I-Cable revenues rise despite competition
Company's 2006 earnings up 4%
Operating costs before depreciation jumped 14% to $245.8 million, mostly due to the cost of airing 2006 World Cup soccer on paybox subsidiary Cable TV, the launch of Hollywood Movie Channel and more activity from film production arm Sundream Motion Pictures. Operating profit dropped 29% to $25 million.
Cable TV subscription numbers grew 7% to 786,000, allowing the paybox to retain its No. 1 position. Company said the increase was fueled by local content.
News, movies and entertainment channels are consistently the most watched on Cable TV, a spokesman said, while live soccer is a big draw.
The company didn't have an update on a new channel due to debut mid-year. It is part of Cable TV's efforts to hit up new markets and revenue streams after losing rights last year to English Premier League soccer matches, which PCCW's Now Broadband TV secured for three years with a $200 million bid.
However, Cable TV is bidding for the 2010 World Cup. Bidding should wrap by the end of this year or early 2008, a spokesman said.
Sundream had four films last year and has six to eight planned for either release or production this year, including "Eye in the Sky," which debuted at Berlin.
