & Multimedia (HK$ M) 1H05 1H04 % Chg. Turnover 279 232 +20% Opex before dep’n (132) (133) -0% EBITDA 147 99 +48% Depreciation (117) (126) -7% Operating profit/(loss) 31 (27) - EBITDA margin 53% 43% • Turnover increased by 20% to reach new high • Record EBITDA and operating profit generated
Slide 11: Capex and Cash Flow
Capex and Cash Flow 500 500 450 450 EBITDA 400 400 350 350 HK$ Million 300 300 250 250 CAPEX 200 200 150 150 100 100 50 50 - - 1H00 2H00 1H01 2H01 1H02 2H02 1H03 2H03 1H04 2H04 1H05 • Capex decreased 47% YoY to HK$125M due mainly to lower spending on digital and broadband upgrade migration • Free ca
Slide 12: Business Review
Il. BUSINESS REVIEW
Slide 13: Pay TV - Competitive Landscape
Pay TV - Competitive Landscape • Bundling of pay television, broadband and voice was the main battlefield • NOW - In the market now for almost 2 years - Continue to be aggressive in marketing and content acquisition • Galaxy - In the market now for one and a half years - Renamed SuperSUN TV - Secure
Slide 14: Pay TV - Our Response (1)
Pay TV - Our Response (1) • Mini packages with lower price point marketed to segments targeted by the competition and enable greater subscription flexibility • News Platform - News 1 Channel transformed to financial service channel during trading hours - Live News Channel launched to provide live ca
Slide 15: Pay TV - Our Response (2)
Pay TV - Our Response (2) • Entertainment Platform - Increase emphasis on self production - Parenting programme launched in Children Channel in July - Nightly primetime life-magazine programme to be launched on Entertainment Channel in August • New programming initiative intended to enhance “stickin
Slide 16: Internet & Multimedia
Internet & Multimedia • Bundled packages proven to be competitive in the market • Continue to enhance multimedia content • imusic, a new music download portal just launched with participation of major music labels • Will continue to improve after-sale service
Slide 17: New Opportunities
New Opportunities • Horizon Channel continued to expand its distribution in China • Secured deal to supply entertainment video content to the mobile phone market in Mainland China • Newsline Express, the multimedia service on Kowloon-Canton Railway Corporation’s trains, has launched in August • Sund
Slide 18: Summary
Summary • Continued to achieve growth in subscription, revenue and profit notwithstanding intensified competition • Brunt of cost pressure on pay TV business has been taken • Broadband business returning to a profitable growth track • Will continue to look for opportunities to expand beyond our core
Slide 19: i-CABLE Communications Limited
i-CABLE Communications Limited HKSE Stock Code: 1097.HK NASDAQ Symbol: ICAB 19
Slide 20: Disclaimer
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 statut
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