ii-CABLE-Communications LimitedCABLE

2008 Interim Results12 August 2008

Consolidated Results

(HK$M) 1H08 1H07 %chg.Turnover 1,069 1,185 -10%Opex before dep'n (864) (884) -2%EBITDA 205 301 -32%Depreciation (165) (194) -15%Operating profit 40 107 -63%Net interest income 4 10 -61%Non-operating income 0 1 -72%Profit before taxation 44 119 -63%Taxation (18) (2) +660%Net profit 26 116 -78%

Capex 68 71 -4%

• A one-off non-cash adjustment ($15M) of the opening balance for deferred tax due to the lowering of corporate profits tax rate

• Interim dividend cancelled to re-invest in competitiveness to strengthen market position

2

Subscribers

Pay TV Broadband Voice

892,000 882,000

280,000 306,000

153,000 159,000

• Bundling & creative packaging helped to reduce market share erosion

June 2008June 2008 December 2007December 2007

3

Pay TV

(HK$M) 1H08 1H07 %chg.Turnover 699 827 -16%Opex before dep'n (537) (615) -13%EBITDA 161 213 -24%Depreciation (100) (113) -12%Operating profit 61 100 -39%

EBITDA margin 23% 26% -3%Operating margin 9% 12% -3%

• Mini packages drove penetration into mass market, maximizing thevalue of local content investment

4

Internet & Multimedia

(HK$M) 1H08 1H07 %chg.Turnover 295 295 0%Opex before dep'n (140) (131) +7%EBITDA 154 164 -6%Depreciation (62) (78) -21%Operating profit 93 86 +8%

EBITDA margin 52% 56% -4%Operating margin 31% 29% +2%

• Profitability improved to fuel Pay TV development

5

Operating Expenses

(HK$M) 1H08 1H07 %chg.Programming 413 492 -16%Network & Others 241 207 +17%S, G&A 210 186 +13%

Sub-total 864 884 -2%Depreciation 165 194 -15%

Total 1,029 1,077 -4%

• Re-investing programming savings to strengthen programming, sales & marketing and customer experience

6

Viewership

0%5%

10%15%

20%25%30%

35%40%

45%50%

TVB Jade CABLE TV Other Terrestrial Other Pay TV

1H071H08

Viewership among CABLE TV 4+ subs

46% 47%

38% 39%

12%10%

4% 5%

Source: CSM Media Research

• CABLE TV viewership continued to rise

• Second only to free-to-air TVB Jade & 2.6 times of all other channels combined including competition’s

7

Locally Relevant Content

NewsNews• Established reputable brand in the market

CABLE News & Finance InfoCABLE News & Finance InfoViewershipViewership Share*Share*

8% 8%

9%

10%

11%

4%

5%

6%

7%

8%

9%

10%

11%

12%

1H06 2H06 1H07 2H07 1H08

Source: CSM Media Research* News, Finance Info & Channel 18 among CABLE Subs 4+

8

Locally Relevant Content

EntertainmentEntertainment• Top Programmes

• Established presence with our own singers in the music scene

• Staged 2 concerts in Beijing

Fung Shui Lecture of Master So(峰生水起精讀班)

Unbelievable (怪談)

Maria’s Private Kitchen (肥媽私房菜)

So Real Time Cooking(一粒鐘真人蘇)

Locally Relevant Content

SportsSports• Exclusive rights of top international sports

2008 Beijing Olympics (new media)

2009-2012 UEFA Champions League

2010 Vancouver Olympics

2010 FIFA World Cup

2010 & 2014 Asian Games

2012 London Olympics

10

Service Enhancement

• Integrated call centre instrumental to quality customer service

• Same day on-site service

• Opened 8 retail shops in prime locations

• Service enhancement / locally relevant contentimproved churn

Pay TV Churn Index

10093

79

57

71

50

107

30

40

50

60

70

80

90

100

110

120

1H05 2H05 1H06 2H06 1H07 2H07 1H08

• Newsline Express• New media• Publications• Mobile TV• Film• Video & programs sales

Cross Media Development

12

New Media Development

Special unit to exploit new media opportunitiesSpecial unit to exploit new media opportunities

• One of the initiatives to leverage content on cross-media platforms

20082008 Beijing Olympics, a show case for 2012 Beijing Olympics, a show case for 2012 London OlympicsLondon Olympics

<http://2008.i-cable.com>奧運奧運 Anytime, Anywhere

Election PlatformElection Platform

<http://election.i-cable.com>

One of the first in HK crossingover TV & new media

13

Sundream Motion PicturesReleasedReleased• 13 titles with 16 awards

• “A Battle of Wits” <墨攻> Top 4 among Chinese films in Taiwan

• “Eye in the Sky” <跟踨> Best Editor, Best New Performer & Best New Director awards

• “Three Kingdom” <三國> Top 3 among Chinese films in HK

In the pipelineIn the pipeline• Lost Indulgence <秘岸>

• Ticket <車票>

• Champions <奪標>

• Love Dog Doc <妙狗仁心>

• Now Showing <是日公映>

• Plastic City <蕩寇>

• The Equation of Love & Death <李米的猜想>

Diversification

Pay TV 65%

I&M 27%

Unallocated 8%

Revenue Mix Revenue Mix 1H081H08

Unallocated Revenue TrendUnallocated Revenue Trend

10

20

30

40

50

60

70

80

90

100

1H04 2H04 1H05 2H05 1H06 2H06 1H07 2H07 1H08

HK

$'m

• Diversification expanded revenue stream

• Built solid revenue outside Hong Kong & across platforms in TV, outdoor, mobile, film, music, Internet & print

• Content distribution continued to make good progress in the mainland & overseas

15

Outlook

• War of attrition is an opportunity given our lower cost base

• Invest to enhance products and promotion

• Streamline operationally

• Invest in new encryption system to secure Pay TV revenue

• Strengthen market position and market share

16

ii--CABLE Communications LimitedCABLE Communications Limited

HKSE Stock Code: 1097.HKU.S. Over-The-Counter Symbol: ICABY

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