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China Cablecom Holdings, Ltd. (CABL) Reports Strong Second Quarter Financials

China Cablecom, – has quickly risen to become a dominant force on the PRC cable landscape with some 28 cable networks and 1.8M paid subscribers, announcing strong unaudited financial results for Q2 FY10 (ended June 30).

Founder and Executive Chairman of CABL, Clive Ng, noted the incredible performance of the Company’s joint venture partners and cable operations in Binzhou and Hubei, projected a 2015 date for the fully digital TV broadcasting benchmark and compared the results to Q2 FY09:

Hubei revenues up 29% to $10.9M
Hubei subscriptions up 20% or roughly 23k new subscribers
Hubei earnings (EBITDA) were up 38% to $2.6M (representing CABL’s 55% economic interest in Hubei)
Binzhou revenues up 34% to $3.1M
Binzhou earnings (EBITDA) were up 54% to $1.4M (representing CABL’s 60% share)
Consolidated revenues up 30% to $14M
Consolidated operating expenses rose 21% to $5.7M

Net loss attributable to ordinary shareholders (U.S. GAAP) declined 251% to $2.4M or $0.39 per basic fully diluted share, due largely to non-cash amortization of intangible assets related to the Binzhou and Hubei acquisitions ($0.37M and $0.33M) as well as non-cash interest expense from outstanding notes ($0.93 M) and non-cash stock based compensation ($0.41M).

Continued implementation of cost-cutting efforts at China and US operations, continued growth of subscriber base and achieving digital optimization will form the basis of furthering success.

Ng expressed great confidence in the future of China’s media landscape, citing growing demand and average revenue per unit rates coinciding with a solid economic upswing.

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