24 November 1999

i-CABLE Listed On Hong Kong Stock Exchange

i-CABLE Communications Limited entered a new phase of development following its successful listing on The Stock Exchange of Hong Kong Limited today.

Speaking at a ceremony to mark the listing of its shares at the Trading Hall of The Stock Exchange this morning, Deputy Chairman, President and Chief Executive Officer of i-CABLE Communications Limited, Mr Stephen Ng, said the listing marked an important milestone in the company's development.

"A solid foundation has now been laid for the further development of i-CABLE Communications Limited," he added.

"With the rapid expansion of our fibre cable network; supported by our content production capability; and the imminent launch of our broadband services, we are well on track to become a leading operator in the provision of integrated multimedia services," Mr Ng said.

Commenting on the overwhelming response to the Global Offering of its shares, Mr Ng said it demonstrated that global and local investors endorsed the direction and potential of information technology development of the company. "We hope our listing could attract more high quality information technology companies to list in Hong Kong," he said.

The i-CABLE Group is the leading pay-TV operator in Hong Kong. It serves over 440,000 pay-TV subscribers, and is one of the five most watched or most read media in Hong Kong.

In 1998, the Group's cable TV business achieved positive earnings before interest, taxes, depreciation and amortisation. In March 1999, the Group launched a dial-up Internet access service and now serves over 100,000 dial-up Internet access subscribers.

The Group's network reaches over 1.67 million homes. Presently, half of these homes are served by a hybrid fibre coaxial or HFC network, with fibre trunks feeding coaxial "last miles", and the other half by microwave trunks feeding similar coaxial "last miles". The Group intends to substantially complete the replacement of the microwave trunks by fibre trunks to complete its two-way broadband HFC network by the end of 2001.

The Group originates about half of the channels in its basic package to address the strong demand in Hong Kong for local, Cantonese language content, with news, movies and sports as principal programming platforms and marketing drivers. Over its six years of operations, the Group has utilised its locally targeted programming and marketing expertise to increase the market's acceptance of pay-TV services and to build its CABLE TV brand name.

The Group plans to leverage its broadband cable network, local content production and repackaging, marketing and customer service capabilities to become a leading high-speed Internet access service provider in Hong Kong. In early 2000, the Group expects to launch its high speed Internet access service using cable modem technology, subject to the receipt of a fixed telecommunications network services licence. Its "always-on", high-speed Internet access service will connect users to the Internet at 10 Mbps, more than 100 times faster than connection through dial-up telephone modems.

The Group is also exploring opportunities to offer additional products and services, such as voice services, to further exploit the capabilities of its two-way broadband HFC cable network.

The Group's strategy in the immediate term is to:

  • expand its pay-TV subscriber base through innovative programming and marketing;
  • accelerate the rollout of its HFC cable network;
  • pursue rapid penetration of its high-speed Internet access service; and
  • leverage its broadband network, content, customer base, brand name, and marketing and servicing infrastructure for the deployment of new products and services that will generate additional revenue streams.