ii--CABLECABLECommunications LimitedCommunications Limited2007 Final Results10 March 2008

Financial Review

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Consolidated Results

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(HK$M) 2007 2006 %chg.Turnover 2,304 2,548 -10%Opex before dep'n (1,759) (1,921) -8%EBITDA 545 627 -13%Depreciation (367) (428) -14%Operating profit 178 198 -10%Net interest income 21 12 +77%Profit before taxation 199 210 -5%Taxation (17) (29) -42%Net profit 183 181 +1%Capex 175 200 -13%

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• Successfully adjusted to the new competitive environment & established a lower cost base to preserve profitability

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DividendHK$ (cents) 2007

EPS 9.0DPS 8.5Payout ratio 94%

Dividend Yield *(HK$)

Dividend 8.5 centsShare Price 1.47Dividend yield 6%

Free Cash Flow Yield *(HK$M)

FCF** 293Market Cap 2,968FCF yield 10%

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* Based on the latest results & average closing share price in February 2008** Before financial investment and financing activities

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• Robust free cashflow enables business diversification into film productions, publishing & other cross media opportunities

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Subscribers

2002 2003 2004 2005 2006 2007

Pay TV Broadband Voice

606k 656k 702k738k 786k

882k

226k 258k 291k 320k 328k306k29k 120k 151k159k

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• New marketing strategy accelerated subscriber growthNote: Voice subscriber no. is adjusted to reflect the number of lines-in-force between Wharf T&T and i-CABLE

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Operating Expenses

(HK$M) 2007 2006 %chg.Programming 950 1,005 -5%Network & Others 419 451 -7%S, G&A 390 465 -16%

Sub-total 1,759 1,921 -8%Depreciation 367 428 -14%

Total 2,126 2,349 -10%

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• Improved operating efficiency with prudent cost control

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Pay TV

(HK$M) 2007 2006 %chg. 4Q 3Q %chg.Turnover 1,595 1,895 -16% 384 384 0%Opex before dep'n 1,196 1,411 -15% 284 298 -5%EBITDA 399 484 -18% 100 86 +16%Depreciation 220 236 -7% 53 54 -1%Operating profit 179 248 -28% 47 33 +43%

• Realigned sales channels to reinforce revenue engine

• Q4 revenue & operating profit improved on Q3, partly due to seasonal factors

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Internet & Multimedia

(HK$M) 2007 2006 %chg.Turnover 588 596 -1%Opex before dep'n 266 279 -5%EBITDA 322 317 +2%Depreciation 142 188 -25%Operating profit 180 129 +40%

EBITDA margin 55% 53% +2%Operating margin 31% 22% +9%

• Record operating profit

• Revenue & profit preservation preferred over market share gain

• Higher EBITDA & operating margin from enhanced efficiency

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Business Review

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Locally Relevant Content

•Strategic investment in local content pays off

- Most watched Pay TV platform

- Sticky local content a strong retention tool

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Viewership• CABLE TV viewership comparable to TVB Jade• Over 80% of viewership from CABLE TV’s self-produced

channels

3%

45%

12%

39%

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TVB Jade

CABLE TV

Other Pay TV

CABLE TV channels viewership

Other Terrestrial

Source: CSM Media Research 2007

59%70%

19%11%

22% 19%

0%

20%

40%

60%

80%

100%

120%

2006 2007

InternationalSatellite Channels

CABLE TV'sSports Channels

CABLE TV'sNews,Entertainment &Movies Channels

Viewership among CABLE TV 4+ subs

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Entertainment

Building blocks reinforcing one another, making

i-CABLE a robust entertainment platform

Entertainment Channels

Sundream MotionPictures

EntertainmentNews Channel

SundreamMusic

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ArtistesManagement

Entertainment• Locally produced programmes constantly topped the

most watched list• CABLE No. 1 Channel better watched than ATV World

& closing in on TVB Pearl• Secured top movies & dubbed Hollywood blockbusters• Cemented relationship with the showbiz industry

globally

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怪談怪談

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News

• Most watched news channel in Hong Kong with 42% past week reach*

• Most credible TV News in CU / HKU / RTHK survey

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* 2007 Hong Kong Media Index

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NewsPrestigious awards in 2007

• Gold World Medal: “Image Projects”(神州穿梭 -形象工程)The New York Festivals 2008 International TV BroadcastingBest News Documentary Special

• Silver Plaque: “The Rising Cross”(時事寛頻 -中國教會系列之崛起的十架)2007 Chicago International Television AwardsPublic Affairs / Video News Release

• Bronze Winner: “Underground Heaven”(時事寛頻 –中國教會系列之地下天國)2007 Telly Award

• Bronze Winner: “A Unique Duo”(無雙譜 –三集人物特備系列)2007 Telly Award

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Sports

Exclusive rights for the crown jewels of sports

• 2008 Olympics in Beijing (New Media)

• 2010 FIFA World Cup in South Africa

• 2010 Winter Olympics in Vancouver

• 2012 Olympics in London

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Sundream Motion Pictures• Award-winning films• 5 titles received 35 nominations• Awards

A Battle of Wits (墨攻)- Best Film in the 12th Golden Bauhinia Awards- Recommended Film by Hong Kong Film Directors’ GuildEye in the Sky (跟踨)- Special Jury Prize in the 8th FILMex, Tokyo- Recommended Film and The Best Actor award in the

14th Hong Hong Kong Film Critics Society

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Sundream Motion Pictures

New releases:

• Le Grand Chef (食客)• Three Kingdoms – The Resurrection

of The Dragon (三國之見龍卸甲)• Lost Indulgence (迷果)• Ticket (車票) • The Equation of Love & Death

(李米的遭遇)• Plus Weinstein titles from Hollywood

(8 earmarked for 2008)

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Monetization of Content

• Extensive international distribution- The Mainland, New Zealand, Malaysia, Singapore, Vietnam,

Thailand, Taiwan, Japan, United States & Canada- Established recognition in overseas market

• Programmes widely distributed in the Mainland- Fujian, Guangzhou, Shanghai, Guizhou, Jiangsu, Liulang & Beijing

• New media platforms- Mobile content to CSL, Peoples, 3 Hong Kong, 3 Australia and CTM- Internet content to The Mainland, Taiwan and Japan

• Newsline Express on MTR East Rail, West Rail, Ma On Shan Rail & Lok Ma Chau spur line

- Reaching over 1.1 million passengers everyday

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China Developments• Ad On Media

- Exclusive advertising sales agent of Sanlian Life Week Magazine 《三聯生活周刊》

- Readership top among all weeklies in the same category

- Strong growth in advertising revenue

• Publications- “Child Baby”《孩子寶貝》 distributed across 40

mainland cities targeting young professional mothers

- “iSport”《i-體育》to be distributed in Beijing, Shanghai, Guangdon and major 2nd tier cities

- Planning to launch《漫頭周報》in April 2008

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Outlook

• Scale up content production with local relevance• Leverage on cross media business in Hong

Kong & Mainland China• Target to open 10 retail shops in major

commercial districts

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ii--CABLE Communications LimitedCABLE Communications Limited

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

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.

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