i-Cable revenues drop; broadband unit stable

14 Aug 2007

Hong Kong cableco i-Cable has reported its interim results for the six months ended 30 June 2007. Turnover decreased by 7% year-on-year to HKD1.185 billion (USD151 million), down from HKD1.274 million in 1H 2006, whilst net profit increased by 83% to HKD116 million. EBITDA was virtually unchanged at HKD301 million whilst CAPEX fell by 41% to HKD71 million (1H06: HKD121 million). i-Cable saw its pay-TV revenues fall 14% for the six-month period, despite subscribers increasing by 43,000 or 6% in the first half to 830,000, mainly attributable to lower yield subscriptions and a dip in expenditure following the FIFA World Cup in 2006. i-Cable’s internet and multimedia unit saw its broadband internet subscriber base remain level at 324,000, whilst turnover was also almost flat at HKD295 million in the January-June period (HKD296 million). Internet and multimedia operating profit increased by 27% year-on-year to HKD86 million (HKD68 million). Its VoIP telephony business signed up 179,000 users by end-June, up from 168,000 at the beginning of the year, and 120,000 at end-2005. The company said in a press release that ‘the broadband market is mature and ex-growth. Competition will therefore shift to service quality, after-sales service quality as well as value-added services.’

Hong Kong, i-Cable (formerly HKCT)