european technology updateeuropean technology update · 2011. 9. 30. · mobile messaging startup...

European Technology UpdateEuropean Technology UpdateSeptember 29, 2010

Thierry MonjauzeThierry MonjauzeManaging Director63 Brook StreetLondon W1K 4HSUnited KingdomPhone: +44 20 7518 [email protected]

Francois MorinVice President63 Brook Street

www.harriswilliams.comThis report has been prepared by Harris Williams & Co. Ltd and approved by Sturgeon Ventures LLP in accordance with Conduct Of Business rules COBS 4 of the FSA Handbook.

Harris Williams & Co. Ltd is an authorised representative of Sturgeon Ventures LLP which is Authorised and Regulated by the Financial Services Authority. This report is being made by Harris Williams & Co Ltd. Investment banking services are provided by Harris Williams LLC, a registered broker-dealer and member of FINRA and SIPC, and Harris

Williams & Co. Lt. Harris Williams & Co. is a trade name under which Harris Williams LLC and Harris Williams & Co. Ltd conduct business in the U.S. and Europe, respectively.

63 Brook StreetLondon W1K 4HSUnited KingdomPhone: +44 20 7518 [email protected]

Recent Developments

KKR has acquired a majority stake in Norwegian software company Visma at an enterprise value of approximately £1.2 billionWPP has agreed to acquire digital marketing agency AKQA for $600 millionBilling services provider Intec Telecom Services has agreed to be acquired by CSG Systems for £237 million

Company Specific

News

p

millionWolters Kluwer has acquired financial regulatory reporting company FRS Global and sold patient database provider IFI Patient Intelligence to Fairview ResearchAxel Springer is attempting to acquire French online real estate company Seloger for €34 per share, or an enterprise value of €570 millionIBM has agreed to acquire data warehousing company Netezza for $1.7 billion and compliance software company OpenPagesMontagu Private Equity has acquired domain registration business Host Europe Group for £222 million from Oakley Capitalfrom Oakley CapitalOpenTable has acquired UK restaurant reservation competitor for $55 millionMail.com, a US-based webmail provider, has been acquired by United Internet US-German mobile location-based publishing services company Aloqa has been acquired by MotorolaNaspers has acquired a controlling stake in Multiply, a social networking and ecommerce site operatorZynga has acquired German online gaming company DextroseShares of closely held start-ups traded on SecondMarket have risen by an average of 39% between January and August, whereas the Nasdaq has risen only 3%French government backed transport company SNCF has acquired travel search engine Liligo forFrench government-backed transport company SNCF has acquired travel search engine Liligo for approximately €20-30 millionApple has acquired Swedish facial recognition software company Polar Rose for approximately $30 millionNokia has agreed to acquire Motally, a mobile analytics providerMobile messaging startup Blyk has raised €17 million in a round lead by Nexit VenturesProduct comparison search engine PrismaStar has raised £2 million from OctopusCzech ecommerce company Mall.cz has raised €10 million from Intel Capital and MCISaas market research provider Cint has raised $13 million from Prime Technology Ventures and existing shareholdersshareholdersFrench-Italian online private shopping club Private Outlet has raised €4.9 million from GimvUbiquisys, a UK specialist femtocell producer, has raised $5 million from various Asian investorsClavis Technology, an Irish SaaS data validation provider, plans to raise £5 millionOnline gambling exchange site Betfair is planning to list on the LSEAccording to comScore, Facebook has surpassed Google as the most visited site in the USAsymco estimates that Apple spends approximately $1 billion annually on a run-rate basis to operate iTunes, which covers the distribution of music, TV, movies, ebooks and mobile appsGoogle has acquired 19 companies in 2010 year-to-date and is on track to acquire a company every two weeks

Despite declining smartphone market share, Nokia devices still account for nearly 50% of all mobile ad impressions according to InMobi. Samsung, Sony Ericsson and Apple trail Nokia, respectively, but the iPhone has the largest number of impressions of any deviceStreaming video advertising in the US is expected to grow by more than 60% in 2011 to reach $5.6 billion, according to Borrell, significantly outpacing total online ad spend growth of 14% to reach $51.9 billionE A l ti t hi d iPh 4 l it h f th US t h k t f ll 1 3%

Industry Trends

Even as Apple continues to achieve record iPhone 4 sales, its share of the US smartphone market fell 1.3% to 23.8% in July according to comScoreIE Market Research estimates that global digital music revenue is expected to reach $32.5 billion in 2014 from $7.8 billion in 2009

Source: Industry news sources. 1

Public Market Trading Statistics

Stock Performance

15%

20%

Last 30 Days

g

19.2%12.3%

(5%)

0%

5%

10%

26 Aug 01 Sep 07 Sep 13 Sep 19 Sep

DJ Stoxx 600 Technology Nasdaq Composite Software and IT Services Communications Internet and Digita l Media

11.7%11.4%10.7%

(5%)

0%

5%

10%

15%

20%

25%

Last Twelve Months

21.5%13.4%11.8%(3.6% )(4 3% )

CY2010EEBITDA Margin Growth CY2010E CY2011E CY2010E CY2011E CY2010E CY2011E

P / EEV / Revenue EV / EBITDA

(20%)

(15%)

(10%)

Sep 2009 Dec 2009 Mar 2010 Jun 2010 Sep 2010

DJ Stoxx 600 Technology Nasdaq Composite Software and IT Services Communications Internet and Digital Media

Comparable Trading

Sources: Capital IQ, 27 September 2010; Brokers’ reports.

(4.3% )

Software and IT ServicesEnterprise Applications 19.4% 4.0% 1.6x 1.5x 8.0x 7.2x 15.2x 13.0xEuropean Large Cap Software 32.2% 13.2% 3.8x 3.6x 11.6x 10.2x 18.8x 16.5xFinancial Software 23.6% 11.3% 2.2x 2.1x 9.0x 7.7x 17.6x 14.5xHealthcare Software 20.4% 32.5% 2.0x 1.8x 9.4x 7.7x 19.0x 18.8xLarge Cap IT Services 13.1% (0.4%) 0.9x 0.9x 6.9x 6.2x 14.6x 12.5xMid Cap IT Services 11.1% (2.4%) 0.7x 0.7x 6.4x 5.9x 11.3x 9.7xOffshore IT Services 25.2% 22.3% 4.2x 3.8x 16.3x 13.8x 23.8x 20.1xSecurity Software 34.1% 6.2% 3.1x 3.0x 9.2x 8.3x 17.5x 15.6x

Communications

Summary

CommunicationsDigital Broadband 13.1% 7.2% 0.7x 0.7x 5.3x 4.7x 11.2x 9.7xDiversified Communication Equipment 12.4% 21.4% 1.3x 1.2x 8.0x 9.0x 19.1x 16.2xMobile Content / Solutions Providers 16.0% 28.7% 2.2x 1.9x 13.7x 8.1x 29.5x 19.3xMobile Infrastructure Software 23.7% 7.3% 2.4x 2.3x 11.6x 8.8x 18.6x 18.0x

Internet and Digital MediaChinese Internet Leaders 40.7% 33.2% 9.1x 7.9x 16.2x 15.1x 25.6x 23.4xOnline Classifieds 38.5% 17.1% 5.7x 5.8x 14.6x 11.6x 28.5x 24.3xContent Providers / Communities 21.4% 10.3% 2.4x 2.3x 12.0x 9.6x 19.0x 26.3xEcommerce 15.7% 22.3% 3.6x 3.2x 19.7x 14.6x 34.5x 31.4xGlobal Internet Leaders 33 4% 24 8% 6 7x 5 8x 14 2x 14 0x 23 4x 24 6xGlobal Internet Leaders 33.4% 24.8% 6.7x 5.8x 14.2x 14.0x 23.4x 24.6xInteractive Entertainment 16.3% 26.6% 0.9x 1.0x 5.4x 5.0x 21.3x 18.2xIntermediation and Comparison 27.5% 7.9% 2.2x 2.0x 8.0x 7.2x 18.5x 16.4xOnline Gambling 31.7% (6.0%) 3.3x 3.2x 9.3x 8.3x 13.8x 12.2xOnline Marketing 13.3% 11.1% 1.4x 1.5x 12.0x 8.4x 24.0x 19.6xOnline Travel 27.6% 18.9% 5.0x 4.6x 18.3x 14.7x 30.6x 24.1x

2

Software and IT Services

20%

Offshore IT Services 15.1%European Large Cap Software 14.4%Enterprise Applications 12.7%Financial Software 12.5%Large Cap IT Services 12.1%Mid C IT S i 11 4%

Last 30 Days Performance

5%

10%

15%

Mid Cap IT Services 11.4%Security Software 6.1%Healthcare Software 4.6%

(5%)

0%


European Large Cap Software Financial SoftwareEnterprise Applications Healthcare Softwarep ppSecurity Software Large Cap IT ServicesMid Cap IT Services Offshore IT Services

Last Twelve Months PerformanceOffshore IT Services 47.9%European Large Cap Software 24.8%Enterprise Applications 21.6%Financial Software 18.7%Large Cap IT Services (2.5% )Security Software (3.0% )Healthcare Software (4.8% )

50%( )

Mid Cap IT Services (6.1% )

0%

10%

20%

30%

40%

(30%)

(20%)

(10%)

Sep 2009 Dec 2009 Mar 2010 Jun 2010

European Large Cap Software Financial SoftwareEnterprise Applications Healthcare Software

Source: Capital IQ, 27 September 2010.3

p ppSecurity Software Large Cap IT ServicesMid Cap IT Services Offshore IT Services

Software and IT Services(Continued)

Market Enterprise CY2010ECap ($m) Value ($m) EBITDA Margin Growth CY2010E CY2011E CY2010E CY2011E CY2010E CY2011E

European Large Cap SoftwareSAP 58,892 56,513 33.6% 4.6% 3.5x 3.4x 10.5x 9.2x 17.4x 14.9xDassault Systemes 8,446 7,484 27.8% 14.6% 3.6x 3.3x 13.1x 10.8x 22.2x 19.0xAutonomy 6 769 6 597 52 2% 20 6% 7 4x 6 8x 14 2x 11 9x 22 3x 19 1x

EV / Revenue EV / EBITDA P / E

Autonomy 6,769 6,597 52.2% 20.6% 7.4x 6.8x 14.2x 11.9x 22.3x 19.1xSage 5,376 5,827 25.9% (1.5%) 2.6x 2.5x 9.9x 9.5x 14.4x 13.7xSoftware 3,415 3,810 27.3% 22.0% 2.6x 2.5x 9.5x 8.8x 15.1x 13.4xMisys 2,421 2,657 20.6% 0.1% 2.1x 2.1x 10.2x 9.4x 21.2x 18.5xTemenos 1,777 1,928 28.9% 21.1% 4.3x 4.1x 14.8x 12.2x 19.6x 17.1xAveva 1,540 1,303 34.6% 2.7% 5.2x 5.1x 15.1x 13.5x 26.5x 23.5xMicro Focus 1,188 1,259 38.7% 34.8% 2.8x 2.7x 7.2x 6.8x 10.2x 9.3x

Mean 32.2% 13.2% 3.8x 3.6x 11.6x 10.2x 18.8x 16.5xMedian 28.9% 14.6% 3.5x 3.3x 10.5x 9.5x 19.6x 17.1x

Financial SoftwareIntuit 14,435 13,811 36.4% 9.9% 3.9x 3.6x 10.6x 9.6x 21.1x 18.4xMisys 2,421 2,657 20.6% 0.1% 2.1x 2.1x 10.2x 9.4x 21.2x 18.5xMisys 2,421 2,657 20.6% 0.1% 2.1x 2.1x 10.2x 9.4x 21.2x 18.5xTemenos 1,777 1,928 28.9% 21.1% 4.3x 4.1x 14.8x 12.2x 19.6x 17.1xFidessa 834 771 22.0% 9.2% 1.8x 1.7x 8.3x 7.5x 21.2x 19.5xSimCorp 689 642 24.4% 3.5% 2.4x 2.3x 9.8x 8.5x 16.5x 13.5xORC 459 426 24.7% 60.1% 2.7x 2.3x 11.0x 7.3x 20.4x 14.2xLinedata 160 162 16.8% (5.6%) 0.8x 0.8x 4.9x 4.5x 11.6x 9.6xInnovation 159 129 10.6% 2.3% 0.5x 0.5x 4.7x 3.7x 15.4x 10.0xMicrogen 121 84 25.7% 10.3% 1.6x 1.6x 6.4x 5.9x 15.4x 12.9xStatPro 111 121 26.1% 2.4% 2.3x 2.2x 8.9x 8.1x 13.2x 11.7x


Enterprise Applicationste p se pp cat o sUnit 4 791 885 20.4% 5.4% 1.5x 1.5x 7.6x 6.6x 22.0x 15.4xSDL 724 637 19.5% 8.7% 2.1x 2.0x 10.8x 9.3x 18.5x 16.8xExact 560 496 22.4% (6.6%) 1.6x 1.6x 7.1x 6.7x 13.6x 12.8xF-Secure 465 425 20.5% (1.9%) 2.4x 2.3x 11.8x 9.8x 20.3x 16.1xKofax 347 297 9.6% 12.5% 0.8x 0.8x 8.8x 8.4x 16.8x 14.0xIFS 331 281 16.5% 7.0% 0.7x 0.7x 4.4x 4.0x 10.8x 9.5xCegid 246 343 24.2% (4.4%) 1.0x 1.0x 4.2x 3.9x 9.0x 8.0xAlterian 182 164 24.1% 10.9% 2.5x 2.4x 10.2x 9.1x 15.2x 14.5xKewill 148 122 17.5% 4.5% 1.3x 1.3x 7.5x 6.9x 10.3x 9.9x


Healthcare SoftwareMcKesson 16,186 15,199 2.3% 2.5% 0.1x 0.1x 6.0x 5.6x 13.1x 12.0xCerner 6,595 6,079 30.2% 13.2% 3.3x 3.1x 10.8x 9.2x 27.8x 23.1xAllscripts-Misys 3,385 3,243 16.1% 75.0% 2.8x 2.2x 17.4x 10.6x 26.2x 20.5xCegedim 870 1,415 19.6% (0.7%) 1.1x 1.1x 5.8x 5.2x 11.2x 8.5xCompuGroup 599 752 21.4% 1.3% 1.7x 1.6x 8.1x 6.9x 16.6x 13.1xAdvanced Computer Software 178 241 32.5% 103.6% 2.7x 2.4x 8.4x 8.9x NM 36.0x


4Sources: Capital IQ, 27 September 2010; Brokers’ reports.

Software and IT Services(Continued)


Security SoftwareSymantec 11,951 11,109 32.5% 1.1% 1.9x 1.8x 5.7x 5.0x 11.2x 10.5xMcAfee 7,288 6,500 31.4% 7.1% 3.1x 3.0x 10.0x 9.5x 18.5x 16.6xCheck Point 7,167 6,184 58.2% 14.8% 5.8x 5.6x 10.0x 9.4x 14.7x 13.5x


, ,Trend Micro 4,231 2,781 28.1% 10.2% 2.4x 2.4x 8.7x 7.8x 23.0x 21.4xF-Secure 465 425 20.5% (1.9%) 2.4x 2.3x 11.8x 9.8x 20.3x 16.1x


Large Cap IT ServicesAccenture 26,702 22,847 15.7% 3.9% 1.1x 1.0x 6.7x 6.3x 15.6x 14.0xCap Gemini 7,670 6,602 8.5% (4.3%) 0.6x 0.6x 6.8x 5.6x 18.1x 13.6xCapita Group 7,425 9,014 16.2% 3.4% 2.0x 1.9x 12.4x 11.5x 17.8x 15.9xComputer Sciences 7,006 8,443 15.0% 2.3% 0.5x 0.5x 3.4x 3.3x 8.7x 8.1xAtos Origin 3,276 3,442 10.1% (7.3%) 0.5x 0.5x 5.0x 4.4x 13.1x 10.6x

M 13 1% (0 4%) 0 9 0 9 6 9 6 2 14 6 12 5Mean 13.1% (0.4%) 0.9x 0.9x 6.9x 6.2x 14.6x 12.5xMedian 15.0% 2.3% 0.6x 0.6x 6.7x 5.6x 15.6x 13.6x

Mid Cap IT ServicesCGI 3,891 3,909 18.8% 8.4% 1.0x 0.9x 5.4x 5.4x 11.6x 10.6xLogica 3,148 3,754 8.8% (2.6%) 0.6x 0.6x 7.3x 6.8x 10.3x 9.8xIndra Sistemas 3,142 3,495 12.9% (6.1%) 1.0x 1.0x 7.8x 7.5x 11.8x 11.4xTieto 1,417 1,550 10.4% (6.2%) 0.7x 0.7x 6.5x 5.6x 15.4x 11.0xSopra 846 1,016 10.0% (1.9%) 0.7x 0.6x 6.6x 5.9x 10.9x 9.4xGroupe Steria 828 1,121 9.4% (3.1%) 0.5x 0.5x 5.3x 4.9x 10.3x 8.7xGFI Informatique 210 366 7.2% (5.5%) 0.4x 0.4x 5.6x 4.9x 8.9x 7.1x

Mean 11.1% (2.4%) 0.7x 0.7x 6.4x 5.9x 11.3x 9.7xMedian 10 0% (3 1%) 0 7x 0 6x 6 5x 5 6x 10 9x 9 8xMedian 10.0% (3.1%) 0.7x 0.6x 6.5x 5.6x 10.9x 9.8x

Offshore IT ServicesTata 40,351 38,691 29.3% 18.2% 5.2x 4.6x 17.6x 14.8x 23.0x 20.4xInfosys 38,433 34,892 34.2% 17.5% 6.4x 5.6x 18.7x 16.0x 26.2x 21.8xWipro 24,050 22,981 22.2% 15.5% 3.5x 3.2x 15.6x 14.1x 20.9x 18.9xCognizant 19,088 17,436 21.1% 36.6% 3.9x 3.5x 18.5x 15.1x 28.2x 24.5xHCL 6,329 6,466 19.0% 23.7% 2.1x 1.9x 11.2x 9.2x 20.9x 14.9x



Communications

15%Mobile Content / Solutions Providers 14.7%Mobile Infrastructure Software 14.7%Diversified Communication Equipment 11.9%Digital Broadband 0.8%


5%

10%

Digital Broadband 0.8%

(5%)

0%


Digital Broadband Diversified Communication Equipment

Mobile Infrastructure Software Mobile Content / Solutions Providers

10%

15%

20%


Mobile Infrastructure Software 4.8%Diversified Communication Equipment 1.2%Mobile Content / Solutions Providers (3.7% )Digital Broadband (21.4% )

Last Twelve Months Performance

(20%)

(15%)

(10%)

(5%)

0%

5%

(30%)

(25%)

( )

Sep 2009 Dec 2009 Mar 2010 Jun 2010 Sep 2010

Digital Broadband Diversified Communication Equipment


6Source: Capital IQ, 27 September 2010.

Communications(Continued)


Digital BroadbandLogitech 2,792 2,444 10.8% 25.2% 1.1x 1.0x 9.8x 8.6x NM NMKudelski 1,381 1,650 16.2% 13.6% 1.4x 1.4x 8.9x 7.7x 15.5x 12.2xTomTom 1 362 1 915 20 0% (6 6%) 1 0x 1 0x 4 8x 4 8x 7 6x 7 1x


TomTom 1,362 1,915 20.0% (6.6%) 1.0x 1.0x 4.8x 4.8x 7.6x 7.1xPace 887 739 10.2% 9.8% 0.4x 0.3x 3.6x 3.0x 8.4x 7.1xTechnicolor 423 2,147 13.9% (11.3%) 0.5x 0.5x 3.4x 3.2x NM 9.7xParrot 241 126 11.3% 12.0% 0.5x 0.4x 4.1x 3.8x 15.6x 14.7xAdvanced Digital Broadcast 134 85 9.5% 8.1% 0.2x 0.2x 2.2x 2.0x 9.0x 7.3x


Diversified Communication EquipmentNokia 37,312 33,713 9.5% (4.6%) 0.6x 0.6x 6.4x 5.3x 19.7x 13.5xLM Ericsson Telephone 34,720 29,996 15.2% 3.9% 1.0x 1.0x 6.6x 5.7x 18.1x 12.9xAlcatel-Lucent 7,597 8,467 6.5% (3.9%) 0.4x 0.4x 6.3x 4.3x NM 14.7xCommScope 2 223 3 031 14 9% 6 2% 0 9x 0 9x 6 3x 5 6x 12 9x 10 2xCommScope 2,223 3,031 14.9% 6.2% 0.9x 0.9x 6.3x 5.6x 12.9x 10.2xADTRAN 2,128 1,996 26.3% 19.9% 3.4x 3.3x 13.1x 11.3x 21.8x 19.2xCIENA 1,460 2,164 2.6% 121.9% 1.5x 1.3x NM 21.8x NM 26.5xADC Telecommunications 1,228 1,269 11.7% 6.2% 1.1x 1.1x 9.5x 8.9x 23.2x NM


Mobile Infrastructure SoftwareQUALCOMM 71,511 62,821 41.7% 5.8% 5.6x 5.4x 13.5x 12.4x 19.0x 17.0xAmdocs 5,827 4,537 21.8% 7.1% 1.5x 1.5x 6.8x 6.6x 13.3x 12.1xVeriSign 5,508 4,799 49.6% (26.0%) 6.3x 6.6x 12.7x 11.5x 27.8x 21.6xSyniverse 1,676 2,049 41.1% 30.6% 3.2x 3.1x 7.9x 7.2x 12.8x 11.6xSonus Networks 977 624 7.7% 7.5% 2.6x 2.5x 33.0x 27.1x NM 45.3xSo us Netwo s 977 6 7.7% 7.5% .6 .5 33.0 7. N 5.3Tekelec 865 638 20.1% (6.1%) 1.4x 1.5x 7.2x 6.9x 15.6x 13.2xSynchronoss Technologies 561 475 27.2% 27.8% 2.9x 2.5x 10.6x 7.9x 29.3x 20.9xIntec Telecom Systems 363 257 12.5% (9.4%) 1.1x 1.1x 8.7x 7.2x 15.9x 18.4xSmith Micro Software 327 272 35.1% 19.5% 2.1x 2.0x 6.0x 5.4x 11.9x 11.3xTeleCommunication Systems 203 289 17.6% 35.5% 0.7x 0.7x 4.1x 3.4x 10.1x 8.1xOpenwave Systems 138 32 1.4% (13.8%) 0.2x 0.2x 13.9x 2.6x NM NMRedknee Solutions 93 74 9.3% 8.8% 1.4x 1.2x 15.1x 7.5x 30.0x NM

Mean 23.7% 7.3% 2.4x 2.3x 11.6x 8.8x 18.6x 18.0xMedian 21.0% 7.3% 1.8x 1.7x 9.6x 7.2x 15.7x 15.1x Mobile Content / Solutions ProvidersArt Technology 639 494 21.2% 11.2% 2.5x 2.3x 11.7x 9.3x 21.2x 17.2xgyOpera Software 558 468 15.8% 10.5% 4.0x 3.5x 25.3x 12.9x 43.3x 22.8xGameLoft 361 327 17.1% (1.1%) 1.8x 1.7x 10.6x 8.6x 23.9x 17.9xDanal 217 199 16.8% 21.7% 2.3x 2.3x 13.5x 10.4x NM NMBuongiorno 140 228 13.9% (0.4%) 0.6x 0.6x 4.4x 4.4x NM NMSynchronica 28 27 11.4% 130.3% 1.9x 0.9x 16.6x 3.1x NM NM



Internet and Digital Media

30%


g

Online Travel 30.0%Ecommerce 25.3%Online Classifieds 24.5%Global Internet Leaders 18.6%Chinese Internet Leaders 18.1%Intermediation and Comparison 17 5%

10%

15%

20%

25%

Intermediation and Comparison 17.5%Online Marketing 16.0%Online Gambling 12.2%Content Providers / Communities 9.9%Interactive Entertainment 6.9%

(5%)

0%

5%

26 Aug 01 Sep 07 Sep 13 Sep 19 SepGlobal Internet Leaders EcommerceOnline Travel Online MarketingContent Providers / Communities Intermediation and ComparisonOnline Classifieds Chinese Internet LeadersOnline Gambling Interactive Entertainment

Last Twelve Months PerformanceEcommerce 56.8%Online Travel 40.6%Online Classifieds 39.5%Chinese Internet Leaders 34.3%Global Internet Leaders 31.4%I t di ti d C i 10 6%

10%

20%

30%

40%

50%

60% Intermediation and Comparison 10.6%Online Gambling (1.4% )Online Marketing (4.6% )Content Providers / Communities (5.4% )Interactive Entertainment (32.6% )

(40%)

(30%)

(20%)

(10%)

0%

Sep 2009 Dec 2009 Mar 2010 Jun 2010 Sep 2010Gl b l I t t L d E

8

Global Internet Leaders EcommerceOnline Travel Online MarketingContent Providers / Communities Intermediation and ComparisonOnline Classifieds Chinese Internet LeadersOnline Gambling Interactive Entertainment

Source: Capital IQ, 27 September 2010.

Internet and Digital Mediag(Continued)


Global Internet LeadersApple 267,053 242,765 29.6% 48.9% 3.5x 3.2x 11.8x 9.6x 18.5x 16.1xMicrosoft 214,392 183,805 42.7% 11.3% 2.8x 2.7x 6.6x 6.0x 11.3x 9.9xG l 168 227 138 168 44 9% 18 4% 4 9 4 6 11 0 9 6 19 4 17 0


Google 168,227 138,168 44.9% 18.4% 4.9x 4.6x 11.0x 9.6x 19.4x 17.0xAmazon 71,979 67,003 7.5% 35.1% 2.0x 1.8x 27.0x 21.1x NM 44.1xBaidu 34,045 33,173 55.6% 75.4% 29.0x 22.9x NM 33.4x NM 45.5xeBay 32,463 27,565 35.6% 3.0% 3.1x 2.9x 8.6x 7.9x 15.2x 14.0xYahoo! 19,550 16,961 35.3% (27.9%) 3.6x 3.6x 10.3x 9.2x 21.8x 19.3xAlibaba 9,757 8,558 33.5% 42.3% 10.7x 9.4x 32.1x 23.8x 44.0x 33.5xIAC 2,803 1,492 15.6% 16.9% 0.9x 0.9x 5.9x 5.2x 33.7x 22.0x


EcommerceAmazon 71,979 67,003 7.5% 35.1% 2.0x 1.8x 27.0x 21.1x NM 44.1xeBay 32 463 27 565 35 6% 3 0% 3 1x 2 9x 8 6x 7 9x 15 2x 14 0xeBay 32,463 27,565 35.6% 3.0% 3.1x 2.9x 8.6x 7.9x 15.2x 14.0xNetflix 8,493 8,451 15.8% 29.3% 3.9x 3.4x 24.8x 19.1x NM 43.5xMercadolibre 3,173 3,130 37.6% 31.6% 13.8x 11.8x 36.6x 26.8x NM 47.6xGSI Commerce 1,713 1,804 10.3% 34.1% 1.3x 1.3x 13.1x 10.6x NM NMVistaprint 1,628 1,461 19.8% 17.8% 2.1x 1.9x 10.4x 8.3x 19.8x 16.3xOpenTable 1,546 1,464 32.5% 34.6% 15.9x 13.3x 48.8x 31.3x NM NMAsos 1,273 1,248 10.4% 40.2% 2.7x 2.5x 26.2x 20.2x 47.0x 36.9xDigital River 1,245 905 17.0% (13.8%) 2.6x 2.6x 15.3x 10.3x 41.0x 25.2xShutterfly 721 562 19.9% 16.6% 2.0x 1.9x 9.8x 8.4x NM 39.3xBlue Nile 627 581 9.3% 10.1% 1.7x 1.7x 18.8x 16.7x 46.0x 37.3xYOOX 547 532 9.5% 29.8% 1.9x 1.6x 19.9x 14.2x 48.4x 32.5xOverstock 356 332 2.9% 26.4% 0.3x 0.3x 10.2x 8.5x 24.4x 17.2xOcado 335 501 3 9% 27 4% 0 6x 0 5x 16 1x 8 1x NM NMOcado 335 501 3.9% 27.4% 0.6x 0.5x 16.1x 8.1x NM NMDrugstore 200 183 4.0% 12.0% 0.4x 0.4x 9.8x 8.0x NM 23.6x


Online TravelPriceline 16,658 15,989 27.2% 29.5% 5.3x 4.9x 19.6x 15.6x 29.2x 23.5xExpedia 8,432 8,261 28.9% 10.3% 2.5x 2.4x 8.8x 7.8x 18.0x 15.2xCtrip 6,663 6,295 40.0% 53.6% 14.8x 13.1x 37.1x 27.3x 46.5x 35.9xWotif 986 886 58.0% 16.8% 6.5x 6.2x 11.2x 10.1x 18.2x 16.4xOrbitz 665 1,017 20.4% 2.6% 1.3x 1.3x 6.6x 6.1x NM 25.7xTravelzoo 421 389 13.1% 13.1% 3.6x 3.4x 27.7x 25.7x 40.0x 32.0xhotel de 63 50 5 9% 6 3% 1 0x 1 0x 17 3x 10 3x 31 6x 19 9xhotel.de 63 50 5.9% 6.3% 1.0x 1.0x 17.3x 10.3x 31.6x 19.9x


Online MarketingValueClick 1,131 959 28.2% (1.3%) 2.3x 2.2x 8.1x 7.4x 21.8x 19.8xConstant Contact 619 503 12.7% 34.5% 2.9x 2.6x 22.8x 14.9x NM 32.5xInfoSpace 302 79 12.0% 26.3% 0.3x 0.3x 2.5x 2.4x 46.1x 33.0xTradeDoubler 214 196 4.3% (0.2%) 0.5x 0.4x 10.9x 8.0x 19.4x 13.9xMarchex 183 150 7.5% 1.3% 1.6x 1.5x 21.1x 9.6x NM NMHi-Media 177 229 8.3% 24.4% 0.7x 0.7x 9.0x 7.1x 14.3x 10.2x1000mercis 151 135 35.3% 25.9% 3.1x 3.1x 8.8x 7.7x 15.2x 13.7xAdLink Internet Media 143 138 7.9% (13.1%) 0.8x 0.8x 10.4x 8.3x 25.6x 15.2xd e e ed 3 38 7.9% ( 3. %) 0.8 0.8 0. 8.3 5.6 5.ad pepper media 54 35 3.6% 2.5% 0.5x NA 14.2x 8.0x 25.3x 18.1x


Content Providers / CommunitiesWebMD Health 2,991 2,569 31.1% 20.8% 4.8x 4.7x 15.6x 12.8x NM 44.7xMeetic 720 666 23.7% 15.9% 2.5x 2.5x 10.7x 9.3x 18.5x 15.8xMove 338 296 10.9% (7.7%) 1.5x 1.5x 13.9x 10.5x NM 32.4xThe Knot 295 171 10.6% 6.2% 1.5x 1.5x 14.3x 11.0x NM NMXING 201 128 30.5% 16.4% 1.7x 1.6x 5.7x 4.2x 19.4x 12.2x

Mean 21.4% 10.3% 2.4x 2.3x 12.0x 9.6x 19.0x 26.3xMedian 23 7% 15 9% 1 7x 1 6x 13 9x 10 5x 19 0x 24 1x


Median 23.7% 15.9% 1.7x 1.6x 13.9x 10.5x 19.0x 24.1x

Internet and Digital Mediag(Continued)


Intermediation and ComparisonMoneysupermarket 688 643 27.4% 0.2% 2.9x 2.7x 10.6x 9.7x 13.8x 12.4xLiquidity Services 422 353 12.8% 17.2% 1.2x 1.2x 9.5x 8.0x 26.1x 20.7xeHealth 281 140 21 5% 12 8% 0 9x 0 9x 4 3x 4 5x 20 5x 20 8x


eHealth 281 140 21.5% 12.8% 0.9x 0.9x 4.3x 4.5x 20.5x 20.8xGruppo MutuiOnline 275 256 48.4% 1.5% 3.6x 3.2x 7.5x 6.7x 13.5x 11.8x


Online ClassifiedsSEEK 2,445 2,502 43.9% 46.4% 8.3x 7.4x 18.8x 14.8x 25.2x 19.1xMonster 1,647 1,400 11.3% 0.2% 1.5x 1.5x 13.7x 8.8x NM 39.5xRightmove 1,345 1,308 66.1% 16.8% 10.0x 9.4x 15.1x 13.0x 20.7x 17.8xCarsales.au 1,102 1,089 53.2% 33.9% 8.4x 7.7x 15.8x 13.1x 23.5x 19.5x51job 1,059 851 27.1% 30.7% 5.7x 5.2x 21.2x 16.0x 32.5x 26.4xSeloger 845 850 52.6% 6.7% 7.6x 7.2x 14.5x 12.7x 24.5x 20.5xDice 494 483 38.5% 10.5% 4.0x 3.6x 10.3x 8.1x 29.8x 19.1xDice 494 483 38.5% 10.5% 4.0x 3.6x 10.3x 8.1x 29.8x 19.1xLoopNet 454 353 36.6% 0.8% 4.6x 4.4x 12.5x 10.4x 42.5x 35.8xAdenclassifieds 204 131 17.4% 7.6% 1.6x NA 9.1x 7.8x 28.9x 21.1x


Chinese Internet LeadersTencent 39,757 38,113 54.6% 57.2% 13.3x 11.9x 24.4x 18.6x 31.6x 23.9xBaidu 34,045 33,173 55.6% 75.4% 29.0x 22.9x NM 33.4x NM 45.5xAlibaba 9,757 8,558 33.5% 42.3% 10.7x 9.4x 32.1x 23.8x 44.0x 33.5xNetease 5,040 3,817 52.6% 44.9% 4.8x 4.4x 9.1x 7.4x 15.8x 12.7xSina 3,179 2,451 29.0% 11.2% 6.1x 5.7x 21.2x 17.2x 31.0x 25.5xFocus Media 3,177 2,606 30.7% 12.1% 4.6x 4.7x 15.0x 11.1x 21.7x 17.3x, ,Sohu 2,283 1,782 42.2% 15.7% 3.0x 2.7x 7.1x 5.8x 16.5x 13.7xShanda Interactive 2,216 1,082 27.2% 6.9% 1.3x 1.3x 4.9x 3.5x 18.4x 15.3x


Online Gamblingbwin Interactive 1,873 1,656 23.4% 25.7% 2.5x 2.4x 10.6x 8.7x 19.2x 14.2xPartyGaming 1,836 1,645 28.5% 10.9% 3.3x 3.2x 11.7x 10.9x 17.1x 15.7xPlaytech 1,696 1,618 69.6% 15.8% 8.5x 8.0x 12.2x 11.0x 12.2x 11.8xSportingbet 628 550 22.7% (88.6%) 1.7x 1.7x 7.5x 6.8x 12.7x 11.6x888 232 162 14.3% 6.1% 0.6x 0.6x 4.3x 4.1x 7.8x 7.5x

M 31 7% (6 0%) 3 3 3 2 9 3 8 3 13 8 12 2Mean 31.7% (6.0%) 3.3x 3.2x 9.3x 8.3x 13.8x 12.2xMedian 23.4% 10.9% 2.5x 2.4x 10.6x 8.7x 12.7x 11.8x

Interactive EntertainmentActivision 13,223 10,377 34.4% 4.4% 2.3x 2.3x 6.8x 6.6x 14.8x 13.4xElectronic Arts 5,437 3,707 9.7% 3.4% 1.0x 0.9x 10.4x 6.2x 38.1x 19.8xUbisoft Entertainment 1,043 944 23.2% (16.1%) 0.8x 0.7x 3.5x 1.9x NM 34.9xTake-Two Interactive Software 849 719 11.9% 17.5% 0.6x 0.7x 5.2x 5.0x 11.2x 10.2xTHQ 271 155 (2.4%) (16.0%) 0.2x 0.2x NM 5.1x NM 12.7xAtari 107 120 20.7% 166.3% 0.2x NA 1.2x NA NM NM



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