i-Cable Communications Limited — Earnings Release 2000

Mar 22, 2001

Listed Company Information

I-CABLE COMM<1097> - Results Announcement i-CABLE Communications Limited announced on 22/3/2001: (stock code: 1097) Year end date: 31/12/2000 Currency: HKD (Audited) (Audited) Last Current Corresponding Period Period from 1/1/2000 from 1/1/1999 to 31/12/2000 to 31/12/1999 ('000) ('000) Turnover : 1,649,401 1,345,546 Profit/(Loss) from Operations : (6,690) (152,461) Finance cost : (72,006) (89,555) Share of Profit/(Loss) of Associates : Nil Nil Share of Profit/(Loss) of Jointly Controlled Entities : Nil Nil Profit/(Loss) after Tax & MI : 20,161 (236,962) % Change over Last Period : N/A EPS/(LPS)-Basic : $0.01 ($0.14) -Diluted : N/A N/A Extraordinary (ETD) Gain/(Loss) : Nil Nil Profit/(Loss) after ETD Items : 20,161 (236,962) Final Dividend per Share : Nil Nil (Specify if with other options) : N/A N/A B/C Dates for Final Dividend : N/A Payable Date : N/A B/C Dates for Annual General Meeting : 11/5/2001 to 18/5/2001 bdi. Other Distribution for Current Period : None B/C Dates for Other Distribution : N/A Remarks: (1) In prior years, certain expenses, including pre-operating expenses, pre-maturity expenses and other items, were deferred according to defined bases and amortised on a straight line basis over the term of the initial subscription television broadcasting licence which expires on May 31, 2005. With effect from January 1, 2000, the Group adopted an accounting policy of recognising all such costs as an expense in the period they are incurred in order to comply with Interpretation 9 "Accounting for pre-operating costs" issued by the Hong Kong Society of Accountants. The new accounting policy has been adopted retrospectively. In adjusting prior years' figures, the deficit balance of revenue reserve as at January 1, 1999 was restated and increased by HK$963,004,000, representing write-off to the prior years' consolidated profit and loss account of the unamortised balance of deferred expenses as at December 31, 1998. Upon adoption of Interpretation 9 and restating the prior years' results and reserves, the Group's loss attributable to shareholders for the year ended December 31, 2000 has decreased by HK$150,281,000 (1999: HK$150,281,000) as there was no more amortisation of deferred expenses after the above write-off. Certain comparative figures have been reclassified to conform with current year's presentation. (2) An analysis of the Group's turnover and operating loss by operating activities for the year ended December 31, 2000 is as follows: Turnover Operating profit / (loss) ------------------------- ------------------------- 2000 1999 2000 1999 restated HK$'000 HK$'000 HK$'000 HK$'000 Operating activities Cable television 1,540,887 1,308,019 73,257 (101,129) Internet and multimedia 108,514 37,527 (79,947) (51,332) -------------------------- ------------------------ 1,649,401 1,345,546 (6,690) (152,461) ========================== ========================= All of the above operating activities jointly utilise certain of the Group's resources. The amount of revenue and expenses for the Internet and multimedia activity represents those directly earned or incurred by that activity. During the financial year, more than 90% of the Group's operating activities in terms of both turnover and operating loss were carried out in Hong Kong. (3) The calculation of basic earnings / loss per share is based on the net profit of HK$20.2 million (1999 restated: net loss of HK$237.0 million) and the weighted average number of ordinary shares outstanding during the year of 2,014,000,000 (1999: 1,644,926,000). The 1,600,000,000 ordinary shares outstanding as a result of the Group's reorganisation on November 1, 1999 are included in the calculation of the weighted average number of shares as if those shares were outstanding since January 1, 1999. The potential issue of ordinary shares in connection with the Company's convertible bonds and the Company's share option scheme would not give rise to a decrease in earnings per share (1999: an increase in loss per share) and therefore had no dilutive effect on the calculation of diluted earnings / loss per share.