In August, I-Cable reported a 78 per cent decline in post-tax profit to HK$26 million for the six months to end-June. I-Cable said that “deteriorating economic conditions and intense competition since then continued to make a negative impact on the Group’s business, resulting in further revenue and margin erosion.
In addition, the Group expects to make a special provision for set-top-boxes to be replaced in 2009 upon the launch of the next generation transmission encryption system and to book losses from film investments.”
I-Cable nevertheless said that the board believed that “the financial position of the Group remains solid and that the Group is well-positioned to weather the current difficult environment, as well as to capitalize on any potential business opportunities.” I-Cable lost English Premier League rights to rival PCCW’s Now TV network in 2007.