Management Update - i-CABLE Communications Limited update.pdf · 3 i-ted Track Record of Innovative...
Transcript of Management Update - i-CABLE Communications Limited update.pdf · 3 i-ted Track Record of Innovative...
1
Management Update
April 2016
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FY2015 Customers = ~ 1m
i-CABLE At A Glance
• Integrated services provider of television,
broadband and telephony services to ~1m
customers
• Near universal Hybrid Fibre Coaxial (“HFC”)
network in Hong Kong which can be easily overlaid
with a scaleable Gigabit Passive Optical Network
(“GPON”) for bandwidth-hungry consumers
• Most watched Pay-TV platform in Hong Kong over
the past 2 decades
• Awaiting formal free-to-air (“FTA”) license from
Hong Kong government
• One of the largest producers of television, film and
multimedia content based in Hong Kong producing
>10,000 hours of programming each year
• One of the largest TV and film libraries in Hong
Kong, with >30,000 hours of TV programmes on
top of >20 years of news footage
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Integrated Triple-Play
Communications Provider
FY2015 Revenue = HK$1,510m
951
171
100
Television(78%)
Broadband(14%)
Telephony(8%)
1 Mainly consumer broadband & telephony. 2 Includes inter-segment elimination.
1,130
348
32
Television(75%)
Internet & Multimedia¹
(23%)
Others²(2%)
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Track Record of Innovative
Multimedia Offerings 204-0-0
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2010
2012
2000 2002
2005
2015
1993
2016
1999
Apr-2002
Launch of fully
digitised news
production center,
first in Hong Kong
Jan-2015
Rollout of GPON
broadband
services
Jun-1993
Hong Kong Cable
awarded a
Pay TV license
Nov-1999
IPO to raise
US$550m for
20% of the
company
Jan-2000
Awarded telecom
license
Mar-2000
Commenced
broadband
operations
Jan-2010
Application
for FTA license
Jul-2012
Unprecedented
live coverage of
London Olympics
2012
Dec-2015
Upgraded
News platform
to HD
capabilities;
Launched
News hd209
Aug-2015
Renewed UEFA
Champions
League rights to
2018
Oct-1993
Went on air with 8
channels; Launched
Asia's first
24-hour news
channel
Jun / Nov-2010
HD broadcast of 2010
FIFA World Cup
and first ever HD
coverage of Asian
Games in Hong Kong
Mar-2005
Launched
Sundream
Motion
Pictures
Feb-2016
Launched
FanHub, an
enhanced Pay
TV service with
interactive
features
Jul-2005
Launch of
in-train TV
service
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Overview of Business Segments
• TV subscription business,
advertising, channel
carriage, programme
licensing, miscellaneous TV-
related businesses
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Television Others Internet & Multimedia
• Broadband Internet access
services, VoIP telephony,
and other Internet access-
related businesses
• Services delivered via HFC
and GPON
• Sundream Motion Pictures
Limited (“Sundream”): Movie
production and distribution
arm which acquires,
produces and distributes
films in Hong Kong and
internationally
• International Distribution
Limited (“iDL”): Distribution
arm of i-CABLE’s TV content
to third parties locally and
overseas
• Inter-segment elimination
Note: Revenue and EBITDA based on segment revenues, which include inter-segment revenue and EBITDA. 1 Reported EBITDA is defined as earnings before interest income, finance costs, impairment losses on investment, non-operating income / expenses, provisions for
income tax, depreciation of property, plant and equipment but after amortisation of programming rights and impairment losses on programming library (see note 4 to
the financial statements in i-CABLE 2015 Annual Report). 2 Adjusted EBITDA is calculated by adding amortisation of programming library and impairment losses on programming library to Reported EBITDA. Adjusted EBITDA
is shown for comparative purposes to provide EBITDA after incorporating all non-cash items.
Revenue 1,130 348 32
Reported EBITDA1 (46) 143 (117)
Margin (%) (4)% 41% NA
Adjusted EBITDA2 53 143 (88)
Margin (%) 5% 41% NA
FY2015 Key Financials (HK$m)
5
Financial Overview
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Television
• Television revenue has decreased in recent years mainly attributable to a decrease in revenue
related to Barclays Premier League (“BPL”)
— Accompanied by a corresponding contraction in programming costs to sustain EBITDA
• Proliferation of content-on-demand via OTT platforms both locally and internationally, as well as
intense competition via existing players and new entrants, have continued to put pressure on
subscription revenue and advertising income
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1 Includes channel service fees, premises lease rental and other revenues.
1,364 1,338 1,160
922 815
291 324
285
259 244
94 94
101
86
71
1,749 1,757
1,546
1,266
1,130
2011 2012 2013 2014 2015
(HK
$m
)
CATV Air-time Sales Others¹
May-2013: Cessation of Barclays
Premier League broadcast rights
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Television
• Continued, but more gradual, contraction of subscription TV customer base, amidst stabilising
ARPU as BPL impact is fully absorbed
Key Performance Indicators 204-0-0
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Note: The above key performance indicators include CATV subscribers with ARPU of HK$100 and above only. 1 Calculated as revenue divided by the average number of subscribers divided by 12, where average number of subscribers are calculated as the average of the
number of subscribers on the first day of the year and on the last day of each month of the year.
461 434
388 338
303
2011 2012 2013 2014 2015
Su
bs
cri
be
rs
('0
00
)
245 244 231 208 208 ARPU (HK$/month)¹
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Internet & Multimedia
• Fibre-speed broadband migration and perception of “better speed equals better quality” have put
pressure on Internet & Multimedia revenue
• Internet & Multimedia revenue has remained relatively stable despite a contracting subscriber base
as customer yield improves
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1 Broadband revenue includes broadband access revenue and homeline telephony revenue (mainly generated as part of bundled services for broadband
customers). 2 Revenue from “Others” includes online advertising revenue, content / portal revenue, interconnect revenues and other revenues.
267 290 305 319 310
73 49
43 46
38
340 338 348
365 348
2011 2012 2013 2014 2015
(HK
$m
)
Broadband¹ Others²
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Internet & Multimedia
• Active upselling to higher bandwidth plans upon contract renewal, and active rate adjustment in
subscription plan to align with competition in a stabilised market, have led to an overall increase in
blended ARPU
• I&M subscribers include subscribers of broadband and/or telephony services
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1 Based on annual broadband access and homeline telephony revenue divided by the average of the Internet & Multimedia subscribers, where average number of subscribers are
calculated as the average of the number of subscribers on the first day of the year and on the last day of each month of the year. The number of subscribers is net of double counting of
subscribers that subscribe to both broadband and telephony services. 2 Net of double counting of subscribers that subscribe to both broadband and telephony services. 3 Represents average of the monthly churn rate of the year. Monthly churn rate is calculated as the number of subscriber churn in a month divided by the opening number of subscribers
for that month. The number of subscribers for churn rate calculation is based on a combined gross subscriber base for broadband and telephony and does not exclude double-counting of
subscribers that subscribe to both broadband and telephony plans.
Key Performance Indicators
1.7% 2.2% 1.8% 1.5% 1.8%
% of Total Revenue
I&M Churn
Rate3
257 239 231 219
194
2011 2012 2013 2014 2015
Su
bscri
bers
('
00
0)²
98 108 117 125 I&M ARPU (HK$/month)¹ 98
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Others
• iDL monetises i-CABLE’s programme library through worldwide distribution
• Sundream’s revenue has gained traction as it ramped up its film production and distribution
capabilities
— During 2015, Sundream theatrically released 20 films in Hong Kong and Macau
• “Others” includes revenue for i-CABLE’s retail shops and unallocated revenue
— i-CABLE has closed its last retail shop at the end of 2015 given its low cost effectiveness
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15 20 31 31 28
12 16
22 33
27 14
17
15 6
2
(20) (21)(30) (35)
(25)
21
32
37 35
32
2011 2012 2013 2014 2015
(HK
$m
)
iDL Sundream Others Inter-Segment Elimination
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Adjusted EBITDA
• Adjusted EBITDA is calculated by adding amortisation of programming library and impairment
losses on programming library to Reported EBITDA
• These adjustments mainly relate to
— Television EBITDA, which is adjusted by adding-back the abovementioned non-cash expenses
from Programming / Content costs
— EBITDA derived from Sundream, for which a small amount of non-cash expenses are added
back to EBITDA from “Other & inter-segment elimination”
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Total Segmental Breakdown
Reported Adjustment
(HK
$m
)
7.9% 3.5% 12.6% 12.5% 7.2%
% of Total Revenue
Te
levis
ion
In
tern
et
&
Mu
ltim
ed
ia
Oth
er
& In
ter-
Se
gm
en
t
Eli
min
ati
on
2011 2012 2013 2014 2015
EBITDA 69 (30) 125 34 (46)
Adjusted
EBITDA 149 59 210 133 53
EBITDA 127 118 125 156 143
EBITDA (117) (110) (101) (103) (117)
Adjusted
EBITDA (110) (101) (92) (80) (88)
78
(22)
149
88
(19)
88
98
94
121
128
166
75
243
209
108
2011 2012 2013 2014 2015
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1,600 1,698 1,336
1,134 1,077
213 221
223
209 205
146 150
153
138 136
(16) (18) (24) (23) (16)
1,944 2,052
1,688
1,457 1,401
2011 2012 2013 2014 2015
(HK
$m
)
Operating Expenses
• Television operating expenses have gradually declined along with decline in television revenue
• Internet & Multimedia operating expenses have remained relatively stable, but have gradually
declined as % of segment revenue due to disciplined cost management
• For adjusted opex calculations, opex for Television and Sundream (under Others) are adjusted for
amortisation of programming library and impairment losses on programming library
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By Business Segment
91.5%
62.8%
Television Opex
as % of Segment
Revenue
I&M Opex
as % of Segment
Revenue
65.3% 64.0% 57.2% 58.9%
95.3% 89.5% 86.4% 96.7%
Before Adjustments After Adjustments
1,680 1,787 1,421
1,232 1,176
213 221
223
209 205
156 162
166
167 168
(18) (20) (28) (30) (20)
2,031 2,149
1,782
1,578 1,529
2011 2012 2013 2014 2015
(HK
$m
)
Television Internet & Multimedia Others Inter-Segment Elimination
96.1%
62.8% 65.3% 64.0% 57.2% 58.9%
97.3% 91.9% 104.0% 101.7%
1,680 1,787 1,421
1,232 1,176
213 221
223
209 205
156 162
166
167 168
(18) (20) (28) (30) (19)
2,031 2,149
1,782
1,578 1,530
2011 2012 2013 2014 2015
(HK
$m
)
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Operating Expenses
• Salaries & Benefits and Programming / Contents costs, which include amortisation of programming
library and impairment losses on programming library, account for the majority of expenses
• Advertising & Promotion costs have been the lowest cost component at ~1% of total revenue
• For adjusted opex calculation, Programming / Contents costs and Cost of Sales are adjusted for
amortisation of programming library and impairment losses on programming library
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By Category
92.1% Opex as % of
Total Revenue 96.5% 87.4% 87.5% 92.8%
Before Adjustments After Adjustments
96.3% 92.3% 94.7%
709 719 714 699 697
852 949 599
404 359
26 18
19
15 15
123 121
113
119 116
192 181
183
170 175
(50) (46) (43) (50) (47)
92 110
103
99 85
1,944 2,052
1,688
1,457 1,401
2011 2012 2013 2014 2015
(HK
$m
)
101.3% 101.0%
709 719 714 699 697
932 1,038
684 503 458
26 18
19
15 15
123 121
113
119 116
192 181
183
170 175
(50) (46) (43) (50) (47)
99 119
112
122 114
2,031 2,149
1,782
1,578 1,529
2011 2012 2013 2014 2015
(HK
$m
)
May-2013: Cessation of Barclays
Premier League broadcast rights
Salaries & Benefits Programming / Contents Advertising & Promotion Plant Operations
General Administration Capitalised Cost Cost of Sales
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84
106 116
148
120
2011 2012 2013 2014 2015
(HK
$m
)
Capex
• Capex has remained relatively stable in the past few years, except in FY2013, when capex spend
dipped primarily due to the near completion of the HD STB / production investments by 2012 as
well as a contraction of other capex spend, while the HD news upgrade started from 2014 onwards
• Additions to programming library comprises mostly of acquisition costs relating to movie and
drama content
— These costs exclude costs related to live sports content and self-produced shows, both of
which are expensed
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Capex Additions to Programming Library
% of Total
Revenue 4.0% 8.0% 8.9% 6.0% 5.0% 10.6% 7.6% 11.3% 10.1% 13.1%
1 Includes capacity related, subscriber connections, cable modem, and Multichannel Multipoint Distribution System (MMDS)/ Headend / Test Equipment and other
capex.
72 44 54
87 71
35
36 24
46 67
115
136
69
55 59
223 215
147
188 197
2011 2012 2013 2014 2015
(HK
$m
)
Fibre & Coaxial Network TV Production Equipment Others¹
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Summary Financials 204-0-0
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(in HK$ m) Ice Mgt Projections
FYE Dec 2011A 2012A 2013A 2014A 2015A
Total Revenue 2,110 2,127 1,932 1,666 1,510
Growth (%) 1% (9)% (14)% (9)%
Reported EBITDA 78 (22) 149 88 (19)
Margin (%) 3.7% (1.0)% 7.7% 5.3% (1.3)%
Adjusted EBITDA 166 75 243 209 108
Margin (%) 7.9% 3.5% 12.6% 12.5% 7.2%
Loss from Operations (180) (275) (88) (139) (242)
Margin (%) (8.5)% (12.9)% (4.5)% (8.3)% (16.0)%
Loss for the Year (179) (278) (93) (139) (233)
Margin (%) (8.5)% (13.1)% (4.8)% (8.4)% (15.4)%
Capex 223 215 147 188 197
Margin (%) 10.6% 10.1% 7.6% 11.3% 13.1%
Additions to Programming Library 84 106 116 148 120
Margin (%) 4.0% 5.0% 6.0% 8.9% 8.0%
Adjusted EBITDA Less Capex Less Additions to Programming Library (141) (245) (20) (127) (209)
Margin (%) (6.7)% (11.5)% (1.0)% (7.6)% (13.8)%
16
Business Transformation
Initiatives
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Challenges & Strategic Focus
• Service image suffering from legacy anecdotal and isolated incidences
• Under-investment in brand image
— In terms of re-building of image and word-of-mouth creation effort
• Under-investment in online sales / marketing and service portals
— Resulting in over-reliance on limited sales manpower which has driven up sales cost
— Lagging behind competitors in terms of promoting the online platforms for customer
service, customer communication, sales and renewals
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Brand Image
/ Marketing
Broadband
Experience
Content
Experience
• Under-investment in customer experience
— Aging of set-top boxes
– Less competitive functions compared to new OTT boxes
– Affected performance and stability
— Insufficient HD initiatives including capacity, news, & channel line-up
— Insufficient focus on multi-screen potential
– Full subscription value not realised
• Broadband image suffering from insufficient market education
— Market pre-empted by competitors’ efforts to promote Fiber-To-The-Home (FTTH), which
undervalues HFC broadband
— Market further affected by previous experiences of instability and speed limitations relating
to HFC infrastructure
1
2
3
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Brand Image / Marketing i-CABLE Brand Proposition 204-0-0
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Status Initiatives
“We are the missing piece to complete your
entertainment (and broadband) experience”
• Build confidence in and correct misperception
of i-CABLE’s brand, products and services via
mass communications
• Launch of a truly total multi-entertainment
platform, supplemented by a service-
guaranteed programme to address any
skepticism
• Enhance i-CABLE’s experience as the
innovative pioneer bringing PayTV to the local
market, introducing around-the-clock news
coverage, and producing groundbreaking
entertainment programmes
“ Retake the throne and reclaim the lost avenues of brand equity ! ”
1
Increase annual advertising and
promotion budget from ~1% to ~3 - 4%
of revenue
Correct inferior quality perception
relating to brand and products via
mass communications, supplemented
by tactical promotions
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ISO certifications obtained in Q1 2016
— ISO 9001:2008 Quality Management
System
— ISO 10002:2014 Customer Complaint
Management System
Continue to correct market
misperceptions
Formalise & continuously improve all
processes, procedures and policies as a
company-wide commitment
Closely monitor progress and
improvement as reflected in the
independent Annual Customer
Satisfaction Surveys
Actively communicate ISO certifications
and quality to customers via above-the-
line and below-the-line marketing
strategies
• i-CABLE’s service quality has progressively
improved in the last two years
• Consistently exceeding broadband service
pledges and performance targets
After-Sales Operations Service Operations
Brand Image / Marketing Service Image 204-0-0
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Status Initiatives
1
Service
Pledge
Service
Delivery
Standard
Service
Perf.
Target
2015 Actual Performance
Q1 Q2 Q3 Q4
Network
Available
Time
N/A 99% 100% 100% 100% 100%
Service
Restoration
1 working
day 95% 100% 100% 100% 100%
CS Hotline
Call Answer
Time
1 minute 90% 97% 89% 93% 92%
Handling of
Customer
Complaints
7 working
days 90% 99% 99% 99% 99%
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Brand Image / Marketing Online Service & Sales Portals 204-0-0
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Status
• Revamp of i-cable.com with an increased focus
on generating new sales and leveraging it to
become a key renewal platform
— Target to progressively migrate new sales
and renewal activities to the online portal,
reaching ~30% by 2020
— Attainability of targets ascertained through
benchmarking of competitors’ experience and
proof of concept in 2015
• New online service portals launched in 2015
— Continuous growth in number of visits to the
portals
— Improvement of service quality through a
reduction of human errors
1
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Content Experience Current Content Offering 204-0-0
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Portfolio
Sources: CSM Media Research (2011-2012); Nielson (2013-2015) for All Day All Time viewership (individuals aged 4+) 1 Excluded 8 TVBNV channels via Now TV platform in top 50 channel list only in 2013 and 2014; excluded all TVBNV channels via Now TV STB in 2015. 2 Included 8 TVBNV channels via Now TV platform in top 50 channel list only in 2013 and 2014; included all TVBNV channels via Now TV STB in 2015.
News & Information
(20 Channels) Entertainment (36 Channels)
Movies (10 Channels) Sports (12 Channels)
Kids (7 Channels) International (9 Channels)
Adult (5 Channels) Documentaries
(12 Channels)
Total 111 Channels (97SD + 14HD)
Programme offerings designed to bring the best tailor-made entertainment
portfolio to individual families
Viewership Share Among
Pay TV Operators
58% 60%
51%
57% 55%
30% 29%
25% 25% 26%
8% 7%
17% 16% 18%
4% 5% 7%
2% 1%
2011 2012 2013 2014 2015
CABLE TV Now TV¹ TVBNV² bbTV
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Content Experience HD Upgrade and Offering 204-0-0
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News
Sports
Entertain-
ment
Active upgrade of studio production
facilities from SD to HD
— First batch of HD channels rolled out
in 2009
— Studio-1 News platform upgraded to
HD at the end of 2015
— Finance programme and remaining
news production facilities undergoing
HD conversion in 2016
— Incremental capex of ~$100m over
next 2 years combined to complete
HD upgrade plan
Triple HD channels from 14 to 45
— Incremental capex of ~HK$20m over
next 2 years combined
Upsell premium package with new HD
channels at discounted prices to improve
overall penetration and ARPU
Focus on local market flavor to bring
distinct and premium content to our
viewers
• 5 production studios
• Largest studio is HD Ready with
Live & Recording capabilities
• 3 production studios
• All 3 studios are HD Ready with
Live & Recording capabilities
• 3 production studios
• All 3 studios are HD Ready with
Recording and / or Live
capabilities
Status Initiatives
Content
Library
• >30,000 hours in programs
• >20 years of news footage
• 25 film productions
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Content Experience FanHub and i-CABLE App 204-0-0
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ONE Box – Replace ALL Others ONE App – Serves ALL Devices
FanHub + i-CABLE App – Reaches ALL Target Segments
FanHub combines all features and
functions into one, and includes all the
popular content available in the market and
enables customers to download apps of
choice
i-CABLE App offers a multi-screen
platform, enabling access to the same
FanHub content across different devices,
whenever, wherever
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Content Experience FanHub 204-0-0
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Ability to raise ARPU
Enable new revenue models
— Pay-per-view
— Revenue share
Enrich HD channel portfolio
Two-way connectivity enabling
comprehensive customer behaviour
analysis
— Strengthen marketing and selling
effectiveness
• A full featured, “video-on-demand”, open
platform and app-enabled HD set top box
• Live channels and VOD content
• Enabled to view all FTA channels, free to
download app from open source
2
FTD
Unlimited
Apps
FTA
Channels
Pre-
installed
Apps
Cable TV
Content
“ Join our enemies, stay in the game … and retake the throne ! ”
Target: ~180k boxes by 2018
Budget: ~$90m investment over next 3
years combined
Cash Payback: ~1 year for FanHub box
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Content Experience i-CABLE App 204-0-0
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255-255-0
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• Device neutral and infrastructure
neutral
• Single point of content management
for TV (FanHub), Web (i-cable.com),
Mobile and tablet (app)
• New applications for mobile and
tablets as subscription alternative
• Target launch: Q3 2016
2
“ Understand our customers, offer more than they can imagine … and
grow our share of wallet ! ”
Platform TV
Desktop/
Laptop
Tablet/
Phone
Technology
Enablement STB Web App
Product Name CABLE
TV i-cable.com i-CABLE
Picture Quality HD HD
HD
(live &
VOD)
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Broadband Experience
New 200M Offer Answers Most Of The Market Needs 204-0-0
0-101-101
255-204-153
146-208-80
255-255-0
0-50-101 3
Unleashes the true value of existing,
near-universal HFC infrastructure for
broadband service
Incremental initiative targeted at
customers who have issues with their
existing modems
Genuine alternative to fibre broadband
Money-back guarantee offered to
enhance customer take-up
Gradually upsell to existing low
broadband speed customers to reduce
churn and improve ARPU
• High quality Hitron cable modem provides better
speed and better technology to improve service
quality
• Economical DOCSIS-based products that allows
for high-speed broadband access
• Provide stability to speed over HFC network
Status Initiatives
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Broadband Experience GPON to Fuel New Growth Momentum 204-0-0
0-101-101
255-204-153
146-208-80
255-255-0
0-50-101 3
Leapfrogging technology from HFC to
GPON
Limited incremental costs given overlay
on HFC network
— Estimated ~HK$500m cumulatively
between 2015-2020
Clear network upgrade plan
— Commenced GPON upgrade in
January 2015
— ~184k GPON-ready homes and
subscriber base of ~2k as at FY2015
(1% penetration1)
— Targeted to reach 1.2m GPON-ready
homes and ~150k subscribers by
FY2020 (12% penetration1)
Status Initiatives
1 Penetration calculated as number of subscribers divided by the number of GPON-ready homes
Speed Description Limitations
xD
SL
<100
Mbps
Transmits over
copper telephone
lines at higher
speeds than dial-
up
Subject to
distance from the
telephone
exchange due to
limitations of
copper
HF
C
<200
Mbps
Combines optical
fibre and coaxial
cable to offer
digital pay-TV
and broadband
services
Requires all
subscriptions to
share the same
pipe, limiting
speed for
concurrent users
Me
tro
Eth
ern
et <1,000
Mbps
FTTB con-
figuration using
Cat-5e for the last
100 metres
Signals degrade
after 100 metres
GP
ON
500-
1,000
Mbps
FTTH connection Relatively high
cost
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Broadband Experience Pricing Strategy 204-0-0
0-101-101
255-204-153
146-208-80
255-255-0
0-50-101 3
Significant potential for ARPU uplift with
the right product offering and marketing
Provide service guarantees to regain
customer confidence
Develop differentiated strategy to address
different target markets
Product offering:
— DOCSIS 3.0 using Hitron cable
modem for mass market (up to 200
Mbps)
— GPON for data hungry segment
(above 200 Mbps) at 20% premium
Targets to resume the growth trajectory of
the broadband installed base
— Double-digit annual growth rate
— Regain market share at mid teens by
2018
Status Initiatives
• i-CABLE’s ARPU still substantially below
competition across all product offerings
• Current product offerings include:
— DOCSIS 2.0: up to 10Mps
— DOCSIS 3.0: 100 / 130 / 200Mps
— GPON: 500 / 1000Mps
• Focused efforts to upsell DOCSIS 2.0
subscribers to DOCSIS 3.0 and GPON
• Early stage success of converting
customers to higher speeds plans during
contract renewal process
191
125 85 63 38
28
76 110
123 131
0.00.0 0.2 0.6
2.0
218 201 196 186
171
2011 2012 2013 2014 2015
Su
bs
cri
be
rs
('0
00
)
Docsis 2.0 Docsis 3.0 GPON
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Upside from FTA TV Roll-Out 204-0-0
0-101-101
255-204-153
146-208-80
255-255-0
0-50-101
• Via Fantastic TV (affiliate)
• Applied for a FTA license in January 2010
• Received in-principle approval in October
2013 by Chief Executive-in-Council
— License to be granted upon final
approval by Chief Executive-in-Council
• Incremental business leveraging on
i-CABLE business
Status Initiatives
Target to launch in 2H 2016 at the
earliest
Leverage on CABLE TV’s programming
and network infrastructure and
capabilities
Sharing costs with CABLE TV resulting
in a more robust business model to
achieve early-on breakeven
Committed to commence integrated 24
hours Cantonese and English channels
within 12 months and 24 months
respectively from the grant of license
Committed to invest over HK$1bn in the
initial 6 years from the launch of FTA
services, of which:
— ~HK$40m on capex
— ~HK$960m on programming
30
i-CABLE Communications Limited
(the “Company”)
HKSE Stock Code: 1097.HK Important Notice
The information set out in this Management Update does not constitute a public offer or an offer to sell or solicitation of any offer to purchase any
securities, or any recommendation in respect of such securities.
Disclaimer
All information and data included is solely for the use in this Management Update and certain information or data (including preliminary
unaudited numbers and unaudited financial numbers derived from the Company’s management accounts) has not been independently verified
and we will not take responsibility for the accuracy of such information or data.
The financial information in this Management Update, unless stated otherwise, is not directly extracted from our audited consolidated financial
statements and has been prepared based on management information and has not been audited or reviewed by our reporting accountants or other
advisors.
This Management Update contains certain projections, estimates, forecasts, targets and other forward-looking statements with respect to the
financial condition, results of operations, financial position and business of the Company and its subsidiaries (“the Group”) (together, “forward-
looking statements”). Forward-looking statements are statements about the future and are inherently uncertain and generally based on
assumptions. Such forward-looking statements are not a reliable indicator of future performance of the Group, as the assumptions and subjective
judgements involved in making them may or may not prove to be correct. There can be no assurance that any of the matters set out in forward-
looking statements are attainable, or are complete or accurate. Actual results, performance or other future events may differ materially from those
stated, implied and/or reflected in any forward-looking statements due to a variety of risks, uncertainties and other factors. Any such forward-
looking statements are based on the beliefs, expectations and opinions of the Group at the date hereof, and the Group does not assume, and hereby
disclaims, any duty to update them. This Management Update also contains extracts of certain pro forma financial information of the Group
which have been prepared for additional information and illustrative purpose only (“unaudited financial information”). No reliance should be
placed on, the fairness, accuracy, completeness or correctness of the information or opinions (including the forward-looking statements and
unaudited financial information) presented or contained in this Management Update.
Potential Investors and Shareholders should exercise caution when investing in or dealing in the securities of the Company.
i-CABLE, its subsidiaries, affiliates, directors and employees hereby disclaim (i) all express, implied, & 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.