20062006Final Results Presentation

March 5, 2007

20062006Final Results

Review of

Consolidated Results

8.528.8

582300282(1)

3280

(481)760

(1,681)2,4412005

8.5DPS (HK cents)-69%9EPS (HK cents)-69%181Net profit

-(29)Taxation-26%210Profit before taxation-60%(0)Non-operating expense263%12Net interest income / (expense)-29%198Operating profit-11%(428)Depreciation-18%627EBITDA14%(1,921)Opex before dep’n

4%2,548Turnover%chg.2006(HK$ M)

Turnover reached new high despite intense competition$28 million tax provision is a non-cash item 3

Operating Expenses

2,161481

1,681

419398

8642005

9%2,349Total-11%428Depreciation14%1,921Sub-total

11%465S, G&A13%451Network & Others

16%1,005Programming%chg.2006(HK$ M)

Higher programme investment in FIFA World Cup, Sundream & other programme enhancementsHigher marketing & sales spending

4

Pay TV

212

738

2005

-4%203ARPU (HK$)

7%786Subs (000)

Chg.2006

Increase in subscribers fueled by local contentLower ARPU due to rollout of mini & selective packages in response to changing market conditions

5

Pay TV

337

(261)

598

(1,287)

1,8842005

-26%248Operating profit

-10%(236)Depreciation

-19%484EBITDA

10%(1,411)Opex before dep’n

1%1,895Turnover%chg.2006(HK$M)

Opex before dep’n up 10% mainly due to higher programming & marketing costs related to FIFA World Cup2H06 opex before dep’n back to 2H05 level

6

Internet & Multimedia

120

139

320

2005

40%168Voice lines in service (000)

-2%136Broadband ARPU (HK$)

2%328Broadband Subs (000)

chg.2006

Broadband subscribers growing steadilyARPU slightly lower due to bundling discountsVoice lines maintain healthy growth

7

Internet & Multimedia

52%78

(214)292

(266)

5582005

53%EBITDA margin66%129Operating profit

-12%(188)Depreciation9%317EBITDA

5%(279)Opex before dep’n

7%596Turnover%chg.2006(HK$ M)

Record turnover & disciplined cost control driving operating profit to a new high

8

Cashflow

9

0

100

200

300

400

500

600

2002* 2003* 2004 2005 20060

50

100

150

200

250

300

350

400

450

CAPEX

HK$ Million

Free Cash Flow

HK$ Million

Free cashflow before dividends up 2% to$407 millionCapex down 29% to $200 million as network investment completedNet cash at year end increased to $586 million

* excludes convertible bonds redemption

ReviewBusiness

Pay TV Competition

NOW aggressive in content & subscriber

acquisition

TVB Pay Vision launched on NOW

Little adverse effect on our subscription business

11

CABLE TV gaining popularity

TV Viewership ShareCable TV Subscribers Aged 4+

• Cable TV gains viewership from no. 1 terrestrial channel

• Cable TV viewership >2.5 times of all other channels combined including competition’s

48%45%

37%40%

11% 9%

2% 2% 1% 1%

0%

10%

20%

30%

40%

50%

60%

TVB Jade Cable TV ATV Home TVB Pearl ATV World

2005 2006

12Source: 2006 CMS Media Research & 2005 AGB Nielsen Media Research

Pay TV - Success

Subscribers love our local programmes

Exclusive carriage of FIFA World Cup 06 helped subscriber growth

Mini / selective packages to sustain subscriber acquisition momentum & customer retention

Triple-play bundling remains the key acquisition strategy

13

Pay TV - Highlight

News PlatformNews PlatformThe strongest & most comprehensive source of news & public affairs information in town

5,000 hours of live news broadcast in 2006

New studio & bureau bringing up-to-minute financial news & news coverage in China

Award winning programmesfour in the New York Film and Television Festival

Chicago International Television Festival

14

Pay TV - Highlight

Entertainment PlatformEntertainment PlatformBest selection of highly acclaimed quality Asian & international top box-office productions

Showcasing Hollywood blockbusters from Disney, Newline, Universal, Paramount, Warner Bros, Twentieth Century Fox, Dreamworks, Sony & MGM

- Fung Shui Lecture of Master So- So Real Cooking- Maria's Private Kitchen

- Produced more than 100 special interviews on artistes- Covered over 30 major international showbiz events 15

Pay TV - Highlight

FIFA World Cup 2006

2006 Asian Games

Torino 2006 Winter Olympic Games

2006 Commonwealth Games

French Open / US Open

PGA Tour Channel

NBA

The Federation of Int’l Basketball Association World Championship

The Int’l Badminton Federation World Championship 16

Sports PlatformSports Platform

Unrivalled Content Offering

Further enhance Finance Information Channel

New documentary & public affairs programmes

Launch HMC2 on 28 March 2007

Launch a new channel with mass appeal to capture the widest possible viewership

Major leagues plus a wide range of sports programmes

17

Internet & Multimedia

Market is maturing & market share remained solid

Competing on service quality, not price

Leading content provider for major mobile

operators in Hong Kong

18

Sundream Motion Pictures

49 Days《犀照》Exceeded all expectationsGrand Prize of Fukuoka Asian Film Festival

A Battle of Wits《墨攻》Top 5 among Chinese films in Hong KongTop 3 among Hong Kong films in TaiwanNomination of 7 awards in 26th Hong Kong Film Awards

Nothing is Impossible 《情意拳拳》Satisfactory box office

2006 2006 Release:Release:

Sundream Motion Pictures

Twins Mission 《雙子神偷》Released during Chinese New Year

Eye in the Sky 《跟蹤》Invited to participate inBerlin International Film Festival in GermanyUdine Far East Film Festival in ItalyInternational Film Festival

Linger 《蝴蝶飛》Vic Zhou (周渝民) & Li Bing Bing (李冰冰)

Films Completed in 2006 :Films Completed in 2006 :

20

New Opportunities

Horizon ChannelHorizon Channel

Established its recognition & influence in PRC, USA, South America & Japan

Extended beyond Hong Kong for advertising, programme licensing & distribution revenue

Programme licensing deals in US, Canada, Malaysia, Indonesia, Taiwan & New Zealand

21

New Opportunities

Outdoor AdvertisingOutdoor Advertising

CABLE News Express on KCR trains widely

accepted by local advertisers & KCR passengers

New advertisers complementing existing premium

advertisers on CABLE TV

Enhancement on the service will create advertising

opportunities

22

New Opportunities

Print MediaPrint Media

Acquired a majority stake of

Teamwork Media, an exclusive

advertising sales agent of Sanlian Life

Week Magazine in PRC

Sanlian Life Week Magazine is

ranked number 3 in readership

among the monitored weeklies in the

Mainland23

Summary

Turnover & free cashflow reached new high

Rollout of flexible packages to sustain subscriber acquisition momentum

Bundling helps to grow our business but has slightly diluted our ARPU

Leveraging our strength in content production & investment in core platforms to maintain leading position

New market ventures are progressing on track

Tougher times are expected ahead but we are well prepared to take the challenges head on

24

ii--CABLE Communications LimitedCABLE Communications Limited

HKSE Stock Code: 1097.HKNASDAQ Symbol: ICAB

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