Upload
vancong
View
215
Download
0
Embed Size (px)
Citation preview
2004 2003 chg.Subs (000) 702 656 +47
ARPU (HK$) 225 220 +5
• Subs continued to grow notwithstanding new competition• Net addition of 20K in 2H• Sub growth momentum resumed in 4Q after a soft 3Q
Pay TVInvestment in differentiation pays
4| Financial ReviewFinancial Review | Business Review |
(HK$ M) 2004 2003 % chg.Turnover 1,888 1,734 +9%
Opex before dep’n (1,140) (1,001) +14%EBITDA 748 733 +2%
Depreciation (279) (289) -4%
Operating profit 469 444 +6%
• Turnover, EDITDA & operating profit reached new high• Opex before dep’n increased by 14% due mainly to higher
programming costs resulting from increased competition• Depreciation peaked in 2003
5| Financial ReviewFinancial Review | Business Review |
Pay TVInvestment in differentiation pays
2004 2003 Chg.
Broadband Subs (000) 291 258 +34
Broadband ARPU (HK$) 140 129 +11
VoIP lines in service (000) 29 - -
• Broadband sub net addition increased to 28K in 2H04 due to service enhancement and bundled package
• ARPU increased 9% YoY • VoIP lines surpassed 29K after launch in 2H04
7| Financial ReviewFinancial Review | Business Review |
Internet & multimediaRegaining market share momentum
(HK$ M) 2004 2003 % Chg.Turnover 481 409 +18%
Opex before dep’n (277) (250) +11%EBITDA 204 159 +28%
Depreciation (248) (244) +2%
Operating loss (44) (85) -48%
EBITDA margin 42% 39%
• Turnover reached new historic high• Profitability and margin continued to improve
8| Financial ReviewFinancial Review | Business Review |
Internet & multimediaRegaining market share momentum
(HK$M) 2004 2003 % chg.Turnover 2,372 2,143 +11%Opex before dep’n (1,544) (1,354) +14%EBITDA 828 789 +5%Depreciation (532) (539) -1%Operating profit 296 250 +18%Net interest expense (0) (7) -100%Non-operating expense 1 (10) -Profit before taxation 297 233 +27%Taxation (13) (13) -Net profit 284 220 +29%
• Turnover, Operating profit & Net profit surpassed all previous years
9
Consolidated results
• Programming costs increased mainly due to carriage of UEFA Euro 2004, higher English Premier League costs in 2H04 & new development projects
• Depreciation started to decline in 2H04
Operating expenses
791 (+22%)
380 (+5%)
373 (+9%)
532 (-1%)
650
361
343
539
0
500
1000
1500
2000
2500
2004 2003
Depreciation
S, G&A
Network & Others
Programming
2,076 (+10%)1,893
HK$ Million
10
• Capex declined to HK$428 million (2003: HK$437 million)
• Net cash increased to HK$115 million (2003: HK$29 million)
-
100
200
300
400
500
600
700
800
900
2000 2001 2002 2003 2004
HK
$ M
illio
n
EBITDA
CAPEX
11
Liquidity & financial resources
(HK cents) 2004 2003 2002 2001
Interim DPS 3.0 1.5 1.5 -
Final DPS 4.5 4.0 1.5 2.5
Total DPS 7.5 5.5 3.0 2.5EPS 14.1 10.9 9.4* 8.3
Payout ratio 53% 50% 32% 30%
* before impairment loss on investments
• Final dividend of 4.5 cents per share recommended• Established increasing dividend stream
12
2004 Dividend
• Record turnover and profit achieved in spite of intensified competition in core businesses
• Continued growth in pay TV subscriber and turnover offsets the impact of increased programming cost due to competition
• Broadband growth started to benefit from service enhancement and new bundling strategies
• 29,000 voice lines in service in less than 4 months
• Capex continued to trend downwards
13| Financial ReviewFinancial Review | Business Review |
Summary
• “Triple play”– pay television, broadband and voice
• NOW– In the market now for one and a half years– Aggressive in marketing & content acquisition
• Galaxy– In the market now for 1 year– Intelsat pulled out in late 2004– TVB obtained 12-month waiver of ownership
restriction from government– Started to become more aggressive
in marketing15| Financial Review | Business ReviewBusiness Review |
Pay TV - Competitive landscape
Pay TV StrategyMaintain programming edge over competitors
• Maintain product differentiation• Revamp sports platform:
– Direct acquisition of exclusive English Premier League rights
– Launched new channels, i.e. EPL, Soccer Betting, Odds Express, Sports Times
– Launched NBA TV– Digitized Sports Centre in full operation for FIFA
World Cup 06 • Further enhancement on local production:
– News platform to be strengthened with emphasis on finance and live carriage
– New look entertainment platform planned for 2H05
16| Financial Review | Business ReviewBusiness Review |
• Pay TV migration to digital transmission completed
• Develop new pay TV packages to counter competitors’offerings
• Continue to enhance service quality and upgrade transmission technology of Broadband service
• Pay TV and Broadband bundled packages proved to be competitive
• Exploit “triple play” bundling opportunities
Marketing and Servicing Strategies
17| Financial Review | Business ReviewBusiness Review |
• Satellite service launched in September to serve households (& floating objects) not previously served
• A leading video content supplier for Internet & mobile access
• Sole supplier of inflight local news service to CathayPacific
New MarketsBroadening distribution in Hong Kong
18| Financial Review | Business ReviewBusiness Review |
• Horizon Channel
– Focus on expanding its distribution in the Mainland
– Overseas coverage expanded to the Americas
– Landing in Malaysia by 2Q05
– Concluded deal to open up mobile content opportunities in the Mainland
– Concluded deal for “Horizon Daily” for distribution on a digital network in Shanghai
19| Financial Review | Business ReviewBusiness Review |
New MarketsBroadening distribution in Hong Kong
• Logical step in advancing i-CABLE’s strategy to further invest in content business to enhance growth
• Plan to produce up to 20 films in the next two years
• Long term prospects of Chinese films in both the Mainland and international markets are positive
• Synergies with our Pay TV movie and entertainment platform
• Investments will be carefully evaluated on a project by project basis and closely monitored in terms of both quality and budget control
20| Financial Review | Business ReviewBusiness Review |
New MarketsFilm production
• Competition is expected to remain keen in the core businesses
• Programming edge and realization of “triple play”opportunity will enhance our competitiveness
• Further content investment and distribution in new markets to expand beyond core businesses and enhance growth
Summary
21| Financial Review | Business ReviewBusiness Review |
i-CABLE Communications LimitedHKSE Stock Code: 1097.HK
NASDAQ Symbol: ICAB
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.