PCCW (now TV) reports interim results for 2008

now TV has become the largest local pay-TV operator with installed base up 13% to 927,000

HONG KONG — PCCW Limited (Hong Kong:0008) today reported continued double-digit growth in its core business performance in the first half of 2008 as the Company successfully implemented its growth strategies.

now TV’s installed subscriber base climbed higher to 927,000 at the end of June 2008, an increase of 13% from a year earlier. The paying base also recorded an increase of 19% to 668,000. now TV has further boosted its content line-up to more than 160 local and international channels at the end of June 2008, including over 85 exclusive world-class movies, sports, news and general entertainment channels.

now TV has become the largest local pay-TV operator, offering a vast variety of largely exclusive content and more high-definition (“HD”) channels to appeal to a wider audience. More personalized services, such as network-based video recorder functionality, will be introduced in the second half of this year.

ARPU in June 2008 grew by 28% from a year ago to HK$213. The UEFA EURO 2008 had attracted new customer subscriptions to the Mega Sports Pack. The higher ARPU was also attributed to the growing demand for high value packs and HD premium channels. The introduction of the All-In-One Set-top-box with HD and digital terrestrial television reception capability also helped develop new incremental revenue streams.

now TV (‘000):

                                               Growth
                 Jun 30,  Jun 30,  Dec 31,  ------------
                    2008     2007     2007  y-o-y  h-o-h
                 -------  -------  -------  -----  -----
Installed base       927      818      882    13%     5%
Paying base          668      560      628    19%     6%

More: Earnings Release