2016 Interim Results2 August 2016

i-CABLEii--CABLECABLECommunications Communications LimitedLimited

2

Results Highlights

• The Hong Kong economy slowed further

• In particular, the local advertising market was weak due to sluggish consumer business

• Nevertheless, subscription ARPU continued its growth trend & subscription revenues were stabilizing in spite of a smaller subscriber base

• New business initiatives are being launched to contain customer attrition

• Fantastic TV was granted a free TV licence & is preparing for the launch of its Cantonese channel latest by May 2017

3

1,364 1,3381,160

922815

414 402 394

291 324

285

259244

120 124 94

94 94

101

86

71

1,749 1,757

1,546

1,266

1,130

570 560 526383536

2011 2012 2013 2014 2015 1H 2015 2H 2015 1H 2016

(HK

$m

)

CATV Air-time Sales Others¹

RevenueTelevision

• The local advertising market was weak in the first half of 2016 due to sluggish consumer business

• The Group’s financial performance was affected by the decline of advertising & subscription revenues despite our efforts on cost control

1 Includes channel service fees, premises lease rental and other revenues.

May-2013: Cessation of Barclays Premier League broadcast rights

4

Television

• Subscription revenue was stabilizing in spite of a smaller subscriber base

• New business initiatives are being launched to contain customer attrition

Key Performance Indicators

461434

388338

303 320285

2011 2012 2013 2014 2015 1H 2015 1H 2016

Su

bs

cri

be

rs

('0

00

)

245 244 231 208 208ARPU

(HK$/

month)¹

205 219

5

• Following the successful launch of HD News channel (HD209), we are preparing for the HD upgrade of Finance Info channel by the end of 2016

ProgrammingHD News

6

• Our self-produced entertainment programs continued to move a new way forward, embrace originality, local flavor & strive for diversification

ProgrammingHD Entertainment

7

ProgrammingHD Entertainment

8

ProgrammingHD Sports

9

bbTV 0%

TVB1 48%

Now TV 3%

TVBNV 1%

Others2 5%

CABLE TV 42%

57%60%

51%

57%55%

50%

30%

25%25%25%

29%27%

16%18%

23%

17%

7%8%

1%1%2%

7%5%4%

2011 2012 2013 2014 2015 1H 2016

CABLE TV Now TV TVBNV bbTV

Viewership Share Among Pay TV Operators

Sources: CSM Media Research (2011-2012); Nielson (2013-1H16) for All Day All Time viewership(individuals aged 4+)

1 Overall CABLE TV (via STB & SMATV)2 Excluded 8 TVBNV channels via Now TV platform in top 50 channel list only in 2013 & 2014;

excluded all TVBNV channels via Now TV STB in 2015.3 Included 8 TVBNV channels via Now TV platform in top 50 channel list only in 2013 & 2014;

included all TVBNV channels via Now TV STB in 2015.

Source: Nielsen (Jan – Jun 2016)CABLE TV Subs aged 4+, All Day All Time

1 Included TVB Jade (Analog+DTT), J2, iNews, Pearl (Analog+DTT,HD Jade/ J5

2 Included ATV, RTHK, Viu TV & others

TV Share Among CABLE TV Subs aged 4+

Viewership

1 32

10

• FANhub was launched in early 2016, an enhanced Pay TV service with a full featured, “video-on-demand”, open platform & app-enabled HD set top box to enrich customer experience

• Our team is promoting this service to facilitate customer retention, acquisition as well as upselling & the take up rate is encouraging

FANhub

11

• It has always been our aim to offer distinct & premium content to our customers. We are working on the enrichment of our HD channel portfolio & will launch new HD packages later this year to satisfy different customers’ expectations

• Together with FANhub, we are hopeful that these new initiatives will boost customer loyalty & drive our businesses

• Enhancement of i-CABLE App to offer a multi-screen platform is underway for commercial launch soon. Our multi-screen strategy will enable customers to enjoy content across different devices whenever & wherever

New Initiatives

12

• Our affiliate Fantastic Television Limited was granted an initial licence of 12 years until 30 May 2028, subject to mid-term review around 2022

• The Fantastic TV team is preparing for the launch of its integrated Cantonese channel latest by May 2017. This will supplement our existing services & enhance our overall competitiveness

• Channel no. 76 & 77 assigned for Cantonese & English channels respectively, reaching over 2.26M homes

Fantastic TV

13

Sundream Motions Pictures

• Sundream theatrically released 8 films in 1H 2016

14

Internet & Multimedia

• For Broadband service, we will accelerate network enhancement tohigher-speed broadband services GPON to cover many more homes in the coming few years

• The enhancement should strengthen our competitiveness & would bring

in revenue growth potential

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.

Revenue

267290 305 319 310

156 154 151

7349

4346

38

18 21 17

340 338 348365

348

174 175 168

2011 2012 2013 2014 2015 1H 2015 2H 2015 1H 2016

(HK

$m

)

Broadband¹ Others²

15

Key Performance Indicators

• Subscription ARPU continued its growth trend

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.

% of Total Revenue

I&M Churn Rate3

1.7% 2.2% 1.8% 1.5% 1.8% 1.6% 1.8%

Internet & Multimedia

257239 231 219

194 209188

2011 2012 2013 2014 2015 1H 2015 1H 2016

Su

bs

cri

be

rs

('0

00

)²

98 108 117 125I&M ARPU

(HK$/month)¹98 132122

16

15 2031 31 28

14 13

1216

2233

27

14 14

14

17

156

(20) (21)(30) (35)

(25)(13) (12)

21

32

37 35

32

16 151 0

2

2011 2012 2013 2014 2015 1H 2015 1H 2016

(HK

$m

)

iDL Sundream Others Inter-Segment Elimination

RevenueOthers

17

78

(22)

149

88

(19) (15) (24)

88

98

94

121

128

62 52

166

75

243

209

108

4728

2011 2012 2013 2014 2015 1H 15 1H 16

Adjusted EBITDA

• Adjusted EBITDA is calculated by adding amortisation of programming library & impairment losses on programming library to Reported EBITDA

Total Segmental Breakdown

Reported Adjustment

(HK

$m

)

7.9% 3.5% 12.6% 12.5% 7.2%

% of Total Revenue

4.0%6.2%

2011 2012 2013 2014 2015 1H15 1H16

EBITDA 69 (30) 125 34 (46) (27) (44)

Adjusted

EBITDA149 59 210 133 53 21 (1)

Inte

rnet &

Multim

edia

EBITDA 127 118 125 156 143 71 71

EBITDA (117) (110) (101) (103) (117) (58) (51)

Adjusted

EBITDA(110) (101) (92) (80) (88) (45) (41)

166 75 243 209 108 47 28

Tele

vis

ion

Oth

er

& Inte

r-

Segm

ent

Elim

ination

Total Adjusted

EBITDA

18

1,600 1,6981,336

1,134 1,077

548 528

213221

223

209 205

103 97

146150

153

138 136

1,9442,052

1,688

1,457 1,401

712 6816470

(8)(9)(16) (18) (24) (23) (16)

2011 2012 2013 2014 2015 1H 15 1H 16

(HK

$m

)

1,680 1,7871,421

1,232 1,176

597 570

213221

223209 205

103 97

156162

166

167 168

2,0312,149

1,782

1,578 1,530

774 7347585

(9)(19)(30)(28)(20)(18) (10)

2011 2012 2013 2014 2015 1H 15 1H 16

(HK

$m

)Operating Expenses

• Opex for Television & Sundream (under Others) are adjusted for amortisation of programming library & impairment losses on programming library

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

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%

57.7%

108.4% 100.3%

57.7%59.3%

104.8%

59.3%

96.2%

19

709 719 714 699 697354 352

852 949599

404 359

187 160

123121

113

119 116

192181

183

170 175

(50) (46) (43) (50) (47) (23) (24)

110

103

99 85

1,9442,052

1,688

1,457 1,401

712 681

7

1515

19

1826

7 6158 838742

92

42

2011 2012 2013 2014 2015 1H 15 1H 16

(HK

$m

)

709 719 714 699 697354 352

932 1,038684

503 458

236 203

123121

113

119 116

192181

183

170 175

(50) (46) (43) (50) (47) (23) (24)

119

112

122 114

2,0312,149

1,782

1,578 1,529

774 734

7

2618

1915 15

7 61588387

99

56 52

2011 2012 2013 2014 2015 1H 15 1H 16

(HK

$m

)Operating Expenses

• Programming / Contents costs & Cost of Sales are adjusted for amortisation of programming library & impairment losses on programming library

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% 101.3%101.0%

Salaries & Benefits Programming / Contents Advertising & Promotion Plant Operations

General Administration Capitalised Cost Cost of Sales

96.0%103.4%101.9% 93.8%

20

84

106116

148

120

68

51

2011 2012 2013 2014 2015 1H 15 1H 16

(HK

$m

)

Capex

• Major items of Capex during the period were network equipment, TV production & broadcast facilities as well as the new FANhub set-top-box

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.

14.9% 7.1%10.1% 8.9%

7244 54

8771

32 39

35

36 24

46 67

2032

115

136

69

5559

25

34

223215

147

188197

77

106

2011 2012 2013 2014 2015 1H 15 1H 16

(HK

$m

)

Fibre & Coaxial Network TV Production Equipment Others¹

21

Summary Financials

(in HK$ m)

FYE Dec 2011A 2012A 2013A 2014A 2015A 1H 15A 1H 16ATotal Revenue 2,110 2,127 1,932 1,666 1,510 760 710Growth (%) 1% (9)% (14%) (9)% (7)%

Reported EBITDA 78 (22) 149 88 (19) (15) (24)Margin (%) 3.7% (1.0)% 7.7% 5.3% (1.3)% (1.9)% (3.4)%

Adjusted EBITDA 166 75 243 209 108 47 28Margin (%) 7.9% 3.5% 12.6% 12.5% 7.2% 6.2% 4.0%

Loss from Operations (180) (275) (88) (139) (242) (127) (133)Margin (%) (8.5)% (12.9)% (4.5)% (8.3)% (16.0)% (16.7)% (18.7)%

Loss for the Year (179) (278) (93) (139) (233) (121) (135)Margin (%) (8.5)% (13.1)% (4.8)% (8.4)% (15.4)% (16)% (19.0)%

Capex 223 215 147 188 197 77 10610.6% 10.1% 7.6% 11.3% 13.1% 10.1% 14.9%

Additions to Programming Library 84 106 116 148 120 68 51Margin(%) 4.0% 5.0% 6.0% 8.9% 8.0% 8.9% 7.1%

Adjusted EBITDA Less Capex Less Additions to Programming Library (141) (246) (20) (126) (209) (97) (128)Margin (%) (6.7)% (11.6)% (1.0)% (7.6)% (13.8)% (12.8)% (18.1)%

22

Outlook

• Looking ahead, both global & local economies remain challenging & competitive pressure would not abate. We are well prepared & positioned

• We will continue to invest in programming across platforms, HD upgrades, customer service improvements, network enhancement for higher speed broadband service, as well as new marketing & media initiatives to sharpen our competitiveness

i-CABLE Communications LimitedHKSE Stock Code: 1097.HK

Disclaimer

All information and data are provided for information purposes only. All opinions

included herein constitute i-CABLE’s judgment 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.