Avista
Video Game Briefing Partners
Highlights:
• Market Cap for all public companies in global game sector is $100.6 billion; a drop of 24% since the September
Newsletter
• PC/Console Game Index continues to outperform all other sectors (LTM)
• Over $10.2 billion of M&A deals in global sector (LTM)
• Over $3.4 billion raised in global sector (LTM)
Game Index Performance by sub-sector (LTM)
The PC/Console Game Index is down 53% while all the other indexes are down even more.
110.0
100.0
90.0
80.0
70.0
60.0
50.0
40.0
30.0
29/10/2007 29/12/2007 29/02/2008 30/04/2008 30/06/2008 31/08/2008 31/10/2008
Game Retailers Index Online Game Index Mobile Game Index
PC/Console Game Index Game Distributor/Accessory Index S&P 500 Index
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 down 52% while all the other indexes are down even more.
110.0
100.0
90.0
80.0
70.0
60.0
50.0
40.0
10/29/07 12/29/07 2/29/08 4/30/08 6/30/08 8/31/08 10/31/08
Asia Game Index North America Game Index Europe Game index S&P 500 Index
October 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/EBIT P/E
10/31/08 High Low (USD m) (USD m) LTM CY 2008 CY 2009 CY 2010 LTM CY 2008 CY 2009 CY 2010 LTM CY 2008 CY 2009 CY 2010
PC/Console Game Publishers/ Developers
Nintendo Co. Ltd. 30600.00 41.8 141.7 40,028.7 28,160.5 1.6x 1.5x 1.4x 1.6x 5.3x NA NA NA 13.8x 12.6x 9.7x 10.3x
Activision Blizzard, Inc. 12.71 65.9 135.1 16,757.3 16,710.0 12.5x 7.1x 5.2x 4.5x 108.1x 47.4x 26.7x 19.9x NA 28.7x 18.0x 16.2x
Electronic Arts Inc. 27.73 45.1 122.0 8,840.9 6,161.9 1.5x 1.3x 1.1x 1.0x NM 13.2x 6.4x 5.4x NM 24.0x 13.8x 10.6x
Konami Corp. 1869.00 42.4 138.8 2,627.6 2,580.4 0.8x 0.8x 0.8x 0.7x 6.6x NA NA NA 12.7x 11.8x 10.0x 9.8x
UBI Soft Entertainment SA 42.74 59.8 125.7 2,542.8 2,352.0 1.6x 1.8x 1.6x 1.4x 14.7x 13.1x 10.9x 9.6x 21.6x 21.2x 18.2x 15.9x
Square Enix Holdings Co., Ltd. 2495.00 62.7 136.0 2,939.4 2,181.8 1.5x 1.6x 1.2x 1.1x 10.5x NA NA NA 30.5x 39.9x 15.6x 13.7x
Namco Bandai Holdings Inc. 1010.00 51.8 129.3 2,582.5 1,605.0 0.3x 0.3x 0.3x 0.3x 5.2x NA NA NA 8.3x 7.6x 10.8x 10.2x
Sega Sammy Holdings Inc. 695.00 40.8 120.7 1,791.0 1,573.0 0.4x 1.4x 1.2x 1.2x 8.7x NA NA NA 16.9x 16.0x 13.9x 12.7x
Capcom Co. Ltd. 2290.00 62.9 138.3 1,436.1 1,277.2 1.5x 0.3x 0.4x 0.3x 4.0x 2.6x 4.6x 3.5x 8.3x 4.3x 8.1x 6.2x
Koei Co. Ltd. 973.00 43.4 113.9 693.4 607.7 2.0x 2.0x 1.9x 1.8x 7.7x NA NA NA 12.9x 10.9x 9.8x 9.4x
Take-Two Interactive Software Inc. 11.67 41.8 108.0 905.6 566.9 0.4x 0.4x 0.3x 0.3x NM NA NA NA NM NM 19.8x 14.5x
THQ Inc. 7.56 25.3 108.9 504.6 222.2 0.2x 0.2x 0.2x 0.2x NM NM 2.1x 2.4x NM NM 6.4x 6.7x
Midway Games Inc. 0.75 16.7 144.2 70.1 198.1 1.2x 1.0x 0.8x NA NM NM NM NA NM NM NM NA
Infogrames Entertainment SA 6.76 33.8 107.3 256.9 190.3 0.4x na 0.1x 0.1x NM NM 16.8x 1.5x NM NM NM NA
Soft-World International Corp. 73.30 59.4 128.6 274.0 189.5 0.7x 1.1x 1.0x 0.9x 3.7x 16.0x 13.8x 11.6x 7.8x 8.4x 6.8x 6.2x
SouthPeak Interactive Corp. 2.25 75.0 180.0 84.6 86.5 0.0x NA NA NA 19.7x NA NA NA NA NA NA NA
Tecmo Ltd. 615.00 37.3 114.3 148.2 49.7 0.4x 0.4x 0.3x 0.3x 2.7x NA NA NA 25.6x 15.7x 9.9x 8.4x
SCI Entertainment Group plc 0.21 5.7 121.7 90.1 47.9 0.2x 0.2x 0.2x 0.2x NM NM NM 2.5x NM NM 7.2x 6.9x
D3 Inc. 62100.00 17.8 117.2 13.3 45.6 0.3x 0.3x NA NA NM NA NA NA NM NA NA NA
Playlogic Entertainment Inc. 0.45 30.0 128.6 30.9 34.9 2.5x NA NA NA 22.4x NA NA NA 11.4x NA NA NA
Mindscape SAS 12.40 69.9 115.9 45.6 34.7 0.7x 0.5x 0.4x NA 9.1x 5.5x 3.7x NA 19.2x 8.8x 6.3x NA
Jowood Productions Software AG 7.30 43.2 110.3 25.7 33.0 1.1x NA NA NA 9.6x NA NA NA 1.0x NA NA NA
City Interactive sp. z o.o. 8.00 46.9 113.8 35.9 30.7 3.6x NA NA NA 13.7x NA NA NA 21.4x NA NA NA
Yuke's Co., Ltd. 275.00 49.1 156.3 30.4 26.7 0.5x 0.4x NA NA 1.6x NA NA NA 6.4x 5.6x NA NA
Tose Co. Ltd. 570.00 42.9 107.5 49.1 24.8 0.4x 0.4x 0.4x NA 3.2x NA NA NA 15.2x 11.0x 8.7x NA
CDV Software Entertainment AG 4.60 26.4 127.8 11.3 21.2 0.9x NA NA NA 18.0x NA NA NA NM NA NA NA
Interplay Entertainment Corp. 0.12 50.4 200.0 12.5 14.1 66.3x NA NA NA NM NA NA NA NM NA NA NA
Silverstar Holdings Ltd. 0.21 6.7 140.0 4.2 12.4 0.5x NA NA NA NM NA NA NA NM NA NA NA
Softstar Entertainment Inc. 10.00 47.9 120.0 7.6 12.4 1.3x NA NA NA NM NA NA NA NM NA NA NA
Nippon Ichi Software Inc 38200.00 11.2 112.4 8.3 10.5 0.5x 0.4x NA NA 4.8x NA NA NA 12.1x 2.5x NA NA
Majesco Entertainment Co. 0.56 34.1 155.6 16.9 9.7 0.2x 0.2x NA NA 8.6x 7.6x NA NA 7.5x 18.7x NA NA
Starbreeze AB 0.27 64.3 117.4 13.2 7.6 1.0x NA NA NA 11.8x NA NA NA 19.7x NA NA NA
Nihon Falcom Corp 20990.00 49.3 115.6 19.6 6.5 0.8x NA NA NA 20.3x NA