Content Deal Could Be Lifeline for Hong Kong’s i-CABLE

i-CABLE, once the leading provider of pay-TV services in Hong Kong, is on course to license its content to mainland Chinese telecoms giant China Mobile. The deal caused i-CABLE shares to more than double on Monday as investors sensed a possible turnaround in its fortunes.

The company revealed a memorandum of understanding that could see programming made by i-CABLE’s iTL subsidiary licensed to the carrier. i-CABLE said the non-exclusive deal would be expected to run for 20 years. The two companies are also in discussions about sharing and upgrading network resources.

i-CABLE operates as a cable TV platform and covers some 95% of Hong Kong households. It has lost ground notably to its main IPTV-based competitor, PCCW’s NowTV. After mounting losses, its major backer Wharf Holdings refused to provide further finance and sold it instead in April 2017 to a local consortium called Forever Top.

Half year financial results published last week showed that i-CABLE’s losses continuing to deepen. For the six months to June, i-CABLE suffered losses of $32.2 million (HK253 million,) on revenues of $74 million (HK$587 million).

In contrast, China Mobile is one of the most valuable telecoms groups in the world and at the end of July claimed 910 million mobile subscribers.

i-CABLE’s stock continued its upward rise in early trading on Tuesday. At HK$0.23 per share, the company is valued at $182 million (HK$1.43 billion).

Related stories

Hong Kong Singer Ellen Loo Dies in Apparent Suicide at 32

STX Targeting August IPO in Hong Kong (Report)

Taiwan VFX firm VHQ Seeks Hong Kong Listing for China Expansion (Report)

Subscribe to Variety Newsletters and Email Alerts!