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Media and Entertainment Track
Research4India Update on the Indian M&E Industry
In The Spotlight Contents
Good times ahead for Distribution
News of the fortnight 1
This fortnight infused a fresh life into Indian economy
as well as Indian media sector, with the Government
executing much delayed positive reforms. Investment Activity 2
The Government has hiked FDI in DTH, Cable and
other broadcasting services including mobile TV to
74% from existing 49%. The move will provide a News Update 4
boost to digitisation process, with MSOs benefitting
most from the revised FDI limits. The first deadline
for Digitisation in four metros is 31st October, 2012. Stock Market Updates 6
However, the industry had mixed response to the
hike, many desiring more liberalised policies like
lower taxation and more conducive business Peer Benchmarking 6
environment for the limit increase to actually be
utilized.
About Four-S Services 7
Digitisation would be a transformative trigger for
Indian broadcasting industry. In a recent release,
UBS estimates subscription revenues to grow at a
CAGR of 16% over 2012-17 due to digitisation.
About Research4India
FICCI-KPMG had estimated TV subscription revenues
to grow at a CAGR of over 18% from 2011-16 to Research4India is the research
reach Rs 505bn in 2016.
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2. Media and Entertainment Track
Investment Activity
PE 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 PIPE
16-Jul Indian Angel Network, Blume HashCube Early
Ventures Technologies NA NA
11-Jul Jungle Ventures, Others Mobikon Early
NA 1.7
6-Jul Matrix Partners Twist Mobile India NA NA Early
26-Jun Nalanda Capital DB Corp 1.09 7.3 PIPE
12-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 Bank
9-May IndoUS Ventures Magzter NA NA Early
26-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 Late
27-Mar Nirvana Ventures Advisors Games2win 10.0 NA Late
13-Mar Providence Equity, Macquarie Hathway Cable 17.3 72.0 Late
Bank
20-Feb Ojas Venture Partners BrizzTV Media Lab NA NA Early
17-Feb Updata, WestBridge & Intel July Systems NA 15.0 Late
Capital
15-Feb Cisco Systems Qyuki 17.0 5.5 Early
8-Feb Indian Angel Network Gamiana Digital NA 1.0 Early
Gaming
31-Jan Ojas Ventures Venturenet Partners NA NA Early
Pvt Ltd
27-Jan NA InRev NA NA Early
19-Jan CCube MyAdCorner.com NA NA Early
19-Jan Sequoia Capital Knowlarity NA 6.6 Growth
Communications
The space saw 24 deals till date raising a total disclosed amount of $237.7mn.
Research4India 2

3. Media and Entertainment Track
Mergers & 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
Corp's 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. Media and Entertainment Track
Corporate News Update
Essel Group to raise $500mn Deccan Chronicle liquidity crisis
Essel Group would be raising close to $500mn The troubles continue for DCHL. Cash strapped
to fund its growth and reduce debt. The funds DCHL’s Market Cap declined 19% in last one
would be used for Dish TV, Siticable Network week. DCHL had a debt of Rs 32 bn on its
and 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. Its
juncture with the Government working towards
financial viability is being scrutinized by lenders,
pan India digitisation. Siticable, formerly known
which recently decided against Corporate Debt
as WWIL, will raise Rs 3.24bn from promoter
Restructuring. In another development, BCCI
firms through convertible warrants. Essel
has terminated Deccan Chargers. Earlier DCHL
International and Essel Media will invest the
amount 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 of
warrants on a preferential basis. FIPB nod to DB Corp, WSJ
The combined shareholding of Essel The Foreign Investments Promotion Board
International and Essel Media will rise to 29.99 (FIPB) has permitted increase of foreign equity
per 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 Journal
existing 63.43%. Publishing to make a change in the foreign
Star India: Asianet IPO, MCCS Stake sale collaborator by way of overseas merger within
plans group companies.
Asianet Communications Ltd (ACL) plans to
launch an IPO, though the date has not been
Industry News Update
yet finalized. Star India holds 86% stake in
ACL, whose flagship channels include Vijaya TV Digitisation deadline looks feasible
and Suvarna. 68% digitisation has been achieved in four
In another development, Star India plans to sell metros according to the Information and
its 26% stake in Media Content & Broadcasting Industry. Mumbai leads with 95%
Communications Services (MCCS) to Ananda digitisation, followed by Kolkata at 67%, Delhi
Bazar Patrika (ABP) Group. ABP at present at 53% and Chennai at 49% digitisation. The
holds 74% in the Joint venture. I&B Ministry also revealed that TV penetration
in four metros is at 80%. Meanwhile, the Indian
MCCS operates three news channels – Star
Broadcasting Foundation (IBF) has decided to
News, Star Ananda and Star Majha. MCCS had
postpone India TV Fest 2012, earlier scheduled
revenues of Rs 2.6bn in FY12. This stake sale in 1st week of November to 2013.
will mark the exit of Star from news
broadcasting in India. Star and ABP have parted Media FDI up 72% in FY12
ways since April this year, and subsequently the Buoyed by the Disney-UTV deal, Indian Media
use of brand name Star has been removed from sector has received Foreign Direct Investments
its news channels. of Rs 32.64 bn, an increase of 72% from 2010-
11.
Research4India 4

5. Media and Entertainment Track
Stock Market Update
Share Price Performance
As 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% 26.4
Sun TV Network 1,21,319 307.9 0% 0% 18% -5% 6% 18.1
Dish TV 81,591 76.7 5% 5% 35% 36% 1% NM
DB Corp 34,466 188.0 -5% -1% 3% -14% -17% 18.7
Hathway cable 31,221 218.6 5% 18% 23% 29% 171% NM
Jagran Prakashan 28,954 91.6 1% 1% 7% -12% -14% 15.7
HT Media 20,470 87.1 1% 2% -9% -37% -39% 13.2
Den Networks 20,182 152.1 10% 22% 53% 47% 236% 80.8
Eros International 14,698 160.2 -4% -8% -7% -18% -32% 9.3
ENIL 11,045 231.7 1% 4% 10% 8% -8% 18.3
TV 18 Broadcast 8,111 22.4 22% 18% 18% -8% -39% NM
Prime Focus 7,242 48.7 1% 7% 0% 0% -16% 7.7
PVR 4,728 182.2 1% -4% 21% 33% 53% 27.0
Onmobile 4,455 39.1 3% -9% 4% -41% -37% 5.6
Reliance Broadcast 3,953 49.8 0% 8% 12% -11% -40% NM
Reliance Mediaworks 3,051 66.2 1% 7% 21% -25% -33% NM
Balaji Telefilms 2,882 44.2 8% 9% 26% -1% 49% 18.1
Deccan Chronicle 2,278 10.9 -19% 3% -64% -75% -81% 3.8
Nifty 5577.7 4% 4% 10% 2% 11%
Sensex 18464.3 4% 4% 11% 3% 11%
Financial Benchmarking
Quarter ending 30th June, 2012
Revenue EBITDA PAT
Q1FY12 Q1FY13 YoY Q1FY12 Q1FY13 YoY Q1FY12 Q1FY13 YoY
Zee 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 NM
HT 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 NM
Ja 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 NA
Rel i a nce Medi a works 1,929 2,022 5% -366 -264 NM -1,201 -1,313 NM
Pri 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 NM
ENIL 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 NM
Ba l a ji Tel efi l ms 358 386 8% -67 2 NM 59 14 -77%
* Standalone results Figures in Rs.`mn
Research4India 5

6. Media and Entertainment Track
Trailing Twelve months ending 30th June, 2012
Revenue (ttm) EBITDA (ttm) PAT (ttm)
Company Q1FY12 Q1FY13 YoY Q1FY12 Q1FY13 YoY Q1FY12 Q1FY13 YoY
Zee 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 NM
HT 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 NM
Jagran 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. Media and Entertainment Track
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8. Media and Entertainment Track
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