2010 Interim Results10 August 2010

i-CABLEii--CABLECABLECommunications Communications LimitedLimited

2010 FIFA World Cup• World Cup a major draw card to

rebuild business momentum

• World Cup has jump-started business growth to build up to the opening of Barclays Premier League & UEFA Champions League, the most popular football leagues in the world today

• The best HD picture quality in town also thrilled our subscribers

• Selected games & highlights shown on Digital Free TV

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2010 FIFA World Cup

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Conducted by Oracle Added ValueJuly 2010

Netherland vs Brazil Argentina vs Germany

Date 02 July 10 (Fri) 03 Jul 10 (Sat)Kickoff Time 22:00 22:00

Number of Audience 1.6M 1.5M

Target Group People aged 15-59 People aged 15-59

Average Viewing Duration 76 minutes 78 minutes

• Barclays Premier League

Exclusive live coverage of 380 matches

HD – 5 channels & over 300 live matches

SD – 6 regular channels & all 380 live matches

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Exclusive Prized Content

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HD BPL Pack: $80 p.m. X 24-month contract

BPL Pack: $50 p.m. X 24-monthcontract

Triple audio available in key matches

Broadcast English ancillary programs including weekly highlights, magazine programs and half-hour preview programs

New media online clips on www.i-CABLE.com

• UEFA Champions League (HD)

• UEFA Europa League (HD)

• German Bundesliga (HD)

• Asian Games (HD)

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Exclusive Prized Content

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• Most watched pay TV in all major program genres*

• Expand HDTV offerings planned

• Breaking free of the de facto monopoly of artistes & popular singers

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Original Programming

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* CSM Media Research28 Dec 2009 – 4 Jul 2010

10%

6%

2%

1%

0%

1%

2%

3%

4%

5%

6%

7%

8%

9%

10%i-C

AB

LE

NO

W T

V

TVB

PV

HKBN

Among all individuals aged 4+

38%

14%

6%

43%

Viewership

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Among i-CABLE 4+ subs

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TVB Jade HD+SD

Other Terrestrial & Satellite TV

Other Pay TV

Jan - Jun 2010

• Over 80% viewership from self-produced channels

Source: CSM Media Research1 Jan 2010 – 30 Jun 2010

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Pay TV Net Additions

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• The largest half yearly net gain ever

• Over 70% of new subscribers take the BPL Pack

• Net gain in F&B and commercial accounts ~2X 2006’s

• Churn rate less than 30% of previous World Cups

561,000 600,000 738,000 770,000

1,000,000 1,086,000

1H101H02 1H06

39,000

32,000

86,000

Pay TV Broadband Voice

249,000

1,000,000

152,000234,000

1,086,000

147,000

December 2009 June 2010

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Subscribers

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• Pay TV subscriber base expanded by 9%• Broadband subscribers shrank as cross poaching continues in a

saturating market

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Pay TV

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2010HK$M 1H 2H 1H vs 1H09Turnover 595 633 725 22%Opex before dep’n (508) (602) (748) 47%EBITDA 87 30 (23) N/ADepreciation (86) (76) (79) - 8%Operating Profit/(Loss) 1 (46) (102) N/A

EBITDA Margin 15% 5% -3%Operating Margin 0% -7% -14%

2009

• Recognition of recurrent revenue from long term subscriber commitments lags seriously the substantial non-recurrent programming costs booked in the period, resulting in a large operating loss

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Internet & Multimedia

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2010HK$M 1H 2H 1H vs 1H09Turnover 266 257 231 - 13%Opex before dep’n (136) (137) (133) - 3%EBITDA 129 120 98 - 24%Depreciation (49) (38) (44) - 10%Operating Profit 81 82 55 - 32%

EBITDA Margin 49% 47% 43%Operating Margin 30% 32% 24%

2009

• Competition heightened in the period• Taking proactive steps to improve bandwidth, service & quality• Technology upgrade substantially completed for Hong Kong Island to

enhance competitiveness

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Consolidated Results

• Top tier programs boosted subscription & airtime revenue • Mismatch of revenue & opex recognition distorted 1H10 P&L• Provision for a non-recurring loss on film investments• HK$539M net cash

2010HK$M 1H 2H 1H vs 1H09Turnover 862 893 962 12%Opex before dep’n (722) (819) (944) 31%EBITDA 139 74 18 - 87%Depreciation (139) (119) (126) - 9%Operating Profit/(Loss) 1 (45) (108) N/AShare of profit less losses ofassociates 1 (1) (39) N/ANet interest income & others (2) (1) 1 N/ALoss before taxation (0) (47) (146) N/ATaxation 6 2 1 - 86%Net Profit/(Loss) 5 (45) (145) N/A

2009

2010HK$M 1H 2H 1H vs 1H09Programming 379 440 546 44%Network 121 124 119 - 2%Selling, CS, G&A 202 223 250 24%Cost of Sales 21 32 29 41%Sub-total 722 819 944 31%Depreciation 139 119 126 - 9%Total 861 938 1,070 24%

2009

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Operating Expenses

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• Higher programming, marketing & acquisition costs primarily due to special events including World Cup & Winter Olympics

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New Opportunities

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• DOCSIS 3.0 Broadband NetworkEnhance competitive position

Substantially completed Hong Kong Island

Available to 18% homes today

Target to complete 50% by December 2010

• Free TV Licence ApplicationDevelop a new revenue stream, leveraging on existing content production capability & infrastructure

Has begun pre-mobilization to enable service to reach 95% households within 6 months from licence award

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New Opportunities

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Fantastic TV HKTVE (PCCW) CTI

Total Investment$1,007M in the initial 6 years

Programming: $968MNetwork: $39M

$600M in the first 3 years

$1,052M in the initial 6 yearsProgramming: $394M

Network: $150MOther Opex: $478M

Service Roll-outfrom Licence

Award

To reach 95% householdswithin 6 months

Takes 48 months to reach90% households

Takes 45 months to reach66% households

Service 1 Cantonese Channel1 English Channel 1 Cantonese Channel

12 Channels(increase to 20 channels within3 years & 30 within 6 years of

launch)

Daily BroadcastHours 24 hours 24 hours 12-24 hours

Compliance withStatutory

RequirementsYes No (disqualified persons and

unqualified voting controllers) Yes

Compliance withPositive

ProgrammingYes No No

Prime-TimePrograms

Over 70% locally producedprograms

Substantially all are first-runprograms

Not mentioned

1-3 hours locally producedprograms per day

1.5 hours first-run programsper day

Outlook

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• As economy recovery began to take hold during 1H10, our investments have started to pay off as attractive content drove strong subscriber & revenue growth

• Continue to persevere our strategy of investing in content & infrastructure for future growth & success

• Cost pressure will continue in the face of competition. Will continue to drive subscriber & revenue growth to meet the cost pressure

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Q&A

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DisclaimerAll information and data are provided for information purposes only. All opinions included herein constitute i-CABLE’s judgement as of the date hereof and are subject to change without notice. i-CABLE and its subsidiaries and affiliates hereby disclaim (i) all express, implied, and 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.

i-CABLE Communications Limited

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