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Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

i-CABLE COMMUNICATIONS LIMITED(Incorporated in Hong Kong with limited liability)

(Stock Code: 1097)

FINAL RESULTS ANNOUNCEMENTFOR THE YEAR ENDED DECEMBER 31, 2018

RESULTS HIGHLIGHTS

Year ended December 31,

2018 2017HK$’000 HK$’000

Revenue 1,163,310 1,258,430Loss from operations (489,227) (443,941)Loss for the year (455,588) (362,827)

HK cents HK centsBasic loss per share (7.3) (10.1)Diluted loss per share (7.3) (10.1)

December 31, December 31,2018 2017

HK$’000 HK$’000

Total assets 1,677,595 2,064,782Total liabilities (954,055) (934,935)Total equity 723,540 1,129,847

Gearing ratio (Note 1) 68.4% 43.8%

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• Thefinancialperformanceof i-CABLECommunicationsLimited (the“Company”or“i-CABLE”), its subsidiaries andconsolidated structuredentities (collectively the“Group”) for the year endedDecember 31, 2018was affected by the decline ofadvertising and subscription revenue.

• Onthesubscriptionbusinessfront,thecustomerbasecontractedintheearliermonthsof 2018 as compared to 2017. Number of subscribers has demonstrated improvement followingtheintroductionofnewcontentsandchannelsduringtheyearunderreview.

• Thedeclineofpay television (“PayTV”)advertising revenuewasmainlydue to theintensifyingcompetition fromOTT(over-the-top)platformsanddigitalmedia.Thedeclinewasoffsetbytheincreaseinfreetelevisionadvertisingrevenueasthebusinessstarted ramping up.

• Theprogrammingcostsdecreasedbyapproximately8%ascompared to2017asaresult of the revamp of programming contents.

• Television (“TV”) segmentEBITDA(Note 2) increased froma lossof approximatelyHK$270millionin2017toalossofapproximatelyHK$302millionin2018duetoadecrease in revenueand the start-upcosts associatedwith introductionof freeTVchannel.

• InternetandmultimediasegmentEBITDA(Note 2) remainedatapproximatelyHK$117million in both 2018 and 2017.

Notes:

1. Thegearingratiomeasuredintermsofthetotalinterest-bearingborrowingsdividedbytotalequity.

2. “EBITDA”representsearningsbeforeinterestincome,financecosts,non-operatingincome,incometax(expense)/credit,depreciationofproperty,plantandequipmentbutafteramortisationofprogramminglibrary and contract acquisition costs.

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BUSINESS REVIEW

OPERATING ENVIRONMENT

TheGroup’s financialperformance in2018wasaffectedby thedeclineofadvertisingandsubscription revenue.ThedeclineofPayTVadvertising revenuewasmainlydue to theintensifyingcompetitionfromOTTplatformsanddigitalmedia.Thedeclinewasoffsetbytheincrease in free TV advertising revenue as the business started ramping up.On thesubscription business front, the customer base contracted in the earlier months of 2018 as compared to2017.Numberof subscribers hasdemonstrated improvement following theintroductionofnewcontentsandchannelsduringtheyearunderreview.

Business

Keen competition in the market has continued to contract the subscription customer base of PayTV service, however, the subscription average revenue per userwas only slightlyaffected.

Customers (’000)December

2018December

2017

Television 800 850Broadband 155 149Telephony 87 90

FANhubwithenhancedcontentviewing featurescombinedwithourmobileappservedasamajorpropositiontofacilitatetheacquisitionandretentionofPayTVsubscriptioncustomers.Broadcastingequipmentwasupgraded to improve thevideoand transmissionqualityofTVprogrammes,and theviewingexperiencewasenrichedwithmulti-screen function,allowingoursubscriberstowatchourcontentmoreconveniently.

TheGroupcontinues toupgradeournetwork toprovidehighspeedGigabit-capablePassiveOpticalNetwork (“GPON”) servicesand toenhance theFANhubplatform to supportourenhanced and interactive services, so that our subscribers are able to enjoy more stable and faster internet access.

Directly impacted by the shift of advertising dollars to digital media and online platforms, airtime salesbusinessofPayTVunderperformed in2018.TheGroup isbuildingup theairtimesalesbusinessof the local freeTVchannels.TheGroup launched its free integratedEnglishTVChannel in July2018and rebranded its integratedCantoneseTVChannelbyofficialrenamingtheGroup’sFreeTelevisionChannel77asHongKongOpenTVinOctober2018.

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TheGroup is under-goingmajor changes, including, amongother things, (i) cost savinginitiative; (ii) introductionofnewcontents andchannels; (iii)new televisioncontent co-operationmodels;and(iv)strategicreviewonpossiblerestructuringof theGroup’sbusinessportfoliotoachievecostsavingandimproveprofitability,aswellasthefinancialperformanceof theGroup.Aspartofa strategic review, theGroup isevaluating formingpartnershipordisposingitslossmakingoperationstoreducethecashdrainonthebusiness.Althoughearlydiscussions are being held, there is no certainty that these may lead to any satisfactory conclusion for any transactions.

Programming

i-CABLE’snewshasalwaysbeenwell-recognisedby themarketasevidencedby thehighrankinginnewsandfinancechannelintheAppreciationIndexinpastyears.Thiswasfurtherdemonstratedbytheawardswinninginvariousi-CABLE’snewsprogrammesovertheyears.

Amid fiercecompetition from traditionalTV,onlinemedia threatandchangeofaudiences’viewinghabits,entertainmentplatformstrivedtomaintainourcompetitiveedgebyprovidingbespokespecialtychannelswithpremiumcontenttooursubscribers.MoviechannelscontinuetoofferawiderangeofmoviechoicestofilmbuffsincludingthecriticallyacclaimedKoreanmovie“ATaxiDriver” (逆權司機)andBestFilmof the37thHongKongFilmAwards—“OurTimewillCome” (明月幾時有). “Movie2” channelwas renamed to “CableMovieClassics” (有線經典電影台) tobringviewersnotonlyHongKonggoldenclassicsbutalsoclassicmoviesaround theworld.Dramachannelmadea substantialgrowth inviewership.Koreanfamilydramascontinuetoattracteye-balls,both“BandofSisters”(姐姐還活著) and “ReturnofFortunateBok” (回來的福丹芝) ranked thehighest viewership entertainmentprogrammesduringtheperiod.Ourself-productionscontinuetoembraceoriginalityandlocalflavor.“4-HourLivingCircle” (四小時生活圈)notonlyexhibiteda freshnewformatwithdistinctiveprospective,butalsodeliveredastylishtwisttotraditionaltravelprogramme.TheGroup’s self-produced entertainment programmes focus on local and internationalentertainmentnews for thepurposeof fostering relationshipswithdifferentpartners in theentertainment industry.

Duringtheyear,theGroupcontinuedtooffermajorsoccereventssuchasUEFAChampionsLeague,GermanBundesliga, J.League, etc. and broadened the variety ofmajor sportsprogrammes that interest local subscribers.Wecoveredhorse racingandanewprogramme“BeABigPunter”(我要做大戶) on horse racing channel. The Group also carried other major sports events like“HongKongSevens” (香港國際七人欖球賽), “FIVBWomen’sNationsLeague” (世界女排聯賽), “FIVBMen’sNationsLeague” (世界男排聯賽), “FIBAMen’sBasketballWorldCup2019Qualifiers”(FIBA世界盃男子籃球資格賽),“CBA”(中國職業籃球聯賽), “ASEANBasketballLeague” (東南亞職業籃球聯賽) and “Thomas&UberCupBadminton”(湯姆斯盃及優霸盃羽毛球賽) etc.

InMarch2018,theGrouphadbusinessarrangementswithFoxNetworksGroupAsiaPacificLimitedon theprovisionofprogrammechannels toPayTVwithavarietyofprogrammesincludingworld-class sports,entertainment, lifestyleandnewscontents.Thesearrangementsservetoperfectlycomplementi-CABLE’sawardwinningnewsandcreativelocalproductionprogrammes,andprovidearangeofnewgenresforoursubscribers.

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Inthesamemonth,i-CABLEwasappointedastheOfficialHostBroadcasterandtheOfficialPartnerofthe2018CathayPacific/HSBCHongKongSevens.Duringthegameperiod,on-sitecoverageofthetournamentfromHongKongStadium,andallprogrammingwereproducedbyi-CABLESportsandallgameswereavailableonTV, i-CABLE’swebsiteand the i-CABLEmobile app, offering themost comprehensivemultiple-platformbroadcasting service.i-CABLEalsocelebrated the18thAsianGames2018Jakarta-Palembang inAugust2018byprovidingextensiveandunprecedentedbroadcastingcoverageoftheeventinHongKong.TheprogrammeofAsianGames2018onCABLETVwasacross-platformspecialbroadcast,spanningPayTV, freeTV, the internetandmobilenetworks.With thebroadcast servicesprovidedby i-CABLE,people inHongKongcouldbeable tokeepabreastwith the latestnewsandresultsoftheeventand,themostimportantofall,tosupportHongKongathletesbysharing their joyanddisappointment. InSeptember2018, i-CABLEandbeINAsiaPacificannouncedtheircollaborationtoofferlivecoverageoftheUEFAChampionsLeague(“UCL”)and theUEFAEuropaLeague(“UEL”) tooursubscribers from2018/19 to2020/21seasons.Wewereexcited to join forceswithbeINAsiaPacificagain to furtherenrichour footballcoverage.UCL,UELandUEFANationsLeaguearedefinitely theworld’sgreatest footballcompetitionsandi-CABLEispleasedtobringtheworld’sbestsportsactionstoourviewers.

Recently, theGroup enriched the content by adding new channels relating to sports,entertainment, lifestyle and news to the Pay TV platform,which serves to perfectlycomplementi-CABLE’sawardwinningnewsandcreativelocalproductionprogrammes,andprovidearangeofnewgenresforoursubscribers.

MANAGEMENT DISCUSSION AND ANALYSIS

(A) Review of 2018 Results

RevenueoftheGroupfortheyearendedDecember31,2018decreasedbyapproximatelyHK$95millionor8%toapproximatelyHK$1,163million(2017:HK$1,258million).

Operatingcostsof theGroup for theyearendedDecember31,2018, includingselling,generalandadministrativeandotheroperatingexpenses,costofsales,networkexpensesandprogrammingcosts,decreasedbyapproximatelyHK$50million toapproximatelyHK$1,652million (2017:HK$1,702million).Selling,general andadministrativeandotheroperatingexpensesof theGroup increasedbyapproximately12%,costofsalesoftheGroup increased by approximately 10%,while network expenses of theGroupdecreasedby approximately 7%andprogramming costs of theGroupdecreasedbyapproximately8%.

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Loss from operations of theGroup for the year endedDecember 31, 2018wasapproximatelyHK$489million, representing an increase of approximately 10%, ascomparedwiththeoperatinglossofapproximatelyHK$444millionforthecorrespondingperiod in 2017.

During the year ended December 31, 2018, the Group recorded a gain on the disposal of a subsidiary,whichwas apropertyholdingcompanyof approximatelyHK$32million(2017:HK$72million).GainondisposalofrealpropertiesfortheyearendedDecember31,2018wasapproximatelyHK$11million(2017:HK$11million).

Aftertherecognitionofinterestincome,financecosts,non-operatingincomeandincometax, theGroup recordedanet lossofapproximatelyHK$456million for theyearendedDecember31,2018(2017:HK$363million).BasicanddilutedlosspersharefortheyearendedDecember31,2018wasapproximatelyHK7.3cents(2017:HK10.1cents).

(B) Segmental Information

Theprincipalactivitiesof theGroup includeTelevision,and InternetandMultimediaoperations.

Television

The television segment includes operations related to the television subscription business, domestic free television programme service, advertising, channel carriage, television relayservice,programmelicensing,networkmaintenance,andotherrelatedbusinesses.

Revenue derived from the television segment for the year ended December 31, 2018 decreasedby approximately10% to approximatelyHK$813million (2017:HK$905million)onlowersubscriptionandadvertisingrevenue.

OperatingcostsbeforedepreciationincurredbythetelevisionsegmentfortheyearendedDecember31,2018decreasedbyapproximately5%toapproximatelyHK$1,115million(2017:HK$1,175million).EBITDAfortheyearendedDecember31,2018wasalossofapproximatelyHK$302million(2017:alossofapproximatelyHK$270million)duetoadecrease in revenue and the start-up costs associatedwith introduction of freeTVchannel.

Internet and Multimedia

The internet and multimedia segment includes operations related to broadband internet accessservices,portaloperation,mobilecontent licensing, telephonyservicesaswellasother internet access related businesses.

Revenue derived from the internet and multimedia segment for the year ended December 31,2018slightlydecreasedbyapproximatelyHK$1million toapproximatelyHK$320million(2017:HK$321million).

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Operatingcostsbeforedepreciationincurredbythe internetandmultimediasegmentforthe year endedDecember 31, 2018 decreased by approximatelyHK$1million toapproximatelyHK$203million (2017: HK$204million). EBITDA remained atapproximatelyHK$117millionforboththeyearsendedDecember31,2018and2017.

(C) Liquidity, Financial Resources and Capital Structure

AsatDecember31,2018, theGrouphadcashandbankbalancesand restrictedbankbalancesofapproximatelyHK$178millionandHK$18millionrespectivelyascomparedtoapproximatelyHK$568millionandHK$17million respectivelyasatDecember31,2017. The cash and bank balances and restricted bank balances of the Group as at December31,2018and2017aremainlydenominatedinHongKongDollar(“HK$”).Thegearingratio,measuredintermsofthetotalinterest-bearingborrowingsdividedbytotalequity,wasapproximately68.4%(2017:43.8%).Thecapitalstructureof theGroupwasapproximately 41%debt and approximately 59% equity as atDecember 31, 2018,representingan increaseof approximately11%andadecreaseof approximately11%respectivelyascomparedwithapproximately30%debtandapproximately70%equityasat December 31, 2017.

Consolidatednetassetvalueof theGroupasatDecember31,2018wasapproximatelyHK$724million, representing a decrease of approximately 36%, as comparedwithconsolidatednet assetvalueof theGroupas atDecember31,2017of approximatelyHK$1,130 million.

Thecarryingamountofinterest-bearingborrowingsdenominatedinHK$asatDecember31,2018wasHK$495million(2017:HK$495million),whichcarriesinterestatvariablerates,ofwhichHK$395millionwas repayableondemandandHK$100millionwouldbecomedueonDecember31,2019.Thecommittedborrowing facilitiesavailable to theGroupbutnotdrawnasatDecember31,2018amountedtoHK$5million(2017:HK$11million).

In September 2017, theCompany completed the open offer (the “OpenOffer”) of3,352,520,666sharesof theCompany (the“Shares”)at theofferpriceofHK$0.21perShare fornetproceedsofapproximatelyHK$687millionandcompleted theconversionoftheloancapitalisationamountofHK$300millionto841,987,090SharesinaccordancewiththeloancapitalisationagreementamongtheCompany,asubsidiaryoftheCompanyand Wharf Finance Limited.

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The following table sets forth the information in relation to theuseof thenetproceedsfromtheOpenOffer:

Unutilised amount of net proceeds from the Open Offer as at December 31, 2017 and intended use of such unutilised net proceeds

Actual use of net proceeds from the Open Offer during the year ended December 31, 2018

The amount of the unutilised proceeds from the Open Offer which has been reallocated as operating funds

Intended use of unutilised net proceeds from the Open Offer and expected timeline

ApproximatelyHK$523millioncomprising:

ApproximatelyHK$504millioncomprising:

Not applicable ApproximatelyHK$19million (being unutilised net proceedsofapproximatelyHK$523 million less use of net proceeds during the year ended December 31, 2018 ofapproximatelyHK$504million)comprising:

(i)approximatelyHK$146million for investments in networkrelatedcapitalexpenditure;

(i)approximatelyHK$96million for investments in networkrelatedcapitalexpenditure;

(i)approximatelyHK$44million;

(i)approximatelyHK$6million* for investments in networkrelatedcapitalexpenditurewithin3yearsfrom the completion of the OpenOffer;

(ii)approximatelyHK$143million for investments in television related capital expenditure;

(ii)approximatelyHK$41million for investments in television related capital expenditure;

(ii)approximatelyHK$94million;

(ii)approximatelyHK$8million* for investments in television related capital expenditurewithin3yearsfrom the completion of the OpenOffer;

(iii)approximatelyHK$75million for investments in othercapitalexpenditure;and

(iii)approximatelyHK$65million for investments in othercapitalexpenditure;and

(iii)approximatelyHK$10million; and

(iii) nil; and

(iv)approximatelyHK$159 million for funding required for operating requirements of the Group

(iv)approximatelyHK$302 million for funding required for operating requirements of the Group

(iv)notapplicable.Anaggregate of approximatelyHK$148millionwasreallocatedfrom the above intended uses

(iv)approximatelyHK$5million for funding required for operating requirements oftheGroupwithin2yearsfrom the completion of the OpenOffer

* Amount of the unutilised proceeds from the Open Offer which will be used as originally intended.

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TheGroup’s assets and liabilities aremainlydenominated inHK$andUnitedStatesDollars(“US$”)anditearnsitsrevenueandincurscostsandexpensesmainlyinHK$andUS$.AsHK$ is pegged toUS$, theGroupdoes not expect any significant foreigncurrencyexposurearising from the fluctuationof theUS$/HK$orHK$/US$exchangerates.

Capitalexpenditureonproperty,plantandequipmentduring theyearendedDecember31,2018amounted toapproximatelyHK$179million (2017:HK$208million)and theadditions to programming library during the year endedDecember 31, 2018wasapproximatelyHK$86million(2017:HK$115million).

TheGroup financed itsoperationsgenerallywith internallygeneratedcash flows, theavailablecreditfacilitiesandtheproceedsfromtheOpenOffer.

(D) Contingent Liabilities

AsatDecember31,2018,theGroupdidnothaveanycontingentliabilities.

(E) Guarantees

AsatDecember31,2018, therewerecontingent liabilities in respectofguaranteesandindemnitiesprovidedby theCompany toabankandWharfFinanceLimited totallyofHK$500million(2017:HK$500million)inrespectofguaranteefacilitiesofborrowingsup toHK$500million (2017:HK$500million) to awholly-owned subsidiaryof theCompany, ofwhichHK$495million (2017:HK$495million)was utilised by thesubsidiaryoftheCompany.

AsatDecember31,2018,theGrouphasmadearrangementswithabanktoprovidetwoseparateperformancebonds to thecounterpartiesamounting toapproximatelyHK$42million, ofwhich approximatelyHK$12millionwas securedbybankdeposits.Theperformance bonds are to guarantee in favour of the counterparties the Group’s performance in fulfilling the obligations under a contract and the capital and programming expenditure requirement forproviding thedomestic free televisionprogramme service under the domestic free television programme service licence.

(F) Human Resources

TheGrouphad1,700employeesas atDecember31,2018 (2017:1,876).Totalgrosssalaries and related costs before capitalisation and incurred for the year ended December 31, 2018 amounted to approximatelyHK$603million (2017:HK$651million).TheremunerationofthedirectorsoftheCompany(the“Directors”)andtheemployeesoftheGroup are determinedwith reference to their qualifications, experience, duties andresponsibilitieswith theGroup,aswellas theGroup’sperformanceand theprevailingmarket conditions. Besides, the Group regularly provides training courses for the employees of the Group to meet their needs. Under the share option scheme of the CompanyadoptedonMay24,2018,shareoptionsoftheCompanymaybegrantedtotheDirectorsandeligibleemployeesoftheGrouptosubscribeforShares.

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(G) Operating Environment

TheGroup’sfinancialperformancein2018wasaffectedbythedeclineofadvertisingandsubscription revenue.Thedeclineof the advertising revenuewasmainlydue to thecompetitionfromfreetelevision,digitalandOTTplatforms.Onthesubscriptionbusinessfront, the customer base contracted as compared to 2017.

(H) Charge on Group Assets

AsatDecember31,2018, securitydepositsof approximatelyHK$18million (2017:HK$17million)weremadeby theGroup tosecurecertainbanking facilitiesgranted tothe Group.

(I) Material Acquisitions and Disposals and Significant Investments

Therewasnomaterialacquisitionordisposalof subsidiaryandassociatedcompanyorsignificant investmentsof theGroup,whichwouldhavebeen required tobedisclosedunder theRulesGoverning theListingofSecuritiesonTheStockExchangeofHongKong Limited (the“ListingRules”),fortheyearendedDecember31,2018.

(J) Future Plans for Material Investments or Capital Assets

TheGroupwill continue to invest inproperty,plantandequipmentandprogramminglibraryas requiredby itsbusinessoperations,andexplore themarketand identifyanybusinessopportunitieswhichmayprovideitsgrowthanddevelopmentpotential,enhancetheprofitability, and strive forbetter return to the shareholdersof theCompany (the“Shareholders”).

TheGroup’songoingcapitalexpenditurewillbefundedbyinternalcashflowsgeneratedfromoperations,theavailablecreditfacilities,theproceedsfromtheOpenOfferandtheproposed rights issue (the“Rights Issue”)andunlisted long-termconvertible securities(the“LCS”)asdisclosedintheannouncementoftheCompanydatedJanuary25,2019.

(K) Outlook

The televisionsegmentof theGroup isexperiencing intensecompetition inacrowdedmarketplacewith a super dominant operator and changing user behaviour. Theproliferationandabundanceofawide rangeofonlinecontentsavailableonnewmediaplatformsandvariousmobiledevices, allowingusers to select andviewanytimeandanywhere,alsopresentcompetitionwith theGroup’s subscriptioncontents.At thesametime, the increasingly keen competition for contents has raised acquisition costs, and the entire internet andmultimedia segmenthas tocopewith fast technologychangesandcustomersdemandforbetterqualityandhigher-speedinternetservice.

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SinceForeverTop(Asia)Limitedbecamethecontrollingshareholder(“ForeverTop”orthe“ControllingShareholder”) in2017asa resultofbeing theunderwriterof theOpenOfferoftheCompany,theCompanyhasbeenfocusingonformulatinganorganisationalrestructuringwhich included, among other things, (i) cost saving initiative; (ii)introductionofnewcontents and channels; (iii) new television content co-operationmodels; and (iv) strategic reviewonpossible restructuringof theGroup’s businessportfolio to achieve cost saving and improve profitability, aswell as the financialperformanceoftheGroup.Aspartofastrategicreview,theGroupisevaluatingformingpartnership or disposing its loss making operations to reduce the cash drain on the business.Althoughearlydiscussionsarebeingheld, there isnocertainty that thesemaylead to any satisfactory conclusion for any transactions.

Inaddition, freeTV launched its integratedCantonesechannelunder thedomestic freetelevisionprogrammeservicelicenceinMay2017.TheGrouphasexpandeditsoperationto include anEnglish newsdesk andPutonghua financedesk, to support the newlyestablishedHongKongInternationalBusinessChannel,a24-hourEnglishfreetelevisionchannel inHongKong,whichwasofficially launchedonJuly30,2018onChannel76and focuses onproviding financial news and informationwith programmes in bothEnglish andPutonghua.TheDirectors expect the abovemeasures could enhance theoverall competitiveness of the Group.

TheGroupwillcontinuetoexerciseprudencetoinvestinprogramminglibrary,contentsenrichment,HD(highdefinition)and/orOTTupgrades,customerservice improvement,higher speedbroadbandserviceupgrades,aswellasmarketingandmedia initiatives tosharpen the competitiveness of the Group.

(L) Events after the Reporting Period

Saveasdisclosedbelow, theGroupdoesnothaveany important events affecting theGroup’s financialperformanceand/or financialpositionsignificantly thathaveoccurredsince the end of the financial year December 31, 2018.

OnJanuary25,2019,ForeverTopas lenderand theCompanyasborrowerentered intothe loanagreement (the“LoanAgreement”)pursuant towhichForeverTopagreed togrant the loan facility (the“LoanFacility”)ofanamountup toHK$200millionmadeavailabletotheCompanyattheinterestrateoftheHongKongInterbankOfferedRateforinterest period of three months per annum, unsecured and repayable at the earlier of (a) 18-months from thedateof theLoanAgreement;and (b) fivebusinessdays followingcompletionof last fundraisingactivityof theCompany(including issuanceofequityordebtorconvertible securities) from thedateof theLoanAgreementwithanaggregateamount of gross proceeds receivedby theCompany fromall fund raising activitiescompletedafterthedateoftheLoanAgreementbeingnotlessthanHK$600million.TheLoanFacilitywillbeusedbytheCompanyforitsgeneralworkingcapitalrequirements.

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Inaddition to theaboveLoanFacilitygranted to theCompany,onJanuary25,2019theCompanyannouncedarevisedfundraisingproposal,comprisingtheRightsIssueandthesubscription (the “Subscription”)of theLCSasdetailed in the announcementof theCompanydated January25,2019.According to the revised fund raisingproposal, theCompanywillraiseamaximumgrossproceedsofapproximatelyHK$660million,asthisis the amount the board ofDirectors (the “Board”) considers necessary to achieve financial stability, maintain customer confidence and fulfil the Group’s licensing requirements.Moreover,whiletheLoanFacilityhasbeengrantedtotheGroup,itisonlyforgeneralworkingcapital requirementsandona short-termbasis,and theBoard isoftheview that theRights Issue and theSubscription arenecessary to recapitalise thebusinesstoallowsufficienttimefortherestructuringinitiativestobeimplemented.

(M) Compliance with Relevant Laws and Regulations

During theyearendedDecember31,2018, therewasno incidenceofnon-compliancewiththerelevantlawsandregulationsoftheplaceinwhichtheGroupoperatesthathasasignificant impact on the business operations of the Group.

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CONSOLIDATED STATEMENT OF PROFIT OR LOSSFor the year ended December 31, 2018

2018 2017Note HK$’000 HK$’000

Revenue 6,7 1,163,310 1,258,430Costofservices—Programmingcosts (868,610) (939,579)—Networkexpenses (334,679) (361,481)—Costofsales (86,941) (79,014)Selling,generalandadministrativeandother operatingexpenses (362,307) (322,297)

Loss from operations (489,227) (443,941)

Interestincome 2,327 776Finance costs (10,238) (9,315)Non-operatingincome 42,373 86,268

Loss before taxation 8 (454,765) (366,212)Incometax(expense)/credit 9 (823) 3,385

Loss for the year (455,588) (362,827)

Attributable to: EquityshareholdersoftheCompany (455,588) (362,827)

Loss per share 10 Basic (7.3) HK cents (10.1) HK cents

Diluted (7.3) HK cents (10.1) HK cents

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CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOMEFor the year ended December 31, 2018

2018 2017HK$’000 HK$’000

Loss for the year (455,588) (362,827)

Other comprehensive income for the yearItem that may be reclassified subsequently to profit or loss: Currencytranslationdifference (660) 403

Total comprehensive income for the year (456,248) (362,424)

Attributable to: EquityshareholdersoftheCompany (456,248) (362,424)

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CONSOLIDATED STATEMENT OF FINANCIAL POSITIONAs at December 31, 2018

2018 2017Note HK$’000 HK$’000

ASSETSNon-current assets Property,plantandequipment 858,917 888,775 Programminglibrary 115,502 151,577 Otherintangibleassets 1,218 1,218 Contractacquisitioncosts 15,344 – Interestinanassociate – – Deferredtaxassets 300,525 303,472 Deposits, prepayments and other receivables 43,472 39,006

1,334,978 1,384,048

Current assets Inventories 10,130 13,981 Trade receivables 11 58,404 43,822 Deposits, prepayments and other receivables 54,233 38,187 Contractacquisitioncosts 23,715 – Restricted bank balances 18,320 16,710 Cashandbankbalances 177,815 568,034

342,617 680,734

Total assets 1,677,595 2,064,782

EQUITYCapital and reserves Sharecapital 13 7,844,472 7,844,472 Reserves (7,120,932) (6,714,625)

Total equity 723,540 1,129,847

LIABILITIESNon-current liabilities Interest-bearingborrowings – 100,000 Deferredtaxliabilities – 2,447 Accruedexpensesandotherpayables 21,068 21,068 Receipts in advance and customers’ deposits 288 919

21,356 124,434

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2018 2017Note HK$’000 HK$’000

Current liabilities Trade payables 12 49,567 17,150 Accruedexpensesandotherpayables 248,390 235,771 Receipts in advance and customers’ deposits 139,670 162,494 Interest-bearingborrowings 495,000 395,000 Currenttaxliabilities 72 86

932,699 810,501

Total liabilities 954,055 934,935

Total equity and liabilities 1,677,595 2,064,782

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

1. GENERAL INFORMATION

i-CABLECommunicationsLimited (the“Company”) isa limited liabilitycompany incorporated inHongKong.TheaddressofitsregisteredofficeinHongKongis8thFloor,CableTVTower,9HoiShingRoad,Tsuen Wan, Hong Kong.

TheCompanyhasitsprimarylistingonTheStockExchangeofHongKongLimited.

TheCompany, its subsidiariesandconsolidatedstructuredentities (together the“Group”)areengaged intelevision subscription business, domestic free television programme services, advertising, channel carriage, television relayservice,programme licensing,networkmaintenance,other television relatedbusinesses,broadband internet access services, portal operation, mobile content licensing, and telephony services as wellasotherinternet access related businesses.

Theconsolidated financial statements for theyearendedDecember31,2018 (the“FinancialStatements”)are presented in thousands of Hong Kong dollars (HK$’000), unless otherwise stated.TheFinancialStatementshavebeenapproved for issueby theboardofdirectors (the“Directors”)of theCompanyonMarch29,2019.

The financial information relating to the years ended December 31, 2018 and 2017 that is included in this final results announcementdoesnot constitute theCompany’s statutoryannual consolidated financialstatements for that year but is derived from those financial statements. Further information relating to these statutory financial statements required tobedisclosed inaccordancewithsection436of theHongKongCompaniesOrdinance(Cap.622)isasfollows:

TheCompanyhasdeliveredtheconsolidatedfinancialstatementsoftheGroupfortheyearendedDecember31,2017 to theRegistrarofCompaniesas requiredbysection662(3)of,andPart3ofSchedule6 to, theHongKongCompaniesOrdinance(Cap.622)andwilldeliver theconsolidatedfinancialstatementsof theGroup for the year ended December 31, 2018 in due course.

TheCompany’sauditorhasreportedontheconsolidatedfinancialstatementsof theGroupforbothyears.Theauditor’sreportswereunqualified;didnotincludeareferencetoanymatterstowhichtheauditordrewattentionbywayofemphasiswithoutqualifyingitsreport;anddidnotcontainastatementundersections406(2),407(2)or(3)oftheHongKongCompaniesOrdinance(Cap.622).

2. BASIS OF PREPARATION

The consolidated financial statements have beenprepared in accordancewithHongKongFinancialReportingStandards (“HKFRS”) issuedby theHongKong Institute ofCertifiedPublicAccountants(“HKICPA”). The consolidated financial statements have been prepared under the historical costconvention.

ThepreparationofconsolidatedfinancialstatementsinconformitywithHKFRSrequirestheuseofcertaincritical accountingestimates. It also requiresmanagement to exercise its judgement in theprocessofapplyingtheGroup’saccountingpolicies.Theareasinvolvingahigherdegreeofjudgementorcomplexity,or areaswhere assumptions andestimates are significant to the consolidated financial statements aredisclosedinNote4below.

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During theyear endedDecember31, 2018, theGroup incurred a net loss ofHK$456million (2017:HK$363million),netoperatingcashoutflowsofHK$184million (2017:HK$207million)and,asof thatdate, theGroup’snet current liabilitiesexceeded its currentassetsbyHK$590million (2017:HK$130million).Includedinitscurrentliabilitieswasaninterest-bearingborrowingofHK$395milliondrawnfromabankingfacilityofHK$400millionwhichis immediatelyrepayableondemandandsubject toreviewatleastannually,andaninterest-bearingborrowingofHK$100milliondrawnfromaloanfacilitygrantedbyWharfFinanceLimited(“WharfFinance”)whichisdueforrepaymentonDecember31,2019.Inaddition,theGroupwouldrequireadditionalfundingtoimproveitscapitalbase,capitalexpendituresofitsnetworkandequipmentandacquisitionofprogramminglibraryandworkingcapitalrequirementsintheforeseeablefuture.

Inviewof theabove, theDirectorshavegivencarefulconsiderationof the liquidity requirement for theGroup’soperations, theperformanceoftheGroupandavailablesourcesoffinancinginassessingwhethertheGrouphassufficient financial resources tocontinueasagoingconcern.TheDirectorshave reviewedtheGroup’scashflowprojectionspreparedbymanagementwhichcoversaperiodofnot less than twelvemonthsfromDecember31,2018.TheDirectorshavetakenintoaccountthefollowingplansandmeasuresinassessingthesufficiencyofworkingcapitalrequirementsintheforeseeablefuture:

(1) TheCompany’sproposaltoraisefundsofapproximatelyHK$660millionviaarightsissueassetoutintheCompany’scirculardatedDecember20,2018wasvoteddownbytheindependentshareholdersof theCompanyonJanuary9,2019.Assetout in theCompany’sannouncementdatedJanuary25,2019,theCompanyproposedarevised“2019Proposal”toitsshareholderstoraisefundsintheformofarights issue(“RightsIssue”)and issueofunlisted long-termconvertiblesecurities(“LCS”).The2019Proposal requires theapproval from independent shareholdersof theCompany inanupcominggeneral meeting.

The2019Proposalcomprisesthefollowing:

(i) To raise fundsofapproximatelyHK$465.5million (assumingnonewSharesare issuedandnorepurchaseofSharesonorbefore the recorddate fordeterminingentitlementunder theRightsIssue)before expensesbywayof theRights Issue.ForeverTop (Asia)Limited, a companyholding43.2%oftheCompany’sshareholding(“ForeverTop”),hasundertakentotheCompanythatitwilltakeupitsshareoftheRightsIssueinsuchnumberofrightssharesthatitspercentageshareholdingintheCompanywillremainthesameimmediatelybeforeandafterthecompletionoftheRightsIssue.

(ii) On January25,2019, theCompanyandForeverTop further entered intoa conditionalLCSsubscriptionagreement (the“LCSSubscriptionAgreement”)wherebyForeverTopagreed tosubscribe for the10-yearLCSsubject to theapprovalof the independent shareholdersof theCompany.Thesubscriptionof theLCSby theForeverTopwouldbebetweenaminimumofapproximatelyHK$195millionandamaximumofHK$660million,dependingonthenumberofshares finally issuedunder theRights Issue (assuming that there isnoexerciseofoutstandingshareoptionsbeforetherecorddatefordeterminingentitlementsundertheRightsIssue).

(2) A loan facilityofHK$200millionhasbeenprovidedbyForeverTopon January25,2019 to theGroupfor itsworkingcapitalrequirements.Theloanfacility isrepayableat theearlierof18monthsfromthedateof theloanagreementandfivebusinessdaysfollowingcompletionof lastfundraisingactivitiesafter thedateof the loanagreement,withanaggregateamountofgrossproceeds receivedfrom all fund raising activities being not less than HK$600 million (including issuance of equity, debts or convertible securities).

(3) ThereviewofitsexistingrevolvingbankloanfacilityofHK$400millionhasrecentlybeencompletedby thebank inmid-March2019on the same termswhich include thebank’soverriding right to demand repayment.

(4) Management has been formulating an organisational restructuringwhich includes cost savinginitiatives,introductionofnewcontents,cooperationmodelwithotherpartnersandstrategicreviewofits business portfolio.

(5) ForeverTophasalsoconfirmed its intention toprovide further financial support, as andwhen isnecessary,totheGroupforaperiodofnotlessthantwelvemonthsfromDecember31,2018.

– 19 –

Asa resultof theseplansandmeasures, theDirectorsareconfident that theGroupwillhavesufficientworkingcapitaltofunditsoperations,financingandcapitalexpenditurerequirementsandremainasagoingconcernatleastinthenexttwelvemonthsfromDecember31,2018.

Notwithstanding theabove,whethermanagement isable toachieve itsplansandmeasuresasdescribedabove,which incorporate assumptions about future events and conditions, are subject to inherentuncertainties. Inparticular,whether theGroupwillbeable tocontinueasagoingconcernwoulddependupon,amongother things, (i) thesuccessfuland timelycompletionof fund raising from theRights Issueand/ortheissuanceoftheLCS;(ii)theavailabilityofthebankloanfacilityforthenexttwelvemonths;(iii)the successful implementation of its organisational restructuring plan and (iv) the financial support from ForeverTopasmentionedabove,asandwhennecessary.

The Directors have, after due consideration of the basis of the plans and measures as described above as well as the reasonablepossibledownsidechanges to thecash flowassumptions, areconfident that theGroupwillhavesufficientworkingcapital tomeet its financialobligationsasandwhen they falldueatleast in the next twelvemonths fromDecember 31, 2018.Accordingly, theDirectors considered itappropriate to prepare the consolidated financial statements of the Group on a going concern basis.

(a) New standard, amendments to standards and interpretation effective in the current accounting period and are relevant to the Group’s operations

During theyear endedDecember31, 2018, theGrouphas adopted the followingnew standard,amendments to standardsand interpretationwhichare relevant to theGroup’soperationsandaremandatoryforaccountingperiodsbeginningonJanuary1,2018:

HKFRS15 RevenuefromContractswithCustomersHKFRS2(Amendments) ClassificationandMeasurementofShare-based

PaymentTransactionsHKFRS15(Amendments) ClarificationstoHKFRS15HK(IFRIC)22 ForeignCurrencyTransactionsandAdvanceConsiderationAnnualImprovementProject AnnualImprovements2014–2016Cycle

Theadoptionof thesenewstandard,amendments tostandardsand interpretationdoesnothaveanysignificant change to the accounting policies or any significant effect on the results and financial positionoftheGroup,exceptasdescribedinNote3below.

(b) New standards, amendments to standards and interpretations that are not yet effective and have not been early adopted by the Group

Thefollowingnewstandards,amendmentstostandardsandinterpretationshavebeenpublishedwhicharemandatoryfortheGroup’saccountingperiodsbeginningonorafterJanuary1,2019buthavenotbeenearlyadoptedbytheGroup:

HKFRS16 Leases (1)

HKFRS17 InsuranceContracts(4)

HKFRS3(Amendments) BusinessCombinations(2)

HKFRS9(Amendments) PrepaymentFeatureswithNegativeCompensationand ModificationofFinancialLiabilities(1)

HKFRS10andHKAS28 (Amendments)

SaleorContributionofAssetsbetweenanInvestorandits AssociateorJointVenture(5)

HKAS1andHKAS8(Amendments) AmendmentstoDefinitionofMaterial (3)

HKAS19(Amendments) EmployeeBenefits(1)

HKAS28(Amendments) InvestmentsinAssociatesandJointVentures(1)

HK(IFRIC)23 UncertaintyoverIncomeTaxTreatments(1)

AnnualImprovementsProject AnnualImprovements2015–2017Cycle(1)

ConceptualFrameworkforFinancial Report 2018

RevisedConceptualFrameworkforFinancialReporting (3)

– 20 –

(1) EffectiveforannualperiodsbeginningonorafterJanuary1,2019(2) Effectiveforbusinesscombinationsandassetacquisitionsforwhichtheacquisitiondateisonor

afterthebeginningofthefirstannualperiodbeginningonorafterJanuary1,2020(3) EffectiveforannualperiodsbeginningonorafterJanuary1,2020(4) EffectiveforannualperiodsbeginningonorafterJanuary1,2021(5) Effectivedateistobedetermined

TheGrouphasalreadycommencedanassessmentof the likely impactofadopting theabovenewstandards, amendments to standards and interpretations, inwhich thepreliminary assessmentofHKFRS16isdetailedbelow.

HKFRS 16 ‘Leases’

Currently theGroupclassifies leases into finance leasesandoperating leasesandaccounts for thelease arrangements differently, depending on the classification of the lease. The Group enters into some leases as the lessor and others as the lessee.

HKFRS16isnotexpectedtoimpactsignificantlyonthewaythatlessorsaccountfortheirrightsandobligationsundera lease.However,onceHKFRS16 isadopted, lesseeswillno longerdistinguishbetween finance leasesandoperating leases. Instead, subject topractical expedients, lesseeswillaccountforall leases inasimilarwaytocurrentfinance leaseaccounting, i.e.at thecommencementdateof the lease the lesseewill recogniseandmeasurea lease liabilityat thepresentvalueof theminimumfuture leasepaymentsandwill recogniseacorresponding“right-of-use”asset.After initialrecognitionof this asset and liability, the lesseewill recognise interest expense accruedon theoutstandingbalanceoftheleaseliability,andthedepreciationoftheright-of-useasset,insteadofthecurrentpolicyof recognising rentalexpenses incurredunderoperating leasesona systematicbasisovertheleaseterm.Asapracticalexpedient,thelesseecanelectnottoapplythisaccountingmodeltoshort-termleases(i.e.wheretheleasetermis12monthsorless)andtoleasesoflow-valueassets,inwhichcase the rentalexpenseswouldcontinue tobe recognisedonasystematicbasisover the leaseterm.

HKFRS16willprimarilyaffect theGroup’saccountingasa lesseeof leases forproperty,plantandequipmentwhicharecurrentlyclassifiedasoperating leases.Asat the reportingdate, theGrouphasnon-cancellable operating lease commitments ofHK$46,323,000.The application of the newaccountingmodelisexpectedtoleadtoanincreaseinbothassetsandliabilitiesandtoimpactonthetimingoftheexpenserecognitionintheconsolidatedstatementofprofitorlossovertheperiodofthelease.

TheGroupwillapply thestandard from itsmandatoryadoptiondateof January1,2019.TheGroupintends toapply thesimplified transitionapproachandwillnot restatecomparativeamounts for theyear prior to first adoption.

Therearenootherstandards thatarenotyeteffectiveandthatwouldbeexpectedtohaveamaterialimpact on the Group.

– 21 –

3. CHANGE IN ACCOUNTING POLICY

TheGrouphasadoptedHKFRS15“Revenue fromContractswithCustomers” fromJanuary1,2018. Inaccordancewith the transitionprovisions inHKFRS15, theGrouphasadopted thenewstandardusingmodifiedretrospectivemethodwiththecumulativeeffectofinitialapplicationrecognisedasanadjustmentto theopeningbalanceofaccumulated lossesonJanuary1,2018, thecomparative figureshavenotbeenrestated.

TheaccountingpolicieswerechangedtocomplywithHKFRS15,whichreplacedtheprovisionofHKAS18“Revenue”andtherelatedinterpretationsfortherecognition,classificationandmeasurementofrevenueand costs.

Insummary,thefollowingadjustmentsweremadetotheamountsrecognisedintheconsolidatedstatementoffinancialpositionasthedateofinitialapplication(January1,2018):

December 31, 2017

As previously reported

Effect of adoption of HKFRS 15

January 1, 2018

RestatedHK$’000 HK$’000 HK$’000

Contractacquisitioncosts – 33,903 33,903Accumulatedlosses (6,731,871) 33,903 (6,697,968)

Accounting for costs incurred to obtain a contract

AsatJanuary1,2018,foruncompletedcontractswithcustomers,therelatedcommissionpaidforacquiringthecontractsamountedtoHK$33,903,000.Inpreviousyears,commissioncostswereexpensedasincurred.However, in thecurrentyear,costs relateddirectly to thecontractswerecapitalisedascosts toobtainacontractfollowingtheadoptionofHKFRS15astheyareexpectedtoberecoveredandincludedincontractacquisitioncosts in theconsolidatedstatementof financialpositiononJanuary1,2018, resulting innetadjustment to accumulated losses of the same amount. The asset is amortised on a straight line basis over the termof thespecificcontract it relates to,consistentwith thepatternof recognitionof theassociatedrevenue. During the year ended December 31, 2018, the Group recognised amortisation of HK$19,755,000, which increasedcostofproviding services and increased loss after taxationby the sameamount, andcapitalised commission of HK$24,911,000.

FinancialstatementlineitemswhichareaffectedinthecurrentreportingperiodbyapplicationofHKFRS15areasfollows:

Year ended December 31, 2018Without the adoption of HKFRS 15

Effect of adoption of

HKFRS 15 As reportedHK$’000 HK$’000 HK$’000

Selling,generalandadministrativeandother operatingexpenses 367,463 (5,156) 362,307

As at December 31, 2018Without the adoption of HKFRS 15

Effect of adoption of HKFRS 15 As reported

HK$’000 HK$’000 HK$’000

Contractacquisitioncosts – 39,059 39,059Accumulatedlosses (7,192,615) 39,059 (7,153,556)

– 22 –

Presentation of contract liabilities

Reclassificationsweremadeas at January1,2018 tobeconsistentwith the terminologiesusedunderHKFRS15:

• Contract liabilities in relation toadvancepayments fromcustomerswerepreviouslypresentedasreceipts in advance

Asat January1,2018andDecember31,2018, receipts inadvanceamounting toHK$115,318,000andHK$90,470,000 respectively represented contract liabilities in relation to advance payments made by the customerswhiletheunderlyingservicesareyettobeprovidedunderHKFRS15.

4. ESTIMATES AND JUDGEMENTS

The preparation of Financial Statements requiresmanagement tomake judgements, estimates andassumptions that affect the application of accounting policies and the reported amounts of assets and liabilities,incomeandexpense.Actualresultsmaydifferfromtheseestimates.

5. FINANCIAL RISK MANAGEMENT

TheGroup’sactivitiesexpose it toavarietyof financial risks:market risk (includingcurrency risk, fairvalueinterestraterisk,cashflowinterestrateriskandpricerisk),creditriskandliquidityrisk.

6. REVENUE

Revenue comprises principally subscription, service and related fees for television, and internet and multimedia (including telephony)services. It also includesadvertising incomenetofagencydeductions,channelserviceanddistributionfees,programmelicensingincome,filmexhibitionanddistributionincome,networkmaintenanceincomeandotherrelatedincome.

Contract liabilitiesofHK$90,215,000asatDecember31,2018,willberecognisedas revenue in thenextreportingperiod.Revenue recognisedduring theyearendedDecember31,2018 thatwas included in thecontract liabilities balance at the beginning of the period amounted to HK$115,000,000.

7. SEGMENT INFORMATION

The Group managed its businesses according to the nature of services provided. The Group’s chief operatingdecisionmaker (the“CODM”),whichcomprisesexecutiveDirectorandseniormanagementoftheCompany,hasdeterminedtworeportableoperatingsegmentsformeasuringperformanceandallocatingresources. The segments are television, and internet and multimedia.

The television segment includes operations related to the television subscription business, domestic free television programme service, advertising, channel carriage, television relay service, programme licensing, networkmaintenance,andotherrelatedbusinesses.

– 23 –

The internet and multimedia segment includes operations related to broadband internet access services, portaloperation,mobilecontentlicensing,telephonyservicesaswellasotherrelatedbusinesses.

TheCODMevaluatesperformanceprimarilybasedonearningsbefore interest, taxation,depreciationandamortisation(“EBITDA”)andsegmentresultsbeforecorporateexpenses.TheCODMdefinesEBITDAtomeanearningsbefore interest income, financecosts,non-operating income, income tax (expense)/credit,depreciation of property, plant and equipment but after amortisation of programming library and contract acquisition costs.

Inter-segmentpricingisgenerallydeterminedatarm’slengthbasis.

Segment assetsprincipally comprise all tangible assetswith the exceptionof interest in an associate,deferredtaxassetsandassetsmanagedatthecorporateoffice.Segmentliabilitiesincludeallliabilitiesandinterest-bearingborrowingsdirectlyattributable toandmanagedbyeachsegmentwith theexceptionofcurrenttaxliabilities,deferredtaxliabilitiesandliabilitiesatcorporateoffice.

Inaddition to receivingsegment informationconcerningEBITDAandsegment resultsbeforecorporateexpenses, theCODMisprovidedwithsegment informationconcerning revenue (including inter-segmentrevenue).

Information regarding theGroup’s reportable segments asprovided to theCODMfor thepurposesofresource allocation and assessment of segment performance for the years ended December 31, 2018 and 2017issetoutbelow:

Year ended December 31, Television Internet and multimedia Others Total

2018 2017 2018 2017 2018 2017 2018 2017HK$’000 HK$’000 HK$’000 HK$’000 HK$’000 HK$’000 HK$’000 HK$’000

Reportable segment revenue 821,528 913,784 320,686 321,294 32,655 41,769 1,174,869 1,276,847Less:Inter-segmentrevenue (8,302) (8,627) (208) (208) (3,049) (9,582) (11,559) (18,417)

Revenuefromexternalcustomers 813,226 905,157 320,478 321,086 29,606 32,187 1,163,310 1,258,430

Revenue from contracts withcustomers: Timing of revenue recognition Atapointintime 2,085 – 10,541 12,626 Overtime 771,376 320,478 18,356 1,110,210Revenuefromothersources: Rental income 39,765 – 709 40,474

813,226 320,478 29,606 1,163,310

ReportablesegmentEBITDA (301,779) (269,564) 116,978 116,837 7,783 4,556 (177,018) (148,171)Depreciation (119,814) (128,209) (72,380) (73,863) (357) (393) (192,551) (202,465)

Reportable segment results beforecorporateexpenses (421,593) (397,773) 44,598 42,974 7,426 4,163 (369,569) (350,636)

Corporateexpensesand depreciation (119,658) (93,305)

Loss from operations (489,227) (443,941)Interestincome 2,327 776Finance costs (10,238) (9,315)Non-operatingincome 42,373 86,268Incometax(expense)/credit (823) 3,385

Loss for the year (455,588) (362,827)

– 24 –

December 31, 2018

December 31, 2017

HK$’000 HK$’000

Segment assets Television 874,948 1,192,638 Internetandmultimedia 419,328 485,979 Others 16,042 27,814

1,310,318 1,706,431Corporateassets 66,752 54,879Interestinanassociate – –Deferredtaxassets 300,525 303,472

Total assets 1,677,595 2,064,782

Segment liabilities Television 623,045 628,941 Internetandmultimedia 250,883 232,429 Others 23,612 23,254

897,540 884,624Corporateliabilities 56,443 47,778Currenttaxliabilities 72 86Deferredtaxliabilities – 2,447

Total liabilities 954,055 934,935

Geographical segment:

Nogeographicalsegmentinformationisshownas,duringtheyearpresented,lessthan10%oftheGroup’ssegment revenue, segment results, segment assets and segment liabilities are derived from activities conducted outside Hong Kong.

8. LOSS BEFORE TAXATION

Lossbeforetaxationisstatedafter(crediting)/charging:

2018 2017HK$’000 HK$’000

Interest incomeInterestincomefromdepositswithbanks (2,327) (776)

Finance costsInterestexpensesonborrowings 10,238 9,315

Staff costs, including Directors’ emolumentsSalaries,wagesandotherbenefits 540,394 584,007Share-basedpayment 15,636 –Contributionstodefinedcontributionretirementplans 32,549 34,230

– 25 –

2018 2017HK$’000 HK$’000

Other itemsDepreciation —assetsheldforuseunderoperatingleases 24,011 26,341 —otherassets 171,626 178,337Amortisationofprogramminglibrary* 121,661 128,647Amortisationofcontractacquisitioncost 19,755 –

Impairmentlosses —property,plantandequipment – 387 —programminglibrary – 3,691Lossallowanceontradeandotherreceivables 7,889 6,533Reversaloflossallowanceontradeandotherreceivables (2,026) (213)Carryingamountofinventoriesconsumedandsold 12,470 7,100(Reversal)/writedownofinventories (866) 2,960Rentalexpensesunderoperatingleasesinrespectoflandandbuildings 51,681 55,582Auditor’sremuneration —auditservices 2,280 2,410 —non-auditservices 912 482Netforeignexchangeloss 1,586 378Rental income under operating leases in respect of —subleasedlandandbuildings (709) (1,756) —ownedplantandmachinery (39,765) (41,825)Non-operatingincome —gainondisposalofsubsidiaries (31,634) (71,508) —netgainondisposalofproperty,plantandequipment (10,739) (14,760)

* Amortisationof programming library is includedwithinprogramming costs in the consolidatedstatement of profit or loss of the Group.

9. INCOME TAX (EXPENSE)/CREDIT

HongKongandThePeople’sRepublicofChina(“PRC”)profitstaxhasbeenprovidedattherateof16.5%(2017:16.5%)andat the ratesof taxationprevailing in the jurisdictions inwhich theGroupoperatesrespectively.

2018 2017HK$’000 HK$’000

Current income tax — PRCProvisionfortheyear 323 383

323 383

Deferred income taxationUtilisationofprioryears’taxlossesrecognised 1,306 3,909Benefitofpreviouslyunrecognisedtaxlossesnowrecognised (2,493) (8,607)Originationandreversaloftemporarydifferences 1,687 930

500 (3,768)

Incometaxexpense/(credit) 823 (3,385)

– 26 –

10. LOSS PER SHARE

The calculation of basic loss per share is based on the loss attributable to equity shareholders of the CompanyofapproximatelyHK$455,588,000(2017:HK$362,827,000)andtheweightedaveragenumberof6,206,020,156ordinarysharesof theCompany (the“Shares”) (2017:3,585,393,489) in issueduring theyear.

Weighted average number of the Shares

2018 2017

IssuedsharesatJanuary1 6,206,020,156 2,011,512,400EffectofOpenOffer – 1,324,793,242EffectofLoanCapitalisation – 249,087,847

WeightedaveragenumberoftheSharesatDecember31 6,206,020,156 3,585,393,489

Thediluted lossperShareequals to thebasic lossperSharesince theexerciseof theoutstandingshareoptionswouldnothaveadilutiveeffectonthelossperShare.

11. TRADE RECEIVABLES

Anageinganalysisoftradereceivablesfromtradedebtors(netoflossallowance),basedontheinvoicedateissetoutasfollows:

2018 2017HK$’000 HK$’000

0 to 30 days 18,799 14,67331 to 60 days 15,239 11,35261 to 90 days 11,958 7,606Over90days 12,408 10,191

58,404 43,822

TheGrouphasadefinedcreditpolicy.Thegeneralcredittermsallowedrangefrom0to15daysinrespectof television subscription, and internet and multimedia services and from 0 to 30 days in respect of advertising services.

12. TRADE PAYABLES

Anageinganalysisoftradepayables,basedontheinvoicedateissetoutasfollows:

2018 2017HK$’000 HK$’000

0 to 30 days 10,468 9,59431 to 60 days 22,028 3,82761 to 90 days 6,221 848Over90days 10,850 2,881

49,567 17,150

– 27 –

13. SHARE CAPITAL

2018 2017Number of

shares HK$’000Number of

shares HK$’000

Ordinaryshares,issuedandfullypaid:AtJanuary1 6,206,020,156 7,844,472 2,011,512,400 6,857,599SharesissuedunderOpenOffer – – 3,352,520,666 704,029SharesissuedunderLoanCapitalisation – – 841,987,090 300,000Transaction costs incurred in respect of OpenOffer – – – (17,156)

AtDecember31 6,206,020,156 7,844,472 6,206,020,156 7,844,472

(i) Share option scheme

Ashareoption schemewas adoptedby theCompanyonMay24, 2018whichwill bevalid andeffective for a period of ten years from the date of adoption.

OnJune15,2018,shareoptionscarryingtherightstosubscribeforatotalof279,200,000SharesweregrantedtocertaineligiblepersonsundertheshareoptionschemeatanexercisepriceofHK$0.21perShare.

The fair valueof the shareoptionsgrantedat thedateofgrant, June15,2018,was estimatedatapproximatelyHK$20,771,000.The fair value is determined byBinomialmodel using inputs,includingsharepriceofHK$0.15perShare,exercisepriceofHK$0.21perShare,volatilityof66%,risk-free rate of 2.25%and dividend yield of 0%.During the period from the date of grant toDecember31,2018,noshareoptionswasexercised,lapsedorcancelled.

(ii) Open offer and loan capitalisation

InSeptember2017,theCompanycompletedanopenoffer(the“OpenOffer”)of3,352,520,666SharesonthebasisoffiveoffersharesforeverythreethenexistingsharesattheofferpriceofHK$0.21peroffer share, for gross proceeds of HK$704,029,000 (net proceeds of HK$686,873,000) and completed theconversionof the loancapitalisationamount (the“LoanCapitalisation”)ofHK$300,000,000 to841,987,090Shares.

14. DIVIDEND

The board of Directors does not recommend the payment of any dividend for the year ended December 31, 2018(2017:HK$Nil).

– 28 –

15. CAPITAL COMMITMENTS

CapitalcommitmentsoutstandingasatDecember31,2018wereasfollows:

2018 2017HK$’000 HK$’000

Property,plantandequipment —Contractedbutnotprovidedfor 6,012 15,504

Programminglibrary —Contractedbutnotprovidedfor 18,915 34,703

24,927 50,207

16. GUARANTEES

Guaranteesand indemnitieshavebeenprovidedby theCompany toabankandWharfFinance totallyofHK$500,000,000(2017:HK$500,000,000)inrespectofguaranteefacilitiestothewholly-ownedsubsidiaryof theCompany.Of thisamount,atDecember31,2018,HK$495,000,000 (2017:HK$495,000,000)wasutilisedbythesubsidiariesoftheCompany.

As atDecember 31, 2018, theGroup hasmade arrangementswith a bank to provide two separateperformance bonds to the counterparties amounting to approximatelyHK$41.6million, ofwhichapproximatelyHK$11.6millionwassecuredbybankdeposits.Theperformancebondsaretoguaranteeinfavour of the counterparties the Group’s performance in fulfilling the obligations under a contract and the capitalandprogrammingexpenditure requirement forproviding thedomestic free televisionprogrammeservice under the domestic free television programme service licence.

17. COMPARATIVES FIGURES

Certaincomparative figureshavebeen reclassified toconform to thecurrentyear’spresentation.There isno impact on net loss,netassetsornetcashflowsasaresultofthereclassification.

18 EVENTS AFTER THE REPORTING PERIOD

(a) Grant of loan facility by Forever Top

OnJanuary25,2019,theCompanyenteredintoaloanagreementwithForeverToppursuanttowhichForever Top agreed to grant an unsecured loan facility of principal amount up to HK$200 million to theCompany,attheinterestrateofHongKongInterbankOfferedRateperannum,foraperiodupto18 months from the date of the loan agreement.

(b) Proposed Rights Issue

OnJanuary25,2019,theCompanyproposedtoraisenotmorethanapproximatelyHK$465.5million(assumingnonewSharesare issuedandno repurchaseofSharesonorbefore the recorddate fordeterminingentitlementunder theRights Issue)beforeexpensesbywayof theRights Issue to theshareholdersoftheCompanyonthebasisofthreerightssharesforeveryfourexistingsharesinissue,atthesubscriptionpriceofHK$0.1perrightsshare.TheproposedRightsIssuewillbesubjecttotheapprovaloftheindependentshareholdersoftheCompanyatthegeneralmeeting.

– 29 –

(c) Proposed issue of the LCS to Forever Top

OnJanuary25,2019, theCompanyentered into theLCSSubscriptionAgreementwithForeverTop,pursuanttowhichtheCompanyhasconditionallyagreedtoissue,andForeverTophasconditionallyagreed to subscribe for theLCS.Theprincipal amount for the subscriptionwillbe thedifferencebetweenHK$660millionand theaggregategrossproceeds raised in theproposedRights Issue,andwill be betweenHK$195million andHK$660million (assuming that there is no exercise ofoutstandingshareoptionsbeforetherecorddatefordeterminingentitlementsundertheRightsIssue).TheLCShasamaturityof10years,withacouponrateof2%perannum,andcanbeconvertibleintosharesof theCompanyat an initial conversionpriceofHK$0.125per sharewhich is subject toadjustmentsassetoutintheLCSSubscriptionAgreement.

DetailsaresetoutintheCompany’spublishedannouncementdatedJanuary25,2019.

– 30 –

CORPORATE GOVERNANCE CODE

TheCompanyiscommittedtomaintainingahighstandardofcorporategovernancepractices,andproceduresandtocomplyingwiththestatutoryandregulatoryrequirementswithanaimtomaximisingtheShareholders’valuesandinterestsaswellastoenhancingthestakeholders’transparencyandaccountability.During the financialperiodunder review, theCompanyhascompliedwithall applicablecodeprovisionsof theCorporateGovernanceCode (the“CGCode”)assetoutinAppendix14oftheListingRules,exceptforthefollowingdeviation:

CodeProvisionA.6.7of theCorporateGovernanceCode stipulates that independentnon-executivedirectorsandothernon-executivedirectors,asequalboardmembers, shouldgivetheboardandanycommitteesonwhich theyserve thebenefitof their skills, expertiseandvaried backgrounds and qualifications through regular attendance and active participation. Generally, they should also attend general meetings to gain and develop a balanced understandingoftheviewsofshareholders.

Dr.ChengKar-Shun,Henry,thevice-chairmanoftheBoardandanon-executiveDirector,Dr.ChengChi-Kong,Adrian, a non-executiveDirector andMr.LukKoonHoo,Roger, anindependentnon-executiveDirector,chairmanof theauditcommitteeof theCompany (the“AuditCommittee”), and a committeememberof both thenomination committeeof theCompanyandthecompensationcommitteeoftheCompany,wereunabletoattendtheannualgeneralmeetingoftheCompanyheldonMay24,2018astheyhadotherengagementsatthetime of such meeting.

MODEL CODE FOR SECURITIES TRANSACTIONS BY DIRECTORS

TheCompanyhasadoptedtheModelCodeforSecuritiesTransactionsbyDirectorsofListedIssuers(the“ModelCode”)setoutinAppendix10totheListingRules.TheCompany,havingmadespecificenquiriesofall theDirectors,wasnotawareofanynon-compliancewith therequiredstandardsetoutintheModelCodeduringtheyearendedDecember31,2018.

AUDIT COMMITTEE AND REVIEW OF FINAL RESULTS

TheCompany has set up anAuditCommitteewithmajority of themembers being theindependent non-executiveDirectorswith terms of reference in accordancewith therequirementsof theListingRules for thepurposesof,amongothers, reviewing the financialinformation of the Group, and oversighting the Group’s financial reporting system, and risk management and internal control systems, aswell as theGroup’s corporate governancematters.Asat thedateof thisannouncement, theAuditCommitteecomprisesMr.LukKoonHoo, Roger (an independent non-executiveDirector and the chairman of theAuditCommittee),Mr.HoongCheongThard (anon-executiveDirector)andMr.TangSingMingSherman(anindependentnon-executiveDirector).

The audited consolidated financial statements of the Group for the year ended December 31, 2018havebeenreviewedbytheAuditCommitteewithnodisagreement.

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SCOPE OF WORK OF PRICEWATERHOUSECOOPERS

The figures in respect of the Group’s consolidated statement of financial position, consolidated statement of profit or loss, consolidated statement of comprehensive income, and the related notes thereto for the year ended December 31, 2018 as set out in the preliminary announcementhavebeenagreedby theGroup’s auditor,PricewaterhouseCoopers, to theamountssetoutintheGroup’sdraftconsolidatedfinancialstatementsfortheyear.Theworkperformed by PricewaterhouseCoopers in this respect did not constitute an assuranceengagementinaccordancewithHongKongStandardsonAuditing,HongKongStandardsonReviewEngagementsorHongKongStandardsonAssuranceEngagementsissuedbytheHongKong Institute ofCertifiedPublicAccountants and consequentlyno assurancehasbeenexpressedbyPricewaterhouseCoopersonthepreliminaryannouncement.

DIVIDEND

The Board does not recommend the payment of any dividend for the year ended December 31, 2018(2017:HK$Nil).

PURCHASE, SALE OR REDEMPTION OF THE COMPANY’S LISTED SECURITIES

Neither theCompanynor anyof its subsidiaries purchased, soldor redeemedany listedsecuritiesoftheCompanyduringtheyearendedDecember31,2018.

CLOSURE OF REGISTER OF MEMBERS

For determining the eligibility to attend and vote at the forthcoming annual general meeting of theCompany(the“AGM”)tobeheldonThursday,May30,2019,theRegisterofMembersoftheCompanywillbeclosed fromMonday,May27,2019 toThursday,May30,2019,bothdaysinclusive,duringwhichperiodnotransferofsharesoftheCompanycanberegistered.InordertoascertainShareholders’rightsforthepurposeofattendingandvotingattheAGM,alltransfers,accompaniedbytherelevantsharecertificates,mustbelodgedwiththeCompany’sregistrar,TricorTengisLimited,atLevel22,HopewellCentre,183Queen’sRoadEast,HongKongnotlaterthan4:30p.m.onFriday,May24,2019.

By order of the Boardi-CABLE Communications Limited

Tan Sri Dato’ David CHIUChairman

HongKong,March29,2019

As at the date of this announcement, the Board comprises ten Directors, namely Tan Sri Dato’ David Chiu (Chairman), Dr. Cheng Kar-Shun, Henry (Vice-chairman), Dr. Cheng Chi-Kong, Adrian, Mr. Tsang On Yip, Patrick and Mr. Hoong Cheong Thard as non-executive Directors, Mr. Andrew Wah Wai Chiu as executive Director, and Mr. Lam Kin-Fung, Jeffrey, Dr. Hu Shao Ming Herman, Mr. Luk Koon Hoo, Roger and Mr. Tang Sing Ming Sherman as independent non-executive Directors.