1   S   T                                                       -   1 4   T   H                                           ...
Media and Entertainment TrackInvestment ActivityPE Deals in M&E in 2012 Date                 Investor                    T...
Media and Entertainment TrackMergers & Acquisitions in M&E in 2012  Date              Acquirer                    Target  ...
Media and Entertainment Track Corporate News UpdateEssel Group to raise $500mn                         Deccan Chronicle li...
Media and Entertainment Track   Stock Market UpdateShare Price PerformanceAs on 14th Sep 2012                 Market Cap  ...
Media and Entertainment TrackTrailing Twelve months ending 30th June, 2012                                    Revenue (ttm...
Media and Entertainment TrackFour-S Services Pvt LtdFounded in 2002, Four-S has a strong & successful track record of genu...
Media and Entertainment TrackDisclaimerThe information contained herein has been obtained from sources believed to be reli...
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Four s fortnightly mediatainment track 1st september - 14th september 2012

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Four s fortnightly mediatainment track 1st september - 14th september 2012

  1. 1. 1 S T - 1 4 T H S E P ’ 1 2 Media and Entertainment TrackResearch4India Update on the Indian M&E Industry In The Spotlight Contents Good times ahead for Distribution News of the fortnight 1This fortnight infused a fresh life into Indian economyas well as Indian media sector, with the Governmentexecuting much delayed positive reforms. Investment Activity 2The Government has hiked FDI in DTH, Cable andother broadcasting services including mobile TV to74% from existing 49%. The move will provide a News Update 4boost to digitisation process, with MSOs benefittingmost from the revised FDI limits. The first deadlinefor Digitisation in four metros is 31st October, 2012. Stock Market Updates 6However, the industry had mixed response to thehike, many desiring more liberalised policies likelower taxation and more conducive business Peer Benchmarking 6environment for the limit increase to actually beutilized. About Four-S Services 7Digitisation would be a transformative trigger forIndian broadcasting industry. In a recent release,UBS estimates subscription revenues to grow at aCAGR of 16% over 2012-17 due to digitisation. About Research4IndiaFICCI-KPMG had estimated TV subscription revenuesto grow at a CAGR of over 18% from 2011-16 to Research4India is the researchreach Rs 505bn in 2016. services arm of Four-S Services Pvt Ltd. Here we provide regular research reports on key sectors of the Indian economy, and large unlisted companies in these sectors. These reports will be available on our upcoming site www.research4india.com, as well as from leading international research sellers like Thomson Reuters, Bloomberg, Research and Markets, CapitalIQ etc. Research4India is the research services arm of Four-S Services Pvt Ltd, a leading provider of high-end research, financial consulting and Investment banking services. For subscription / custom queries, please contact Seema Shukla at seema@four-s.com
  2. 2. Media and Entertainment TrackInvestment ActivityPE Deals in M&E in 2012 Date Investor Target Stake Amount Strategy (%) ($mn)23-Aug Accel Partners Big Tree Entt. NA 18.0 Growth (BookMyShow)24-Aug JAFCO Asia Bubble Motion NA 5.0 Early 9-Aug Das Star Ventures SideFX Entertainment NA 1.0 Early 7-Aug Mercatus Capital, Hub Media PurpleStream NA NA Early 1-Aug L Capital PVR, subsidiary NA 19.6 PIPE16-Jul Indian Angel Network, Blume HashCube Early Ventures Technologies NA NA11-Jul Jungle Ventures, Others Mobikon Early NA 1.7 6-Jul Matrix Partners Twist Mobile India NA NA Early26-Jun Nalanda Capital DB Corp 1.09 7.3 PIPE12-Jun Norwest Venture Partners,Helion Komli Media NA 39.0 Growth Venture Partners, Draper Fisher Jurvetson, and Western Technology Investment 6-Jun August Capital, Draper Fisher Pubmatic NA 45.0 Mezzanine Jurvetson, Nexus Venture Partners, Helion Ventures and Silicon Valley Bank9-May IndoUS Ventures Magzter NA NA Early26-Apr Mumbai Angels, Blume Ventures, United Mobile Apps NA 1.0 Early India Venture Partners (Mauritius), Christopher Preinz Associates (EU)18-Apr Future Ventures Amar Chitra Katha 9.8 NA Late27-Mar Nirvana Ventures Advisors Games2win 10.0 NA Late13-Mar Providence Equity, Macquarie Hathway Cable 17.3 72.0 Late Bank20-Feb Ojas Venture Partners BrizzTV Media Lab NA NA Early17-Feb Updata, WestBridge & Intel July Systems NA 15.0 Late Capital15-Feb Cisco Systems Qyuki 17.0 5.5 Early8-Feb Indian Angel Network Gamiana Digital NA 1.0 Early Gaming31-Jan Ojas Ventures Venturenet Partners NA NA Early Pvt Ltd27-Jan NA InRev NA NA Early19-Jan CCube MyAdCorner.com NA NA Early19-Jan Sequoia Capital Knowlarity NA 6.6 Growth CommunicationsThe space saw 24 deals till date raising a total disclosed amount of $237.7mn.Research4India 2
  3. 3. Media and Entertainment TrackMergers & Acquisitions in M&E in 2012 Date Acquirer Target Stake Amount Type (%) ($mn) Taproot India 29-Aug Dentsu Inc. Communication 51 NA Inbound 23-Aug Spade Financial Services Connectindia.in 100 NA Domestic 09-Aug Aegis Group Communicate 2 Pvt Ltd 100 NA Inbound 07-Aug Publicis Groupe Resultrix Media Pvt Ltd 100 NA Inbound 31-Jul InMobi Metaflow Solutions 100 NA Outbound 25-Jul Platinum Rye Inbound 50 Entertainment Globosport Brand Advisory NA 17-Jul Information TV Media NewsX NA NA Domestic 13-Jul InMobi MMTG Labs 100 NA Outbound 2-Jul Disney Interactive Media Gameshastra - studio NA NA Inbound 27-Jun ValueFirst Messaging mGinger 100 NA Domestic 15-Jun Sony Pictures Multi-Screen Media 32 271 Inbound 13-Jun JWT Singapore Hungama Digital Services 51 NA Inbound Private Limited 07-Jun NewsCorp ESPN Star Sports 50 NA Inbound 05-Jun ValueFirst Messaging Indyarocks.com NA NA Domestic 25-May Essel Group Diligent Media Corp - DB 50 NA Domestic Corps stake 23-May ValueFirst Messaging Way2SMS NA NA Domestic 19-May AV Birla Group India Today 27.5 NA Domestic 17-May Trivone Digital Chakpak NA NA Domestic 26-Apr CA Media, Zodius Only Much Louder NA NA Inbound Advisors 26-Apr CA Media Endemol India 49 NA 25-Apr Eros International Plc B4U Television Network 76 53.1 Domestic 24-Apr Publicis Groupe Indigo Consulting NA NA Inbound 05-Apr Tyroo media, Inflection DGM India 94.6 0.7 Domestic Digital 02-Apr Jagran Prakashan Nai Dunia Media Pvt Ltd NA NA Domestic 30-Mar Inox (Gujarat Fame India 18.7 18.2 Domestic Fluorochemicals) 30-Mar Affle, D2 MobiMasta NA NA Inbound Communications 21-Mar Gruner + Jahr NetworkPlay 70 NA Inbound 15-Mar Ver Se Innovation Eterno Infotech NA NA 13-Mar Pubmatic MobiPrimo 100 NA Domestic 29-Feb Komli Media AdMax Network NA NA Outbound 10-Feb GigaOM Guardian News & Media - NA NA Inbound PaidContent, other assets 03-Feb Persistent Systems Openwave Location 100 NA Domestic Business 02-Feb Walt Disney UTV Software NA 430* Inbound 25-Jan Gujarat Telelinks V&S 51 0.2 19-Jan Reliance Strategic DEN Networks 1.1 NA Domestic Investments 04-Jan Way2Online 160by2 100 NA Domestic c03-Jan Network 18 Group Eenadu NA 395 Domestic 02-Jan Undisclosed buyer Balaji Telefilms - NA 1.6 Domestic education/ mobile*Estimated. The space saw 40 deals till date with a total disclosed amount of $1,177mn.Research4India 3
  4. 4. Media and Entertainment Track Corporate News UpdateEssel Group to raise $500mn Deccan Chronicle liquidity crisisEssel Group would be raising close to $500mn The troubles continue for DCHL. Cash strappedto fund its growth and reduce debt. The funds DCHL’s Market Cap declined 19% in last onewould be used for Dish TV, Siticable Network week. DCHL had a debt of Rs 32 bn on itsand its education entity Zee Learn Ltd. books. The Group has mortgaged its publishing trademarks – Deccan chronicle, The Asian Age,Indian Television industry is at an exciting Andhra Bhoomi and Financial Chronicle. Itsjuncture with the Government working towards financial viability is being scrutinized by lenders,pan India digitisation. Siticable, formerly known which recently decided against Corporate Debtas WWIL, will raise Rs 3.24bn from promoter Restructuring. In another development, BCCIfirms through convertible warrants. Essel has terminated Deccan Chargers. Earlier DCHLInternational and Essel Media will invest theamount in tranches with the first tranche being had rejected the bid of Rs 9bn from PVP ventures to buy the franchises.25 per cent of the issue price on allotment ofwarrants on a preferential basis. FIPB nod to DB Corp, WSJThe combined shareholding of Essel The Foreign Investments Promotion BoardInternational and Essel Media will rise to 29.99 (FIPB) has permitted increase of foreign equityper cent post issue and the total promoter participation in DB corp from the present 20%.holding will increase to 73.08% from the FIPB has permitted Wall Street Journalexisting 63.43%. Publishing to make a change in the foreignStar India: Asianet IPO, MCCS Stake sale collaborator by way of overseas merger withinplans group companies.Asianet Communications Ltd (ACL) plans tolaunch an IPO, though the date has not been Industry News Updateyet finalized. Star India holds 86% stake inACL, whose flagship channels include Vijaya TV Digitisation deadline looks feasibleand Suvarna. 68% digitisation has been achieved in fourIn another development, Star India plans to sell metros according to the Information andits 26% stake in Media Content & Broadcasting Industry. Mumbai leads with 95%Communications Services (MCCS) to Ananda digitisation, followed by Kolkata at 67%, DelhiBazar Patrika (ABP) Group. ABP at present at 53% and Chennai at 49% digitisation. Theholds 74% in the Joint venture. I&B Ministry also revealed that TV penetration in four metros is at 80%. Meanwhile, the IndianMCCS operates three news channels – Star Broadcasting Foundation (IBF) has decided toNews, Star Ananda and Star Majha. MCCS had postpone India TV Fest 2012, earlier scheduledrevenues of Rs 2.6bn in FY12. This stake sale in 1st week of November to 2013.will mark the exit of Star from newsbroadcasting in India. Star and ABP have parted Media FDI up 72% in FY12ways since April this year, and subsequently the Buoyed by the Disney-UTV deal, Indian Mediause of brand name Star has been removed from sector has received Foreign Direct Investmentsits news channels. of Rs 32.64 bn, an increase of 72% from 2010- 11. Research4India 4
  5. 5. Media and Entertainment Track Stock Market UpdateShare Price PerformanceAs on 14th Sep 2012 Market Cap Price Percentage Change (%) P/E (In ` mn) (In ` ) 1W 1M 3M 6M 12M (ttm)Zee Entertainment 1,62,125 170.0 0% -1% 26% 25% 50% 26.4Sun TV Network 1,21,319 307.9 0% 0% 18% -5% 6% 18.1Dish TV 81,591 76.7 5% 5% 35% 36% 1% NMDB Corp 34,466 188.0 -5% -1% 3% -14% -17% 18.7Hathway cable 31,221 218.6 5% 18% 23% 29% 171% NMJagran Prakashan 28,954 91.6 1% 1% 7% -12% -14% 15.7HT Media 20,470 87.1 1% 2% -9% -37% -39% 13.2Den Networks 20,182 152.1 10% 22% 53% 47% 236% 80.8Eros International 14,698 160.2 -4% -8% -7% -18% -32% 9.3ENIL 11,045 231.7 1% 4% 10% 8% -8% 18.3TV 18 Broadcast 8,111 22.4 22% 18% 18% -8% -39% NMPrime Focus 7,242 48.7 1% 7% 0% 0% -16% 7.7PVR 4,728 182.2 1% -4% 21% 33% 53% 27.0Onmobile 4,455 39.1 3% -9% 4% -41% -37% 5.6Reliance Broadcast 3,953 49.8 0% 8% 12% -11% -40% NMReliance Mediaworks 3,051 66.2 1% 7% 21% -25% -33% NMBalaji Telefilms 2,882 44.2 8% 9% 26% -1% 49% 18.1Deccan Chronicle 2,278 10.9 -19% 3% -64% -75% -81% 3.8Nifty 5577.7 4% 4% 10% 2% 11%Sensex 18464.3 4% 4% 11% 3% 11% Financial BenchmarkingQuarter ending 30th June, 2012 Revenue EBITDA PAT Q1FY12 Q1FY13 YoY Q1FY12 Q1FY13 YoY Q1FY12 Q1FY13 YoYZee Entertai nment 6,982 8,430 21% 1,559 2,333 50% 1,337 1,582 18%Di s h TV* 4,634 5,200 12% 1,225 1,556 27% -183 -323 NMHT Medi a 4,945 4,899 -1% 899 669 -26% 515 407 -21%Sun TV Network* 4,540 4,258 -6% 3,659 3,230 -12% 1,876 1,643 -12%DB Corp 3,525 3,770 7% 987 765 -23% 611 437 -29%TV 18 Broa dca s t 2,638 3,469 32% 222 151 -32% 211 -235 NMJa gra n Pra ka s ha n* 3,046 3,175 4% 826 788 -5% 497 557 12%Den Networks 2,829 1,949 -31% 179 385 116% 18 122 568%Eros Interna tiona l 1,538 2,570 67% 299 517 73% 217 314 45%Decca n Chroni cl e NA NA NA NA NA NA NA NA NARel i a nce Medi a works 1,929 2,022 5% -366 -264 NM -1,201 -1,313 NMPri me Focus 1,675 1,882 12% 460 572 24% 256 210 -18%Onmobi l e 1,364 1,852 36% 271 359 32% 128 95 -26%PVR 1,174 1,774 51% 205 338 65% 155 76 -51%Ha thwa y ca bl e* 1,225 1,363 11% 192 238 24% -148 -159 NMENIL 687 700 2% 181 205 13% 93 134 44%Rel i a nce Broa dca s t 745 527 -29% -183 -101 NM -291 -287 NMBa l a ji Tel efi l ms 358 386 8% -67 2 NM 59 14 -77%* Standalone results Figures in Rs.`mnResearch4India 5
  6. 6. Media and Entertainment TrackTrailing Twelve months ending 30th June, 2012 Revenue (ttm) EBITDA (ttm) PAT (ttm)Company Q1FY12 Q1FY13 YoY Q1FY12 Q1FY13 YoY Q1FY12 Q1FY13 YoYZee Entertainment 30,300 31,854 5% 7,907 8,169 3% 6,167 6,136 0%Dish TV* 15,957 20,145 26% 3,291 5,315 61% -1,448 -1,729 NMHT Media 18,656 19,968 7% 3,411 2,638 -23% 1,910 1,546 -19%Sun TV Network 24,675 18,189 -26% 19,438 13,714 -29% 9,574 6,696 -30%DB Corp 13,200 14,760 12% 3,873 3,125 -19% 2,462 1,847 -25%TV 18 Broadcast 10,680 14,930 40% 685 -694 -201% 37 -1,184 NMJagran Prakashan 15,257 13,685 -10% 4,392 3,130 -29% 2,575 1,843 -28%Den Networks 13,248 10,513 -21% 1,287 1,170 -9% 394 250 -37%Eros International 8,608 10,471 22% 1,860 2,342 26% 1,389 1,576 13%Deccan Chronicle** 10,309 9,147 -11% 3,475 2,121 -39% 1,626 607 -63%Reliance Mediaworks** 10,290 8,238 -20% -502 -1,342 167% -4,490 -5,292 18%Prime Focus 6,704 7,926 18% 2,131 2,454 15% 1,017 946 -7%Onmobile 6,736 6,868 2% 1,480 1,487 0% 1,020 798 -22%PVR 5,796 5,731 -1% 1,121 926 -17% 237 175 -26%Hathway cable* 5,964 5,274 -12% 1,091 903 -17% -551 -527 -4%ENIL 5,323 3,124 -41% 1,197 1,245 4% 265 602 127%Reliance Broadcast 3,199 2,783 -13% -247 -551 123% -828 -1,126 36%Balaji Telefilms 2,280 1,906 -16% -64 80 -225% 49 159 228%* Standalone results Figures in Rs.`mn st**Deccan Chronicle numbers are for FY ending 31 March.Research4India 6
  7. 7. Media and Entertainment TrackFour-S Services Pvt LtdFounded in 2002, Four-S has a strong & successful track record of genuine, accurate andobjective advice to top Indian & global companies & PE Firms. Four-S has already provensuccess in corporate finance, strategy consulting, fund-raising, investment banking andinvestor relations mandates with 100+ corporates and large PE funds.Four-S, trusted advisor to top Indian & Global CosOffering comprehensive bouquet of services to SMEs, Corporates and PE FundsResearch4India 7
  8. 8. Media and Entertainment TrackDisclaimerThe information contained herein has been obtained from sources believed to be reliable but is notnecessarily complete and its accuracy cannot be guaranteed. No representation, warranty, guarantee orundertaking, express or implied, is made as to the fairness, accuracy or completeness of any information,projections or opinions contained in this document or upon which any such projections or opinions havebeen based. Four-S Services Pvt. Ltd. will not accept any liability whatsoever, with respect to the use of thisdocument or its contents. This document has been distributed for information purposes only and does notconstitute or form part of any offer or solicitation of any offer to buy or sell any securities. This documentshall not form the basis of and should not be relied upon in connection with any contract or commitmentwhatsoever. This document is not to be reported or copied or made available to others.The company may from time to time solicit from, or perform consulting or other services for, any companymentioned in this document.For further details/clarifications please contact:Seema Shukla Ajay JindalSeema@four-s.com Ajay.jindal@four-s.comGurgaon Office: Mumbai Office:214, Udyog Vihar, 101,Nirman Kendra, Opposite Star TV,Phase I, Off Dr E Moses Road, Mahalaxmi,Gurgaon – 122016 Mumbai – 400001Tel: +91-124-4251442 Tel: +91-22-42153659Research4India 8

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