Consolidated Results Consolidated Results (HK$M) 1H06 2H05 %chg. - PowerPoint PPT Presentation

Consolidated Results Consolidated Results (HK$M) 1H06 2H05 %chg. 1H05 %chg. Turnover 1,274 1,218 +5% 1,223 +4% Opex before dep’n (970) (865) +12% (816) +19% EBITDA 304 353 -14% 407 -25% Depreciation (218) (229) -5% (251) -13% Operating profit 86 124 -31% 156 -45% Net interest expense 4 3 +33% - Non-operating expense 1 (2) 1 Profit before taxation 91 125 -27% 157 -42% Taxation (27) 302* (2) Net profit 64 427 -85% 155 -59% EPS (HK cents) 3.1 21.1 7.7 DPS (HK cents) 3.5 5.0 3.5 • Provision for taxation is a non-cash item* • Net deferred tax credits of $305M booked to recognize tax losses brought forward

Operating Expenses Operating Expenses (HK$M) 1H06 2H05 %chg. 1H05 %chg. Programming 524 443 +18% 421 +24% Network & Others 214 201 +6% 197 +9% S, G&A 232 221 +5% 198 +17% Sub-total 970 865 +12% 816 +19% Depreciation 218 229 -5% 251 -13% Total 1,188 1,094 +9% 1,067 +11% Programme investment on • – FIFA World Cup – Sundream, movie & news platforms Higher marketing & sales spending for FIFA World Cup • 4

Pay TV Pay TV 1H06 2H05 chg. 1H05 chg. +5 Subs (000) 770 738 +32 718 2 ARPU (HK$) 209 208 +1 216 -7 • Refocused on sales of basic package in 1H06 • Sub growth & ARPU helped by FIFA World Cup 5

Pay TV Pay TV (HK$M) 1H06 2H05 %chg. 1H05 %chg. Turnover 966 936 +3% 948 +2% Opex before (745) (664) +12% (622) +20% dep’n EBITDA 221 272 -19% 326 -32% Depreciation (123) (130) -5% (131) -6% Operating profit 98 142 -31% 195 -50% • Higher programme investment • Revenue & cost mismatch of FIFA World Cup 6

Internet & Multimedia Internet & Multimedia 1H06 2H05 chg. 1H05 chg. Broadband Subs 321 320 +1 301 +20 (000) ARPU (HK$) 136 134 +2 144 -8 VoIP lines (000) 146 121 +25 69 +77 • Moderate growth in a penetrated market • ARPU has stabilised and is rising 7

Internet & Multimedia Internet & Multimedia (HK$M) 1H06 2H05 %chg. 1H05 %chg. Turnover 296 279 +6% 279 +6% Opex before dep’n (136) (134) +1% (132) +3% EBITDA 160 145 +10% 147 +9% Depreciation (92) (98) -6% (117) -21% Operating profit 68 47 +45% 31 +121% EBITDA margin 54% 52% 53% • Opex remained stable • Operating profit reached new record 8

Capex & Financial Position & Financial Position Capex • Capex maintained at low level of $121 million • Current ratio improved to 1.04 • Net cash was $325 million 9

Pay TV – – Competitive Landscape Competitive Landscape Pay TV NOW • In the market for 3 years • Change in de facto controlling shareholder after weeks of speculation Galaxy • In the market for 2.5 years • Service rebranded again • Channels launched on NOW platform • Subscriber number not disclosed publicly 11

Pay TV – – Competitive Landscape Competitive Landscape Pay TV 49% 50% 43% 41% 1H06 TV Viewership share 40% - CABLE TV Subscribers Aged 4+ 36% 30% 20% 1H05 1H06 10% 10% 10% 3% 2% 1% 1% 0% TVB Jade Cable TV ATV Home TVB Pearl ATV World • Gained viewership against dominant FTA channel 12

Pay TV Pay TV Investment in programme differentiation: • – FIFA World Cup – Relaunched the strongest news offering in HK : • Cable Finance & Info, Cable News, Live News & Top News channels – Strengthened Hollywood movie offering by launching HMC – Further enhancement of CEN channel underway – Enhanced children programming platform Self-produced programme continues to dominate • viewership 13

Pay TV Pay TV • Other programme enhancement: – Boomerang – CNN Headline News – MTV SEA – MTV Mandarin – VH1 India 14

Internet & Multimedia Internet & Multimedia • Bundling continued to be main strategy • Deepened integration of sales & marketing with pay TV operation • Launched multi-player online game to differentiate broadband service 15

Sundream Motion Pictures Motion Pictures Sundream First film ( “ 49 Days ” 《犀照》 ) • – Exceeded all expectations – Awarded Grand Prize of the Fukuoka Asian Film Festival 3 other films expected to be released in 2H06: • – A Battle of Wit 《墨攻》 • Andy Lau ( 劉德華 ), Fan Bing Bing ( 范冰冰 ), Ahn Sung Ki ( 安聖基 ) – Eye In The Sky 《跟蹤》 • Simon Yam ( 任達華 ), Tony Leung ( 梁家輝 ), Kate Tsui ( 徐子珊 ) – Nothing Is Impossible 《情意拳拳》 • Dayo Wong ( 黃子華 ), Cherrie Ying ( 應采兒 ), Andy On ( 安志杰 ) & Debbie Goh ( 吳天瑜 ) 16

Sundream Motion Pictures Motion Pictures Sundream • Production for 3 other movies have begun or will soon begin: – Let ’ s Steal Together 《雙子神偷》 • Twins, Yuen Wah ( 元華 ), Sammo Hung ( 洪金寶 ), Wu Jing ( 吳京 ) – Linger 《蝴蝶飛》 • Vic Zhou ( 周渝民 ) & Li Bing Bing ( 李冰冰 ) – Howling Arrow 《響箭》 • Sammo Hung ( 洪金寶 ) 17

New Development New Development • First year to operate Newsline Express, the multimedia service on KCRC’s trains • Target audience of over 1.1 million daily average passengers • Passenger satisfaction rate reached 95% • More than 85% of passengers found the service attractive 18

Summary Summary • Continued to gain subs & viewers under intense competition • 1H06 profitability distorted by FIFA World Cup • Broadband profitability follows its uptrend • Investment in differentiated programme proven to be the right strategy • Will continue to invest in innovative local content 19

i-CABLE Communications Limited HKSE Stock Code: 1097.HK NASDAQ Symbol: ICAB

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