Vol.

36, 11th February 24th February 2012

Mediatainment Track
Fortnightly Update on Indian Media & Entertainment Industry

In the Spotlight
2012: year of Indian Hockey Our national game Hockey has for long been dominated by cricket. But 2012 is going to be the year of Hockey getting its place due. The two major Indian Hockey bodies Indian Hockey Federation and Hockey India are getting an IPL like event each. Indian Hockey Federation and Nimbus Sports have joined hands to launch World Series Hockey (WSH) in India. Tyre maker Bridgestone, which sponsors F1events, has come on board as the title sponsor. WSH will have 200 players - Indian and international - playing 59 matches. The format would be multi-city franchise based with eight teams out of Mumbai, Delhi, Chennai, Hyderabad, Bangalore, Chandigarh, Pune, Bhopal, Punjab, Ranchi and Rourkela. All star players have already signed up in an event thats serving as a comeback for Dhanraj Pillay and Viren Rasquinha. The inaugural match is on 29 of February and the final st match is on 1 of April. The prize money is ~$2mn. Nimbus will spend Rs.400mn in marketing WSH on TV, Print, Radio, Digital and On-ground events. Digital and Social media campaign is handled by Red Digital while for print, WSH has entered into a strategic alliance with Dainik Bhaskar. Not to be left behind Hockey India has partnered International Hockey Federation for an Indian Hockey League later this year. India is making the right moves to emerge as Hockey hub of the world.
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Content
Private Equity Mergers & Acquisitions Corporate Developments News Update Stock Market Update Financial Benchmarking About Four-S

Content

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About Four-S Services

Four-S Services is India's leading provider of Research, Financial Consulting and Investment Banking services with offices in Gurgaon, Mumbai and Bangalore. We have a proven track record of consistently delivering high quality solutions, enabling our clients to improve the effectiveness of decision making and acting as a catalyst in achieving business success. We have executed more than 120 mandates across diverse range of industries including Education, Financial Services, Infrastructure, M&E, IT-ITeS, Auto and Auto ancillaries, Retail, Real Estate and Textile etc

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Investment Activity
Private Equity deals in M&E and Mobile VAS till 24 February, 2012
Date Investors 20-Feb 17-Feb 15-Feb 8-Feb 31-Ja n 27-Ja n Oja s Venture Pa rtners Upda ta , Wes tBri dge & Intel Ca pi ta l Ci s co Sys tems Indi a n Angel Network Oja s Ventures NA Target Bri zzTV Medi a La b Jul y Sys tems Qyuki Ga mi a na Di gi ta l Ga mi ng Venturenet Pa rtners Pvt Ltd InRev Stake % Amount $mn Business NA NA 17 NA NA NA NA NA NA 15.0 5.5 1.0 NA NA NA 6.6 Di gi ta l medi a mVAS Di gi ta l medi a Ga mi ng Di gi ta l Ra di o Soci a l medi a product Stage
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Early Late Early Early Early

Ea rl y

19-Jan CCube
19-Ja n Sequoi a Ca pi ta l

MyAdCorner.com
Knowl a ri ty Communi ca ti ons

Online ad booking

Early

mVAS - Cl oud Tel ephony Growth

2012 has seen 8 deals for more than $28.1mn till date.

Merger & Acquistions in M&E and Mobile VAS till 24 February, 2012
Date Acquiror 10-Feb GigaOM 3-Feb Persistent Systems 2-Feb Walt Disney 25-Jan Gujarat Telelinks
4-Ja n Wa y2Onl i ne 3-Ja n Network 18 Group 2-Ja n Undi s cl os ed buyer

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Target Openwave Location Business UTV Software V&S

160by2 Eena du Ba l a ji Tel efi l ms - educa ti on/ mobi l e

Stake (%) Amount ($ mn) Business NA

NA 446* 0.2 NA NA 395.0 1.6

NA Guardian News & Media - PaidContent, other assets

100.0 NA 51.0 1.1 100.0 NA NA

Content mVAS - Location services Broadcasting, Production Distribution - MSO Distribution - Cable
Onl i ne porta l - mes s a gi ng Broa dca s ti ng Content/ Medi a educa ti on

19-Jan Reliance Strategic Investments DEN Networks

*estimated value 2012 has seen 8 deals happening in the segment, worth more than $842mn.

Four-S Indian PE Directory 2012 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 India's 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 Indias Top 5 PE Funds. For further information, please contact Seema Shukla at [email protected] or reach us as http://www.four-s.com

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Corporate Developments
BrizzTV Media raises funding from Ojas Brizz TV Media Lab has raised Series A funding from Ojas Venture Partners. The funding amount was undisclosed. BrizzTV is a digital media technology company that uses DTH enabled TVs to deliver personal content. BrizzTV has partnered with Airtel Digital TV. The company was incubated at NSRCEL (IIM Bangalore). This is Ojas Ventures second investment in less than a month. Both investments have been in digital media space. Connected TVs are a new trend globally. BrizzTV has an advantage in emerging markets with low internet penetration as it does not require internet to operate. It can run on simple DTH infrastructure. Qyuki gets $5.5mn from Cisco Qyuki has raised $5.5mn in funding from Cisco system in exchange for 17% stake, at a valuation of over $32mn. Qyuki is a media firm based in Bangalore started by industry stalwarts AR Rahman and Shekhar Kapur. Qyuki will be in digital content creation and distribution in new media platforms of mobile and internet. The service is expected to go live in May 2012. This is Shekhar Kapurs second digital venture, first being Liquid Comics that had recently launched a digital comic books platform Graphic India. July Systems gets $15mn in funding July Systems has received $15mn in funding in a round led by Updata Partners with Intel Capital and WestBridge Capital also participating. The company has raised over $30mn in multiple rounds of funding so far. July Systems is in cross-platform mobile content applications space with brands like ESPN, Toys R Us, Intel, Unilever, CBS, and the NBA as its customers. In earlier rounds, July Systems had raised funding from Intel Capital, Sequoia Capital, Footprint Ventures, Westbridge Capital and Acer Technology Ventures. Chinese mobile marketing firm enters India: WPP to pick stake Chinese mobile marketing and advertising firm Madhouse has started its Indian operations as Madhouse India. WPP is a strategic partner in Madhouse India and will also pick stake later. Rovio Entertainment, of Angry Birds game fame, may also become a strategic investor in the firm. Chinese firm Madhouse has over 120 clients and has its investors include TDF Capital, Nokia Growth partners and Gobi Partners. India offers a huge potential as a mobile market with over 850mn mobile subscribers. Digital advertising is growing faster at 40% than traditional advertising media (15-20%). The company expects the Rs. 1.25bn Indian mobile marketing to reach Rs. 10bn by 2014. Gamiana raises Series A funding Gamiana has received an undisclosed amount of Series A funding from Indian Angel Network. Chetan Sharma of IAN will join on Gamians board. The company will use the funds to increase their customer base and in software development. Gamiana is an online entertainment company using games to build online communities. Its offerings include Jamia Online, a virtual world game targeted at teens and Vinashi, a real-time strategy game. Gamiana was founded in 2008. Gartner estimates global online gaming market to be over $11mn and will reach $28bn by 2015.

News Update
Mahindra Satyam in talks with ComVIVa Mahindra Satyam is looking to acquire 20-30% in ComVIVA in a deal that could be worth $100mn. ComVIVA is a Bharti Group owned mVAS player. It has more than 110 customers spread across 90 countries. It provides Apps, Platforms, Financial Solutions and customer solutions for mobile. A sister company TechMahindra runs another mVAS company CanvasM jointly with Motorola. India in Oscars with Anil Ambanis Dreamworks Anil Ambanis JV with Steven Speilberg, Dreamworks Studios had three films getting 11 Oscar Nominations this year The Help, War Horse and Real Steel. Out of the 11 nominations, The Help fetched an Oscar for Best Supporting Actress to Octavia Spencer. Anil Ambani owns 51% in Dreamworks Studios having invested $325mn in it in 2009. 500mn high for Dabangg2 In another milestone for Bollywood, Salman Khan has hit a jackpot by selling statellite rights of Dabangg2 for Rs. 500mn to Star Network. This is much higher than Rs. 400mn deal for Hrithik starrer Agneepath. The music rights have also been sold to T-Series for over Rs. 100mn.

DeskResearch DeskResearch Desk research, financial consulting and Investment banking services. We have executed projects for prestigious Indian as well leading provider of high-end
as global corporations, investment banks, private equity funds, venture capitalists and hedge funds including Indias Top 5 PE Funds. For further information, please contact SeemaShukla at [email protected] or reach us as http://www.four-s.comFour-S Services is India's leading provider of highend 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 Indias Top 5 PE Funds. For further information, please contact

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Stock Market Update (Returns)
Stock Zee Entertai nment Sun TV Network Di s h TV UTV Softwa re DB Corp Ja gra n Pra ka s ha n HT Medi a Ha thwa y ca bl e Eros Interna tiona l Den Networks TV 18 Broa dca s t ENIL Decca n Chroni cl e Onmobi l e Pri me Focus Rel i a nce Medi a works PVR Ba l a ji Tel efi l ms Ni fty Sens ex MCap (Feb 24) Price (Feb 24) 1,22,234 1,20,117 57,905 43,751 36,295 32,892 32,680 21,286 16,890 13,310 11,080 10,631 8,977 8,444 7,131 3,690 3,593 2,661 131.5 318.2 57.5 1068.0 198.9 107.0 144.3 156.6 186.2 105.2 31.9 233.6 45.2 73.2 54.8 82.5 140.7 43.0 5429.3 17923.6 15 days 2% -7% -14% 1% -1% -1% 1% -14% -14% 16% 3% 7% -10% -4% -11% -3% -1% 0% 1% 1% 1m 10% 11% 1% 2% 6% 9% 13% 19% -9% 34% 5% 16% 9% 0% -3% 3% -2% 16% 6% 5% 3m 10% 18% -6% 13% -1% 4% 24% 50% -13% 86% -10% 1% 1% 10% 16% -2% 11% 46% 14% 13% 6m 10% 6% -26% 14% -18% 0% -1% 84% -2% 154% -28% -5% -20% 20% 0% -6% 20% 50% 11% 10% 14% -16% 1% 123% -17% -2% 1% 34% 32% 5% -66% 13% -28% -27% 28% -41% 28% 21% 3% 2%

Market Cap in .`mn

1 yr P/E (TTM) 19.7 16.1 NA NA 18.0 18.4 16.1 NA 13.1 97.8 NA 18.9 111.8 8.0 7.9 NA 10.0 29.8

Financial Benchmarking - Quarter 3, FY12 Results

Quarter ending 31 December, 2011
Company
Zee Entertai nment Sun TV Network* Di s h TV* UTV Softwa re DB Corp Ja gra n Pra ka s ha n* HT Medi a Ha thwa y ca bl e* Eros Interna tiona l Den Networks TV 18 Broa dca s t ENIL Decca n Chroni cl e* Rel i a nce Medi a OnMobi l e Gl oba l Pri me Focus PVR
st

Revenue Q3, FY'11 Q3, FY'12 8,249 5,980 3,732 2,559 3,482 2,860 4,651 1,199 2,798 2,644 2,362 1,458 1,996 2,423 1,486 1,269 1,336 395 7,548 4,251 4,905 1,654 3,956 3,240 5,266 1,277 4,084 2,782 3,428 768 2,316 2,111 1,688 2,128 1,390 346 y-o-y -8% -29% 31% -35% 14% 13% 13% 6% 46% 5% 45% -47% 16% -13% 14% 68% 4% -12% 2,241 5,018 667 534 1,148 897 883 214 619 268 321 308 754 167 336 369 216 -4

EBITDA 2,160 1,202 -686 -4% 80% NM 1,600 2,255 -443 400 659 526 478 -124 428 92 198 -52 352 -570 209 175 -48 12

PAT 1,393 -13% 1,679 -26% -430 -962 NM NM

Q3, FY'11 Q3, FY'12 y-o-y Q3, FY'11 Q3, FY'12 y-o-y 3,411 -32%

1,018 -11% 723 -19% 777 -12% 221 1,010 -341 3% 63% NM

554 -16% 413 -22% 482 1% -183 691 -535 184 -1,511 263 90 11 NM 61% NM NM NM 50% NM -8%

235 -12% 257 -16% 502 -33% -454 391 613 240 -19 NM 16% 66% 11% NM

35 -62%

213 -39% 178 -15%

Balaji Telefilms*

* Standalone results

Figures in Rs.`mn

Research Desk
Four-S Services is India's 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 Indias Top 5 PE Funds. For further information, please contact Seema Shukla at [email protected] or reach us as http://www.four-s.com

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Nine Months ending 31 December, 2011
Company
Zee Entertai nment Sun TV Network* Di s h TV* UTV Softwa re DB Corp Ja gra n Pra ka s ha n* HT Medi a Ha thwa y ca bl e* Eros Interna tiona l Den Networks TV 18 Broa dca s t ENIL Decca n Chroni cl e* Rel i a nce Medi a works OnMobi l e Gl oba l Pri me Focus PVR
st

Revenue 9M, FY'11 9M, FY'12 22,134 14,632 10,036 7,041 9,479 8,327 13,116 3,484 5,927 7,641 5,984 3,709 6,681 6,970 4,039 4,262 3,717 1,085 21,715 13,304 14,331 6,118 11,032 9,341 15,143 3,787 7,370 8,177 9,107 2,156 6,592 6,385 4,605 5,828 3,947 991 y-o-y -2% -9% 43% -13% 16% 12% 15% 9% 24% 7% 52% -42% -1% -8% 14% 37% 6% -9% 5,997 11,940 1,487 1,479 3,235 2,708 2,482 696 1,419 892 391 495 3,412 505 899 1,294 708 -82

EBITDA 9M, FY'11 9M, FY'12 5,796 10,725 3,542 -742 2,793 2,468 2,392 640 1,723 658 -36 504 1,724 -1,051 986 1,652 727 -64 y-o-y -3% -10% 138% NM -14% -9% -4% -8% 21% -26% NM 2% -49% NM 10% 28% 3% NM 4,402 5,639 -1,526 1,214 1,905 1,637 1,280 -229 1,041 297 -43 -31 2,090 -1,554 623 659 93 -23

PAT 9M, FY'11 9M, FY'12 4,290 5,356 -1,098 -1,281 1,567 1,368 1,435 -434 1,151 98 -404 360 546 -3,918 783 783 387 101 y-o-y -3% -5% NM NM -18% -16% 12% NM 11% -67% NM NM -74% NM 26% 19% 317% NM

Balaji Telefilms*

* Standalone results TTM Dec-11 Results

Company
Zee Entertai nment Sun TV Network* Di s h TV* UTV Softwa re DB Corp Ja gra n Pra ka s ha n* HT Medi a Ha thwa y ca bl e* Eros Interna tiona l Den Networks TV 18 Broa dca s t ENIL Decca n Chroni cl e Rel i a nce Medi a OnMobi l e Gl oba l Pri me Focus PVR

Figures in Rs.`mn

Revenue TTM Dec10 TTM Dec11 28,627 18,551 13,068 8,347 12,050 10,690 16,999 4,484 7,555 10,104 7,672 4,911 8,598 9,266 5,268 5,143 4,592 1,532 29,695 17,909 18,661 8,546 14,206 12,167 19,871 5,022 8,513 10,998 11,165 3,083 9,673 7,777 5,938 6,596 4,842 1,436 4% -3% 43% 2% 18% 14% 17% 12% 13% 9% 46% -37% 13% -16% 13% 28% 5% -6% 7,833 15,249 1,835 1,886 3,931 3,340 3,402 908 1,721 1,162 416 776 3,945 746 1,118 1,287 818 16

EBITDA y-o-y TTM Dec10 TTM Dec11 8,064 14,364 4,443 -442 3,589 2,910 3,268 807 1,856 889 35 814 1,166 -1,692 1,293 2,033 912 -68 3% -6% 142% NM -9% -13% -4% -11% 8% -24% -91% 5% -70% NM 16% 58% 12% NM 5,607 7,290 -2,124 1,539 2,212 2,001 1,808 -322 1,236 625 -267 147 2,155 -2,009 700 788 20 11

PAT y-o-y TTM Dec10 TTM Dec11 6,196 7,440 -1,469 -1,120 2,022 1,789 2,025 -609 1,292 136 -680 561 80 -5,624 1,052 903 359 89 y-o-y 11% 2% NM NM -9% -11% 12% NM 4% -78% NM 282% -96% NM 50% 15% 1679% 688%

Balaji Telefilms*

* Standalone results

Figures in Rs.`mn

Research Desk
Four-S Services is India's 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 Indias Top 5 PE Funds. For further information, please contact Seema Shukla at [email protected] or reach us as http://www.four-s.com

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