i-Cable surges as Cheng takes charge

Shares of i-Cable Communications (1097) rose 5.88 percent to HK$0.072 yesterday after local tycoon Henry Cheng Kar-shun was redesignated from vice-chairman to chairman.

With the change in leadership, Cable TV is expected to put greater emphasis on soft features and culture instead hard news, sources said.

The management is expected to invest more resources in the TV station in the coming two to three years but is prepared for a rough ride in the short term.

According to information filed to the Hong Kong stock exchange on Tuesday night, Cheng took up the leadership while David Chiu Tat-cheong became vice-chairman. Patrick Tsang On-yip serves as another vice-chairman.

Sources said Cheng upped his stake after former chairman Chiu failed to improve the station's finances by cost-cutting measures.The number of employers had been reduced from 2,000 to around 1,200, but as a lot of production has been outsourced, the cost reductions were not substantial.

While other pay-TV stations have advanced in the market, Cable TV relies too much on news and does not have other selling points. The average revenue per user is also plunging. Alarmed by the development, Cheng decided to take over the leadership for a shakeup.

The TV station will position itself as a "storyteller" for Hongkongers, people in the Greater Bay cities, as well as overseas Chinese and rather than hard news, there will be more emphasis on soft information, including culture, district affairs, features and debates.

It will also seek to engage with Hongkongers following the success of outdoor broadcasts during the Tokyo Olympics. At that time, Cable TV played matches live on more than 7,000 outdoor screens.

The station aims to establish itself as an influential voice, with Qatar's Al Jazeera - which has exerted considerable influence globally - as a role model.

The company will bring in new management, including Stephen Wong, the former chief executive officer of Asia Miles. He has been appointed as an advisor and is expected to take up the CEO role at i-Cable.

Eastweek publisher Kwan Wai-ling will also join as a high-level manager in January and will not focus only on news.

Cheng became the largest shareholder of the company in November when his wholly-owned company Celestial Pioneer agreed to pay HK$208.9 million to purchase shares from former chairman Chiu, who owned 24.5 percent shares of Forever Top, and major shareholder Li Sze-Lim, who owned 16 percent shares of Forever Top.

Following the transaction, Celestial Pioneer's stake in Forever Top will go up from 31.5 percent to 72 percent. As Cheng already owned some Forever Top shares via a subsidiary of Chow Tai Fook, he would have a total of 86 percent of shares in Forever Top, which owns 43.2 percent of i-Cable.