i-Cable’s losses widen, Wharf T&T’s EBIT falls

1 Sep 2010

Hong Kong triple-play cable operator i-Cable posted a 12% year-on-year increase in revenues to HKD962 million (USD124 million) in the six months ended 30 June 2010, largely boosted by pay-TV services, but its operating (EBIT) loss widened to HKD107 million from HKD1 million in 1H09, partly due to non-core investment write-downs and non-recurring programming costs of screening the FIFA World Cup. Cable TV subscriptions increased by 9% to 1.086 million at end-June 2010, whilst cable broadband internet subscribers decreased by 6% to 234,000 in the face of tough competition from rival direct fibre and xDSL services.

i-Cable’s sister company in the business user sector, Wharf T&T, reported that its revenues also saw an increase in the six-month period, reaching HKD833 million as it said the ICT business sidestepped the worst after-effects of the global financial crisis on the back of pent-up demand. However, its 1H10 operating profit of HKD95 million was down from HKD132 million in 1H09. Wharf T&T added that it is making additional investments in the enterprise segment to ‘extend its network reach to 95% of the sector’s footprint by 2012,’ and its CAPEX in January-June 2010 totalled HKD119 million, similar to i-Cable’s HKD120 million spending in the same period.

Hong Kong, i-Cable (formerly HKCT), WTT (formerly Wharf T&T)