SOFTWARE & SERVICES
14 JULY 2009
WEB 2.O WEEKLY
PANDO RA RAISES $35 MILLION POST RO YALTY AG REEMENT
N EW R O YA L T Y AG R E EM E NT F OR W E B CA ST IN G A ND C O P YR IG HT F IR MS
DAVID SHORE, CFA, MBA 416.860.6784
david.shore@researchcapital.com Arun Thomas (Associate) 416.860.7666
SoundExchange, a non-profit royalty collecting organization associated with the Recording Industry Association of America (RIAA), agreed this past week to a new deal regarding royalty rates for webcasting. Under the new agreement, large commercial webcasters will pay up to 25% of their revenue to copyright holders – well below the 70% that could have been imposed under an earlier deal. W hile the deal was initially agreed to by three smaller Internet radio webcasters, Pandora Media, the third largest radio site (according to Alexa), also indicated that it would sign on to the agreement. Online Media companies lead financing: Two online media companies, Pandora (Internet Radio) and QuickPlay (Mobile Video), have secured the largest financing transactions thus far in July ($35 million and $12 million, respectively). Total capital raised so far in July is $66.1 million through eight transactions, averaging $8.3 million per transaction. June closed with $180 million in financing on 36 transactions. The averages for the months of May (excluding the Facebook transaction) and June were $6.4 million and $4.7 million, respectively.
Financing Activity Last Three Months
200.0 9.0
180.0
8.3 8.0
160.0 7.0 6.4 140.0 6.0 120.0 5.0 (US$m) 4.7 100.0 4.0 80.0 3.0 60.0 (US$m) 2.0 1.0 0.0 May-09 (excl FB) Jun-09 Total Average Jul-09
40.0
20.0
0.0
A w eak price performance week: The companies in our universe had weak stock price performances over the past week (for stocks with prices greater than $1) (Figure 6), with 30 companies showing negative returns on the week. Gravity (NasdaqGM:GRVY) led the group with a 33% return, while GungHo (3765-OSE) had the worst return, dropping 26.4% in the week.
This report has been created b y Anal ysts that are emplo yed b y Research Capital Corporation, a Canadian Investment Dealer. For further disclosures, please see last page of this report.
T o ro n t o 4 1 6 . 8 6 0 . 7 6 0 0 Montreal 514.399.1500 w w w . r e s e a rc h c a p i t a l . c o m Vancouver 604.662.1800 Calgary 403.265.7400 Regina 306.566.7550
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THE WEB 2.0 UNIVERSE Ninety two public Web 2.0 companies identified: Our W eb 2.0 universe contains 92 companies, with a combined market cap of ~$52.5 billion (Figure 1). The average market cap for the group is ~$584 million (but a median of only $50.0 million), with average trailing revenue of $153.8 million (median $53.6 million). The companies are also generally profitable, with a median EBITDA margin of 13.2%. On a valuation basis, the overall average is 5.3x trailing revenue (median 1.6x) and 9.2x trailing EBITDA (median 9.2x). Twenty of the companies have more than 500 employees.
C omparable C ompany Analys is > Web 2.0
C ompany Name
Accelerize New Media , Inc. Actoz S oft C o. , Ltd. AQ Interactive, Inc. As s ociated Media Holdings Inc. B igs tring C orp. B eta wave C orporation B eyond C ommerce, Inc. B right T hings plc B roa dW ebAs ia Inc. C DC C orp. C hangyou. com L imited C hina G a teway C orporation C hines e G amer Interna tiona l C LIC K E R Inc. C ornerW orld C orpora tion C yberplex Inc. DADA S pA DXN Holdings B hd Dibz International, Inc. DigitalP os t Interactive, Inc. DigitalT own, Inc. Dolphin Digital Media , Inc. E olith C o. Ltd. E xtens ions , Inc. F luid Mus ic C a nada , Inc. F rogs ter Interactive P ictures AG G ama nia Digita l E ntertainment C o., Ltd. G ameOn C o Ltd. G eoS entric O yj G iant Interactive G roup, Inc. G iga Media Ltd. G ravity C o., Ltd G ree, Inc. G ungHo O nline E ntertainment, Inc. HanbitS oft, Inc. IAC /InterActiveC orp. IAS E nergy, Inc. is eemedia Inc. J umbuck E nterta inment P ty Ltd. J umpT V Inc. K AB Dis tribution Inc. K ings oft C o. Ltd. Lingo Media C orporation LiveW orld Inc. LookS mart, Ltd. Magnitude Information S ys tems Inc. Mixi, Inc. Modern T imes G roup Mtg AB MO K O .mobi Limited Myriad G roup AG NE O W IZ G ames C orpora tion NetDragon W ebS oft, Inc. Neteas e. com Inc. NeXplore C orporation Ngi G roup Inc. Northgate T echnologies L imited O pen T ext C orp. O penwave S ys tems Inc. P erfect W orld C o. , Ltd. P NI Digital Media Inc. Q uepa s a C orp. O AO R B C Information S ys tems S handa Interactive E nterta inment Ltd. S hutterfly, Inc. S K C ommunications C o., Ltd. S NAP Interactive, Inc. S NM G loba l Holdings S ocial Media V enures , Inc. S ocialwis e, Inc. S ohu. com Inc. S park Networks , Inc. S pectrumDNA, Inc. T encent Holdings Ltd. T he P arent C ompany T he9 Limited T heS treet. com, Inc. T ota l S port O nline AS T ree.C om, Inc. Unis erve C ommunica tions C orp. United O nline Inc. UOMO Media, Inc V alueC lick Inc. V OIS , Inc. W ebzen Inc. W izzard S oftwa re C orporation W orlds . com Inc. W oozyF ly, Inc. W ynds torm C orpora tion XING AG Y eda ngO nline C orp. Y nk K orea Inc. ZipLocal Inc. High Low Average Median
L TM as of Ticker
3/31/2009 3/31/2009 3/31/2009 6/30/2007 3/31/2009 3/31/2009 3/31/2009 9/30/2008 9/30/2008 3/31/2009 3/31/2009 9/30/2008 3/31/2009 2/28/2009 1/31/2009 3/31/2009 3/31/2009 2/28/2009 NA 3/31/2009 2/28/2009 3/31/2009 12/31/2008 3/31/2009 3/31/2009 12/31/2008 3/31/2009 3/31/2009 3/31/2009 3/31/2009 3/31/2009 3/31/2009 6/30/2008 3/31/2009 3/31/2009 3/31/2009 1/31/2009 3/31/2009 12/31/2008 3/31/2009 3/31/2009 3/31/2009 3/31/2009 3/31/2009 3/31/2009 3/31/2009 3/31/2009 3/31/2009 12/31/2008 12/31/2008 12/31/2008 3/31/2009 3/31/2009 9/30/2007 3/31/2009 3/31/2009 3/31/2009 3/31/2009 3/31/2009 3/31/2009 3/31/2009 12/31/2007 3/31/2009 3/31/2009 12/31/2008 3/31/2009 9/30/2008 12/31/2008 3/31/2009 3/31/2009 3/31/2009 3/31/2009 3/31/2009 8/2/2008 12/31/2008 3/31/2009 3/31/2006 3/31/2009 2/28/2009 3/31/2009 1/31/2009 3/31/2009 3/31/2009 3/31/2009 3/31/2009 3/31/2009 3/31/2009 NA 3/31/2009 12/31/2007 12/31/2008 3/31/2009 AC LZ A052790 3838 AS MH BS GC B W AV B Y OC AIM: B G T BWBA C HIN. A C Y OU CGWY G T S M: 3083 C LK Z CWR L T S X :C X C M: DA DX N DIB Z DG LP DG T W DP DM A041060 E XT I T S X :F MN FRG 6180 3812 G E O 1V GA G IG M GR VY T S E : 3632 3765 A047080 IAC I IAS C . A IE E AS X :J MB T S X :J T V T S X :K AB 3888 T S X V :LM LVW D L OO K MAG Y 2121 MT G B MK B MY R N A095660 777 NT E S NX P C 2497 590057 OT E X OP W V PWRD T S X V :P N QP S A R BCI S NDA S FLY A066270 S TVI S NMN S MV I S C LW S O HU L OV S P XA 700 K IDS . Q NC T Y TS CM T OS O TR E E T S X V :US S UNT D UO MO V C LK V O IS W ZE N W ZE W DDD W ZY F W Y ND O 1B C A052770 A023770 T S X V :ZIP
E xc hange
OT C B B K OS E TS E OT C P K OT C B B OT C B B OT C B B AIM OT C P K Na s daqG S Na s daqG S OT C P K GTS M OT C B B OT C B B TS X CM K LS E OT C P K OT C B B OT C B B OT C B B K OS E OT C P K TS X XT R A GTS M TS E HL S E NY S E Na s daqG S Na s daqG M TS E OS E K OS E Na s daqG S OT C B B T S XV AS X TS X TS X S E HK T S XV OT C P K Na s daqG M OT C B B TS E OM AS X SWX K OS E S E HK Na s daqG S OT C P K TS E BSE Na s daqG S Na s daqG S Na s daqG S T S XV OT C B B R TS Na s daqG S Na s daqG S K OS E OT C B B OT C P K OT C P K OT C B B Na s daqG S AME X OT C B B S E HK OT C P K Na s daqG S Na s daqG M O T C NO Na s daqG M T S XV Na s daqG S OT C B B Na s daqG S OT C B B Na s daqG M AME X OT C B B OT C B B OT C P K XT R A K OS E K OS E T S XV
Trading C urrency HQ
US D KR W JPY US D US D US D US D GBP US D US D US D US D TWD US D US D C AD E UR MY R US D US D US D US D KR W US D C AD E UR TWD JPY E UR US D US D US D JPY JPY KR W US D US D C AD AUD C AD C AD HK D C AD US D US D US D JPY SEK AUD C HF KR W HK D US D US D JPY INR US D US D US D C AD US D US D US D US D KR W US D US D US D US D US D US D US D HK D US D US D US D NO K US D C AD US D US D US D US D US D US D US D US D US D E UR KR W KR W C AD United S ta tes S outh K orea J a pan United S ta tes United S ta tes United S ta tes United S ta tes United K ingdom United S ta tes Hong K ong C hina United S ta tes T aiwa n United S ta tes United S ta tes C anada Italy Ma la ys ia United S ta tes United S ta tes United S ta tes United S ta tes S outh K orea United S ta tes United S ta tes G ermany T aiwa n J a pan F inland C hina T aiwa n S outh K orea J a pan J a pan S outh K orea United S ta tes C anada C anada Aus tralia C anada C anada C hina C anada United S ta tes United S ta tes United S ta tes J a pan S weden Aus tralia S witzerland S outh K orea C hina C hina United S ta tes J a pan India C anada United S ta tes C hina C anada United S ta tes R us s ia C hina United S ta tes S outh K orea United S ta tes United S ta tes United S ta tes United S ta tes C hina United S ta tes United S ta tes C hina United S ta tes C hina United S ta tes Norway United S ta tes C anada United S ta tes C anada United S ta tes United S ta tes S outh K orea United S ta tes United S ta tes United S ta tes United S ta tes G ermany S outh K orea S outh K orea C anada
C urrent P rice
0. 55 25,800 55,200 0. 02 0. 04 0. 09 0. 40 0. 01 0. 23 1. 42 37. 61 0. 02 430 0. 02 0. 06 2 6. 15 0. 35 0. 00 0. 04 2. 00 0. 45 755 0. 10 0. 65 11. 50 55. 20 102,000 0. 04 8 5. 42 1. 45 6,450 185,500 4,325 16. 11 0. 15 0. 10 0. 38 0. 70 0. 63 5. 47 1. 19 0 1. 14 0. 01 605,000 221. 00 0. 07 4. 70 31,000 5. 69 35. 01 0. 58 30,550 29. 05 36. 00 2. 29 28. 78 1. 45 1. 00 0. 75 51. 81 12. 00 9,050 0. 45 0. 00 0. 32 0. 80 58. 92 2. 40 0. 15 87. 05 0. 02 8. 65 2 0. 03 9. 59 0. 07 7. 00 0 10 0 3. 28 0. 51 0. 15 0. 15 0. 10 30. 13 7,900 6,200 0. 01
US D Market C ap ($m)
15. 2 169. 8 32. 4 0.9 2.1 2.6 18. 0 4.1 19. 5 150. 7 2,068. 6 0.3 1,089. 6 1.3 3.9 88. 9 139. 1 22. 4 0.0 3.0 54. 2 23. 3 41. 8 4.4 29. 5 37. 7 252. 6 106. 6 50. 1 1,705. 2 295. 5 40. 3 1,557. 1 229. 7 72. 4 2,431. 3 10. 5 4.4 14. 6 68. 8 76. 1 766. 3 12. 8 1.7 19. 5 4.1 1,005. 4 1,841. 4 4.7 92. 2 249. 1 388. 0 4,496. 3 32. 4 40. 9 20. 7 1,894. 4 190. 8 1,399. 8 42. 8 12. 7 104. 0 3,459. 3 302. 1 289. 6 4.9 0.0 0.0 34. 7 2,254. 5 49. 4 7.3 20, 272.6 0.5 232. 0 61. 1 0.1 103. 5 1.5 585. 1 9.0 901. 9 8.3 38. 9 24. 4 7.9 2.6 1.8 221. 6 94. 7 25. 3 0.3 20, 272.6 0.0 583.6 49. 7
US D L TM Total R ev ($m)
4. 1 88. 2 66. 8 0. 1 0. 1 8. 4 7. 1 0. 3 0. 0 389.9 222.5 6. 7 55. 7 7. 2 1. 3 70. 3 234.4 76. 8 NA 0. 7 NM 0. 8 14. 1 NM 5. 0 3. 2 124.9 79. 5 5. 9 219.0 183.6 43. 7 31. 8 111.4 52. 7 1, 406. 4 0. 0 1. 5 13. 9 18. 1 71. 1 129.1 0. 9 11. 4 60. 7 0. 1 130.3 1, 702. 0 1. 1 40. 0 189.0 87. 0 470.6 NM 95. 5 114.3 782.6 197.2 228.2 18. 7 0. 1 144.6 570.2 215.2 175.7 3. 3 2. 0 0. 1 0. 0 460.0 54. 3 0. 1 1, 203. 7 112.0 249.9 67. 0 2. 1 215.6 22. 5 811.2 0. 6 591.7 0. 0 22. 0 5. 6 0. 0 NM NA 52. 8 52. 3 10. 9 2. 6 1,702. 0 0. 0 153.8 53.6
US D L TM Total E B ITDA ($m)
(4.4) 19. 2 4.2 (2.3) (2.0) (12. 6) (9.5) (1.8) (4.6) 30. 8 135.1 (6.6) 31. 2 2.4 NM 7.3 34. 3 10. 6 NM (2.6) (3.0) (3.7) (3.3) NM (6.9) (6.1) 20. 7 18. 8 (15. 3) NM NM 12. 0 11. 4 20. 0 (14. 1) 42. 6 (0.8) (4.7) 5.2 (12. 0) 8.5 52. 0 (1.5) (0.0) (3.8) (3.1) 46. 2 260.7 (2.3) 0.8 50. 8 34. 4 305.9 (4.9) 11. 5 (26. 8) 199.2 (2.1) 124.6 0.4 (10. 8) 18. 9 260.9 28. 3 11. 4 0.9 (0.7) (0.1) (4.8) 200.5 11. 8 (2.6) 576.8 (13. 5) 84. 2 1.9 (1.0) (13. 3) 0.1 177.3 (0.5) 105.5 (1.1) (0.5) (5.3) (0.8) NM NM 16. 5 11. 3 1.1 (2.0) 576. 8 -26.8 33.6 0. 8
E B ITDA %
NM 21. 7% 6.3% NM NM NM NM NM NM 7.9% 60. 7% -98. 9% 56. 0% 34. 1% NM 10. 3% 14. 6% 13. 8% NM NM NM NM -23. 6% NM NM NM 16. 6% 23. 7% NM NM NM 27. 5% 36. 0% 18. 0% -26. 8% 3.0% NM NM 37. 2% -66. 6% 11. 9% 40. 3% NM -0.4% -6.3% NM 35. 4% 15. 3% NM 1.9% 26. 8% 39. 5% 65. 0% NM 12. 0% -23. 5% 25. 5% -1.0% 54. 6% 2.3% NM 13. 1% 45. 8% 13. 2% 6.5% 28. 0% -34. 8% -60. 5% NM 43. 6% 21. 7% NM 47. 9% -12. 0% 33. 7% 2.9% -50. 6% -6.2% 0.2% 21. 9% -78. 2% 17. 8% NM -2.4% -94. 5% NM NM NM 31. 2% 21. 6% 10. 5% -78. 3% 65. 0% -98. 9% 8.1% 13. 2%
TE V/L TM R evenue
4. 9x 1. 6x 0. 0x 19.2x 48.3x 3. 2x 15.2x 0. 4x 8. 5x 0. 0x 18.4x 0. 1x 4. 1x 1. 2x 0. 8x 0. 5x 6. 3x 31.3x 3. 1x 4. 1x 11.2x 1. 8x 0. 5x 7. 8x 1. 2x 46.3x 1. 8x 1. 1x 0. 4x 2. 4x 0. 7x 3. 2x 1. 1x 5. 5x 13.2x 0. 1x 6. 8x 1. 4x 3. 2x 2. 6x 1. 3x 2. 9x 0. 2x 2. 5x 0. 4x 0. 2x 2. 2x 0. 0x 0. 0x 1. 1x 1. 6x 1. 0x 1. 1x 0. 0x 4. 1x 0. 9x 18.3x 0. 2x 4. 6x 0. 4x 0. 2x 1. 1x 14.7x 1. 3x 4. 6x 3. 2x 2. 0x 48.3x 48.3x 0. 0x 5.3x 1. 6x
TE V/L TM E B ITDA
7. 4x 0. 6x 5. 3x 13. 9x 32. 9x 0. 3x 11. 7x 5. 5x 3. 4x 11. 1x 2. 3x 10. 0x 12. 8x 1. 9x 9. 6x 13. 7x 19. 1x 9. 2x 4. 7x 7. 4x 9. 8x 0. 4x 0. 2x 0. 1x 8. 3x 25. 3x 3. 7x 9. 4x 4. 2x 38. 2x 4. 9x 7. 6x 10. 3x 9. 3x 38. 2x 38. 2x 0. 1x 9.2x 9. 2x
E mployees
11 NA NA 3 4 53 69 9 46 2, 227 628 37 NA 22 NA NA 578 NA NA 7 3 NA NA 2 NA NA NA NA 108 1, 570 751 469 NA NA NA 3, 200 NA NA 72 237 NA 2, 271 NA NA 90 14 NA 2, 969 NA 405 NA 2, 426 3, 109 19 NA NA 3, 400 630 2, 096 NA 74 NA 3, 124 514 NA 11 33 NA NA 3, 197 183 7 6, 194 347 NA 310 16 700 NA 1, 469 NA 1, 189 4 NA 110 1 NA NA 239 NA NA NA 6, 194 1 870 376
Figure 1. Web 2.0 Universe Summary Source. Capital IQ
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C A P I T A L M A R K E T S A C T I V I T Y (M & A A N D F I N A N C I N G ) Online Media companies lead financing: Two online media companies, Pandora (Internet Radio) and QuickPlay (Mobile Video), have secured the largest financing transactions thus far in July ($35 million and $12 million, respectively). Total capital raised so far in July is $66.1 million through eight transactions, averaging $8.3 million per transaction. June closed with $180 million in financing on 36 transactions. The averages for the months of May (excluding the Facebook transaction) and June were $6.4 million and $4.7 million, respectively.
Financing Activity Last Three Months
200.0 9.0
180.0
8.3 8.0
160.0 7.0 6.4 140.0 6.0 120.0 5.0 (US$m) 4.7 100.0 4.0 80.0 3.0 60.0 (US$m) 2.0 40.0 1.0 0.0 May-09 (excl FB) Jun-09 Total Average Jul-09
20.0
0.0
Figure 2. Financings, Last Three Months Source. Company reports
(US$m) 100.0 150.0 200.0 250.0 50.0 0.0
Pandora raises $35 million: Pandora had the largest raise over the last week, securing a $35 million round. Recently, copyright holders reached agreement with a group of webcasters regarding royalty rates. Pandora, which derives most of its revenue from advertising, indicated that it would be joining the new agreement as well. For additional details on financings, see Figures 23 and 24 (at end of note).
Figure 3. Capital Market Activity, Last Three Months Source. Company reports
Financing & M/A Summary - Last Three Months
Facebook People Media AdLink Internet Media Pandora Media StumbleUpon One Net Sugar Inc. Tumri Boku Cyberplex QuickPlay Media Wimba Grab Networks Peer39 OpenX Imeem Goojet SAS EveryZing AdMeld Inc. beeTV I Love Rewards WonderHill BlogHer Inc. Gist blueKiwi Software SA Nokeena Metaversum Fuhu Inc. Zoosk Sense Networks Azuki Systems Gather MojoPages TimeBridge OLX DocuSign Taomee Animoto GameGround Nexage StyleCaster Medialets RingRevenue TweetDeck Crowdcast YuMe eRepublik Newser LLC ClickFuel Inigral AdEx Media GROU.PS Resonate Networks my6sense Yapta OneTXT Cliqset VoxPop Mo'Minis CoTweet Glubble Picaboo LiquidPlanner AdWhirl TodaCell Loop'd Network MashLogic People Capital Jaxtr Jul-09 Jun-09 May-09
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Social Network remains the most active sector in dollars raised, while Ad Network remains the most active in number of transactions: Following recent trends, Social Networks as a sector saw the most activity in dollars raised ($240.5 million), largely attributed to the $200 million investment by Digital Sky Technologies in Facebook. However, it was the Ad Network sector that saw the most transactions (13), raising $117.2 million (Figure 4).
Capital Market Activity by Sector - Last Three Months
300.0
250.0
200.0
(US$m)
150.0 240.5 100.0
50.0
117.2 80.0 35.0 29.0 Comment/Reputation 25.8 Gaming 23.0 Blog 20.4 Video 20.0 Mobile 19.3 Enterprise 18.3 Virtual World 17.5 Infrastructure 17.0 Collaboration 16.5 Media
Mobile Payment
0.0 Online Dating Music Social Networks Ad Network
13.3 Search
13.0
6.8 Aggregation
6.3 Widget
4.0 Vertical Communities
3.2 Microblog
1.0 Publishing
1.0 Mobile Ad
0.5 Online Lending 1
# companies
11 13 1 1
1
5
2
3
3
6
3
5
3
3
2
1
1
1
1
1
1
1
Figure 4. Capital Market Activity, by Sector, Last Three Months Source. Company reports
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C A P I T A L M A R K E T S A C T I V I T Y (P R I C E P E R F O R M A N C E ) Web 2.0 index outpaces NASDAQ recovery: Our W eb 2.0 index (market-cap weighted) essentially mirrored the performance of the NASDAQ composite index from mid-2008 until recently. However, the index has recently had a much stronger recovery relative to the NASDAQ index (Figure 5).
Web 2.0 Index Price Performance
120
100
80
60
40
20
0 9/8/2008 2/9/2009 3/9/2009 4/6/2009 5/4/2009 10/20/2008 11/17/2008 12/15/2008 12/29/2008 7/14/2008 7/28/2008 8/11/2008 8/25/2008 9/22/2008 1/12/2009 1/26/2009 2/23/2009 3/23/2009 4/20/2009 5/18/2009 6/1/2009 6/15/2009 6/29/2009 7/13/2009 10/6/2008 11/3/2008 12/1/2008
^COMP - Share Pricing
Figure 5. Web 2.0 Price Performance Source. Capital IQ
Index: Web 2.0 (Market Cap)
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A w eak price performance week: The companies in our universe had weak stock price performances over the past week (for stocks with prices greater than $1) (Figure 6), with 30 companies showing negative returns on the week. Gravity (NasdaqGM:GRVY) led the group with a 33% return, while GungHo (3765-OSE) had the worst return, dropping 26.4% in the week.
1 Week P rice P erformance
G ravity Co., Ltd United Online Inc. V alueClick Inc. Neteas e.com Inc. A ctoz S oft Co., Ltd. Tree.Com, Inc. Cy berplex Inc. Mix i, Inc. Openw ave S y s tems Inc. NetDra gon WebS oft, Inc. S park Netw orks , Inc. Open Tex t Corp. X ING A G S ohu.com Inc. Perf ect World Co., Ltd. PNI Digital Media Inc. My riad G roup A G Lingo Media Corporation CDC Corp. IA C/InterA ctiveCorp. TheS treet.com, Inc. Modern Times Group Mtg A B Tencent Holdings Ltd. Quepas a Corp. GigaMedia Ltd. DA DA S pA Frogs ter Interactive Pictures A G NEOWIZ G ames Corporation Chines e G amer International S handa Interactive Entertainment G iant Interactive G roup, Inc. Eolith Co. Ltd. Changy ou.com Limited HanbitS oft, Inc. K ings oft Co. Ltd. G amania Digital Entertainment Co., The9 Limited LookS mart, Ltd. Y nk K orea Inc. S hutterfly , Inc. S K Communications Co., Ltd. Webz en Inc. G ameOn Co Ltd. Y edangOnline Corp. G ree, Inc. A Q Interactive, Inc. Ngi G roup Inc. Northgate Technologies Limited G ungHo Online Entertainment, Inc. -26.4% -30.0%
Figure 6. 1-Week Price Performance Source. Capital IQ
-20.1% -20.2% -20.7% -20.0%
-0.2% -0.2% -0.5% -0.6% -1.0% -1.1% -1.3% -2.7% -3.6% -3.6% -4.1% -4.3% -5.0% -5.6% -6.4% -6.5% -6.9% -7.2% -7.3% -7.3% -8.0% -8.4% -9.1% -9.7% -12.1% -12.8%
4.7% 3.2% 2.8% 2.8% 2.6% 2.5% 1.8% 0.9% 0.8% 0.5% 0.3% 0.2% 0.1% 0.0% 0.0% 0.0% 0.0%
12.0%
33.0%
-10.0%
0.0%
10.0%
20.0%
30.0%
40.0%
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INDUSTRY NEWS (PARTNERSHIPS, FINANCIAL RESULTS, NEW PRODUCTS)
K ey Developments
C ompany
J umbuck E ntertainment Pty L td. (AS X: J MB ) C hina E as tern Airlines C orp. L td. (S E HK : 670); Tenc ent Holdings L td. (S E HK : 700) C L IC K E R Inc . (OTC B B : C L K Z) S pectrumDNA, Inc . (OTC B B : S P XA)
Headline
Upda te to J umbuck E ntertainment P ty Ltd.'s E quity B uyba ck on J uly 6, 2009 T encent Holdings Ltd. T ea ms Up with C hina E a s tern Airlines C orp. Ltd
Notes
As of J uly 6, 2009, J umbuck E ntertainment P ty Ltd. ha s repurchas ed 87,750 s hares for a total cos t of AUD 0. 03 million under the program. T enpa y, an online pa yment pla tform run by C hines e internet s ervices provider T encent Holdings L td. has s igned a co-operation a greement with C hina E as tern Airlines . Under the agreement, T enpa y a nd C hina E a s tern will co-operate on online payment of a ir ticket booking and joint a ir ticket platform opera tions . T enpa y will als o provide B 2B dis tribution a nd s ettlement s ervices for travel bus ines s . E ffective J uly 08, 2009, F inancia l Media G roup Inc. will change its O T C B B s tock ticker s ymbol to C L K Z from F NG P . S pectrumDNA Inc. a nnounced the appointment of J eff Nola n, entrepreneur, venture capita lis t and prolific s ocial media s tra tegis t, to its boa rd of directors . Mos t recently, Mr. Nola n wa s the V P C orpora te Development a t News G ator T echnologies . During his tenure, Mr. Nolan overs aw res tructuring of News G ator into enterpris e s oftware a nd media bus ines s units operating independently of each other. He als o worked to es tablis h brand lea ders hip for the company in the widget and content s yndica tion market s pa ce. Mr. Nolan brings to the S pectrumDNA boa rd a n extens ive ba ckground in technology and Internet infras tructure a nd a ls o deep ma rketing s kills .
F ina ncial Media G roup Inc. will C hange its T icker to C L K Z from F NG P S pectrumDNA Inc. Appoints J eff Nola n to its B oard of Directors
B eyond C ommerc e, Inc. (OTC B B : B YOC )
B eyond C ommerce Inc. R eports R evenue R es ults for the B eyond C ommerce Inc. reported revenue res ults for the s econd quarter ended J une 30, 2009. F or the period, the company reported tha t due to the s trong growth of its a dvertis ing and E -commerce divis ions $5. 3 million in revenues , up 8, 826% from the s econd qua rter 2008. S econd Quarter E nded J une 30, 2009 ; P rovides R evenue G uida nce for the T hird, F ourth Q ua rter and T he compa ny expects s trong revenue growth throughout the ba lance of the fis ca l year. S econd Half of F is ca l 2009 T he compa ny project third and fourth qua rter revenues to exceed $27 million as they were coming into their s tronges t s elling s eas on.
J umbuck E ntertainment Pty L td. (AS X: J MB ) OAO R B C Information S ys tems (R TS : R B C I)
Upda te to J umbuck E ntertainment P ty Ltd.'s E quity B uyba ck on J uly 7, 2009 OAO R B C Information S ys tems Announces E xecutive Appointments
As of J uly 7, 2009, J umbuck E ntertainment P ty Ltd. ha s repurchas ed 95,250 s hares for a total cos t of AUD 0. 03 million under the program. O AO R B C Informa tion S ys tems a nnounced tha t on J une 30, 2009, the B oard of Directors of the compa ny appointed R B C co-founder G erman K a plun, a s G eneral Director, effective J uly 1, 2009. O wing to his appointment to the pos ition of R B C G eneral Director, the boa rd a ls o cons idered the ques tion of reelecting the cha irma n of the B oa rd of Directors . T he G eneral Director of the R B C T V bus ines s cha nnelArtyom Inutin, who ha s been in cha rge of R B C 's media bus ines s for more than 10 yea rs , wa s elected a s a new chairman of the B oard of Directors of the company. O n J uly 1, 2009, Digita lF X Interna tional Inc. appointed Allen La ngford, age 49, a s its new C hief O pera ting O fficer. Mr. L angford has over twenty years of ma na gement experience in the technology indus try, including three yea rs as divis iona l E xecutive V ice P res ident of P P G Indus tries Inc. and various executive level roles in other compa nies . S ince O ctober 15, 2008, Mr. La ngford ha s s erved the compa ny as a n independent contra ctor. P rior to his a ppointment as the compa ny's C hief Opera ting Officer Mr. L angford wa s als o a direct s elling 'affilia te' of V Mdirect, L . L. C . NetDragon W ebS oft Inc. a nnounced that the beta tes t vers ion of the 2. 5D MMOR P G Heroes of Might and Ma gic Online: G old E dition will be officia lly la unched at 15: 00 (C hina S tanda rd T ime) on J uly 8th. Heroes of Might a nd Magic Online: G old E dition is a product of s ignificance for NetDragon, a s it repres ents the culmination of years of itera tive des ign proces s es , a nd bala nces the des ires of gamers with the cla s s ic s trategic game-play elements of Ubis ofts legendary Heroes of Might & Magic fra nchis e. G ra vity C o. L td. reported una udited cons olida ted earnings res ults for the firs t quarter ended Ma rch 31, 2009. T he company reported revenues for the firs t qua rter ended Ma rch 31, 2009 wa s K R W 16, 607 million ($12, 991,000), repres enting a 9. 27% increa s e from K R W 15, 198 million ($11,889,000) for the fourth quarter ended December 31, 2008 a nd a 32.55% increas e from K R W 12, 529 million ($9, 801, 000) for the firs t quarter ended March 31, 2008. Income before income tax expens es and others was K R W 6, 997 million ($5, 474, 000) for the firs t qua rter of 2009, which repres ents a 76.03% increas e compa red with K R W 3,975 million ($3, 110,000) a nd a 2, 616. 91% increa s e yea r on year compared with a los s of K R W 278 million ($217,000). Net income wa s K R W 5, 253 million ($4, 109, 000) for the firs t qua rter of 2009 compared with a net income of K R W 1,654 million ($1, 294, 000) for the fourth quarter of 2008 and a net los s of K R W 4,513 million ($3,531, 000) for the firs t qua rter of 2008. Operating income wa s K R W 5, 513 million agains t los s of K R W 1,686 million for the s a me period a year a go. Income before minority interes t a nd equity in los s of rela ted joint venture wa s K R W 5, 592 million a gains t los s of K R W 1,127 million for the s O pen T ext C orp. announced the immedia te a vaila bility of Open T ext W eb S olutions 10, the la tes t relea s e of O pen T ext's W eb C ontent Management (W C M) s oftware. T he new releas e a llows orga niza tions to intelligently ma na ge a nd deliver a broad s et of corporate informa tion to us ers over the W eb, and fea tures extens ive us a bility upgra des , a new technology founda tion, and deeper and more comprehens ive integration with the Open T ext E C M S uite a nd the S AP NetW ea ver(R ) P orta l component. T he role of W C M has s ignificantly expa nded from a place to s tore a nd publis h externa l-fa cing content to a vital tool in helping to s upport orga niza tiona l bus ines s goals in s uch a reas as s ales a nd cus tomer s upport. T his means tha t W C M mus t deliver a highly pers onal cus tomer experience a nd be a ble to tap into content hous ed in many different enterpris e s ys tems . And a s digital as s ets ha ve become les s expens ive to crea te, companies need better wa ys to ma na ge rich media s uch as audio a nd video.
DigitalFX International, Inc . (OTC B B : DG FX)
Digita lF X International Inc. Appoints Allen La ngford as C hief Operating Officer
NetDragon WebS oft, Inc. (S E HK : 777)
NetDragon La unches B eta T es t of Heroes of Might and Ma gic O nline: G old E dition
Gravity C o., L td (Nas daqGM: G R VY)
G ravity C o. Ltd. R eports Unaudited C ons olidated E a rnings R es ults for the F irs t Q ua rter E nded Ma rch 31, 2009
Open Text C orp. (Nas daqGS : OTE X)
Open T ext C orp. Announces Availa bility of Open T ext W eb S olutions 10
Page 9
K ey Developments
C ompany
K ings oft C o. L td. (S E HK : 3888)
Headline
Notes
An unknown s hareholder entered into a term s heet to s ell An unknown s ha reholder entered into a term s heet to s ell 7. 81% s take in K ings oft C o. L td. (S E HK : 3888) on J uly 9, 2009. HS B C is acting a s 7.81% s ta ke in K ings oft C o. L td. (S E HK : 3888). book runner for the s ale. V OIS , Inc., 100 : 1, S tock S plit or S ignificant S tock Dividend, J ul-09-2009 O penwave S ys tems Inc. Appoints J ohn G iere a s S enior V ice P res ident of P roducts and Marketing V OIS , Inc., 100 : 1, S tock S plit or S ignificant S tock Dividend, J ul-09-2009 Openwave S ys tems Inc. a nnounced the a ppointment of J ohn G iere as s enior vice pres ident, products and marketing, effective J uly 8, 2009. G iere brings more than 20 years of mana gement, marketing a nd bus ines s development experience a t compa nies in the telecommunica tions indus try, including Alcatel Lucent and E rics s on. G iere will report to the company's C E O , K en Denman. P rior to O penwave, J ohn s erved as chief marketing officer a t Alcatel Lucent. He als o held a number of s enior marketing roles at E rics s on, including vice pres ident, new bus ines s development; vice pres ident, global branding a nd ma rketing; a nd executive vice pres ident, bus ines s development a nd s ales s upport. J ohn currently s erves on the T elecommunications Indus try As s ociation (T IA) E xecutive B oard. He holds an MB A from the Univers ity of Maryla nd a nd a B S degree from G eorgetown Univers ity.
VOIS , Inc. (OTC B B : VOIS ) Openwave S ys tems Inc. (Nas daqG S : OPW V)
B eyond C ommerc e, Inc. (OTC B B : B YOC )
B eyond C ommerce Announces LocalAdL ink's E xpans ion B eyond C ommerce Inc. a nnounced the P re-L aunch of LocalAdL ink into the C a nadian ma rket. LocalAdL ink ha s its firs t meeting s cheduled in Into C a na da C anada on J uly 25th in T oronto. T o regis ter for this introductory meeting. LocalAdL ink is an online advertis ing s ervice tha t enables loca l bus ines s es to reach local cus tomers . T he cus tomer facing W eb s ite L ocalAdLink. com is a local s earch directory and acts as the centra l hub for the Loca lAdL ink technology. W hen a cus tomer vis its LocalAdL ink. com, the proprieta ry geo-targeting technology identifies their location a nd s erves up loca l bus ines s es in their zip code. O nce here, a cus tomer can perform additional s earches for loca l bus ines s es and s ervices a cros s a complete s election of categories and get the informa tion they require. P NI Digital Media Inc. announced s evera l new initiatives related to its P NI C onnected K ios k(T M). P NI a nd R eta il Ima ging Ma na gement G roup Llc are working together to dis tribute the P NI C onnected K ios k to ma jor retail cus tomers acros s the US . R etail Ima ging has a lrea dy enabled P NI to s ell the traditional touch-s creen termina l-ba s ed vers ion of the P NI C onnected K ios k into F red Meyer and K ing S oopers , a nnounced on April 30th, 2009. P NI a nd R eta il Ima ging have now teamed up to pla ce the web vers ion of the P NI C onnected K ios k with As s ocia ted F oods S tores ' online P ixureT his (T M) photo s olution. P NI has als o teamed up with P hoto G ift W orld to launch the online vers ion of the P NI C onnected K ios k to a new range of P G W cus tomers including s ma ll reta ilers , corporations , non-profit orga nizations a nd s chools . P G W , the producer of photo gifts , photo books a nd calendars for C a na dian retailers , is now a ctively purs uing pa rtners hips in the US . T he P NI C onnected K ios k enables P G W to offer their thous ands of photo gift products in a n efficient manner to any number of new cus tomers Open T ext C orp. announced that C anopius has s elected the O pen T ext E C M S uite to improve proces s es , reduce filing cos ts a nd, more importa ntly, s upport the implementation of electronic tra ding. R ealizing the ever-increas ing ma rket dema nd for electronic trading, C anopius unders ta nds the need for a document mana gement and workflow s ys tem that would enable the orga nization to exchange information electronica lly with brokers and third parties around the world. F ollowing a rigorous evaluation proces s , C a nopius chos e the O pen T ext E C M S uite, pa rticula rly for its bus ines s proces s management a nd document management capa bilities . One of the key factors in the decis ion was that Open T ext could offer an integra ted document ma nagement and bus ines s proces s ma na gement s olution, reducing s ys tem integra tion concerns .
P NI Digital Media Inc. (TS XV: P N); R etail P NI Digital Media Inc. Adds New Dis tributors and New R etailers with P NI C onnected K ios k Imaging Management G roup L lc
Open Text C orp. (Nas daqG S : OTE X)
C anopius S elects Open T ext E C M S uite
Figure 7. Key Developments Source. Capital IQ
Page 10
VALUATION Online Gaming companies lead market-cap charts: Thirteen companies in our W eb 2.0 universe top US$1 billion in market capitalization (Figure 8). Fifty-eight of the 92 companies have market caps under US$100 million, with 26 under US$10 million. Online gaming companies dominate the top of the list, led by Tencent Holdings with a market cap over US$20 billion.
Market C ap (US D m)
Tencent Holdings Ltd. Neteas e. com Inc. S handa Interactive Entertainment IA C/InterA ctiveCorp. S ohu. com Inc. Cha ngy ou.com Limited Open Tex t Corp. Modern Times G roup Mtg A B G iant Interactive G roup, Inc. G ree, Inc. Perf ect World Co., Ltd. Chines e G amer Internationa l Mix i, Inc. V a lueClick Inc. K ings oft Co. Ltd. United Online Inc. NetDra gon WebS of t, Inc. S hutterf ly , Inc. G igaMedia Ltd. S K Communications Co., Ltd. G ama nia Digital Entertainment Co., NEOWIZ G ames Corporation The9 Limited G ungHo Online Entertainment, Inc. XING A G Openw ave S y s tems Inc. A ctoz S oft Co., Ltd. CDC Corp. DA DA S pA G ameOn Co Ltd. OA O R B C Inf ormation S y s tems Tree.Com, Inc. Y edangOnline Corp. My riad G roup A G Cy berplex Inc. K A B Dis tribution Inc. HanbitS of t, Inc. JumpTV Inc. TheS treet.c om, Inc. DigitalTow n, Inc. G eoS entric Oy j S park Netw orks , Inc. PNI Digital Media Inc. Eolith Co. Ltd. Ngi G roup Inc. G ravity Co. , Ltd Webz en Inc. Frogs ter Interac tiv e Pictures A G S ocialw is e, Inc. A Q Interac tiv e, Inc. NeXplore Corporation Fluid Mus ic Canada, Inc. Y nk K orea Inc. Wiz z ard S of tw are Corporation Dolphin Digita l Media, Inc. DXN Holdings B hd Northgate Technologies Limited B roadWebA s ia Inc. LookS mart, Ltd. B ey ond Commerc e, Inc. A cceleriz e New Media, Inc. J umbuck Entertainment Pty Ltd. Lingo Media Corporation Quepas a Corp. IA S Energy , Inc. UOMO Media, Inc V OIS , Inc. Worlds . com Inc. S pectrumDNA , Inc. S NA P Interac tiv e, Inc. MOK O.mobi Limited Ex tens ions , Inc. is eemedia Inc. B right Things plc Magnitude Inf ormation S y s tems CornerWorld Corporation DigitalPos t Interac tiv e, Inc. Wooz y Fly , Inc. B etaw ave Corporation B igs tring Corp. Wy nds torm Corporation LiveWorld Inc. Unis erv e Communications Corp. CLICK ER Inc. A s s ociated Media Holdings Inc. The Pa rent Company ZipL ocal Inc. China G atew ay Corporation Total S port Online A S S ocial Media V enures , Inc. S NM G lobal Holdings Dibz Interna tional, Inc. 0
Figure 8. Market Cap Ranking Source. Capital IQ
388.0 302.1 295.5 289. 6 252.6 249.1 232.0 229.7 221.6 190.8 169.8 150.7 139.1 106.6 104.0 103.5 94.7 92.2 88.9 76. 1 72.4 68.8 61.1 54.2 50.1 49.4 42.8 41.8 40.9 40.3 38.9 37.7 34.7 32.4 32.4 29.5 25.3 24.4 23.3 22.4 20.7 19.5 19.5 18.0 15.2 14.6 12.8 12.7 10.5 9.0 8.3 7.9 7.3 4.9 4.7 4.4 4.4 4.1 4.1 3.9 3.0 2.6 2.6 2.1 1.8 1.7 1.5 1.3 0.9 0.5 0.3 0.3 0.1 0.0 0.0 0.0 500
585.1
1089.6 1005.4 901.9 766.3
2431.3 2254.5 2068. 6 1894. 4 1841.4 1705.2 1557.1 1399.8
3459.3
1,000
1,500
2, 000
2,500
3,000
3,500
4, 000
Page 11
TEV/Revenue (LTM) averages 5.3x: The overall average TEV/Revenue (LTM) multiple for our group is 5.3x (versus 4.6x last week) (Figure 9). Two companies trade at more than 40x revenue – Bigstring Corp. (OTCBB:BSGC) at 48.3x, closely followed by Gree (TSE:3632) at 46.3x. The median is only 1.8x. Note that we exclude multiples greater than 50x. Thirtytwo companies have multiples under 1.5x.
T E V/L T M R evenue (x)
60. 0
50. 0
48.3 46.3
40. 0
31.3
30. 0
18.318.419.2 14.715.2 13.2 11.2
20. 0
10.erage, 5. 3 Av 0 0. 0
8.5 6.8 7.8 5.5 6.3 4.1 4.1 4.1 4.6 4.6 4.9 2.6 2.9 3.1 3.2 3.2 3.2 3.2 2.4 2.5 1.1 1.1 1.2 1.2 1.3 1.3 1.4 1.6 1.6 1.8 1.8 2.0 2.2 2.2 0.1 0.1 0.2 0.2 0.2 0.2 0.4 0.4 0.4 0.4 0.5 0.5 0.6 0.7 0.8 0.9 1.0 1.1 1.1 1.1
Figure 9. TEV/Revenue Ranking Source. Capital IQ
TEV/Revenue (LTM) by country/exchange: W e have also calculated multiples based on where the companies are listed or domiciled. Figure 10 shows the average TEV/Revenue multiples by stock exchange. The OTCBB has the largest number of companies (18), trading at an average multiple of 12.7x (versus. 13.7x last week). On a geographic basis, the United States has the most companies (38), trading at an average of 5.8x revenue (versus 5.7x last week) (Figure 11). Ten of the companies are Canadian (average 4.4x revenue).
(x)
(x)
OTCNO TSXV
OTCBB
OTCPK
GTSM
NasdaqGM
TSE
KOSE OSE
SEHK
HLSE
NasdaqGS
AMEX
XTRA
KLSE
RTS
TSX
OM
CM
BSE
AIM
SWX
ASX
Germany
Malaysia
Hong Kong
L iveWorld Inc . C LIC K E R Inc. N orthgate T echnologies L imited U nis erve C ommunications C orp. P erfect World C o., Ltd. T he P a rent C ompany IAC /InterAc tiveC orp. C DC C orp. O penwave S y s tems Inc . T ree.C om, Inc. DXN Holdings B hd G a meO n C o Ltd. ZipLoca l Inc . J umbuck E nterta inment P ty L td. DADA S pA S pa rk N etwork s , Inc . S NAP Intera ctive, Inc. S N M G loba l Holdings United O nline Inc . H anbitS oft, Inc . S hutterfly , Inc . K AB Dis tribution Inc . C y berplex Inc . G igaMedia Ltd. N E O WIZ G ames C orporation V alueC lic k Inc . Modern T imes G roup Mtg AB Ac toz S oft C o. , Ltd. S K C ommunica tions C o., Ltd. G ungH o O nline E ntertainment, Inc. G a mania Digital E ntertainment C o., Ltd. Y edangO nline C orp. P N I Digital Media Inc. Y nk K orea Inc . is eemedia Inc . O pen T ex t C orp. My riad G roup AG NetDra gon WebS oft, Inc . E olith C o. Ltd. B ey ond C ommerc e, Inc. MO K O .mobi L imited XIN G AG J umpT V Inc . C ornerWorld C orporation F luid Mus ic C a nada , Inc. S ohu.com Inc . T otal S port O nline AS Wiz z ard S oftware C orporation Acceleriz e New Media , Inc . K ings oft C o. Ltd. DigitalP os t Intera ctive, Inc. Mix i, Inc . G eoS entric O y j C ha ngy ou.com L imited F rogs ter Intera ctiv e P ic tures AG Lingo Media C orporation UO MO Media, Inc B right T hings plc T encent Holdings Ltd. C hines e G amer Interna tional As s ociated Media Holdings Inc . Dolphin Digital Media, Inc. G ree, Inc . B igs tring C orp.
Average TEV/LTM Revenue - By Exchange
16.0 15.2 14.0 13.4 12.0 12.7 10.0 8.0 6.0 4.0 2.0 0.0 10.1 8.9 7.8
14.0 12.0 10.0
Average TEV/LTM Revenue - By Country
16.0 15.2
11.1 7.8 7.2 7.2
7.2 4.6 4.13.4 2.8 2.6 2.4 2.0 1.8 1.8 1.8 1.4 0.8
8.0 6.0 4.0
5.8 5.6
4.6
4.4 2.6 2.0 1.8 1.4 0.8 0.5 Italy 0.4 0.2 0.0 Russia 1 India 1
0.5
0.4 0.2 0.0
2.0 0.0 United United Japan China Canada Finland Taiwan Norway
Australia
South 9
# Companies
1 5 18 2 3 1 2 1 4 11 2 1 4 2 7 1 14 1 1 1 5 1 1
# Companies 1 6 1 2 3 38 10 1 10
Switzerland
1
2
Sweden 1
1
1
1
Figures 10 & 11. TEV/Revenue Ranking (Exchange, Country) Source. Capital IQ
Page 12
TEV/EBITDA (LTM) averages 9.2x: The average multiple for the 35 companies with positive EBITDA (and multiples under 100x) is 9.2x LTM EBITDA (vs. 10.1x last week), led by Tencent Holding’s (700-SEHK) 38.2x multiple (Figure 12). Fourteen of the companies have EBITDA multiples under 7x. The median multiple is 8.0x (vs. 9.2x last week).
T E V/L T M E B IT DA (x)
45. 0 40. 0 35. 0 30. 0 25. 3 25. 0 20. 0 15. 0 10. 0 5. 0 0. 1 0. 0 S handa Interac tive E ntertainment L td. 0. 2 O AO R B C Information S y s tems 0. 3 0. 4 C L IC K E R Inc . P erfec t World C o. , L td. 0. 6 AQ Interac tive, Inc . A verage, 9. 2 7. 4 7. 4 1. 9 J umbuck E ntertainment P ty Ltd. 2. 3 G ameO n C o L td. 3. 4 3. 7 4. 2 4. 7 4. 9 5. 3 5. 5 7. 6 8. 3 9. 2 9. 3 9. 4 9. 6 11. 1 11. 7 9. 8 10. 0 10. 3 13. 9 12. 8 13. 7 19. 1 21. 4 32. 9 38. 2
NE O WIZ G ames C orporation
G ungH o O nline E ntertainment, Inc .
G amania Digital E ntertainment C o. , Ltd.
S K C ommunic ations C o. , L td.
Modern T imes G roup Mtg AB
C hines e G amer International
DXN Holdings B hd
C hangy ou. c om L imited
S NAP Interac tive, Inc .
U nited O nline Inc .
C DC C orp.
S park Network s , Inc .
O pen T ex t C orp.
NetDragon WebS oft, Inc .
Figure 12. TEV/EBITDA Ranking Source. Capital IQ
TEV/EBITDA (LTM) by country/exchange: Figure 13 shows the average TEV/EBITDA multiples by stock exchange. The OTCBB has the largest number of companies (18), trading at an average multiple of 2.0x (vs. 3.7x last week). On a geographic basis, the United States has the most companies (38), trading at an average of 6.0x EBITDA (Figure 14). Ten of the companies are Canadian (average 10.4x EBITDA).
Average TEV/LTM EBITDA - By Exchange
25.0 22.0 20.0 15.0 (x) 10.0 5.0 GTSM 0.0 SEHK KOSE OSE TSE NasdaqGS OM 19.8 13.6 10.6 10.3 10.0 9.2 7.3 7.3 15.0 (x) 5.5 10.0 4.2 3.4 2.0 1.9 0.2 OTCBB RTS KLSE ASX 0.0 0.0 SWX BSE 5.0 0.0 Germany Hong Kong Malaysia China Canada Japan United States Taiwan South Korea Italy Sweden 13.6 11.9 10.4 10.3 9.2 8.0 25.0 22.0 20.0
Average TEV/LTM EBITDA - By Country
6.0 5.5 5.3 3.4 1.9 Australia 0.2 Russia 1 0.0 Switzerland 1
CM
# Companies
2
3
7
4
2
1
1
5
14
1
AMEX
XTRA
TSX
2
1
18
2
1
1
1 # Companies 3 9 10 10 2 1 6 38 1
1
1
2
Figures 13 & 14. TEV/EBITDA Ranking (Exchange, Country) Source. Capital IQ
T enc ent Holdings L td.
IAC /InterAc tiveC orp.
V alueC lic k Inc .
S ohu. c om Inc .
Y edangO nline C orp.
K AB Dis tribution Inc .
C yberplex Inc .
XING AG
Mix i, Inc .
Actoz S oft C o. , L td.
K ings oft C o. L td.
Y nk K orea Inc.
S hutterfly , Inc.
DADA S pA
Page 13
P/E (LTM) averages 11.0x: The average multiple for the 30 companies with positive earnings (and multiples under 100x) is 11.0x LTM EPS (vs. 17.2x last week), led Worlds.com (OTCBB-W DDD) 51.2x multiple (Figure 15). Eleven of the companies have P/E multiples under 10x. The median is just 13.3x.
P /E L T M (x)
60.0 51.2 50.0 42.5 40.0 28.5 29.6 48.3 48.6
30.0 23.6 20.7 21.1 20.0 A verage, 11.0 10.0 0.7 0.0 T he9 Limited 1.8 G iant Interactive G roup, Inc. 2.4 P erfect World C o., Ltd. 2.6 Neteas e.com Inc. 2.8 S handa Interactive E ntertainment Ltd. 4.0 5.6 6.1 7.4 8.9 15.1 13.9 14.1 12.0 12.7 10.5 11.7 17.2
26.6 27.1
J umbuck E ntertainment P ty Ltd.
G amania Digital E ntertainment C o., Ltd.
NE O W IZ G ames C orporation
Modern T imes G roup Mtg AB
C hines e G amer International
DXN H oldings B hd
C hangy ou.com Limited
S NAP Interactive, Inc.
G ameO n C o Ltd.
O pen T ex t C orp.
NetDragon W ebS oft, Inc.
T encent H oldings Ltd.
4.0 Malaysia 1
C y berplex Inc.
G igaMedia Ltd.
S park Network s , Inc.
Mix i, Inc.
IAC /InterActiveC orp.
Y edangO nline C orp.
K ings oft C o. Ltd.
Figure 15. P/E Ranking Source. Capital IQ
P/E (LTM) by country/exchange: Figure 16 shows the average P/E multiples by stock exchange. The OTCBB has the largest number of companies (18), trading at an average multiple of 29.3x. On a geographic basis, the United States has the most companies (38), trading at an average of 23.6x earnings (Figure 17). Ten of the companies are Canadian (average 19.2x EPS).
Average P/E - By Exchange
40.0 35.0 30.0 25.0 (x) 20.0 15.0 10.0 5.0 OTCBB GTSM 0.0 TSE KOSE SEHK NasdaqGS CM AMEX XTRA OM TSX ASX 34.8 30.2 29.3 26.6
35.0 30.0 25.0
23.6
Average P/E - By Country
30.2 27.1
(x)
21.9 21.1 15.1 10.8 8.9 6.1 5.6
20.0 15.0 10.0
23.6 23.6 21.1 19.2 16.4 11.7 6.1 5.6
4.0 KLSE
1.8 NasdaqGM 0.0 NYSE
5.0 0.0 Germany United States Canada Japan South Korea China Italy Australia Taiwan
Actoz S oft C o., Ltd.
# Companies
2
5
18
3
1
7
2
2
14
4
2
1
1
1
5
# Companies
6
3
1
38
2
10
9
10
2
1
Figures 16 & 17. P/E Ranking (Exchange, Country) Source. Capital IQ
Switzerland 1
Sweden
Worlds .com Inc.
0.0
S ohu.com Inc.
XING AG
DADA S pA
Page 14
UPCOMING EVENTS
E arnings C alendar
C ompany
C ha ngyou. com L imited (Nas da qG S : C Y O U ) S ohu. com Inc . ( Nas da qG S : S O HU) IA C /InterAc tiv eC orp. (Na sdaqG S :IA C I) S hutterfly , I nc . ( Nas daq GS : S F LY ) T ree. C om, Inc . (Na sdaqG M: T R E E ) V alu eC lic k Inc . (Na sdaqG S : V C L K ) O pen T ext C orp. (Na s daqG S : O T E X )
Figure 18. Earnings Calendar Source. Company reports
Date & Time
Mond ay , J uly 2 7, 2 009 7:00 AM ( E DT ) Mond ay , J uly 2 7, 2 009 8:30 AM ( E DT ) W ed nes day , J uly 29, 2009 11: 00 A M ( E DT ) W ed nes day , J uly 29, 2009 5:0 0 P M ( E DT ) T hurs day , J uly 30, 2009 11: 00 A M ( E DT ) T ues da y, Augus t 04 , 20 09 4 : 30 P M (E DT ) T hurs day , A ugust 20, 200 9 5: 00 P M ( E DT )
Quarter
Q2 200 9 Q2 200 9 Q2 200 9 Q2 200 9 Q2 200 9 Q2 200 9 Q4 200 9
C onf C all Deta ils
1-866-20 2-3048 1-866-73 0-5764 NA 913-31 2-0641 877-72 3-9523 818-57 5-4677 416-64 4-3415
Page 15
C omparable C ompany Analys is > Web 2.0
Pric e P erformanc e
C ompany Name A ccelerize New Media, Inc. A ctoz S oft C o. , L td. A Q Interactive, Inc. A s s ociated Media H oldings Inc. B igs tring C orp. B eta wave C orpora tion B eyond C ommerce, Inc. B right T hings plc B roadW ebA s ia Inc. C DC C orp. C ha ngyou.com Limited C hina G a tewa y C orporation C hines e G a mer International C LIC K E R Inc. C ornerW orld C orpora tion C yberplex Inc. DADA S pA DXN Holdings B hd Dibz Interna tional, Inc. DigitalP os t Intera ctive, Inc. DigitalT own, Inc. Dolphin Digital Media, Inc. E olith C o. L td. E xtens ions , Inc. F luid Mus ic C anada, Inc. F rogs ter Intera ctive P ictures AG G amania Digita l E ntertainment C o., L td. G ameO n C o L td. G eoS entric Oyj G ia nt Interactive G roup, Inc. G igaMedia L td. G ra vity C o., Ltd G ree, Inc. G ungH o Online E ntertainment, Inc. H anbitS oft, Inc. IAC /InterA ctiveC orp. IAS E nergy, Inc. is eemedia Inc. J umbuck E ntertainment P ty Ltd. J umpT V Inc. K AB Dis tribution Inc. K ings oft C o. L td. L ingo Media C orpora tion L iveW orld Inc. L ookS mart, L td. Ma gnitude Information S ys tems Inc. Mixi, Inc. Modern T imes G roup Mtg AB MO K O .mobi L imited Myriad G roup AG NE O W IZ G ames C orporation NetDra gon W ebS oft, Inc. Netea s e. com Inc. NeXplore C orpora tion Ngi G roup Inc. Northgate T echnologies Limited O pen T ext C orp. O penwa ve S ys tems Inc. P erfect W orld C o., Ltd. P NI Digital Media Inc. Q uepa s a C orp. O AO R B C Information S ys tems S ha nda Interactive E nterta inment L td. S hutterfly, Inc. S K C ommunications C o. , L td. S NA P Intera ctive, Inc. S NM G loba l H oldings S ocial Media V enures , Inc. S ocialwis e, Inc. S ohu.com Inc. S pa rk Networks , Inc. S pectrumDNA, Inc. T encent H oldings Ltd. T he P a rent C ompany T he9 L imited T heS treet.com, Inc. T ota l S port Online A S T ree.C om, Inc. U nis erve C ommunica tions C orp. U nited O nline Inc. U OMO Media, Inc V alueC lick Inc. V OIS , Inc. W ebzen Inc. W izzard S oftwa re C orporation W orlds .com Inc. W oozyF ly, Inc. W ynds torm C orpora tion XING A G Y eda ngOnline C orp. Y nk K orea Inc. ZipLocal Inc. H igh L ow Average Media n C urrenc y US D KR W JPY US D US D US D US D GB P US D US D US D US D TWD US D US D C AD E UR MY R US D US D US D US D KR W US D C AD E UR TWD JPY E UR US D US D US D JPY JPY KR W US D US D C AD AU D C AD C AD HK D C AD US D US D US D JPY SEK AU D C HF KR W HK D US D US D JPY INR US D US D US D C AD US D US D US D US D KR W US D US D US D US D US D US D US D HK D US D US D US D NO K US D C AD US D US D US D US D US D US D US D US D US D E UR KR W KR W C AD Tic ker AC L Z A052790 3838 AS MH BSGC B W AV B Y OC AIM:B G T BWBA C H IN.A C Y OU CGWY G T S M:3083 CLK Z CW R L T S X: C X C M:DA DXN DIB Z DG LP DG T W DP DM A041060 E XT I T S X: F MN FR G 6180 3812 G E O1V GA G IG M GR VY T S E :3632 3765 A047080 IA C I IA S C . A IE E AS X: J MB T S X: J T V T S X: K AB 3888 T S XV :LM LV W D LO OK MAG Y 2121 MT G B MK B MY R N A095660 777 NT E S NXP C 2497 590057 OT E X OP W V PWRD T S XV :P N QP S A R BCI S NDA S F LY A066270 S TVI S NMN S MV I S CLW S O HU LO V S P XA 700 K IDS . Q NC T Y TS CM T OS O TR E E T S XV :US S UNT D UO MO V CLK V O IS W ZE N W ZE W DDD W ZY F W Y ND O1B C A052770 A023770 T S XV :ZIP E xc hange OT C B B K OS E TS E OT C P K OT C B B OT C B B OT C B B A IM OT C P K Nas da qG S Nas da qG S OT C P K GTS M OT C B B OT C B B TS X CM K LS E OT C P K OT C B B OT C B B OT C B B K OS E OT C P K TS X XT R A GTS M TS E H LS E NY S E Nas da qG S Nas da qG M TS E OS E K OS E Nas da qG S OT C B B T S XV AS X TS X TS X S E HK T S XV OT C P K Nas da qG M OT C B B TS E OM AS X S WX K OS E S E HK Nas da qG S OT C P K TS E BSE Nas da qG S Nas da qG S Nas da qG S T S XV OT C B B R TS Nas da qG S Nas da qG S K OS E OT C B B OT C P K OT C P K OT C B B Nas da qG S A ME X OT C B B S E HK OT C P K Nas da qG S Nas da qG M O T C NO Nas da qG M T S XV Nas da qG S OT C B B Nas da qG S OT C B B Nas da qG M A ME X OT C B B OT C B B OT C P K XT R A K OS E K OS E T S XV US D Market C ap ($m) 15.2 169.8 32.4 0.9 2.1 2.6 18.0 4.1 19.5 150.7 2, 068.6 0.3 1, 089.6 1.3 3.9 88.9 139.1 22.4 0.0 3.0 54.2 23.3 41.8 4.4 29.5 37.7 252.6 106.6 50.1 1, 705.2 295.5 40.3 1, 557.1 229.7 72.4 2, 431.3 10.5 4.4 14.6 68.8 76.1 766.3 12.8 1.7 19.5 4.1 1, 005.4 1, 841.4 4.7 92.2 249.1 388.0 4, 496.3 32.4 40.9 20.7 1, 894.4 190.8 1, 399.8 42.8 12.7 104.0 3, 459.3 302.1 289.6 4.9 0.0 0.0 34.7 2, 254.5 49.4 7.3 20,272. 6 0.5 232.0 61.1 0.1 103.5 1.5 585.1 9.0 901.9 8.3 38.9 24.4 7.9 2.6 1.8 221.6 94.7 25.3 0.3 C urrent P ric e 0.55 25, 800 55, 200 0.02 0.04 0.09 0.40 0.01 0.23 1.42 37.61 0.02 430.00 0.02 0.06 1.59 6.15 0.35 0.00 0.04 2.00 0.45 755.00 0.10 0.65 11.50 55.20 102, 000 0.04 7.55 5.42 1.45 6, 450 185, 500 4, 325 16.11 0.15 0.10 0.38 0.70 0.63 5.47 1.19 0.06 1.14 0.01 605, 000 221.00 0.07 4.70 31, 000 5.69 35.01 0.58 30, 550 29.05 36.00 2.29 28.78 1.45 1.00 0.75 51.81 12.00 9, 050 0.45 0.00 0.32 0.80 58.92 2.40 0.15 87.05 0.02 8.65 2.00 0.03 9.59 0.07 7.00 0.11 10.37 0.01 3.28 0.51 0.15 0.15 0.10 30.13 7, 900 6, 200 0.01 1 Wk 10.0% 2. 8% -20.1% 1233.3% 17.6% -10.0% -11.1% -5.5% -22.8% 0. 0% -5.6% -25.0% -3.6% 529.6% -14.3% 2. 6% -1.3% -5.4% -90.0% -7.0% -2.4% 45.2% -5.0% -50.0% -17.7% -2.7% -6.9% -9.7% 0. 0% -4.3% -1.1% 33.0% -12.8% -26.4% -6.4% -0.2% -21.1% 25.0% -2.6% -5.4% -3.1% -6.5% 0. 0% -8.3% -7.3% -3.2% 2. 5% -0.5% -6.7% 0. 0% -3.6% 0. 9% 3. 2% -3.3% -20.2% -20.7% 0. 5% 1. 8% 0. 1% 0. 0% -1.0% -18.7% -4.1% -8.0% -8.4% 0. 0% -77.1% 28.0% 21.2% 0. 2% 0. 8% -40.0% -0.6% -33.3% -7.2% -0.2% 0. 0% 2. 8% -12.5% 12.0% -22.2% 4. 7% -42.9% -9.1% 0. 0% 30.4% 0. 0% 150.0% 0. 3% -12.1% -7.3% 0. 0% 1233.3% -90.0% 15.3% -3.2% 1 Mth 57.1% -2.1% -25.4% 1233. 3% 33.3% -10.0% -57.9% -13.3% -22.8% -14.5% -9.3% 650.0% 28.4% 553.8% -33.3% -14.5% 5.5% -13.6% -90.0% 81.8% -20.0% -10.0% -3.2% -33.3% -8.5% 44.1% -3.8% -8.6% -20.0% -12.4% 0.6% 20.8% 5.2% -17.6% -9.9% -1.8% -34.8% 33.3% -9.5% -6.7% 1.6% 2.4% 5.3% -63.3% -8.8% -10.0% 28.7% -0.9% 6.1% -5.8% -8.7% 11.1% -2.1% -15.9% -10.9% -34.4% -1.0% -3.4% 13.9% -14.7% 47.1% -44.4% -9.8% -10.5% -22.3% -35.7% 6.7% 3100. 0% 11.1% -11.5% 8.1% -25.0% -3.1% -39.4% -21.9% -5.5% 0.0% -3.9% 40.0% 3.7% -41.7% -14.8% 96.1% -9.4% -23.9% 50.0% NM -80.4% -10.1% -13.8% -5.3% 0.0% 3100. 0% -90.0% 56.9% -8.6% 3 Mth 22.2% 79.8% 34.6% 1328. 6% 166.7% -25.0% -72.2% -5.8% -54.9% 14.5% 39.5% 650.0% 127.5% 183.3% -57.1% 35.9% 21.2% 11.1% -90.0% 233.3% -20.0% -21.1% 11.0% -33.3% 97.0% 38.4% 62.4% 9.4% 33.3% -1.0% -19.6% 52.6% 16.8% 52.9% -9.4% -1.9% 25.0% 0.0% -20.8% 55.6% 8.6% 60.9% 43.4% -57.7% -4.2% -10.0% 60.5% 37.3% -28.6% 11.9% -7.5% 31.7% 19.9% -19.4% 16.6% -32.8% 0.4% 77.5% 75.6% -5.2% 8.7% 50.0% 12.0% 13.2% -10.4% -40.0% 700.0% -63.6% 128.6% 18.2% 4.3% 0.0% 41.0% 33.3% -34.6% -15.1% -25.0% 81.3% 75.0% 38.9% 31.3% 8.9% 233.3% -2.1% -8.9% -25.0% 0.0% -41.2% 7.5% -18.2% 21.8% -66.7% 1328. 6% -90.0% 49.5% 11.5% 6 Mth 57.1% 150.5% 89.0% 566.7% 135.3% -55.0% -60.4% -3.7% -77.2% 40.6% NM 650.0% 374.6% -62.2% -87.2% 354.3% -9.0% 14.8% -98.0% 60.0% -25.9% -30.8% 30.2% -89.9% 109.7% 121.6% 148.6% -14.9% 33.3% 32.5% -17.3% 145.8% 28.2% 78.4% 28.7% 8. 5% 614.3% 5. 3% -2.6% 133.3% 59.5% 98.2% 19.0% -26.7% -18.6% -66.7% 8. 4% 53.7% 40.0% -21.7% 201.7% 93.5% 105.2% -42.0% -40.3% -42.1% 17.6% 213.7% 76.1% -17.1% -46.5% 31.6% 97.8% 77.8% 39.9% -52.1% 300.0% -69.2% -3.6% 50.7% -4.4% -21.1% 96.9% -69.2% -37.3% -37.1% -25.0% 121.5% 40.0% 13.1% 50.0% 77.6% 150.0% 241.7% -31.0% 0. 0% 0. 0% -16.7% -8.4% 14.5% 40.3% -50.0% 650.0% -98.0% 57.0% 19.0% 1 Yr -17. 9% 225. 8% -62. 7% NM -63. 6% -60. 9% -87. 9% -25. 7% -84. 7% -48. 4% NM -50. 0% 523. 2% -98. 0% -85. 4% 183. 9% -38. 5% -4.1% -98. 0% -57. 9% -33. 3% NM -12. 7% -33. 3% -56. 7% 145. 7% 111. 1% -25. 5% -33. 3% -30. 8% -58. 7% 51.0% NM 5.4% 29.1% -54. 9% -25. 0% -41. 2% -37. 7% -33. 3% -4.5% 51.5% -33. 9% -73. 8% -54. 6% -52. 9% -8.6% -33. 0% 40.0% -53. 9% 181. 8% -42. 6% 67.8% -26. 6% -63. 5% -90. 3% 19.6% 53.7% 17.9% -57. 1% -52. 4% -90. 5% 113. 5% 2.7% -35. 1% -34. 8% -99. 9% 28.0% -69. 0% -22. 2% -42. 0% NM 38.2% -99. 0% -67. 4% -67. 9% -40. 0% NM -74. 1% -33. 0% -78. 6% 1.7% -76. 5% 22.8% -66. 0% -46. 4% NM -66. 7% 6.3% -17. 9% -37. 9% -95. 5% 523. 2% -99. 9% -14.6% -34. 8% 52 Week -21.4% -28.3% -68.5% -60.0% -69.0% -73.6% -87.9% -48.0% -92.1% -55.2% -19.7% -57.1% -7.1% -98.0% -92.4% -20.1% -50.6% -25.5% -98.0% -75.0% -67.2% -60.2% -34.9% -90.1% -67.3% -7.6% -12.0% -37.6% -42.9% -35.1% -59.8% -27.1% -16.3% -33.7% -34.9% -68.1% -57.1% -60.0% -38.7% -45.3% -30.8% -13.0% -38.0% -82.8% -70.5% -70.0% -34.3% -43.4% -30.0% -53.9% -26.2% -43.3% -9.6% -60.0% -76.0% -90.8% -7.9% -7.3% -15.1% -59.9% -71.1% -91.2% -20.3% -21.4% -43.6% -58.3% -99.9% -93.6% -71.7% -33.0% -46.2% -75.0% -9.1% -99.3% -69.6% -72.8% -40.0% -26.6% -73.1% -42.9% -90.1% -29.4% -81.8% -29.9% -71.0% -60.5% -96.3% -83.3% -16.3% -36.3% -50.0% -95.5% -7.1% -99.9% -51.8% -52.3%
583.6
Figure 19. Price Performance Source. Capital IQ
Page 16
C omparable C ompany Analys is > Web 2.0
Valuation Multiples C ompany Name
Accelerize New Media, Inc. Actoz S oft C o., Ltd. AQ Intera ctive, Inc. As s ocia ted Media Holdings Inc. B igs tring C orp. B etawave C orpora tion B eyond C ommerce, Inc. B right T hings plc B roadW ebAs ia Inc. C DC C orp. C hangyou.com Limited C hina G atewa y C orpora tion C hines e G amer Interna tional C L IC K E R Inc. C ornerW orld C orporation C yberplex Inc. DA DA S pA DXN Holdings B hd Dibz Interna tiona l, Inc. DigitalP os t Interactive, Inc. DigitalT own, Inc. Dolphin Digital Media, Inc. E olith C o. L td. E xtens ions , Inc. F luid Mus ic C a nada, Inc. F rogs ter Interactive P ictures A G G amania Digital E ntertainment C o., Ltd. G ameO n C o Ltd. G eoS entric Oyj G iant Interactive G roup, Inc. G igaMedia Ltd. G ravity C o., Ltd G ree, Inc. G ungH o O nline E nterta inment, Inc. Ha nbitS oft, Inc. IAC /InterActiveC orp. IAS E nergy, Inc. is eemedia Inc. J umbuck E ntertainment P ty L td. J umpT V Inc. K A B Dis tribution Inc. K ings oft C o. Ltd. Lingo Media C orpora tion LiveW orld Inc. LookS ma rt, L td. Magnitude Information S ys tems Inc. Mixi, Inc. Modern T imes G roup Mtg AB MOK O .mobi Limited Myriad G roup AG NE OW IZ G ames C orporation NetDra gon W ebS oft, Inc. Netea s e.com Inc. NeXplore C orporation Ngi G roup Inc. Northgate T echnologies Limited O pen T ext C orp. O penwave S ys tems Inc. P erfect W orld C o., Ltd. P N I Digital Media Inc. Q uepa s a C orp. O AO R B C Information S ys tems S handa Interactive E nterta inment Ltd. S hutterfly, Inc. S K C ommunications C o., Ltd. S N AP Interactive, Inc. S N M G lobal Holdings S ocial Media V enures , Inc. S ocialwis e, Inc. S ohu.com Inc. S park N etworks , Inc. S pectrumDN A, Inc. T encent Holdings Ltd. T he P a rent C ompany T he9 L imited T heS treet.com, Inc. T otal S port Online AS T ree.C om, Inc. Unis erve C ommunications C orp. United Online Inc. UO MO Media, Inc V a lueC lick Inc. V O IS , Inc. W ebzen Inc. W izzard S oftware C orporation W orlds .com Inc. W oozyF ly, Inc. W ynds torm C orporation XIN G AG Y eda ngO nline C orp. Y nk K orea Inc. ZipLocal Inc. High Low Average Median
S ec tor
Direct Marketing G aming G aming Mobile Ins ta nt Mes s aging Media S ocial Networking S ocial Networking S ocial Networking G aming G aming Mobile G aming Direct Marketing C ontent A dvertis ing S ocial Networking S ocial Networking S NS Apps C ontent S ocial Networking S ocial Networking G aming C ontent Media G aming G aming G aming Mobile G aming G aming G aming S ocial Networking Media G aming Media V ideo C ontent S ocial Networking V ideo C ontent G aming L earning S ocial Networking Direct Marketing S ocial Networking S ocial Networking Media S ocial Networking Mobile G aming G aming G aming C ontent Media Direct Marketing C ollabora tion Mobile G aming Digita l Ima ging S ocial Networking Media G aming Digita l Ima ging S earch Dating Media S ocial Networking S ocial Networking G aming S ocial Networking Media P orta l Media G aming Media Media P orta l S ocial Networking Media Media Media S ocial Networking G aming P odca s ting C ontent S ocial Networking C ontent S ocial Networking G aming G aming Directory
C ountry
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P rimary E xc hange
OTCB B K OS E TS E OTCP K OTCB B OTCB B OTCB B AIM OTCP K N as da qG S N as da qG S OTCP K GTS M OTCB B OTCB B TS X CM K LS E OTCP K OTCB B OTCB B OTCB B K OS E OTCP K TS X XT R A GTS M TS E H LS E NY S E N as da qG S N as da qG M TS E OS E K OS E N as da qG S OTCB B T S XV AS X TS X TS X S E HK T S XV OTCP K N as da qG M OTCB B TS E OM AS X SWX K OS E S E HK N as da qG S OTCP K TS E BS E N as da qG S N as da qG S N as da qG S T S XV OTCB B R TS N as da qG S N as da qG S K OS E OTCB B OTCP K OTCP K OTCB B N as da qG S AME X OTCB B S E HK OTCP K N as da qG S N as da qG M O T C NO N as da qG M T S XV N as da qG S OTCB B N as da qG S OTCB B N as da qG M AME X OTCB B OTCB B OTCP K XT R A K OS E K OS E T S XV
Ticker
AC LZ A052790 3838 AS MH BSGC B W AV B YOC AIM:B G T BWBA C HIN.A C Y OU CGW Y G T S M:3083 C LK Z CW R L T S X: C X C M:DA DXN DIB Z DG L P DG T W DP DM A041060 E XT I T S X:F MN FR G 6180 3812 G E O1V GA G IG M GR VY T S E : 3632 3765 A047080 IAC I IAS C .A IE E AS X:J MB T S X:J T V T S X:K AB 3888 T S XV : LM LV W D L OOK MA G Y 2121 MT G B MK B MY R N A095660 777 NT E S NXP C 2497 590057 OT E X OP W V PWRD T S XV :P N QP S A R BCI S NDA S FLY A066270 S TVI S NMN S MV I S CLW S O HU L OV S P XA 700 K IDS .Q NC T Y TS CM T OS O TREE T S XV :US S U NT D UO MO V CLK V OIS W ZE N W ZE W DDD W ZY F W Y ND O1B C A052770 A023770 T S XV :ZIP
US D Market C ap ($m)
15.2 169.8 32.4 0.9 2.1 2.6 18.0 4.1 19.5 150.7 2,068.6 0.3 1,089.6 1.3 3.9 88.9 139.1 22.4 0.0 3.0 54.2 23.3 41.8 4.4 29.5 37.7 252.6 106.6 50.1 1,705.2 295.5 40.3 1,557.1 229.7 72.4 2,431.3 10.5 4.4 14.6 68.8 76.1 766.3 12.8 1.7 19.5 4.1 1,005.4 1,841.4 4.7 92.2 249.1 388.0 4,496.3 32.4 40.9 20.7 1,894.4 190.8 1,399.8 42.8 12.7 104.0 3,459.3 302.1 289.6 4.9 0.0 0.0 34.7 2,254.5 49.4 7.3 20,272.6 0.5 232.0 61.1 0.1 103.5 1.5 585.1 9.0 901.9 8.3 38.9 24.4 7.9 2.6 1.8 221.6 94.7 25.3 0.3 20,272.6 0.0 583.6 40.6
TE V/L TM R evenue
4.9x 1.6x 0.0x 19.2x 48.3x 3.2x 15.2x 0.4x 8.5x 0.0x 18.4x 0.1x 4.1x 1.2x 0.8x 0.5x 6.3x 31.3x 3.1x 4.1x 11.2x 1.8x 0.5x 7.8x 1.2x 46.3x 1.8x 1.1x 0.4x 2.4x 0.7x 3.2x 1.1x 5.5x 13.2x 0.1x 6.8x 1.4x 3.2x 2.6x 1.3x 2.9x 0.2x 2.5x 0.4x 0.2x 2.2x 0.0x 0.0x 1.1x 1.6x 1.0x 1.1x 0.0x 4.1x 0.9x 18.3x 0.2x 4.6x 0.4x 0.2x 1.1x 14.7x 1.3x 4.6x 3.2x 2.0x 2.2x 0.6x 48.3x 0.0x 5.3x 1.8x
TE V/ NTM R evenue
0.4x 6.4x 0.9x 1.2x 0.4x 1.1x 1.3x 2.3x 0.5x 1.1x 0.1x 3.6x 0.4x 0.9x 1.5x 6.4x 0.1x 1.5x 1.1x
TE V/L TM E B ITDA
7. 4x 0. 6x 5. 3x 13.9x 32.9x 0. 3x 11.7x 5. 5x 3. 4x 11.1x 2. 3x 10.0x 12.8x 1. 9x 9. 6x 13.7x 19.1x 9. 2x 4. 7x 7. 4x 9. 8x 0. 4x 0. 2x 0. 1x 8. 3x 25.3x 3. 7x 9. 4x 4. 2x 38.2x 4. 9x 7. 6x 10.3x 9. 3x 21.4x 38.2x 0. 1x 9.2x 8. 0x
TE V/NTM E B ITDA
5.8x 10.9x 7.7x 5.7x 3.5x 5.9x 11.1x 8.5x 4.8x 2.1x 0.3x 6.4x 8.2x 5.0x 3.6x 5.8x 11.1x 0.3x 5.9x 5.8x
P /L TM E P S
26.6x 14.1x 42.5x 8.9x 23.6x 4.0x 27.1x 12.0x 1.8x 11.7x 0.0x 20.7x 6.1x 17.2x 48.3x 5.6x 28.5x 13.9x 2.6x 29.6x 2.4x 2.8x 7.4x 12.7x 15.1x 48.6x 0.7x 51.2x 21.1x 10.5x 51.2x 0.0x 17.2x 13.3x
P /NTM E P S
10.3x 13.6x 10.4x 12.5x 10.9x 31.4x 11.9x 15.6x 13.6x 35.2x 11.0x 16.8x 14.5x 16.2x 11.9x 9.3x 16.5x 35.2x 9.3x 15.4x 13.6x
P /TangB V
3.0x 0.5x 0.4x 12.9x 16.0x 8.8x 0.5x 4.2x 3.0x 5.7x 3.3x 1.4x 8.6x 0.3x 2.5x 0.0x 18.7x 31.5x 2.3x 1.1x 3.9x 1.5x 4.1x 4.2x 13.9x 0.7x 0.7x 7.2x 3.6x 4.2x 14.4x 2.1x 0.8x 0.9x 2.7x 0.9x 18.2x 1.1x 1.8x 2.9x 45.1x 6.0x 19.1x 20.3x 0.1x 0.8x 1.4x 7.3x 28.6x 0.0x 7.0x 3.6x 1.4x 45.1x 0.0x 6.8x 3.1x
Figure 20. Valuation Comparison Source. Capital IQ
Page 17
C omparable C ompany Analys is > Web 2.0
S ummary by C ountry
C ompany Name United S tates C a na da C hina S outh K orea J a pa n T a iwa n Aus tralia G erma ny S witzerla nd Hong K ong F inla nd Ita ly United K ingdom India S weden R us s ia Ma lays ia Norwa y G rand Total 38 10 10 9 6 3 2 2 1 1 1 1 1 1 1 1 1 1 90 US D Market C ap ($m) C hina U nited S ta tes J a pan C anada S weden T a iwa n S outh K orea G ermany Hong K ong Ita ly R us s ia S witzerla nd F inland Malays ia India Aus tralia U nited K ingdom Norway G rand Total 37, 042. 6 4, 963. 2 2, 972. 2 2, 166. 7 1, 841. 4 1, 637. 8 1, 021. 7 259. 4 150. 7 139. 1 104. 0 92. 2 50. 1 22. 4 20. 7 19. 3 4. 1 0. 1 52,507.6 Avg US D Market C ap ($m) C hina S weden T aiwan J apan C anada Hong K ong Ita ly U nited S ta tes G ermany S outh K orea R us s ia S witzerla nd F inland Malays ia India Aus tralia U nited K ingdom Norway G rand Total 3,704. 3 1,841. 4 545. 9 495. 4 216. 7 150. 7 139. 1 130. 6 129. 7 113. 5 104. 0 92. 2 50. 1 22. 4 20. 7 9. 7 4. 1 0. 1 583.4 US D L TM Total R ev ($m) C hina United S tates S weden C a na da S outh K orea J a pa n Hong K ong T a iwa n Ita ly R us s ia India Ma lays ia G erma ny S witzerla nd Aus tralia F inla nd Norwa y United K ingdom G rand Total 3,840. 1 3,795. 5 1,702. 0 970. 2 648. 6 515. 3 389. 9 364. 1 234. 4 144. 6 114. 3 76. 8 56. 0 40. 0 15. 0 5. 9 2. 1 0. 3 12,915.1 US D L TM Total E B ITDA ($m) C hina S weden United S tates C a na da J a pa n S outh K orea T a iwa n Ita ly Hong K ong R us s ia Ma lays ia G erma ny Aus tralia S witzerla nd Norwa y United K ingdom F inla nd India G rand Total 1, 774. 3 260. 7 245. 7 193. 3 112. 1 87. 8 51. 9 34. 3 30. 8 18. 9 10. 6 10. 4 2. 9 0. 8 -1. 0 -1. 8 -15. 3 -26. 8 2,789.5 E B ITDA % C hina A us tralia T aiwan J apan S weden Italy Mala ys ia S outh K orea Hong K ong Norway C anada S witzerla nd U nited S ta tes India U nited K ingdom R us s ia G ermany F inland G rand Total 37. 3% 37. 2% 36. 3% 21. 9% 15. 3% 14. 6% 13. 8% 10. 0% 7. 9% 2. 9% 2. 6% 1. 9% -6. 5% -23. 5% N/A N/A N/A N/A 8.1%
Figure 21. Comparison by Country Source. Capital IQ
C omparable C ompany Analys is > Web 2.0
S ummary by E xc hange
C ompany Name OT C B B Na s daqG S OT C P K K OS E TS E Na s daqG M TS X T S XV S E HK AME X AS X XT R A GTS M SWX HL S E CM BS E NY S E OS E AIM OM RTS K LS E OT C NO G rand Total 18 14 11 7 5 5 4 4 3 2 2 2 2 1 1 1 1 1 1 1 1 1 1 1 90 US D Market C ap ($m) S E HK Nas da qG S TS E OM NY S E GTS M K OS E Nas da qG M TS X XT R A OS E OT C B B CM R TS SWX AME X OT C P K HLS E K LS E BS E AS X T S XV AIM OT C NO G rand Total 21, 427. 0 20, 662. 0 2, 742. 5 1, 841. 4 1, 705. 2 1, 342. 3 942. 6 263. 3 263. 2 259. 4 229. 7 222. 9 139. 1 104. 0 92. 2 73. 7 61. 5 50. 1 22. 4 20. 7 19. 3 19. 0 4. 1 0. 1 52,507.6 Avg US D Market C ap ($m) S E HK OM NY S E Nas da qG S GTS M TSE OS E CM K OS E XT R A R TS SWX TSX Nas da qG M HLS E AME X K LS E BS E OT C B B AS X OT C P K T S XV AIM OT C NO G rand Total 7,142. 3 1,841. 4 1,705. 2 1,475. 9 671. 1 548. 5 229. 7 139. 1 134. 7 129. 7 104. 0 92. 2 65. 8 52. 7 50. 1 36. 9 22. 4 20. 7 12. 4 9. 7 5. 6 4. 8 4. 1 0. 1 583.4 US D L TM Total R ev ($m) OM Na s daqG S S E HK CM NY S E RTS BSE OS E GTS M K OS E Na s daqG M TS E K LS E TS X SWX AME X XT R A OT C P K AS X T S XV HL S E OT C NO OT C B B AIM G rand Total 1,702. 0 484. 2 473. 3 234. 4 219. 0 144. 6 114. 3 111. 4 90. 3 83. 3 81. 8 80. 8 76. 8 41. 1 40. 0 29. 9 28. 0 18. 9 7. 5 6. 9 5. 9 2. 1 2. 0 0. 3 12,915.1 US D L TM Total E B ITDA ($m) Na s daqG S S E HK OM TS E K OS E GTS M CM OS E RTS K LS E XT R A AME X AS X SWX NY S E OT C NO AIM TS X Na s daqG M T S XV HL S E BSE OT C P K OT C B B G rand Total 1, 692. 8 663. 2 260. 7 92. 1 76. 3 51. 9 34. 3 20. 0 18. 9 10. 6 10. 4 6. 4 2. 9 0. 8 0. 0 -1. 0 -1. 8 -3. 2 -3. 7 -8. 3 -15. 3 -26. 8 -32. 7 -59. 0 2,789.5 E B ITDA % S E HK AS X GTS M TSE A ME X OS E Nas da qG S OM CM K LS E T S XV K OS E O T C NO S WX Nas da qG M OTCB B OTCP K TSX BSE XT R A NY S E R TS A IM HLS E G rand Total 39. 9% 37. 2% 36. 3% 22. 7% 20. 6% 18. 0% 15. 4% 15. 3% 14. 6% 13. 8% 7. 7% 7. 1% 2. 9% 1. 9% 1. 1% -6. 3% -11. 6% -14. 8% -23. 5% N/A N/A N/A N/A N/A 8.1%
Figure 22. Comparison by Exchange Source. Capital IQ
Page 18
Financ ing - L as t Three Months (US $ m)
Month May-09 C ompany Name Fac ebook One Net E ntertainment C yberplex Peer39 OpenX Imeem E veryZing WonderHill B logHer Inc . Gis t Fuhu Inc . Azuki S ys tems I L ove R ewards TimeB ridge OL X Doc uS ign Medialets R es onate Networks Mo'Minis VoxP op Loop'd Network May-09 Total J un-09 S ugar Inc . Tumri B oku Wimba Grab Networks Goojet S AS AdMeld Inc . beeTV blueK iwi S oftware S A Nokeena S ens e Networks Gather MojoP ages Taomee Animoto GameG round R ingR evenue C rowdc as t YuMe eR epublik News er L L C C lic kFuel Inigral AdE x Media GR OU.P S Yapta OneTXT my6s ens e I L ove R ewards C liqs et AdW hirl LiquidP lanner Glubble Pic aboo TodaC ell Mas hL ogic J un-09 Total J ul-09 Pandora Media Quic kP lay Media Metavers um S tyleC as ter Nexage TweetDec k C oTweet People C apital J ul-09 Total Grand Total US A C anada G erma ny US A US A UK US A US A 7.2 60.1 10.0 38.2 5.1 46.9 4. 0 3. 2 1. 1 0. 5 6.8 93.2 35.0 109.8 12.0 222.3 4. 0 6. 3 US A US A US A US A US A F rance US A US A F rance US A US A US A US A C hina US A Is rael US A US A US A S pain US A US A US A US A US A US A US A Is rael C anada US A US A US A Netherlands US A Is rael US A 0. 5 39.3 15.3 1. 0 1. 0 18.5 67.8 34.0 35. 0 12. 0 5.3 1. 5 1. 0 1. 0 1. 0 2. 0 2. 0 1. 8 2. 1 2. 0 2. 4 2. 3 3. 0 2. 9 2. 8 2. 5 2. 5 4. 1 3. 5 5. 0 4. 4 5. 0 12. 0 8. 5 8. 0 8. 0 6. 5 6. 5 6. 0 5. 3 13. 0 12. 0 15. 0 C ountry US A C hina C anada US A UK US A US A US A US A US A US A US A C anada US A US A US A US A US A Is rael US A US A 0. 8 13.6 10.0 22.9 23.3 18.7 40.8 16. 0 205.0 4. 0 2. 0 1. 5 1. 5 6. 0 5. 9 5. 0 5. 0 5. 0 6. 8 6. 3 7. 0 7. 0 8. 8 8. 3 10. 0 10. 0 12. 9 10. 5 10. 0 Angel/S eed Debt financ ing P IP E S eries A S eries B S eries C S eries D 200. 0 G rand Total 200. 0 20. 0 12. 9 10. 5 10. 0 8. 8 8. 3 7. 0 7. 0 6. 8 6. 3 6. 0 5. 9 5. 0 5. 0 5. 0 4. 0 2. 0 1. 5 1. 5 0. 8 334.1 16. 0 15. 0 13. 0 12. 0 12. 0 8. 5 8. 0 8. 0 6. 5 6. 5 6. 0 5. 3 5. 0 5. 0 4. 4 4. 1 3. 5 3. 0 2. 9 2. 8 2. 5 2. 5 2. 4 2. 3 2. 1 2. 0 2. 0 2. 0 1. 8 1. 5 1. 0 1. 0 1. 0 1. 0 1. 0 0. 5 180.1 35. 0 12. 0 6. 3 4. 0 4. 0 3. 2 1. 1 0. 5 66.1 580.3
Figure 23. Financing, Last Three Months Source. Company reports
Page 19
C ompany Des c riptions - C urrent Month C apital Market Ac tivity
C ompany
AdL ink Internet Media AG
HQ
G ermany
Webs ite
www.adlink.net
Des c ription
AdLINK Internet Media AG , through its s ubs idiaries , provides digita l marketing s olutions in E urope a nd internationa lly. T he compa ny s pecializes in dis play, affiliate, permis s ion, direct, a nd doma in ma rketing. Its Dis pla y Ma rketing s egment provides online, direct a nd dia loguebas ed, a nd permis s ion/ema il ma rketing s olutions . T his s egment’s portfolio compris es 4, 000 W eb s ites with a dvertis ing environment for regiona l, na tiona l, and interna tional ca mpaigns . T he company’s Affiliate Ma rketing s egment operates as a broker between advertis ers a nd W eb s ite publis hers . T his s egment a ls o offers profes s ional cons ulta tion, promotion options , a nd works hops . AdLINK Internet Media ’s Doma in Ma rketing s egment operates a tra ding pla tform for the domain market, a s well as acts as a broker between doma in owners a nd a dvertis ers . T he company wa s formerly known a s AdL INK Internet Media G mbH E urope and changed its name to AdL INK Internet Media AG in 2000. AdLINK Internet Media wa s founded in 1996 a nd is hea dquartered in Montabaur, G ermany. AdLINK Internet Media AG is a s ubs idiary of U nited Internet A G . C oT weet is a bus ines s front-end for T witter, enabling compa nies to engage in proa ctive ma rketing a nd res pons e-oriented cus tomer s ervice a ctivities . Hi-Media S . A. opera tes a s a n advertis ing ma na gement compa ny in F ra nce. It markets a dvertis ing s pa ce to a dvertis ers on the Internet. T he compa ny a ls o offers a ra nge of s ervices to digita l media publis hers , including direct ma rketing s ervices , which compris e direct marketing media planning, email, mail, S MS a ddres s es lea s ing, a nd implementing intera ctive T V ca mpa igns ; a nd micro-pa yment technica l pla tform a nd s ervices . In a ddition, it provides s ervices for pros pecting a nd canvas s ing of a dvertis ers . Hi-Media S . A. wa s founded by C yril Zimmerma nn in 1996. It was formerly known as Hi-Media Multimedia and changed its name to Hi-Media S . A. in 2000. T he compa ny is ba s ed in P a ris , F ra nce. Metavers um G mbH develops a nd opera tes T winity, a 3D online pla tform. T he T winity allows members to create a pers ona l a vatar, explore virtua l cities , move into a 3D home, cha t with friends , a nd work together in E urope a nd internationa lly. Meta vers um G mbH has a s tra tegic media pa rtners hip with zitty; and a s tra tegic pa rtners hip with B igpoint. T he compa ny wa s founded in 2006 and is bas ed in B erlin, G erma ny with additional offices in K iev a nd S inga pore.
C oTweet
United S tates
www.cotweet.com
Hi-Media S .A.
F ra nce
wwww.hi-media.com
Metavers um
G ermany
www.metaversum.com
Nexage
United S tates
www.nexage.com
NE X AG E , Inc. opera tes a s a wireles s a nd multimedia s oftwa re and s ervices compa ny in the United S ta tes a nd internationa lly. It focus es on providing hos ted white la bel mobile video enterta inment, a dvertis ement, and s ocial networking s olutions for media compa nies , content providers , a nd ca rriers . T he company offers P honeC a s t-P ro, which provides for the automa tic content inges tion, encoding, management, publis hing, and delivery of s treaming mobile video content; P honecas t C lick-to-V ideo, a mobile advertis ing s olution for ad a gencies and a dvertis ers to create mobile W eb pa ges and load videos for a mobile advertis ing ca mpaign; a nd MyC orner, a bra nded mobile video s ervice with content for opera tors . NE X AG E , Inc. was founded in 2005 and is ba s ed in F remont, C alifornia.
P andora Media
United S tates
www.pandora.com
P a ndora Media , Inc. , a n Internet radio compa ny, provides mus ic dis covery s ervices in the United S ta tes . T he compa ny taps mus ica l collection to deliver s ervice on computer, in the home, a nd on mobile devices . It collects melody, ha rmony, ins trumentation, rhythm, vocals , a nd lyrics of a s ong. P andora Media, Inc. was formerly known as S a va ge B ea s t T echnologies . T he compa ny wa s founded in 2000 a nd is bas ed in O a kland, C a lifornia .
P eople C apital P eople Media Quic kP lay Media
United S tates United S tates C ana da
www.people2capital.com www.peoplemedia.com www.quickplaymedia.com
T he P eople C a pital peer-to-peer s tudent loan lending pla tform facilita tes lending decis ions bas ed on a s tudent’s “potentia l” rather than credit payment his tory. T he P more tha n 20 vertica lly focus ed liquidity in the ma rket by matching a towards with a P eople Media operates eople C apital platform generates online communities primarily gea red ll lendersdating. ll borrowers , not jus t “fa mily and Q uickP lay Media, Inc. provides media ma na gement a nd dis tribution s olutions for mobile televis ion (T V ) and video s ervice compa nies . It provides O penV ideo, a platform tha t offers a pplica tion integra tion for mobile opera tors , media companies , and technology pa rtners in North America a nd E urope. T he compa ny a ls o offers managed s ervices , including inges tion a nd dis tribution of content, media ma nagement, a pplica tion development, a nd reporting a nd s ettlement s ervices , a s well a s live a nd on-dema nd content s ervices . In a ddition, it provides hos ted s olutions that integra te mobile T V /video s ervices into on-deck and off-deck mobile Internet s ites , a nd content s yndica tion s ervices . T he compa ny was founded in 2004 and is hea dqua rtered in T oronto, C a nada. It has local s a les offices in North America and E urope. S tyleC a s ter Media G roup, L L C provides online fa s hion-lifes tyle informa tion s ervices . T he compa ny is ba s ed in New Y ork, New Y ork. T weetDeck, Inc. offers a des ktop a pplica tion to brea k twitter feeds into mana geable bite s ized pieces . Its application ena bles us ers to s plit their main feed into topic or group s pecific columns a llowing a broader overview of the tweets . T he compa ny was founded in 2008 and is bas ed in L ondon, the United K ingdom.
S tyleC as ter Tweetdec k
United S tates United K ingdom
www.stylecaster.com www.tweetdeck.com
Figure 24. Company Descriptions Source. Company reports, Capital IQ, Crunchbase
Page 20
RELEVANT DISCLOSURES APPLICABLE TO: NONE
LIST OF DISCLOSURE TERMS: 1. None applicable.
ANALYST CERTIFICATION
Each analyst of Research Capital Corporation whose name appears in this report hereby certifies that (i) the recommendations and opinions expressed in this research report accurately reflect the analyst’s personal views and (ii) no part of the research analyst’s compensation was or will be directly or indirectly related to the specific conclusions or recommendations expressed in this research report.
I n f o r ma t i o n a b o u t Re s e a r ch C a p i t a l C o r p o r a t i o n ’ s Ra t i n g S y s t e m, t h e d i s t r i b u t i o n o f o u r r e s e a r ch t o cl i e n t s a n d t h e p e r ce n t a g e o f r e c o m me n d a t i o n s wh i c h a r e i n e a c h o f o u r r a t i n g c a t e g o r i e s i s a v a i l a b l e o n o u r we b si t e a t ww w. r e s e a r ch c a p i t a l . c o m. T h e i n f o r ma t i o n c o n t a i n e d i n t h i s r e p o r t h a s b e e n d r a wn f r o m s o u r c e s b e l i e ve d t o b e r e l i a b l e b u t i t s a c cu r a c y o r co mp l e t e n e ss i s n o t g u a r a n t e e d , n o r i n p r o vi d i n g i t d o e s R e s e a r c h Ca p i t a l C o r p o r a t i o n a s s u me a n y r e sp o n si b i l i t y o r l i a b i l i t y . R e s e a r ch C a p i t a l C o r p o r a t i o n , i t s d i r e ct o r s , o f f i c e r s a n d o t h e r e mp l o y e e s ma y , f r o m t i me t o t i me , h a v e p o si t i o n s i n t h e s e cu r i t i e s me n t i o n e d h e r e i n . Co n t e n t s o f t h i s r e p o r t c a n n o t b e r e p r o d u c e d i n wh o l e o r i n p a r t wi t h o u t t h e e xp r e ss e d p e r mi s si o n o f R e se a r ch C a p i t a l C o r p o r a t i o n . ( U . S . I n s t i t u t i o n a l Cl i e n t s — Re s e a r ch C a p i t a l U . S. A . I n c. ( a wh o l l y o wn e d s u b si d i a r y o f R e s e a r c h C a p i t a l Co r p o r a t i o n ) a cc e p t s r e s p o n si b i l i t y f o r t h e c o n t e n t s o f t h i s r e p o r t s u b je c t t o t h e t e r ms & l i mi t a t i o n s s e t o u t a b o v e . F i r ms o r i n s t i t u t i o n s r e ce i vi n g t h i s r e p o r t s h o u l d e f f e ct t r a n s a ct i o n s i n s e c u r i t i e s d i sc u s se d i n t h e r e p o r t t h r o u g h R e s e a r ch C a p i t a l U . S . A . I n c. , a B r o k e r - D e a l e r R e g i s t e r e d wi t h t h e U n i t e d S t a t e s S e cu r i t i e s a n d E xc h a n g e C o m mi s si o n ) .
Tor on to 4 16. 8 60. 76 00
M ontr eal 51 4. 39 9. 150 0
V anco u ver 60 4. 66 2. 180 0
C al gar y 40 3. 26 5. 740 0
R egi na 306. 566. 7550
www.researchcapital.com