1. Vol. 27, 20th August – 2nd September 2011 Mediatainment Track Fortnightly Update on Indian Media & Entertainment Industry In the Spotlight Content Anna-Lila: The Media winners Last fortnight was a historical win for India’s masses as one Content simple man’s fast forced Government to wake up and react. Private Equity 2 The revolution was unprecedented in terms of the role that media played. Uninterrupted Coverage on news channels and Mergers & Acquisitions 3 the actual ‘Social’ role of Social media was a big momentum generator in this event. Corporate Developments 4 The news channels experienced hike in TRPs. English news th th channels TRPs jumped up 63% in 14 to 20 August week. News Update 4 Times Now was the leading news channel followed by CNN- IBN and NDTV 24*7 in the week. Hindi News channels also Stock Market Update 5 witnessed a surge in the fortnightly TRPs. Star News was the th leader in week ending 27 August followed by AajTak and Financial Benchmarking 5 IBN7. On the other hand, Anna was termed ‘Serial Killer’ in a Times of India article. The TRPs of GECs dipped, with popular shows losing around 4-5%. About Four-S 7 According to a social media tracking report, Anna’s mentions per hour touched 1mn per hour on both Facebook and th Twitter on 18 August. The official Facebook page added th 2.13 lakh fans in 13 days to reach 5.01 lakh on 28 August. The level of interaction was also higher 314 messages, 1.9 lakh likes and 37,000 comments compared to April numbers, according to analytics tool buzzref.com Facebook also has more than 150 pages dedicated to the movement. Twitter recorded more than 1.7 lakh ‘Anna Hazare’ tweets and 1.5 lakh ‘Jan Lokpal’ tweets. The movement dominated trending topics list in India in the fortnight. Leading corporate houses consider social media an integral part of their media planning. And those who don’t, can no longer afford to ignore its impact.About Four-S ServicesFour-S Services is Indias leading provider of Research, Financial Consulting and Investment Banking services with offices in Gurgaon, Mumbai andBangalore. We have a proven track record of consistently delivering high quality solutions, enabling our clients to improve the effectiveness of decisionmaking and acting as a catalyst in achieving business success. We have executed more than 120 mandates across diverse range of industries includingEducation, Financial Services, Infrastructure, M&E, IT-ITeS, Auto and Auto ancillaries, Retail, Real Estate and Textile etcOur Services: Strategy Consulting Research Support Business Planning Valuation Services Investment Banking Investor Relations & IPO ConsultingFor further information, please contact SeemaShukla firstname.lastname@example.org or reach us as http://www.four-s.com
2. FOUR-S Mediatainment TrackInvestment Activity ndPrivate Equity deals in M&E and Mobile VAS till 2 September 2011 Date Investors Target Stake % Amount $mn Business Stage Tena ya Ca pi tal , Ll oyd George, New 1-Sep SMS GupShup NA 10.0 Mobi l e VAS Growth Hori zons , Cha rl es Ri ver Ventures , 1-Sep Hel i on Ventures a nd Gl obes pa n Na da thur Group Ama gi Medi a La bs Pvt. Ltd NA 5.4 Advertis i ng Ea rl y IndoUS Venture Pa rtners a nd 17-Aug Onwa rd Mobi l i ty NA 4.0 Mobi l e VAS Ea rl y Qua l comm Ventures 4-Aug Indi a Innova tion Fund a nd Accel Pa rtnersSureWa ves Medi a Tech Pvt Ltd NA 2.3 Di gi tal Medi a Ea rl y Network 18 Medi a & 28-Jul Noki a Growth Pa rtners 3.5 12.2 Onl i ne medi a PIPE Inves tments 22-Jul Future Ventures India Ltd Amar Chitra Katha 30.0 NA Publishing Growth 19-Jul IDG Ventures Indi a Vs erv Di gi tal Servi ces Pvt Ltd NA 3.0 Mobi l e Ad Ea rl y 29-Jun Aja y Adi s es ha nn VServ NA NA Mobi l e Ad Ea rl y 28-Jun One97 Mobi l i ty Fund Lea pSky Wi rel es s NA NA Mobi l e VAS Ea rl y 24-Jun Angel i nves tor Eva m Entertai nment NA 0.1 Thea tres Ea rl y 20-Jun HSBC Pri nci pa l Inves tments Avi tel Pos t Studi oz NA 60.0 Pos t production Growth 13-Jun Bl ume Ventures , Ra ji v Da dl a ni EKI Communi ca tions NA 0.3 Mobi l e VAS Ea rl y 16-May Intel Ca pi tal Indi a Technol ogy Fund Jul y Sys tems NA NA Mobi l e VAS Growth CR Retai l Ma l l s (Indi a ) Ltd (PVR 5-May Infi ni te Indi a Inves tment Ma na gement 100.0 22.3 Exhi bi tion Buyout Group) 19-Apr Future Ventures , El epha nt Ca pi tal Ama r Chi tra Ka tha 26.1 10.0 Publ i ca tion Growth 19-Apr Provi dence UFO Movi ez NA 60.0 Di gi tal Ci nema Growth 13-Apr Mumba i Angel s Zi pdi a l Mobi l e Sol utions NA 0.8 mVAS Ea rl y 8-Apr DE Sha w NDTV 14.2 15.9 Broa dca s ting PIPE Cl ea rs tone Venture Pa rtners ,SVB Indi a 29-Mar Ga mes 2wi n NA 6.0 Ga mi ng Growth Ca pi tal Pa rtners Broa dba nd 9-Feb One97, SAIF Pa rtners Ci qua l NA NA Ea rl y Sol utions Oja s Venture Pa rtners , Inventus Ca pi tal Onl i ne 2-Feb Vi zury Intera ctive Sol utions NA NA Ea rl y Pa rtners Advertis ements 1-Feb Hea dl a nd Ca pi tal , NEA Va l uefi rs t Mes s a gi ng NA 15.1 Mobi l e VAS Growth Norwes t Venture, Hel i on Venture, 19-Jan Koml i Medi a NA 15.0 Onl i ne Ad La te Nexus Venture Oa k Indi a Inves tments , As i a Pa ci fi c 18-Jan Ybra nt Di gi tal NA 48.0 Di gi tal Ma rketing La te Ca pi tal , ICICI Ba nk IndoUS Venture, IDG Ventures Indi a , 12-Jan Apa l ya Technol ogi es Ltd. NA 7.5 Mobi l e TV Growth Qua l comm Ventures , 2011 has seen 25 deals in the segment with total investment exceeding $298mn.Four-S Indian PE Directory 2010” – A Guide to choosing private equity partners Detailed listing of ~330 Active PE/VC Investors in India - PE/VC players that have invested in the past 3 years. A first-of-its-kind, the directory offers “Deal History” in India for individual investor. Management, investment profile and Contact details. User-friendly Spreadsheet Format. It comes from Four-S Services, the most trusted deal information bank in India.Research Desk Four-S Services is Indias leading provider of high-end research, financial consulting and Investment banking services. We have executed projects for prestigious Indian as well as global corporations, investment banks, private equity funds, venture capitalists and hedge funds including India’s Top 5 PE Funds. For further information, please contact SeemaShukla at email@example.com or reach us as http://www.four-s.com
3. FOUR-S Mediatainment Track nd Merger & Acquistionsin M&E and Mobile VAS till 2 September, 2011 Date Acquiror Target Stake (%) Amount ($ mn) Business 19-Aug Mediatek MoMagic NA NA mVAS Digital Entertainment Corporation of 10-Aug Verismo Networks NA NA Digital Media India 5-Aug Gruner and Jahr MaXposure Media Group 78.8 NA Publishing 3-Aug InMobi Sprout 100.0 NA Digital Media 3-Aug BCCL (Times Group) WorldWide Media 50.0 NA Publishing 2-Aug Globosport India Cornerstone Sports and Entertainment 50.0 NA Celebrity management 29-Jul Mediatek Spice Digital 10.0 20.0 mVAS 21-Jul Asianet News Network Pvt Ltd Kannada Prabha Publications Ltd 51.0 NA Publishing 19-Jul Altruist Technologies Pvt Ltd RelayStrategy LLC 100.0 NA mVAS 19-Jul Komli Media ZestAdz 100.0 NA Mobile advertising 15-Jul Repro India Ltd McMillan Publishers India Ltd NA NA Publishing & printing 6-Jul PVR Ltd P V R Pictures Limited 40.0 NA Film Exhibition 6-Jul JWT Mindset Advertising Pvt Ltd NA NA Advertising 6-Jul Saregama India Timbre Media 10.0 NA Music 30-Jun Altruist Group Vegam Solutions Pvt Ltd NA NA mVAS 29-Jun Vistaprint PrintBell NA NA Publishing & printing 2-Jun Komli Media Aktiv Digital NA NA Media Sales 2-Apr Venkateshwara Hatcheries Hitlab.com NA NA Online Music Watermelon Healthcare 24-Mar Publicis Groupe NA NA Advertising Communications Pvt Ltd 21-Feb MIH Group Gaadi Web Pvt Ltd NA NA Online Classifieds Somerset Entertainment Ventures 10-Feb Visaka Industries Ltd. 10.0 2.3 Sports promotion Singapore Pte Limited 8-Feb Mukta Arts Limited Maya Digital Studio Pvt Ltd NA NA Animation 7-Feb Bertelsmann Maxposure Media Group 55.0 1.7 Publishing 2-Feb JMD Telefilms Bajaao.com NA 1.1 Online Music 24-Jan JMD Telefilms Industries Trading Gate FZCO NA 2.6 Digital Media 12-Jan Reliance Broadcast Ltd. Imagine Showbiz NA NA Broadcasting2011 has seen 26 M&A deals in 2011 with total amount exceeding $27.7 mn. Research Desk Four-S Services is Indias leading provider of high-end research, financial consulting and Investment banking services. We have executed projects for prestigious Indian as well as global corporations, investment banks, private equity funds, venture capitalists and hedge funds including India’s Top 5 PE Funds. For further information, please contact SeemaShukla at firstname.lastname@example.org or reach us as http://www.four-s.com
4. Corporate DevelopmentsSMS GupShup raises 10mn from Tenaya Capital, others from devotional to short movies and the charges are as low as Rs.SMS GupShup has raised 10mn Series E funding from investors led 2 per minute.by Tenaya Capital, Lloyd George, New Horizons, Charles RiverVentures, Helion Ventures and Globespan Capital Partners. Sun TV gets breather from CBI in 2G, CCI in DTH, facesSMS Gupshup is a free mobile group messaging service with social competition from newly launched state-owned Arasu Cablenetworking features. It allows users to create mobile Sun TV got a big relief this fortnight. CBI stated that it could notcommunities, download apps and broadcast messages. It find any evidence of coercion by Maran in Aircel-Maxis deal.monetizes from footer advertisements inserted in the messages Maxis had invested in Sun TV after the deal.and premium services. It is estimated to generate 100cr in Like-wise, the Competition Commission of India has cleared SUNrevenues in FY12. Founded in 2007, the company has raised Direct DTH of any violations. Chief minister Jayalalitha had$47mn in funding till date. The current round will be used for recently spoken against Sun TV’s monopoly in Cable TV market.expansion into new markets. However, Sun Direct DTH is going to face competition from TamilSMS GupShup’s innovative business model is independent of Nadu Arasu Cable TV corporation recently launched by Jayalalitha.mobile phone’s OS and other technical features. It can make full Arasu offers cheapest cable rates in the state. Sun channels areuse of India’s large mobile subscriber base of 606mn (GSM only). not currently being aired on Arasu.Demographic focussed advertising is picking up pace in India.Recently, Tata Teleservices and IIT Bombay Center of Excellence News Updatefor Telecom (TICET) launched a Mobile Social Network Platformthat uses call records for such advertising. News broadcasters tie-up with Telcos for news services Network 18 has tied up with Tata DOCOMO to provide video newsAmagi Media Labs raises $5.4mn from Nadathur Group alerts on 2G and 3G phones. Subscribers will be only charged forAmagi Media Labs has raised $5.4mn from Nadathur Group in an data usage. Vodafone has a similar service Newswrap inearly stage funding. association with Star Ananda wherein subscribers get news onAmagi Media Labs is into geographically targeted TV advertising. voice calls and MMS alerts.Amagi’s technology breaks TV spots into regional spots and allows These tie-ups are a step ahead in a move by Telcos to positionlocal advertisers to pay local rates for limited area broadcasting. mobile as an entertainment device and get higher customerAmagi has presence in 22 cities and will expand to 100 cities. It ARPUs.has 400 advertisers, 11 broadcaster partnerships. It has raised atotal funding of ~8mn so far. Reliance Broadcast in plans to raise $86mn in fresh equityOther players in this field are SureWaves Media, VuBites and Reliance Broadcast is in talks with investors to raise $86mn inLukup Media. fresh equity issue. Its shares have been on a roll with Reliance Broadcast rising 8.79% last week and Reliance Mediaworks risingVOD: Verismo’s ‘Mela’, D-Link Boxee Box, Shemaroo-MTNL 11.76% in last one week.Soon after Verismo’s takeover of Sab Kanujia’s Digital This ADAG company is in FM radio, English Entertainment ChannelEntertainment Corporation, it has launched premium South Asian broadcasting and Intellectual Property business BIG Live. TheVOD and TV broadcasting services under the product ‘Mela’. The money would be mainly used for expansion of FM in India and toservices will be delivered to TV sets over HD set top box on the reduce debt.lines of Netflix or Hulu. In future, the services will be available onother screens – PC, mobiles, video game boxes as well. The Carat moderates Global advertising growth, pegs 2012 India Adservices are targetted to expat South Asian community. Roku spend at 9.1%offers similar services in US market. World’s largest independent communications specialist Carat hasThe quick launch of content services from Verismo also transitions revised Global ad spend growth to 5%, down from earlierit from being a technology player to a diversified player. Verismo prediction of 5.7%. The growth in 2012 would be higher at 6%.is in the business of providing end to end Boradband Digital would be highest growing segment. Indian ad spend wouldentertainment services. grow at 9.1% in 2012.Another VOD services launch is Boxee Box by D-Link. This internetenabled media player allows consumer to watch popular videos Ericsson presents TV and Video Consumer Trend Report 2011on internet on their TV Screens and comes with a QWERTY According to recently released Ericsson Consumer Lab report,keypad. It also allows integration with social networking sites. D- globally consumers are spending more time watching streamedLink India is the largest networking company in India. on-demand TV Online. ~ 40% of respondents watch internetShemaroo has tiedup with MTNL to provide IVVR video call based on-demand TV more than once per week. While there wasservice, video downloads and streaming. The content would range a slight decrease in time spent on watching scheduled broadcast TV, 80% respondents watched it more than once per week.Research Desk Four-S Services is Indias leading provider of high-end research, financial consulting and Investment banking services. We have executed projects for prestigious Indian as well as global corporations, investment banks, private equity funds, venture capitalists and hedge funds including India’s Top 5 PE Funds. For further information, please contact SeemaShukla at email@example.com or reach us as http://www.four-s.com
5. FOUR-S Mediatainment TrackStock Market Update (Returns) Stock M Cap (Sep 02) Price (Sep-02) 15 days 1m 3m 6m 1 yr P/E (TTM) Sun TV Network 1,19,447 303.1 1% 0% 11% -26% -38% 15.1 Zee Entertai nment 1,14,218 117.9 -3% -8% -18% -2% -17% 22.8 Di s h TV 86,186 81.0 -1% -3% 5% 35% 50% NA DB Corp 42,644 232.7 0% -2% 0% -2% -7% 16.6 UTV Softwa re 38,443 944.9 0% -1% 46% 85% 82% 48 HT Medi a 34,995 148.9 1% -6% -10% 9% -14% 18.4 Ja gra n Pra ka s ha n 34,062 107.7 2% -4% -14% -5% -17% 17 Eros Interna tiona l 19,767 216.3 11% 1% 44% 53% NM 26.6 IBN 18 Broa dca s t 14,702 40.6 -13% -40% -53% -57% -67% NA Ha thwa y ca bl e 12,400 86.8 10% -20% -23% -27% -59% NA Decca n Chroni cl e 12,119 56.5 -15% -16% -14% -6% -56% 14 ENIL 12,096 253.8 6% -1% 3% 18% 3% 24.4 Pri me Focus 7,568 54.5 -2% -22% -2% 23% -6% 43.3 Den Networks 5,370 41.2 -2% -47% -59% -61% -83% NA Rel i a nce Medi a 4,557 98.8 19% -12% -23% -30% -50% NA Ba l a ji Tel efi l ms 1,872 28.7 4% -7% -17% -18% -47% NA Ni fty 5040.0 4% -8% -9% -9% -8% Sens ex 16,821.5 4% -7% -9% -9% -8% Market Cap in Rs.`mn Sun TV regains #1 slot from Zee Entertainment, while Hathway moves two slots up, above Deccan Chronicle.Financial Benchmarking - Quarter 1, FY’12 Results Company Revenue EBITDA PAT Q1, FY11 Q1, FY12 y-o-y Q1, FY11 Q1, FY12 y-o-y Q1, FY11 Q1, FY12 y-o-y Sun TV Network* 4,517 4,713 4% 3,599 3,659 2% 1,710 1,876 10% Zee Entertainment 7,186 7,238 1% 1,870 1,560 -17% 1,501 1,302 -13% Dish TV* 3,320 4,741 43% 322 1,122 248% -632 -183 NA DB Corp 3,030 3,574 18% 1,136 1,004 -12% 717 612 -15% UTV Software 2,082 2,064 -1% 485 -0.3 -100% 403 -22 -105% HT Media 4,100 5,115 25% 808 903 12% 402 540 34% Jagran Prakashan* 2,756 3,124 13% 902 820 -9% 556 497 -11% Eros International 1,263 1,538 22% 242 299 24% 146 233 60% IBN 18 Broadcast 1,732 2,660 54% 50 243 385% -112 211 NA Hathway cable* 999 1,225 23% 141 161 14% -139 -148 NA Deccan Chronicle* 2,318 2,018 -13% 1,199 373 -69% 912 122 -87% ENIL 1,152 711 -38% 94 127 36% 5 93 1724% Prime Focus* 254 359 42% 114 90 -21% 29 5 -82% Den Networks* 2,460 2,829 15% 306 179 -41% 170 29 -83% Reliance Media 2,083 1,929 -7% 82 -366 NA -541 -1,201 NA Balaji Telefilms* 391 447 14% -27 -30 14% 29 97 229% *Standalone results Figures in Rs.`mnResearch DeskFour-S Services is Indias leading provider of high-end research, financial consulting and Investment banking services. We have executed projects forprestigious Indian as well as global corporations, investment banks, private equity funds, venture capitalists and hedge funds including India’s Top 5 PEFunds. For further information, please contact SeemaShukla at firstname.lastname@example.org or reach us as http://www.four-s.com
6. FOUR-S Mediatainment Track In Rs. mn Company Revenue EBITDA PAT TTM Jun10 TTM Jun11 Y-O-Y TTM Jun10TTM Jun11 Y-O-Y TTM Jun10 TTM Jun11 Y-O-Y Sun TV Network* 15,874 19,901 25% 12,468 15,639 25% 6,185 7,889 28% Zee Entertainment 25,299 31,281 24% 6,787 7,825 15% 5,363 6,037 13% Dish TV* 11,880 16,293 37% 1,112 3,188 187% -2,561 -1,448 NA DB Corp 11,126 13,338 20% 3,629 3,899 7% 1,972 2,246 14% UTV Software 7,973 9,450 19% 1,470 1,293 -12% 1,222 951 -22% HT Media 15,206 19,167 26% 2,970 3,453 16% 1,470 1,996 36% Jagran Prakashan* 10,042 11,754 17% 3,019 3,340 11% 1,820 2,000 10% Eros International 7,024 7,345 5% 1,280 1,610 26% 903 1,270 41% IBN 18 Broadcast 6,715 8,970 34% -579 656 NA -1,267 149 NA Hathway cable* 2,971 4,959 67% 395 756 91% -513 -407 NA Deccan Chronicle* 9,077 9,462 4% 4,665 2,107 -55% 2,753 834 -70% ENIL 4,514 4,210 -7% 434 656 51% 14 265 1822% Prime Focus* 989 1,461 48% 495 528 7% 156 174 12% Den Networks* 9,513 10,831 14% 998 991 -1% 474 307 -35% Reliance Media 8,294 8,207 -1% 872 -584 NA -1,380 -3,969 NA Balaji Telefilms* 1,755 1,741 -1% 51 -90 NA 92 33 -64% *Standalone resultsResearch DeskFour-S Services is Indias leading provider of high-end research, financial consulting and Investment banking services. We have executed projects forprestigious Indian as well as global corporations, investment banks, private equity funds, venture capitalists and hedge funds including India’s Top 5 PEFunds. For further information, please contact SeemaShukla at email@example.com or reach us as http://www.four-s.com
7. FOUR-S Mediatainment Track Four-S Services Pvt Ltd Founded in 2002, Four-S has a strong & successful track record of genuine, accurate and objective advice to top Indian & global companies & PE Firms. Four-S has already proven success in corporate finance, strategy consulting, fund-raising, investment banking and investor relations mandates with 100+ corporates and large PE fundsFour-S, trusted advisor to top Indian & Global Cos Offering comprehensive bouquet of services to SMEs, Corporates and PE Funds Target Portfolio Post investment Sector Research Identification Benchmarking Review Investor Investment Independent Entry Strategy Relations Banking Valuation
8. FOUR-S Mediatainment TrackAbout Four-S ServicesFour-S Services provides customized business and financial research to organizations across the globe. Thecompany also provides Investor Relations consulting to corporate based on in-depth sectoral and companyresearch. The company has an impressive client profile and a team of senior analysts covering key sectorsincluding Finance & Banking, IT & Telecom, Retail, Media & Entertainment, Pharmaceuticals, Infrastructureand Manufacturing amongst others. For further information on the company please visit www.four-s.comDisclaimerThe 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 opinion contained in this document or upon which any such projections or opinions have beenbased. Four-S Services Pvt Ltd. will not accept any liability, whatsoever with respect to the use of thisdocument or its content. 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 mayfrom time to time solicit from, or perform consulting, or other services for, any company mentioned in thisdocument.