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

Sep 06, 2022 195 likes •424 views

i- -CABLE Communications Limited CABLE Communications Limited i Results Highlights Weaker local consumption depressed demand, while

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i i-

  • CABLE Communications Limited

CABLE Communications Limited

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Results Highlights

2 i-CABLE Communications Limited

  • Weaker local consumption depressed demand, while intense competition

& product substitution increased supply

  • They combined to put significant pressure on both subscription & airtime

sales revenue

  • TV customer base contraction continued on weaker sales in a shrinking

market despite signs of stabilization towards the end of the year

  • Broadband reported minor growth in revenue & operating margin
  • It has become more necessary than ever to invest prudently in

programming & other initiatives to prepare for challenging times ahead

  • Past operating losses have weakened our financial position. To sustain

this investment, we will evaluate funding options from internal resources, external debt as well as fresh equity

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Subscription Services

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TV Services

  • Customer base contraction continued on weaker sales in a shrinking

market despite signs of stabilization towards the end of the year

  • The contraction of high yield segment slowed down
  • Challenges remained fierce as more free content, available both legally

& illegally & enabled by technology, continued to fundamentally change viewing behavior & customer expectation

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Subscription Services

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TV Services

  • Our multiple HD content offers enhanced viewing experience
  • We continued to devote significant investment to upgrade our HD News

Centre & broadcasting facilities to bring a new look to our customers in the near future

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  • Weaker local consumption depressed demand, leading to lower

subscription & advertising income

  • Lower programming & subscriber acquisition cost partly offset by

higher network related cost & cost of sales

TV Services

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2013 2014 HK$M FY 1H 2H FY % chg. Turnover 1,546 648 618 1,266

  • 18%

Opex before dep’n (1,421) (577) (655) (1,232)

  • 13%

EBITDA 125 71 (37) 34

  • 73%

Depreciation (139) (68) (68) (136)

  • 3%

Operating Profit / (Loss) (14) 3 (105) (101) 609% EBITDA Margin 8% 11%

  • 6%

3% Operating Margin

  • 1%

1%

  • 17%
  • 8%

2014

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SLIDE 6

i-CABLE Communications Limited

Programming

  • Our unique local programming helped us to compete in an increasingly

crowded marketplace

  • We are proud of being the most watched pay TV platform over the past

21 years

  • The creativity & uniqueness of our programming is a strong asset to

uphold our leading position in the local pay TV scene

  • We will continue to wisely invest in local programming
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SLIDE 7

i-CABLE Communications Limited

Programming

News

  • Our news team had been working full

steam to cover the political reform & Occupy Central protests, providing up to the minute updates of every turn of the events while maintaining a fair & balanced editorial stance

  • Preparations are underway in earnest

to upgrade our news production & broadcast to HD capabilities, taking

  • ur news services to a whole new

level & boosting the sales potential of

  • ur

news programming both as packaged & standalone products

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Programming

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Sports

  • We renewed UEFA Champions League through to 2018 & strengthened
  • ur line-up with exclusive rights to the qualifiers, playoffs & friendlies of

the UEFA European Championship 2016 & 2018 FIFA World Cup

  • Other sports brought to our viewers included tennis, table tennis,

swimming, badminton, basketball & volleyball as well as world class cycling

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  • The region's most coveted sports

event, the 2014 Incheon Asian Games was held in September & October, with close to 140 hours of live broadcast over 16 days through our 24-hour, dedicated Asian Games channel

  • We were the host Broadcaster &

Official media partner of the Hong Kong International Track Cup & broadcasted live the 1st & 2nd event in January & November 2014

Programming

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Sports

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Programming

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Entertainment

  • Internationally sought-after channels such as Comedy Central, Sony TV

& beTV were added to our Pay TV platform to enrich our offers of premium entertainment programming

  • Also introduced was the HD version of AXN previously in SD only
  • We would continue to dedicate ample resources to local & acquired

productions to keep our customers well entertained

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100 200 300 400 500 600 700 800 900 1,000 1,100

50% 27% 15% 7% 0% 10% 20% 30% 40% 50% 60% HKC Now TV TVBNV bbTV

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Viewership

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  • As the most watched Pay TV service in Hong Kong, our movie &

entertainment platforms significantly outperformed our competitors during the year

Source: Nielsen All Individuals aged 4+ All Day All Time

57% 25% 17% 7%

CABLE TV Now TV* TVBNV^ bbTV

Viewing Share Among Pay TV Operators

* Excluded 8 TVBNV channels via Now TV platform in top 50 channel list only ^ Included 8 TVBNV channels via Now TV platform in top 50 channel list only

CABLE TV Now TV TVBNV bbTV 1,012 735 317 148

TV Services Watched Past 7 Days

Source: 2014 Nielsen Media Index (Jul 2013 – Jun 2014) Weighted by population Aged 12-64 (‘000)

51% 25% 16% 2%

FY13 FY14

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  • A new "i-CABLE.com" application for

mobile devices replaced its older, free- for-all version & incorporated a previously subscriber-only app called "CABLE TV on Mobile”

  • The new app provides both pay & free
  • nline programming & related information
  • n 1 single platform under our new multi-

view strategy to bring subscribers a better mobile viewing experience & provide prospective customers with a rich portal to sample our services

  • This new app drew a good hit rate & also

advertising income

i-CABLE.com

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Customers

1,002,000 1,036,000 186,000 194,000 110,000 113,000

December 2014 June 2014

Television Broadband Telephony

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Subscription Services

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Internet & Multimedia Internet & Multimedia

  • Broadband reported modest growth in revenue & operating margin,

mostly from the continuous growth in our mid-range price plans

a 200 Mbps plan to target the mid-range segment of the market these affordably priced, mid-range products with a strong price-

performance ratio would stand to benefit from market changes

  • The Group continued to invest in service & network upgrades to enhance

& optimize network performance to bring customers better, faster & more reliable broadband services

  • The expanded network capacity & service quality will facilitate customer

retention & acquisition, as well as upselling opportunities

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2013 2014 HK$M FY 1H 2H FY % chg. Turnover 348 180 184 365 5% Opex before dep’n (223) (107) (102) (209)

  • 6%

EBITDA 125 73 83 156 25% Depreciation (92) (45) (44) (89)

  • 3%

Operating Profit 33 29 39 67 102% EBITDA Margin 36% 41% 45% 43% Operating Margin 10% 16% 21% 19% 2014

Internet & Multimedia

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  • Minor growth in revenue & operating margin, mostly from upselling

subscribers to mid-range price plans

  • EBITDA improved by 25% compared to 2013
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Consolidated Results

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2013 2014 HK$M FY 1H 2H FY % chg. Turnover 1,932 843 823 1,666

  • 14%

Opex before dep’n (1,782) (747) (831) (1,578)

  • 11%

EBITDA 149 95 (7) 88

  • 41%

Depreciation (237) (113) (113) (227)

  • 5%

Operating Loss (88) (18) (121) (139) 58% Finance costs & others (2) (0) (0) (1)

  • 76%

Loss before taxation (90) (18) (121) (139) 55% Taxation (3) (5) 5 (0)

  • 93%

Net Loss (93) (23) (116) (139) 50% Capex 149 81 107 188 26% 2014

  • Weaker local consumption, intense competition & product substitution

put significant pressure on both subscription & airtime sales revenue

  • Escalating cost, especially programming rights fee continued to erode
  • ur margin
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  • Decrease in premium sports programming costs were offset by other

rights fee

  • Continued to streamline productivity efficiency on each level

Operating Expenses

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2013 2014 HK$M FY FY % chg. Programming 1,088 925

  • 15%

Network 220 221 0% Selling, CS, G&A 372 334

  • 10%

Cost of Sales 103 99

  • 5%

Sub-total 1,782 1,578

  • 11%

Depreciation 237 227

  • 5%

Total 2,020 1,804

  • 11%
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  • Sundream

Motion Pictures has developed into a full-fledged film business & continued to bring the best either by acquisition

  • r

production

  • Award winning titles: -

Big Eyes “大眼睛奇緣

大眼睛奇緣 大眼睛奇緣 大眼睛奇緣”- 3 Golden Globe Award nominations & won the “Best Actress” Award

  • St. Vincent “ 聖 瘟 神 正 傳

聖 瘟 神 正 傳 聖 瘟 神 正 傳 聖 瘟 神 正 傳 ” - 2 Golden Globe Award nominations

SELMA “馬丁

馬丁 馬丁 馬丁‧ ‧ ‧ ‧路德 路德 路德 路德‧ ‧ ‧ ‧金 金 金 金： ： ： ：夢想之 夢想之 夢想之 夢想之 路 路 路 路” – 2 Oscars & 4 Golden Globe Award nominations, both won the “Best Original Song”

Sundream Motion Pictures

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Fantastic TV

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  • It has been over one year since the Government's in-principle approval

to grant Fantastic Television Limited a free TV licence

  • Despite using our best efforts to negotiate with the Communications

Authority (“CA”) over the draft licence, there is still inertia in the CA’s response on a regulatory regime greatly favouring the incumbents in many ways

  • A pro-competition playing field is a pre-requisite for a healthy free TV

industry to prosper with new licensees. We will bear this in mind when negotiating the free TV licence

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Outlook

  • Faced with fierce competition, retooling for our business is the most

critical mission

  • The Group endeavours to take its service to a different level to attain

customer satisfaction & strengthen its marketing to drive revenue

  • Our sales, marketing & customer service teams have been working on

new initiatives, including pricing strategy, customer segmentation & service image to enhance brand & product attributes

  • Enhancement of network infrastructure & the introduction of a new

conditional access system is our other focus. The network upgrades will uplift our broadband services to cover a bigger number of homes. The introduction of the new conditional access system will enrich our customer viewing experience

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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-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.