Financial Performance - i-CABLE Communications Limited's revenue for the six months ended June 30, 2022, declined by approximately HK$62 million to approximately HK$431 million from approximately HK$493 million for the same period in 2021[8]. - The Group recorded an increase in net loss to approximately HK$226 million for the six months ended June 30, 2022, representing an increase of approximately 29% compared to a net loss of approximately HK$175 million for the same period in 2021[8]. - The total revenue for the six months ended June 30, 2022, was HK$431,430,000, down from HK$493,483,000, representing a decrease of approximately 12.59%[17]. - The basic loss per share increased from HK$2.5 to HK$3.2, reflecting a deterioration in financial performance[17]. - The Group recorded a net loss of approximately HK$226 million for the six months ended 30 June 2022, compared to a net loss of approximately HK$175 million for the same period in 2021[70]. - The total comprehensive income for the period was HK$(225,801,000), compared to HK$(175,256,000) in the same period of 2021[145]. - The Group's loss before taxation was HK$218,160,000, compared to HK$171,512,000 in the same period of 2021[143]. Revenue Segments - Revenue generated from the telecommunications segment decreased by approximately HK$12 million from approximately HK$204 million for the six months ended June 30, 2021, to approximately HK$192 million for the six months ended June 30, 2022[12]. - The media segment's pay TV subscription customer base contracted, negatively impacting revenue from pay TV subscriptions during the six months ended June 30, 2022[14]. - Revenue from the media segment decreased by approximately 17% to approximately HK$240 million for the six months ended June 30, 2022, down from approximately HK$289 million in the same period of 2021[70]. - Revenue for the telecommunications segment decreased from approximately HK$204,000,000 to HK$192,000,000, a decline of about 5.88% year-on-year[13]. Operating Expenses - Operating expenses decreased from approximately HK$648 million for the six months ended June 30, 2021, to approximately HK$580 million for the six months ended June 30, 2022[9]. - The effective cost-saving initiatives implemented since Forever Top became the controlling shareholder in September 2017 have led to a consistent reduction in operating expenses over the past four years[9]. - The cost of services decreased by approximately HK$65 million to approximately HK$448 million, with programming costs down by approximately 19% and cost of sales down by approximately 14%[59]. - Operating expenses for the media segment decreased by approximately 17% to approximately HK$323 million for the six months ended June 30, 2022, compared to approximately HK$387 million for the same period in 2021[72]. - Operating expenses for the telecommunications segment decreased by approximately 2% to approximately HK$121 million for the six months ended June 30, 2022, down from approximately HK$123 million in the same period of 2021[72]. Customer Metrics - The number of broadband customers in June 2022 remained stable compared to June 2021[12]. - The number of broadband customers remained stable despite the challenging business environment due to the COVID-19 pandemic[27]. - Despite a saturated market and price wars, the number of broadband subscribers remained stable as of June 30, 2022, compared to the previous year, attributed to effective sales and marketing strategies and network quality recognition[104]. Strategic Initiatives - The Group launched several viewer-centric programs to enhance engagement and address community needs during the pandemic[32]. - The Group produced special programmes for the 25th anniversary of the HKSAR, including "A 25-Year Journey" and "Stories of Lion Rock Spirit," enhancing brand recognition and driving demand from government and commercial clients[35]. - The Group's investment in high-quality programmes, such as "Guru's Travel Depart" and "In the Storm," improved its brand image and viewer recognition[34]. - The Group's digital transformation efforts included revamping websites to enhance user experience, resulting in a more stable live streaming service[44]. - The Group aims to expand TV spectrum coverage to 99% by the end of 2022 and launch a new Free TV channel, Channel 78, to reach a larger audience[113]. Financial Position - The total assets decreased from HK$1,485,592,000 to HK$1,379,712,000, a reduction of approximately 7.1%[20]. - The net gearing ratio significantly worsened from 504% to -1,149%[20]. - As of June 30, 2022, the Group's cash and bank balances were approximately HK$63 million, down from HK$70 million as of December 31, 2021, representing a decrease of about 10%[73]. - The Group's current liabilities exceeded its current assets by HK$418 million, compared to HK$410 million as of December 31, 2021[174]. - The total deficit amounted to HK$80 million as of June 30, 2022, compared to total equity of HK$146 million as of December 31, 2021[174]. Future Outlook - The Group expects to capture more business opportunities through innovative content and integrated marketing solutions to further expand revenue streams[113]. - The Group will continue to explore opportunities to acquire more content and invest in streaming technologies to meet changing viewer preferences[116]. - The Group anticipates a growth in audience numbers with the addition of new channel 78 by the end of 2022, which may drive new product and business development[125]. - The Group plans to enrich its content by bringing in more quality global infotainment choices and establishing strategic partnerships with industry players to create unique value propositions[119]. Debt and Financing - The Group's interest-bearing borrowing of HK$295 million drawn from a banking facility of HK$400 million, which is immediately repayable on demand[174]. - During the six months ended June 30, 2022, the controlling shareholder of Forever Top advanced unsecured loans of HK$170 million to the Group[174]. - The Group entered into a loan agreement for an unsecured loan of HK$80 million with an interest rate of 3.0% per annum for a term of 3 years[131]. - The Group's banking facility was last renewed in mid-March 2019, and the Directors expect it to be successfully renewed under similar terms[180]. Organizational Changes - The Group is undergoing organizational restructuring, including cost-saving initiatives and strategic reviews of its business portfolio[182]. - The management is conducting strategic reviews to optimize the Group's structure for improved performance and cost efficiency[108]. Accounting Standards - The group adopted several amendments to accounting standards effective from January 1, 2022, which did not significantly affect the accounting policies or financial results[192]. - The amendments include HKFRS 3, HKFRS 16, and HKAS 16, among others, relevant to the group's operations[192].
有线宽频(01097) - 2022 - 中期财报