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I-Cable Communications has reported a net profit for the first time since listing in 1999, with earnings in the year to December 31 of HK$20 million.

This represented a significant turnaround from a year earlier, when the provider of cable-television and broadband network services recorded a loss of HK$237 million.

Turnover increased 23 per cent to HK$1.65 billion, while earnings before interest, tax, depreciation and amortisation (ebitda) - a measure of operating cash flow - soared 97 per cent to HK$443 million.

'The positive earnings has come a year earlier than [the market] expected,' said chief executive Stephen Ng Tin-hoi.

Last year, the company's pay-television service business recorded an operating profit of HK$73 million, compared with a loss of HK$101 million a year earlier.

Turnover was up 18 per cent to HK$1.54 billion, bolstered by a 15 per cent increase in the subscriber base to 520,000.

The pay-TV arm began to report a healthy operating profit in the second quarter last year.

Mr Ng expected the group would continue to play an important role in this market in Hong Kong.

'Due to our early entry into the market, we've established a brand image and a large subscriber base,' he said.

I-Cable is one of the two pay-TV operators in Hong Kong, alongside Pacific Century CyberWorks' iTV. However, they face increased competition, with two new pay-TV operators planning to launch services in August.

I-Cable's network is estimated to cover more than 90 per cent of households in Hong Kong.

For I-Cable's Internet and multimedia services arm, turnover in the year to December 31 increased 189 per cent from a year earlier to HK$109 million.

Mr Ng attributed the increase to the group's broadband network service, which was launched in March last year.

'In the nine months to December 31, we achieved a 6 per cent penetration rate in the broadband service market in Hong Kong, and a 25 per cent market share among residential users,' he said.

Despite increased turnover, the Internet services arm saw its ebitda loss widen to HK$56 million last year from HK$48 million in 1999.

'This was explained by the expenses incurred in rolling out the broadband service,' said Mr Ng.

'But we began to report a positive figure at the end of last year as business increased.'

As at the end of last year, the group's broadband network coverage was 50 per cent but the figure is expected to go up to 90 per cent by the end of this year.



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I-Cable racks up first $20m net gain since listing