I-Cable’s content deal with China Mobile Hong Kong pushes up cable TV provider’s stock by 102 per cent
Shares in Hong Kong cable television provider i-Cable surged by 102.25 per cent on Monday, following news of a deal with China Mobile Hong Kong that will let CMHK users watch programmes produced by i-Cable via the company’s mobile network.
“I-Cable owns a large telecommunications and cable television network in Hong Kong with a coverage of over 95 per cent, providing customers with quality and reliable television, telecommunications, internet and multimedia services,” said Tan Sri Dato’ David Chiu, the company’s chairman. He said the company hoped to effectively leverage its cross-platform collaboration with CMHK in the “smart city” era.
The deal will help the telecoms provider implement its “four-in-one” strategy of providing a one-stop service that covers mobile communications, home fibre broadband, home telephone and smart home businesses, according to Li Feng, CMHK’s chairman.
The mobile carrier will build on the integrated resources of both parties to develop its home broadband business, as well as mobile, corporate solutions and new businesses, said Li.
On whether i-Cable would launch a mobile app for users to watch television shows on, Irene Leung, chief operating officer at i-Cable, said the company would announce any further details regarding potential launches in the fourth quarter.
Previously owned by Hong Kong property giant The Wharf Holdings, i-Cable had been up for sale since mid-2016, following Wharf’s refusal to inject fresh capital into the television broadcaster in light of accumulating losses at the company.
Forever Top, a consortium led by New World Development chairman Henry Cheng Kar-shun and tycoon David Chiu Tat-Cheong, came to its rescue with an equity injection of HK$1 billion, and took over the helm of the cable television provider in April 2017, with the aim of using it as a base on which they would build a new media empire.