SHANGHAI, June 2 /PRNewswire-FirstCall/ -- China Cablecom Holdings, Ltd. ("China Cablecom" or the "Company") (Nasdaq: CABL), a joint-venture provider of cable television services in the People's Republic of China, today announced that its Hubei assets added over 40,000 television subscribers in the period ending March 31, 2010.
Overall digital subscribers were recorded at 499,292, a 21% growth from year-end 2009. The reported organic growth was attributed to the continued government mandate to digitalize cable television nationwide in China.
The Company's goal is to continue adding new users, endorse the accelerated pace of digitalization and generate higher revenues through increases in ARPU. For the full year 2010, China Cablecom expects its Hubei assets to reach a total subscriber count of approximately 1,280,000. Hubei Province is regarded as a coastal city and is predicted to reach a digital cable penetration rate of 70% by 2012.
"This quarter's organic and digital subscriber growth affirms the strength of our cable assets," says Clive Ng, Founder and Executive Chairman of China Cablecom. "This significant increase reflects the broad appeal of the overall industry as digitalization continues to pick up. We anticipate a more aggressive approach as we expect our Hubei assets to reach a 50% penetration rate by year-end. The increases in ARPU and organic growth are compelling to both top and bottom line numbers serving to generate long-term value for our shareholders."
About China Cablecom
China Cablecom is a joint-venture provider of cable television services in the People's Republic of China, operating in partnership with a local state-owned enterprise ("SOE") authorized by the PRC government to control the distribution of cable TV services through the deployment of analog and digital cable services. China Cablecom has consummated the acquisition of a 55 percent economic interest in a cable network in Hubei province with paying subscribers exceeding 1,200,000. The Company originally acquired operating rights of the Binzhou Broadcasting network in Binzhou, Shandong Province in September 2007 by entering into a series of asset purchase and services agreements with a company organized by SOEs, owned directly or indirectly by local branches of State Administration of Radio, Film and Television in five different municipalities to serve as a holding company of the relevant businesses. China Cablecom now operates 28 cable networks with over 1.67 million paying subscribers. China Cablecom's strategy is to replicate the acquisitions by operating partnership models in other municipalities and provinces in the PRC and then introducing operating efficiencies and increasing service offerings in the networks in which it operates.
Safe Harbor Statement
The matters discussed in this press release contain "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements contained in this presentation and in the Company's other written and oral reports are based on current Company expectations and are subject to numerous risks, uncertainties and assumptions, Any forward-looking statements are not guarantees of future performance and actual results of operations, financial condition and liquidity.. The forward-looking statements herein speak only as of the date stated herein and might not occur or the actual results may differ materially in light of these risks, uncertainties, and assumptions. The Company undertakes no obligation and disclaims any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. You should carefully consider these factors, as well as the additional risk factors outlined in the filings that the Company makes with the U.S. Securities and Exchange Commission, including the Annual Report on Form 20-F filed on July 15, 2009.
China Cablecom Holdings, Ltd.
SOURCE China Cablecom Holdings, Ltd.