Rescue plan approved for Hong Kong’s i-Cable
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Minority shareholders in Hong Kong pay TV broadcaster i-Cable Communications have voted to approve a rescue plan that will inject fresh cash into the struggling operator following the withdrawal of support by its majority shareholder.
Wharf Holdings announced in March that it will stop providing funding for the broadcaster following nine consecutive years of losses, and that it was considering winding down the company after failing to find a buyer for its 73.8% stake.
But now consortium Forever Top has agreed to step in and be the new majority shareholder, injecting fresh funding into the company.
i-Cable launched in 1993 as Hong Kong’s first pay TV operator. But the company’s subscriber base has been declining over the past five years, the report notes, and its net losses have been widening.
Industry experts are urging the company to rebrand and modernize its operations, focusing on providing OTT video services over its website. The company is also being encouraged to expand its operations to outside of Hong Kong.
Questions & Answers
Q.What led to i-Cable needing a rescue plan?
What led to i-Cable needing a rescue plan?
i-Cable needed a rescue plan because its majority shareholder, Wharf Holdings, withdrew funding after nine consecutive years of losses. Wharf Holdings had also failed to find a buyer for its 73.8% stake in the company.
Q.Who is providing the new funding for i-Cable?
Who is providing the new funding for i-Cable?
A consortium called Forever Top has agreed to step in as the new majority shareholder. They will be injecting fresh funding into the company as part of the approved rescue plan to support the struggling operator.
Q.What is the current financial state of i-Cable?
What is the current financial state of i-Cable?
i-Cable has been experiencing a decline in its subscriber base over the past five years. Its net losses have also been widening, and it recorded nine consecutive years of losses before the rescue plan.
Q.What strategies are experts recommending for i-Cable's future?
What strategies are experts recommending for i-Cable's future?
Industry experts are urging i-Cable to rebrand and modernise its operations. They suggest focusing on providing OTT video services via its website and expanding its operations to areas outside of Hong Kong.
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