Communications LimitedCommunications Limitedi-CABLEii--CABLECABLE

2009 Final Results12 March 2010

Results HighlightsThe Group• has sharpened its business focus & exited marginal

non-core businesses • has sharpened its organization; streamlined its work

processes; and redeployed resources from support to content, marketing & sales

• is investing in more content, HDTV, content protection & broadband upgrade

• is taking steps to unlock the value hidden in its content capability including Free TV, outdoor media & new media

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Pay TV revenue bottomed out in mid-2009 and is on a course of firm rebound ahead of FIFA World Cup 2010 and the new Barclays Premier League season

The Group’s cash position remains strong

Consolidated Results

• Pay TV revenue bottomed out in mid-2009• Effective cost control helped to reduce net loss• HK$531M net cash

2009 2008HK$M 1H 2H FY FY %chg.

Turnover 862 893 1,754 2,080 - 16%Opex before dep’n (722) (819) (1,541) (1,803) - 15%EBITDA 139 74 214 277 - 23%Depreciation (139) (119) (258) (358) - 28%Operating Profit/(Loss) 1 (45) (44) (81) - 45%Share of profit less losses ofassociates 1 (1) - (17) n/aNet interest income & others (2) (1) (3) 2 n/aProfit/(Loss) before taxation - (47) (47) (96) - 51%Taxation 6 2 7 (15) n/aNet Profit/(Loss) 5 (45) (40) (111) - 64%

2009

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• Pay TV subscribers surpassed one million mark• Broadband subscribers shrank on keen price competition

Subscribers

December 2008December 2009

Pay TV Broadband Voice

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1,000,000

249,000152,000

917,000

267,000149,000

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Pay TV2009 2008

HK$M 1H 2H FY FY %chg.

Turnover 595 633 1,228 1,355 - 9%Opex before dep’n (508) (602) (1,111) (1,115) 0%EBITDA 87 30 117 239 - 51%Depreciation (86) (76) (162) (233) - 31%Operating Profit/(Loss) 1 (46) (45) 6 n/a

EBITDA Margin 15% 5% 10% 18%Operating Margin 0% -7% -4% 0%

2009

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• High yield subscribers attracted by enhanced content & HD services in 2H09, pushing revenue higher

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TVBP

Internet & Multimedia

• Lower opex & depreciation lifted operating profit• Invest in DOCSIS 3.0 to boost bandwidth & stay competitive

2009 2008HK$M 1H 2H FY FY %chg.

Turnover 266 257 522 576 - 9%Opex before dep’n (136) (137) (273) (308) - 11%EBITDA 129 120 249 268 - 7%Depreciation (49) (38) (87) (120) - 28%Operating Profit/(Loss) 81 82 163 148 10%

EBITDA Margin 49% 47% 48% 47%Operating Margin 30% 32% 31% 26%

2009

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Operating Expenses

• Streamlined processes & sharpened business focus• Salary & benefit expenses one gear lower on

headcount reduction• Redeployed resources from support to content,

marketing & sales

HK$M 2009 2008 %chg.

Programming 819 893 - 8%Network & Others 244 272 - 10%Selling, CS, G&A 425 514 - 17%Cost of Sales 52 124 - 58%Sub-total 1,541 1,803 - 15%Depreciation 258 358 - 28%Total 1,799 2,161 - 17%

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• 2009 viewership of CABLE TV subs 11% higher than 2005• Newsline Express delivers to over 1.2 million passengers daily

CABLE TV

NOW TVOthers

CABLE TV

NOW TV

Others

Viewership

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39%

46%

3%7%

3%7%

43%*41%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

CABLE TV TVB Jade ATV Home Now TV

2008 2009

Among CABLE TV 4+ subs

+2% point

Among all Individuals aged 4+

10%

7%

2%

0%

0%

1%

2%

3%

4%

5%

6%

7%

8%

9%

10%

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NO

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Pay TV B

* included HD viewership share Source: CSM Media Research

Pay TV A

Invest for the Future

• Programming

Strongest ever sports line-up

The most watched pay TV movie & entertainment platforms*

The most watched pay TV News & Finance platform*

The highest HD resolution beats any other HD services in HK

Pay TVPay TV

*CSM Media Research

Invest for the Future

Internet & MultimediaInternet & Multimedia

• Enhance Broadband Competitiveness

DOCSIS 3.0 with modest capex

www.i-cable.com

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Unveil Hidden Value

• Free TV LicenceApplied for Domestic Free TV Programme Service LicenceLeverage on existing content production capability & infrastructure

• Renewed a multi-year contract with MTRCFree To Air Newsline Express on commuter trainsMinimal incremental content production cost

• Online / Mobile Serviceswww.i-cable.com together with mobile partners

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Invest for the Future• Launched New Channels

HD201 & HD202

BBC Knowledge & channels

All Sports Network

Hunan TV World

Guizhou TV

Russia Today

TDM Satellite – Macau

12大娛堂

操控者

Sharpen Organization

• Streamlined processes & redeployed resourcesNon-sales headcount reduced by 10%Stringent cost control

• Redeployed resources to enhance serviceOpened a second customer service centre in China

• Shut down unprofitable businessesHorizon ChannelPRC print ventures

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TVBP

• Since mid-2009, we are seeing much stronger high yield new sales and much lower churn carrying over to 1Q 2010 Advertising income has also recovered YOY

• 2009 has been a re-investment year• The re-investments have enabled us to

parade a much stronger program platform, a more robust defense systemintroduce the latest transmission technology for broadband servicelaunch HDTV services

• Exclusive prized content will sustain growth momentum, leading to a higher level of subscribers as overall economic conditions continue to rebound. Programming costs is expected to rise in 2010 with one-off events such as Winter Olympics & FIFA World Cup

Outlook

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i-CABLE Communications LimitedHKSE Stock Code: 1097.HK

http://www.i-cablecomm.com

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