Avista
Video Game Briefing Partners
Highlights:
• Market Cap for all public companies in global game sector is over $147 billion; a drop of $7 billion since the July
Newsletter
• PC/Console Game Index continues to outperform all other sectors (LTM)
• Over $12.7 billion of M&A deals in global sector (LTM)
• Over $4.1 billion raised in global sector (LTM)
Game Index Performance by sub-sector (LTM)
The PC/Console Game Index is up 3.4% while all the other indexes are down.
140.0
130.0
120.0
110.0
100.0
90.0
80.0
70.0
60.0
29/8/07 28/9/07 28/10/07 27/11/07 27/12/07 26/1/08 25/2/08 26/3/08 25/4/08 25/5/08 24/6/08 24/7/08 23/8/08
Game Retailer Index Online Game Index
Mobile Game Index PC/ Console Game Index
Game Distributor/ Accessory Index S&P 500 Index (^SPX) - Index Level
Note: the companies making up each index are those listed in the corresponding comps in the following pages. The indexes are based on a weighted market cap
and are rebased to 100 at the start.
Game Index Performance by region (LTM)
The Europe Game Index is up 9.2% while all the other indexes are down
140.0
130.0
120.0
110.0
100.0
90.0
80.0
29/8/07 29/9/07 29/10/07 29/11/07 29/12/07 29/1/08 29/2/08 31/3/08 30/4/08 31/5/08 30/6/08 31/7/08
Asia Game Index North America Game Index
Europe Game Index S&P 500 Index (^SPX) - Index Level
August 2008 Source: Capital IQ, Company Filings, Brokers & Press 1
Avista
Video Game Briefing Partners
Stock Comps (by sector & ranked by enterprise value):
Stock Price Market Enterprise
(local currency) % of LTM Cap Value EV/Revenue EV/EBITDA P/E
8/29/08 High Low (USD m) (USD m) LTM CY 2007 CY 2008 CY 2009 LTM CY 2007 CY 2008 CY 2009 LTM CY 2007 CY 2008 CY 2009
PC/Console Game Publishers/ Developers
Nintendo Co. Ltd. 51800.00 70.8 113.6 60,590.0 49,977.7 2.8x 2.6x 2.6x 2.9x 9.5x 8.3x 7.5x 7.3x 21.5x 18.7x 15.3x 15.9x
Activision Blizzard, Inc. 33.36 86.5 111.2 21,991.5 21,944.2 16.5x NA NA NA 97.4x NA NA NA NA NA NA NA
Electronic Arts Inc. 48.20 78.2 117.1 15,584.0 12,905.0 3.2x 2.6x 2.2x 2.1x NM 21.6x 11.4x 9.5x NM 40.7x 21.1x 17.6x
Konami Corp. 3360.00 76.2 120.6 4,223.8 4,181.6 1.5x 1.4x 1.4x 1.3x 8.9x 9.1x 7.7x 7.5x 22.6x 20.7x 17.7x 17.2x
UBI Soft Entertainment SA 63.10 88.3 152.6 4,291.9 4,073.8 2.5x 2.7x 2.4x 2.1x 7.3x 6.7x 5.6x 4.9x 31.9x 28.9x 27.1x 23.8x
Square Enix Co. Ltd. 3610.00 90.7 133.2 3,793.1 3,115.6 2.3x 1.9x 1.8x 1.7x 10.6x 8.7x 7.7x 7.1x 43.0x 23.6x 21.9x 19.8x
Sega Sammy Holdings Inc. 1042.00 59.1 125.2 2,401.0 2,206.1 0.6x 2.0x 1.8x 1.7x 10.2x 8.3x 8.6x 8.1x 24.1x 20.3x 19.7x 18.1x
Namco Bandai Holdings Inc. 1348.00 69.2 129.6 3,082.1 2,208.0 0.5x 0.5x 0.5x 0.5x 4.0x 4.0x 3.7x 3.5x 10.8x 13.6x 14.0x 13.3x
Capcom Co. Ltd. 3360.00 92.3 153.4 1,884.1 1,742.0 2.2x 1.2x 1.3x 1.1x 9.9x 9.4x 13.4x 9.8x NM 11.8x 16.3x 12.8x
Take-Two Interactive Software Inc. 24.99 89.4 184.7 1,938.6 1,881.7 1.5x 0.6x 0.5x 0.5x 6.3x 5.0x 5.5x NA NM NM 32.2x 27.0x
THQ Inc. 15.02 50.2 109.2 1,023.8 741.5 0.7x 0.7x 0.6x 0.6x 4.0x 16.7x 9.2x 5.0x NM 41.4x 18.7x 10.9x
Koei Co. Ltd. 1539.00 64.0 118.1 950.9 874.2 3.1x 3.1x 3.0x 2.9x 11.3x 12.8x 11.9x 11.8x 20.2x 17.4x 15.7x 15.1x
Midway Games Inc. 2.29 40.1 130.9 214.0 342.1 2.0x 1.7x 1.3x NA NM NM NM NA NM NM NM NA
Soft-World International Corp. 90.30 73.1 133.8 351.4 266.7 1.6x 1.5x 1.3x 1.2x 5.6x 19.5x 16.2x 15.1x 12.7x 9.4x 7.5x 6.4x
Infogrames Entertainment SA 13.45 64.0 170.3 550.6 478.8 1.0x na 0.4x 0.3x NM 24.2x 1.8x NA NM NM NM NA
SCI Entertainment Group plc 0.31 6.9 118.3 146.4 156.8 0.6x 0.5x 0.4x 0.3x NM NM 4.5x 1.5x NM NM 2.3x 0.9x
Tecmo Ltd. 806.00 44.8 149.8 173.6 85.6 0.6x 0.5x 0.4x 0.4x 3.6x NA NA NA 26.8x 16.4x 10.9x 10.1x
SouthPeak Interactive Corp. 2.60 86.7 140.5 93.4 93.3 3.2x NA NA NA 28.7x NA NA NA 4.7x NA NA NA
D3 Inc. 120000.00 30.2 102.6 23.1 54.7 0.4x 0.4x NA NA 4.8x NA NA NA 8.5x NA NA NA
Mindscape SAS 15.50 87.3 133.6 65.1 52.7 0.9x 0.7x 0.5x NA 7.2x 4.1x 2.8x NA 24.0x 11.1x 8.0x NA
Jowood Productions Software AG 12.00 60.6 126.3 48.3 57.0 1.8x NA NA NA 14.7x NA NA NA 1.6x NA NA NA
City Interactive sp. z o.o. 8.81 51.7 114.0 48.5 42.1 8.8x NA NA NA 23.8x NA NA NA 51.7x NA NA NA
CDV Software Entertainment AG 8.18 45.2 100.0 20.8 26.9 1.2x NA NA NA 6.8x NA NA NA 9.4x NA NA NA
Yuke's Co Ltd 309.00 55.2 103.0 30.6 24.8 0.5x 0.5x NA NA 1.7x NA NA NA 4.2x 6.7x NA NA
Interplay Entertainment Corp. 0.13 54.6 236.4 13.5 15.1 71.2x NA NA NA NM NA NA NA NM NA NA NA
Majesco Entertainment Co. 0.93 40.8 124.0 25.6 17.6 0.3x NA NA NA 4.8x NA NA NA NM NA NA NA
SilverBirch Inc. 0.24 46.1 162.1 15.2 14.5 4.6x 1.2x 0.9x NA NM NM 2.8x NA NM NM 3.1x NA
Softstar Entertainment Inc. 11.90 51.7 107.2 9.4 14.4 1.5x NA NA NA NM NA NA NA NM NA NA NA
Silverstar Holdings Ltd. 0.60 10.9 171.4 11.9 18.7 0.6x NA NA NA 3.5x NA NA NA NM NA NA NA
Starbreeze AB 0.33 78.6 143.5 19.3 12.7 1.4x NA NA NA 11.6x NA NA NA 24.1x NA NA NA
Softmax Co. Ltd. 1810.00 44.1 104.0 10.3 7.0 2.4x NA NA NA NM NA NA NA NM NA NA NA
eGames Inc. 0.65 61.3 158.5 7.6 7.3 1.9x NA NA NA NM NA NA NA NM NA NA NA
Deadline Games A/S 13.10 14.6 100.0 3.7 4.5 1.2x NA NA NA NM NA NA NA NM NA NA NA
Conspiracy Entertainment Holdings Inc. 0.05 41.7 250.0 2.7 5.0 0.4x NA NA NA 3.0x NA NA NA NM NA NA NA
10tacle Studios AG 0.42 3.3 247.6 0.0 0.0 0.0x NA NA NA NA NA NA NA NA NA NA NA