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Goldman_Sachs_

p_mcmiles\VP's requests\Mati\European Internet Sector Overview.doc mcmiles 27 Apr 2006 14:37 1/46
European Internet Sector Overview
Goldman Sachs International
Apr-2006
Table of Contents
I.
European Internet Landscape
II.
Social Networking/Community Sector Overview
Appendix A: Selected European Internet Company Profiles
I.
1
European Internet Landscape - Key Sector Themes
#1
Europe is catching up to the US
— Key metrics of broadband penetration, usage, online advertising and
e-commerce are aligning with US
#2
Eastern Europe is emerging as a market opportunity
— Usage is growing rapidly, but advertising expenditure is still negligible
#3
VC firms are investing heavily in European internet
— Richness in variety of sectors targeted: Social networking / community,
payments, etc
#4
European Tech IPOs are back
— 5 Internet companies went public in 2005, compared to zero between
2001 and 2004
#5
M&A activity is robust
— US internet companies continue to buy European assets
#6
Valuations are rich
— Median P/E 2006 valuations are in the high 20’s
#7
Convergence is here today
— Noticeable shift recently, lots of examples
European
Internet
Sector
Resurgence
2
#1
Europe is Catching Up to the US
Key Metrics Are Aligning With the US
Online Penetration (% of Total Population)
2003-05 CAGR:
5.0% (US)
vs. 15.5% (Europe)
2005-08 CAGR:
3.1% (US)
vs. 7.1% (Europe)
39.0
51.0
48.0
44.0
213.3
54.0
120.3
83.2
2004A
2005E
2006E
2007E
2008E
Source: Jupiter Research, PricewaterhouseCoopers (2005)
54.3
90.9
109.4
144.5
2003A
2004A
2005E
2006E
2007E
2003-05 2005-08
CAGR CAGR
5.9
2003-05 CAGR:
8.6% (US)
vs. 29.8% (Europe)
7.8
8.7
2003A
2004A
2005E
2006E
14.0
15.3
2007E
2008E
Source: Zenith Optimedia (2005)
13.2% 15.2%
1.8
2003A
3.1
2.4
2004A
8.0
7.7
6.0
5.4
5.1
2.5
12.2
2008E
7.0
3.4
10.0
26.1% 17.3%
2005-08 CAGR:
9.9% (US)
vs. 15.0% (Europe)
37.4% 20.2%
4.2
1.8
233.0
Internet Share of Adspend (%)
2005-08 CAGR: 16.5%
5.0
182.3
210.3
Source: IDC (2005)
Internet Advertising Spend ($bn)
2003-05 CAGR: 18.1%
61.3% 36.8%
164.0
2003-05 CAGR: 36.1%
32.0
2003A
2003-05 2005-08
CAGR CAGR
2005-08 CAGR: 25.1%
77.3
75.5
73.2
70.5
67.5
63.9
33.0
E-Commerce Spending ($bn)
2005E
3.7
2006E
4.2
2007E
4.7
2008E
Europe
US
3
#1
Large Discrepancies Exist When Comparing US to Individual European Countries
Internet Users by Country in 2005 (m)
Internet Advertising Spend by Country in 2005 ($m)
175.5
US
47.0
Germany
31.0
France
France
31.0
Sweden
29.0
20.0
Spain
11.6
Netherlands
10.5
Poland
7.2
Sweden
Portugal
6.0
Turkey
5.5
Switzerland
5.4
Belgium
5.4
Austria
5.3
404
Germany
Russia
Italy
9,992
1,548
UK
42.0
UK
US
329
202
Italy
152
Spain
140
Netherlands
114
Denmark
112
89
Norway
48
Switzerland
Belgium
45
Austria
34
Finland
34
Poland
33
3.8
Czech Republic
32
Finland
3.6
Hungary
24
Norway
3.0
Ireland
20
Greece
2.7
Portugal
9
Hungary
2.3
Estonia
3
Romania
1.9
1.7
Latvia
2
Lithuania
2
Denmark
4.1
Czech Republic
Ireland
US
Source: IDC, PricewaterhouseCoopers (2005)
Western Europe
Central and Eastern Europe
4
#1
Significant Differences Exist Between European Countries
Internet Users as % of Total Population
90%
Finland
US
Internet Users as % of Population in 2005
175.5m
70%
42.0m
UK
47.0m
60%
Norway
France
50%
Portugal
40%
31.0m
20.0m
8%
UK
Austria
Belgium Germany
$1.5bn
Ireland
Italy
29.0m
Greece
Czech
Republic
Poland
Hungary
20%
Russia
US
6%
$10.0bn
Denmark
4%
Finland
Romania
Turkey
0%
0%
5%
10%
15%
20%
25%
30%
Internet Users 2003-08 CAGR
US
Netherlands
Czech
Republic
Switzerland
Belgium
Italy
0%
Norway
France
Germany
31.0m
2%
10%
Bubble size represents
$ amount spent on
Internet advertising
Sweden
Switzerland
Netherlands
Spain
30%
10%
Bubble size represents
millions of users in
2005
Internet Share of Adspend
80%
Sweden
Denmark
Internet Advertising Spend
5%
Spain
Ireland
Hungary
Poland
Romania
Portugal
Turkey
20%
35%
Russia
50%
65%
Internet Advertising 2003-08 CAGR
Western Europe
5
16.1
3.5
3.5
Seat PG Directories Online
Argos
3.7
3.5
TF1
Shopping.com
3.8
La Redroute
3.7
3.8
PriceMinister
L Internaute
3.8
Ask Jeeves
Skyrock Network
4.0
3.9
Cdiscount.com
4.2
4.1
La Poste
Multimap.com
4.4
4.3
4.4
Tesco
01 Net
4.4
PayPal
voyages-sncf.com
4.7
4.4
Terra
Arcor
Apple
5.3
5.2
Tchibo.de
5.4
5.4
Mappy
Sparkassen
5.6
5.5
Lycos Network
Fnac
5.7
5.7
I&I
Scout24
6.3
5.7
RTL net
Via Michelin
6.8
Voila
6.6
Pages Jaunes
Telecom Italia
7.2
7.0
GMX
Deutsche Universitäten
7.4
7.3
Freenet.de
9.1
8.0
Libero
Tiscali
9.4
9.2
Virgilio
Wikipedia
11.1
10.2
BBC
Web.de
11.3
Lycos Europe
Free
17.1
16.2
AOL
T-Online & Ya.com
Wanadoo
23.8
20.8
eBay
Amazon
45.6
45.4
Yahoo!
55.1
67.4
#1
MSN
Google
Millions of Unique Visitors per Month (Nov-2005)
US Companies Dominate European Audience Share
Top 50 Internet Websites in Western Europe
UK
Spain
Italy
France
Germany
US Internet Companies with European Sites
Source: Nielsen NetRatings (Nov-2005)
6
#1
US Companies Dominate European Audience Share
Top 20 Websites by Millions of Unique Visitors
UK
France
MSN
15.0
Yahoo!
13.5
eBay
12.5
BBC
11.1
Amazon
9.0
Google
9.0
AOL
5.0
Wanadoo
5.0
Germany
Google
14.3
Tesco
4.4
Multimap.com
4.1
Ask Jeeves
3.9
Lycos
Network
3.6
Shopping.com
3.5
Argos
3.5
BT
3.4
22.7
11.3
eBay
Free
11.3
MSN
12.7
MSN
11.2
T-Online &
Ya.com
12.7
Yahoo!
9.2
Pages Jaunes
7.2
Voila
7.0
Lycos Europe
4.4
Google
Wanadoo
eBay
PayPal
Italy
Mappy
Fnac
voyagessncf.com
01 Net
La Poste
Yahoo!
10.8
Web.de
10.2
Amazon
10.0
AOL
7.6
Freenet.de
7.4
GMX
7.3
5.4
5.4
5.0
4.4
Deutsche
Universitäten
6.6
RTL net
6.3
Lycos Europe
6.0
Wikipedia
5.8
I&I
5.7
Scout24
5.5
4.3
4.2
4.0
PriceMinister
3.8
3.8
Google
12.7
Google
8.8
Virgilio
9.4
MSN
Libero
9.1
Yahoo!
4.6
Wanadoo
4.5
Terra
4.4
MSN
8.8
Yahoo!
7.5
eBay
5.8
Tiscali
6.7
Cdiscount.com
La Redroute
18.5
Spain
Telecom
Italia
Seat PG
Directories
Online
Vodafone
Omnitel
4.6
7.4
T-Online &
Ya.com
3.5
elmundo.es
2.6
3.5
Lycos
Europe
2.2
3.5
Telefonica
2.1
3.2
eBay
1.9
alterVISTA
3.0
Coca-Cola
1.7
LaRepubblica
2.9
Marca.com
1.6
superEva
2.9
El Pais.es
1.6
Tuttogratis
2.7
Ciao!
1.6
Trenitalia
2.7
Vocento
Noticias
1.6
Kataweb
2.7
Softonic.com
1.5
Rai
2.6
El Corte Ingl
1.4
5.4
Corriere della
Sera
2.6
La Caixa
1.4
Apple
2.9
Skyrock
Network
Play.com
2.8
AOL
3.8
Tchibo.de
5.3
Lycos Europe
2.6
Panda
Software
1.3
Tiscali
2.7
Amazon
3.8
Arcor
5.2
Mediaset.it
2.5
Blogger
1.3
3.8
Sparkassen
US Internet companies with European Sites
7
#1
European Social Networking/Community Sites are Emerging
General
UK
>4m
France
3.7m
Pan-European
>1m
Pan-European/ US
>200k
UK
Thousands
France / Women
2.4m
UK / Photo
>1m
UK / Music
>200k
UK
NA
UK / Photo
NA
UK
~1m
UK
NA
UK
NA
UK
NA
Pan-European
>5.4m
Northern Europe
>1.2m
Scandinavian
~1m
France
8.5m
France
5.9m
France
NA
Germany
~3.3m
Germany
>1.5m
Pan-European / France
>0.5m
NA
>27m
UK
>15m
UK
>9m
Ireland/UK
NA
General/
Specialists
Business
Youth
Mobile
France
NA
France
NA
UK
>5m
UK
>100k
Dating
Gaming
Note: User numbers provided where available
8
#2
Eastern Europe is Emerging as a Market Opportunity
Eastern Europe is Catching Up to Western Europe in Terms of Internet Users
Internet Users (m)
2003-05
CAGR
2005-08
CAGR
2005-08 CAGR: 7.2%
344.9
326.3
2003-05 CAGR: 13.9%
306.1
280.0
252.7
215.9
71.0
77.7
34.5%
12.2%
10.1%
5.9%
64.2
55.0
47.4
30.4
185.5
2003A
205.3
2004A
225.0
2005E
Western Europe
241.9
255.3
267.2
2006E
2007E
2008E
Source: PricewaterhouseCoopers (2005)
9
#2
Eastern Europe is Still Lagging Behind Western Europe on Many Metrics
Internet Users as % of Total Population, 2005
Internet Buyers as % of Total Population, 2005
59.4
27.8
25.6
24.7
20.4
15.7
7.4
8.4
Western
Europe
Median
Hungary
Poland
Czech
Republic
Rest of EE
Russia
Source: IDC (2005)
Poland
Western
Europe
Median
5.4
Hungary
Czech
Republic
2.0
0.8
Rest of EE
Russia
Source: IDC (2005)
Internet Advertising Spend, 2005
European Breakdown
Internet Share of Adspend, 2005 (%)
Eastern Europe Breakdown
2.9
Rest of EE
21%
Western
Europe
96%
6.0
Eastern
Europe
4%
Romania 1%
Lithuania 2%
Bulgaria 2%
Estonia 3%
2.0
2.0
1.5
Russia
26%
1.0
Poland
17%
1.0
0.9
0.6
0.6
Hungary 12%
Czech Republic 16%
Total Market Size: $3,393m
Estonia Western Czech Lithuania Hungary Russia Poland Bulgaria Romania
Europe Republic
Median
Total Market Size: $147m
10
#2
Top Websites in Poland and Russia by Millions of Unique Visitors per Month, 2005
Poland
Russia
Onet.pl
7.3
Yandex.ru
Google
7.2
Rambler.ru
6.7
Wirtualna Polska
INTERIA.PL
5.4
5.2
Allegro.pl
4.4
Microsoft
3.9
o2.pl
3.5
Gazeta.pl
16.6
14.6
13.3
Mail.ru
ROL.ru
1.5
Google.ru
1.3
Yahoo.ru
1.3
Auto.ru
1.3
Anekdot.ru
1.2
Wikipedia.org
2.8
Gazeta.ru
1.2
Orange
2.7
RBC.ru
1.1
Source: Gemius
Source: Goldman Sachs estimates
11
#3
VCs are Investing Heavily
Richness in Variety of Sectors Targeted
Selected Internet Investments by Leading European Based VCs
Investment
Investment
1st Date of
Participation to Total Raised
Funding
($m)
Sector
01-Sep-2005
4.0
Online broadcasting
31-Dec-2005
24.0
04-Jun-2005
NA
Online store
05-Dec-2005
2.7
PC back-up
28-Nov-2005
171.5
Real estate
22-Mar-2005
6.5
19-Jan-2005
31.3
30-Sep-2004
NA
Online community
Online games and communities
E-commerce
28-Feb-2005
11.5
15-Nov-2004
9.3
Online payments
Advertising
Online community
07-Sep-2004
NA
Internet services
12-Dec-2003
3.9
Mobile media
15-Nov-2004
10.2
DVD network
01-Nov-2003
31.3
Online community
30-Sep-2003
28.1
Online store
12-Jun-2000
52.4
Online betting
/
1st Date of
Funding
($m)
Sector
19-Mar-2006
Investment
Investment
1st Date of
Funding
($m)
Sector
5.0
Cellular advertising
08-Nov-2005
10.0
In-game advertising
29-Sep-2005
23.9
Business services
22-Jul-2002
31.0
Mobile media
Investment
19-Nov-2002
6.1
Webcasting technology solutions
08-Jun-2001
4.6
Advertising
1st Date of
($m)
Funding
Sector
29-Sep-2005
05-Sep-2005
23.9
Business services
12.4
Provider of advanced image
processing applications for camera
phones
30-Jun-2005
8.4
30-Sep-2004
15.3
Business services
29-Sep-2004
22.0
Sales force automation
Other online services
16-Feb-2001
21.4
Connectivity/communication tools
Consumer services
13-Nov-2000
34.6
Online travel agency
1st Date of
($m)
Funding
Sector
16-Feb-2006
4.0
20-Jul-2005
31.3
07-Sep-2004
NA
Internet services
19-Sep-2000
13.1
Sports news
15-Mar-2004
18.8
09-May-2000
18.3
Low cost electricity
15-Sep-2003
23.4
Home entertainment
12-Jun-2000
52.4
Online betting
30-Apr-2000
26.7
Market research
Source: Company Websites, Dow Jones Venture Source Reports, Tornado Insider Reports
12
#3
VCs are Investing Heavily
Emergence of Serial Entrepreneurs in the European Internet Sector
Niklas Zennstrom and
Linus Toveland
In 2001, founded Kazaa, the
online music file sharing
network
— Funded by Bessemer
Ventures
In 2003, founded Skype, the
VOIP software company
— Funded by Bessemer
Ventures, Mangrove
Ventures, and Index
Partners
— Sold to eBay for $4.1bn
in Oct-2005
Javier Perez
In 1993, founded Teleline,
an internet access and
content provider, which was
a 50/50 JV with Telefonica
Martin Varsavsky
In 1997, founded Jazztel,
the big Spanish ISP
— Jazztel provided most of
the €38m investment in
Ya.com in 1998 (the
other part came from
Martin Varsavsky
directly)
— Sold the 50% stake to
Telefonica in 1996 and
the company was
subsequently renamed
Terra
In 1996, founded LaNetro, a
mobile media content
company
— Funded by Apax in 2004
as part of the acquisition
of Zed from TeliaSonera
— Sold Ya.com to T-Online
in 2000

In 1998, founded Ya.com,
Spain's second largest
Internet Portal
In 2005, founded FON, the
WiFi access sharing service
— Funded by Google,
eBay/Skype, Sequoia
Capital and Index
Partners
13
#4
European Tech IPOs are Back
5 Internet IPOs in 2005, Compared to Zero between 2000 and 2004
IPOs over €50m offering size
Date
Issuer
Offer
Size
(€m)
Primary Size Mkt Cap
as % of Total at IPO
Offer Size
(€m)
Listing
Bookrunner
10-Feb-2006
London
Goldman Sachs
€73m
60%
18-Nov-2005
Euronext
Amsterdam
Goldman Sachs / Lehman
Brothers / Morgan Stanley
537
07-Nov-2005
Stockholm
Stock
Exchange
Goldman Sachs / Carnegie
27-Oct-2005
Paris
12-Oct-2005
Share Price
Performance
P/E at IPO
Current
Year
1 Year
Fwd
Forward 3
2005E
2005E Year Revenue
Rev.
EBITDA
CAGR
(€m) Margin (%)
(at IPO)
+1 Day
To Date
€240m
0%
0%
NA
NA
NA
NA
NA
25
1,722
0
5
NA
61.7
198
14
22
134
0
314
(1)
35
35.0
28.0
109
35
32
Lazard / Natexis
69
84
167
12
(26)
34.7
22.6
200
3
29
Paris
Societe Generale
100
89
370
10
36
57.2
34.3
45
21
33
11-Oct-2005
Frankfurt
Deutsche Bank / Morgan
Stanley
96
54
240
1
10
51.3
24.1
26
25
NA
05-Oct-2005
Frankfurt
Citigroup / Drkw
313
93
1,403
1
72
38.4
23.6
291
23
40
29-Sep-2005
Frankfurt
Deutsche Bank
103
72
273
28
130
23.9
21.1
42
32
NA
28-Sep-2005
Zurich
Deutsche Bank / UBS
63
8
184
1
3
NM
16.7
33
NM
50
26-May-2005
Euronext
Amsterdam
Goldman Sachs / Lehman
Brothers
539
23
1,875
0
55
28.2
22.0
703
26
51
11-May-2005
London
Goldman Sachs / UBS
111
87
379
4
(39)
11.3
10.0
127
31
13
16-Mar-2005
Frankfurt
Commerzbank / Deutsche Bank
213
51
540
24
160
18.2
12.8
552
10
15
10-Nov-2004
London
UBS
152
33
189
1
32
12.0
11.3
153
21
11
19-May-2004
Frankfurt
Goldman Sachs / Deutsche
Bank
327
28
678
1
156
13.6
12.6
1,780
10
6
19-May-2004
Zurich
Citigroup / UBS
84
46
250
0
123
NA
10.7
181
27
NA
22-Mar-2004
Euronext
Paris
Deutsche Bank / Société
Générale
518
0
592
(5)
71
14.1
11.3
1,016
15
10
12-Feb-2004
London
CSFB
132
49
353
23
389
21.4
12.7
412
25
75
16-Oct-2003
London
Citigroup
112
36
307
(3)
103
20.7
15.1
132
22
48
21.1x
15.9x
€181m
22%
19%
Median
€122m
47%
€334m
1%
36%
Source: Goldman Sachs, Datastream, Wall Street Research Reports, IBES.
Note: Optos numbers are not available due to black out period
14
#5
M&A Activity is Robust
Comparison of Selected Internet Transactions Where European Company Was the Target
Multiple of LTM
Announcement
Acquirer
Date
Target
Country
Aggregate
Value ($m)
Sales
EBITDA
EBIT
Net
Income
Comments on Target
2006
20-Mar-2006
DoubleClick
Falk eSolutions
Germany
NA
NA
NA
NA
NA
Financial terms were not disclosed for the deal. DoubleClick was bought last
year by Hellman & Friedman for $1.1 billion
16-Mar-2006
Scripps
uSwitch
UK
366
14.6x
NA
49.8x
NA
Acquired 100% of privately held Scripps. 2006 profit is expected to be $10-$15m
on revenue of $40-$45m
27-Feb-2006
Softbank
Betfair
UK
600
14.0
NA
67.4
87.6
Softbank group and associated entities are expected to acquire between 23% of
Betfair, which values 100% of the company at $2.6bn
$483
$483
14.3x
14.3x
NA
NA
58.6x
58.6x
87.6x
87.6x
14.1x
26.5x
NA
NA
£55m ($95.7m) to be paid in 2009 if the company grows EBITDA by a 40%
CAGR from 2005-08
NA
$2.5bn initial consideration (1.3bn in cash, and 32.8m shares of common stock), with
performance-based earn-out of up to an additional 1.3bn
Mean
Median
2005
06-Dec-2005
ITV
Friends Reunited
UK
304
12-Sep-2005
eBay
Skype
UK
4,100
122.4
14-Jul-2005
Priceline
Bookings BV
Netherlands
12-May-2005
Sabre
Lastminute.com
Pan-European
28-Apr-2005
For-side.com
iTouch
UK
05-Feb-2005
Amadeus (Opodo)
Karavel
France
Mean
Median
NA
NA
133
NA
NA
NA
NA
Amsterdam-based provider of online reservation services
1,129
0.6
25.4
NA
NM
2004 sales of $1,848.4m
343
3.0
22.0
NA
NA
Mobile content acquisition
78
0.4
NA
NA
NA
Online tour operation services, cash deal
28.1x
3.0x
24.6x
25.4x
NA
NA
NA
NA
$1,015
$323
2004
02-Dec-2004
Cendant
eBookers
UK
330
2.2x
NA
NA
68.7x
10-Nov-2004
eBay
Marktplaats.nl
Netherlands
290
NA
NA
NA
NA
Dutch classifieds web site
Q3 2004 Revenue was £19.2m
21-Sep-2004
Priceline.com
Active Hotels
UK
161
7.3
NA
NA
NA
Gross bookings for 12 months ending 30-Sep-2004 were expected to be around
$22m, up approximately 115% year-over-year
16-Sep-2004
Sabre
Boomerang (Travelocity Europe) France
03-Jul-2004
Index Corporation
123 Multimedia
France
30-Jun-2004
Lastminute.com
Lastminute.de
05-Apr-2004
Cendant
Flairview Travel
33
NA
NA
NA
NA
Acquired remaining 50% in JV
132
1.4
10.9
NA
NA
Purchased 67% of 123 Multimedia
Germany
57
5.9
NA
NA
NA
2003 sales of $10m and pre-tax profit of $3m
Australia
NA
NA
NA
NA
NA
Annual Gross bookings > $150m
29-Mar-2004
Expedia.com
Egencia
France
NA
NA
NA
NA
NA
Revenue of € 60m in 2003, with a forecast turnover of € 100m for 2004
26-Mar-2004
Yahoo
Kelkoo
France
555
11.1
41.1
NA
NA
LTM sales of $50m, EBITDA of $13.5m. EBITDA margin 27%. Sales growth of
23% in 2001, 64% in 2002
02-Mar-2004
Lastminute.com
Online Travel Corp PLC
UK
101
4.2
NM
NA
NM
2003 sales of $24m, EBITDA of ($2m)
26-Jan-2004
eBay
Mobile.de GmbH
Germany
151
NA
NA
NA
NA
German vehicles listings site Mobile.de
15-Jan-2004
Lastminute.com
First Option Hotel
UK
22
NA
NA
18.8
28.3
01-Jan-2004
Sabre
Travelchannel.de
Germany
NA
NA
NA
NA
NA
01-Jan-2004
Sabre
Flug.de
Germany
NA
NA
Mean
Median
$183
$141
5.3x
5.0x
NA
NA
NA
26.0x
26.0x
18.8x
18.8x
48.5x
48.5x
LTM EBIT $1.2m
15
#5
M&A Activity is Robust
Comparison of Selected Internet Transactions Where European Company Was the Target
(Cont’d)
Multiple of LTM
Announcement
Date
Acquirer
Target
Country
Aggregate
Value ($m)
T-Online
International
Schibsted
Lastminute.com
Cendant
FindWhat.com
Lastminute.com
Overture
Services
E-bookers
Scout24 Schweiz AG1
Germany
220
Blocket.se
Med Hotels Ltd
Travel 2/Travel 4
Espotting
Holiday Autos Group Ltd
Fast Search-Web
Search Unit3
Travelbag
Sweden
UK
UK
UK
UK
Norway
24
39
NA
170
68
100
5.4
4.1
NA
3.9
NA
11.6
89
0.3
Sales
EBITDA
EBIT
Net
Income
Comments on Target
2003
10-Dec-2003
05-Dec-2003
03-Dec-2003
05-Nov-2003
18-Jun-2003
26-Mar-2003
25-Feb-2003
21-Jan-2003
UK
Mean
Median
2.6x
18.3x
NA
NA
LTM sales of $84m, EBITDA of $12m
14.1
21.7
NA
NA
32.2
NM
NA
NA
NA
NA
NA
NM
NA
NA
NA
NA
NA
NM
2003 sales of $4.5m
2002 sales of $10m, EBITDA $1.8m in 2003
Revenues of more than $288 million
LTM sales of $44m
EBITDA of $2m
LTM sales of $9m, EBITDA of ($7.9m)
NA
NA
NA
$ 101
$ 89
4.6 x
4.0 x
21.6 x
20.0 x
NM
NM
NM
NM
150
50
22
4.1x
6.3
2.1
15.4x
NM
NA
19.9x
NA
NA
23.1x
NA
NA
$ 74
$ 50
4.2 x
4.1 x
15.4 x
15.4 x
19.9 x
19.9 x
23.1 x
23.1 x
2002
18-Dec-2002
22-Jul-2002
13-Jun-2002
USA Interactive
Lastminute.com
Lastminute.com
uDate.com
Travelprice.com
Destination Holdings
UK
France
UK
Mean
Median
EBITDA $3.7m in 2001, $5.4m in 2002
2001 sales of $8m, EBITDA of ($37m)
2001
12-Feb-2001
Mean
Median
eBay Inc
iBazar
France
112
NA
NA
NA
NA
$ 112
$ 112
NA
NA
NA
NA
NA
NA
NA
NA
Auction website
16
#6
Valuations are Rich
2006 P/E Valuations Are in the High 20’s and Above
2006E P/E
Vistaprint
GSI Commerce
Amazon.Com
CNET
Aquantive
Yahoo!
Blue Nile
Meetic
iVillage
Google
Aufeminin.Com
Ebay
Planetout
Netflix.Com
Monster Worldwide
Miva
Tradedoubler
Adlink3
Valueclick
Ad Pepper
1-800 Flowers
Travelzoo
CTS Eventim
Websidestory
Tipp24 Ag
Digital River
Rue Du Commerce
24/7 Real Media
Digitas
Interactive
Expedia
Priceline.Com
Housevalues
FTD
United Online
Realnetworks
Audible
Infospace
Earthlink
Overstock.Com
Drugstore.Com
Web.de
2007E P/E
61.2x
60.8x
58.7x
56.6x
55.4x
48.1x
44.8x
42.9x
39.8x
39.3x
37.6x
37.0x
37.0x
36.9x
35.6x
35.0x
33.0x
29.2x
29.2x
28.8x
28.8x
28.1x
27.6x
26.7x
26.2x
25.4x
24.9x
20.2x
20.0x
17.4x
14.8x
12.5x
12.0x
11.5x
10.2x
NM
NM
NM
NM
NM
NM
European
Median:
31.1x
US
Median:
32.4x
US Internet Companies
67.8x
Infospace
Amazon.Com
Aquantive
Yahoo!
Audible
Vistaprint
Blue Nile
CNET
Aufeminin.Com
GSI Commerce
Meetic
Google
Ebay
iVillage
Monster Worldwide
CTS Eventim
Adlink3
Ad Pepper
Tradedoubler
Valueclick
Miva
Netflix.Com
Digital River
Planetout
Travelzoo
Realnetworks
1-800 Flowers
Websidestory
24/7 Real Media
Interactive
Digitas
Rue Du Commerce
Tipp24 Ag
Expedia
Priceline.Com
United Online
Housevalues
Earthlink
Overstock.Com
Drugstore.Com
Web.de
72.2x
42.8x
42.7x
40.7x
40.3x
40.2x
39.8x
36.2x
35.6x
31.9x
30.9x
29.5x
29.5x
28.9x
28.7x
27.2x
26.0x
25.2x
24.2x
23.5x
23.1x
22.8x
22.2x
22.2x
22.1x
22.1x
20.4x
20.4x
17.3x
17.1x
16.9x
16.7x
15.0x
14.7x
12.4x
12.4x
9.2x
NM
NM
NM
NM
US
Median:
23.1x
European
Median:
25.6x
European Internet Companies
Note: Negative PE multiples and PE multiples greater than 95x are designated "not meaningful" (NM). Market Data as of 13-Mar-2006
17
$186
$149
$146
$137
Adlink
Planetout
Rue Du Commerce
Ad Pepper
Miva
$240
Tipp24 Ag
$222
$241
Housevalues
$258
Drugstore.Com
Aufeminin.Com
$273
FTD
Audible
$249
$297
$286
Websidestory
$413
$333
Travelzoo
$434
1-800 Flowers
24/7 Real Media
$548
$468
Tradedoubler
$595
Meetic
Overstock.com
$635
$620
iVillage
Web.de
$652
GSI Commerce
Blue Nile
$746
Infospace
$725
$788
United Online
CTS Eventim
$956
Earthlink
$796
$1,263
Realnetworks
Priceline.Com
$1,417
Vistaprint
$1,396
$1,484
Digital River
Digitas
$1,687
$1,560
$1,704
Aquantive
Valueclick
Netflix.Com
$2,090
$1,980
CNET
Monster Worldwide
Expedia
Interactive
Amazon.Com
$6,439
$6,073
$10,144
$12,560
$47,582
$56,312
$110,519
#6
Yahoo!
Ebay
Google
Valuations are Rich
There are Few European Internet Companies of Significant Size
Equity Market Cap ($m)
European Internet Companies
Note: Only includes companies with $100m market Cap or above. Negative PE multiples and PE multiples greater than 95x are designated "not meaningful" (NM). Market Data as of 13-Mar-2006.
18
#6
Valuations are Rich
Comparison of Selected Companies – European Internet Sector
Local Closing
% of 52
Place of
Price
Week
Market
Enterprise
EV/Revenue
Fwd
Listing
13-Mar-2006
High
Cap ($m)
Value ($m)¹
2006
EV/EBITDA
2007
2006
2007
PE
2006
IBES
2007
EPS
Forward PEG
2006
2007
NM
NM
General European Internet²
Rue Du Commerce
Paris
11.50
65.0
$ 149
$ 138
0.4 x
0.3 x
13.9 x
9.8 x
25.4 x
16.7 x
Meetic
Paris
30.00
88.9
$ 595
$ 579
6.5 x
5.0 x
30.5 x 22.5 x
44.8 x
30.9 x
26.0
1.7
1.2
Aufeminin.Com
Paris
23.16
96.9
$ 241
$ 236
15.9 x
11.8 x
28.8 x 23.4 x
39.3 x
35.6 x
3.0
13.1
11.9
Tipp24 Ag
Frankfurt
22.70
87.3
$ 240
$ 225
5.1 x
3.8 x
16.3 x 10.3 x
26.7 x
15.0 x
NA
NA
NA
Web.de
Frankfurt
13.28
98.4
$ 635
$ 510
NM
NM
NM
NM
NA
NA
NA
CTS Eventim
Frankfurt
25.86
60.8
$ 746
$ 623
1.8 x
1.8 x
28.1 x
27.2 x
20.8
1.4
1.3
NM
NM
10.9 x 10.1 x
NM
Median
88.1 %
$ 418
$ 373
5.1 x
3.8 x
16.3 x
10.3 x
28.1 x
27.2 x
20.8%
1.7 x
1.3 x
Mean
82.9 %
$ 435
$ 385
5.9 x
4.5 x
20.1 x
15.2 x
32.9 x
25.1 x
16.6%
5.4 x
4.8 x
European Affiliate Internet Marketing
Ad Pepper
Frankfurt
10.05
98.1
$ 146
$ 121
2.7 x
NA
23.4 x 20.1 x
29.2 x
25.2 x
Stockholm
151.50
89.1
$ 548
$ 520
1.9 x
1.5 x
24.9 x 16.7 x
35.0 x
24.2 x
Adlink3
Frankfurt
7.10
96.7
$ 222
$ 215
NA
NA
16.0 x 13.1 x
33.0 x
26.0 x
DGM24
London
0.05
20.0
$ 33
$ 29
0.4 x
NA
Tradedoubler
NA
25.0
NM
NM
1.4
1.0
NA
NM
NM
NM
NM
7.7 x
5.8 x
15.6 x
11.4 x
NM
Median
92.9 %
$ 184
$ 168
1.9 x
1.5 x
19.7 x
14.9 x
31.1 x
24.7 x
25.0%
1.4 x
1.0 x
Mean
76.0 %
$ 237
$ 221
1.7 x
1.5 x
18.0 x
13.9 x
28.2 x
21.7 x
25.0%
1.4 x
1.0 x
Online Financial Services²
Interhyp Ag
Frankfurt
97.00
84.7
$ 752
$ 751
9.4 x
6.3 x
27.7 x 18.3 x
48.7 x
32.1 x
NM
NM
Paris
8.98
95.6
$ 735
$ 733
4.1 x
3.6 x
19.5 x 13.3 x
28.1 x
22.2 x
2.0
14.0
11.1
MLP
Frankfurt
18.75
91.2
$ 2,448
$ 2,134
2.6 x
2.3 x
13.0 x 10.2 x
25.9 x
19.4 x
10.0
2.6
1.9
AWD
Frankfurt
26.93
69.2
$ 1,292
$ 1,173
1.4 x
1.3 x
10.8 x
9.2 x
20.0 x
16.6 x
9.8
2.0
1.7
Comdirect
Frankfurt
9.60
94.5
$ 1,624
$ 1,620
6.9 x
6.4 x
21.2 x 16.0 x
32.5 x
28.2 x
NA
NA
DAB
Frankfurt
8.32
91.4
$ 752
$ 718
4.1 x
3.9 x
25.1 x 21.8 x
32.0 x
24.5 x
NA
NA
NA
London
6.89
74.9
$ 834
$ 785
5.5 x
4.2 x
9.3 x
7.4 x
11.0 x
8.2 x
NA
NA
NA
Boursorama
NETeller
NA
NA
Median
91.2 %
$ 834
$ 785
4.1 x
3.9 x
19.5 x
13.3 x
28.1 x
22.2 x
9.8%
2.6 x
1.9 x
Mean
86.0 %
$ 1,205
$ 1,131
4.9 x
4.0 x
18.1 x
13.7 x
28.3 x
21.6 x
7.3%
6.2 x
4.9 x
1
Source: Latest publicly available financial statements. Equity Market Cap based on diluted shares outstanding.
2
Source: Oppenhaim Research Dated 19th January 2006.
3
Source: Canaccord Capital Research Dated 23rd Nov 2005.
Sources: LTM numbers are based upon the latest publicly available financial statements. All projected sales, EBITDA, EBIT, and EPS estimates have been calendarized.. Projected sales, EBITDA, EBIT,
and EPS source: IBES median estimates.
4
19
#6
Valuations are Rich
Comparison of Selected Companies – European Internet Sector
Local Closing
% of 52
Place of
Price
Week
Market
Enterprise
EV/Revenue
Fwd
Listing
13-Mar-2006
High
Cap ($m)
Value ($m)¹
2006
2007
EV/EBITDA
2006
2007
IBES
PE
Forward PEG
2006
2007
EPS
2006
2007
0.5
Online Gaming2
Partygaming
London
1.28
72.4
$ 4,816
$ 4,871
6.7 x
6.1 x
11.8 x 10.9 x
13.8 x
12.2 x
22.5
0.6
Sportingbet
London
3.85
87.5
$ 1,693
$ 1,659
0.8 x
0.7 x
14.4 x 12.4 x
16.3 x
13.7 x
35.0
0.5
0.4
Betandwin
Austria
65.33
68.1
$ 1,606
$ 1,584
0.5 x
0.4 x
24.6 x 17.4 x
37.3 x
24.0 x
15.3
2.4
1.6
Paddy Power
Ireland
8.97
81.6
$ 453
$ 418
0.4 x
0.4 x
11.9 x
9.8 x
18.3 x
15.3 x
20.0
0.9
0.8
Empire Online
London
1.15
40.5
$ 335
$ 312
4.6 x
3.7 x
10.4 x
8.1 x
9.6 x
5.7 x
0.0
NA
NA
Unibet
London
13.31
78.9
$ 343
$ 344
0.9 x
0.8 x
11.0 x
9.0 x
18.8 x
16.0 x
7.0
2.7
2.3
Betonsports
London
1.61
88.9
$ 132
$ 93
0.1 x
0.1 x
5.8 x
4.8 x
10.3 x
8.7 x
0.0
NA
NA
15.0 x 13.0 x
NA
Gaming vc
London
4.03
45.5
$ 125
$ 104
7.0 x
6.3 x
Sportech
London
0.11
81.5
$ 65
$ 176
0.3 x
0.3 x
Ukbetting
London
0.63
89.9
$ 73
$ 74
0.5 x
0.5 x
7.9 x
7.7 x
0.0
NA
7.8 x
7.4 x
7.7 x
10.0
0.7
0.8
29.6 x 20.0 x
36.3 x
29.5 x
0.0
NA
NA
7.7 x
Median
80.2 %
$ 339
$ 328
0.7 x
0.6 x
11.9 x
10.3 x
15.0 x
13.0 x
8.5%
0.8 x
0.8 x
Mean
73.5 %
$ 964
$ 964
2.2 x
1.9 x
14.2 x
11.3 x
17.6 x
14.0 x
11.0%
1.3 x
1.1 x
2
Mobile Internet
Buongiorno
Milan
5.02
97.9
$549
$555
3.7 x
2.8 x
44.6 x 25.2 x
72.5 x
30.8 x
NA
NA
NA
Dada
Milan
19.18
100.0
$ 365
$ 341
4.7 x
4.1 x
23.1 x 16.5 x
38.9 x
24.0 x
NA
NA
NA
Monstermob
London
363.50
79.5
$ 399
$ 470
6.5 x
4.6 x
35.3 x 24.7 x
42.3 x
29.4 x
NA
NA
NA
Stream
London
40.50
54.0
$ 44
$ 36
1.4 x
1.3 x
7.0 x
16.3 x
11.4 x
NA
NA
NA
123 Multimedia
Paris
22.44
63.1
$ 224
$ 218
1.2 x
1.1 x
13.1 x 11.4 x
23.1 x
15.7 x
NA
NA
NA
Gameloft
Paris
6.29
94.3
$ 574
$ 576
6.5 x
4.8 x
37.0 x 18.5 x
40.6 x
20.6 x
0.7
0.4
9.6 x
55.3
Median
86.9 %
$ 365
$ 341
4.2 x
3.4 x
29.2 x
17.5 x
39.7 x
22.3 x
NA
NA
NA
Mean
81.5 %
$ 321
$ 328
4.0 x
3.1 x
27.1 x
17.2 x
38.9 x
22.0 x
NA
NA
NA
Internet Service Providers²
Fastweb
Milan
41.20
95.8
$ 3,276
$ 3,582
3.7 x
2.7 x
7.7 x
5.6 x
NM
29.3 x
10.0
NA
3.8
Freenet
Milan
23.55
93.8
$ 1,415
$ 1,281
1.5 x
1.3 x
8.0 x
7.0 x
17.0 x
14.9 x
14.1
NA
NA
12.0
NA
NA
Tiscali
Milan
2.49
82.8
$ 978
$ 1,249
1.7 x
1.4 x
8.0 x
5.4 x
NM
20.7 x
Iliad
Frankfurt
57.70
97.4
$ 3,143
$ 3,165
3.7 x
3.3 x
10.2 x
9.5 x
22.3 x
NA
United Internet
Frankfurt
42.65
94.4
$ 2,479
$ 2,350
2.1 x
1.7 x
10.2 x
8.0 x
24.1 x
18.9 x
Telenet
Brussels
17.25
90.2
$ 2,226
$ 3,351
3.5 x
3.2 x
8.1 x
7.8 x
NM
NA
NA
NA
27.6
NA
NA
30.8 x
89.6
NA
0.3
Median
94.4 %
$ 2,353
$ 2,757
2.8 x
2.2 x
8.1 x
7.4 x
22.3 x
20.7 x
14.1%
NA
2.1 x
Mean
92.4 %
$ 2,253
$ 2,496
2.7 x
2.3 x
8.7 x
7.2 x
21.1 x
22.9 x
30.7%
NA
2.1 x
1
Source: Latest publicly available financial statements. Equity Market Cap based on diluted shares outstanding.
2
Sources: LTM numbers are based upon the latest publicly available financial statements. All projected sales, EBITDA, EBIT, and EPS estimates have been calendarized.. Projected sales, EBITDA, EBIT,
and EPS source: IBES median estimates.
20
#7
Convergence is Here Today
Examples of Telecom, Media & Entertainment, and Technology Coming Together
1. La Netro Zed
2. FON
Description
— Private Spanish mobile data
media & entertainment company
Model
— Licenses/produces branded (ClubZed) mobile content (games,
ring tones, etc), distributed to subscribers via mobile operators or
directly by third party (partners such as NetSize)
Key stats
— 2004 revenues in excess of £94m (400% growth yoy)
Owners
— Apax and Founders (bought Zed from TeliaSonera in 2004)
Description
— Private Spanish start-up aiming
to build a global WiFi community
Model
— Sharing of WiFi access is enabled by FON software downloaded
for free from the internet ("share locally, enjoy globally")
Key stats
— Goal is to have 1m hotspots within 4 years, current coverage only
in Spain and US
Owners
— Google, eBay/Skype, Sequoia Capital, Index Partners, and
Martin Varasavsky (funded with $21.7m in February 2006)
3. SeeMeTV
4. Wee World
Description
— Mobile TV channel for Hutch 3G
subscribers in the UK
Model
— Enables the creation, delivery and promotion of user-generated
video clips (jokes, adult, news, music, etc) to mobile subscribers
Key stats
— >2m downloads per month, >30K clips, Hutch 3G UK on the
service rewards customers with 1p for every download
Owners
— Hutch 3G UK (started in October 2005)
Description
— Private UK start-up that created the
“WeeMee” personal digital identity
Model
— Enables creation of customizable versions of oneself for social
networking. Users search online or via mobile for specific
characteristics and exchange messages (email, SMS, picture
MMS, etc)
Key stats
— 8.5m downloads
Owners
— Benchmark Capital and Founder (funded with $4.5m in Feb
2005)
21
#7
Recent Noticeable Shift in European Internet Consumer Behaviour
…and Has Recently Changed Its Behaviour1
The European Internet User is Young…
Percentage of Age Group Online
17
65%
63%
9
Playing or downloading games
12
57%
Storing photographs, video clips or other
personal
material at a web site or on a personal home
page
44%
8
9
40%
Downloading or watching video content
5
9
16%
Listening to streaming music or downloading
without permanently storing it
Accessing information
Ages
12 - 17
Ages
18 - 24
Source: Jupiter Research (2005).
1
9
Downloading music and permanently storing it
79%
Ages
25 - 34
Ages
35- 44
Ages
45 - 54
Ages
55 - 64
Ages
65+
5
8
7
7
2004
% of Respondents
2005
Source: Yankee Group 2005 European Connected Consumer Survey (Jun-2005)
Poll based on answers to the following question: “Have you ever paid your internet or broadband service provider for one of the following services?”
22
#7
Drivers of Convergence
Compelling Content
Fierce Competition
Attractive Value Added Services
Emergence of
Convergence
Successful Business Models
Technology Shift
VOIP
IPTV
DTT
XDSL
23
II.
24
Evolution of Social Networking/Community Sites
1997
2001
Emergence of Websites
Internet social
using the
“Circle of
networks
Friends”
First social
technique
networking
started
website was
appearing in
sixdegrees.com
2001
in 1997
2003
2004
2005
2006
More than 200
Google
In March,
In March,
social
launches its
Yahoo
Friendster was
networking
own social
launched
created
sites
network called
Yahoo 360
In July,
and bought
worldwide
orkut
MySpace was
Flickr
In February,
In February,
founded
Google
Facebook was In July, News
Social
Corp. bought
announced
founded
networking
that it wants to
MySpace
and virtual
capitalize on
communities
In September,
social
gain in
News Corp.
bookmarks
popularity
bought IGN
In October,
ITV bought
Friends
Reunited, the
first European
online social
networking site
of scale
25
Social Networking/Community Sites are Emerging
Selected Examples
General
UK
>4m
France
3.7m
Pan-European
>1m
Pan-European/ US
>200k
UK
Thousands
France / Women
2.4m
UK / Photo
>1m
UK / Music
>200k
UK
NA
UK / Photo
NA
UK
~1m
UK
NA
UK
NA
UK
NA
Pan-European
>5.4m
Northern Europe
>1.2m
Scandinavian
~1m
France
8.5m
France
5.9m
France
NA
Germany
~3.3m
Germany
>1.5m
Pan-European / France
>0.5m
NA
>27m
UK
>15m
UK
>9m
Ireland/UK
NA
General/
Specialists
Business
Youth
Mobile
France
NA
France
NA
UK
>5m
UK
>100k
Dating
Gaming
Note: User numbers provided where available
26
Social Networking/Community Sites – Selected Profiles
General
Date Founded
May 2001
2000
End of 2003
HQ Location
London, UK
France
Hamburg, Germany
Type
General
Specialist
General
Description
First generalist online magazine in the
Europe's leading social networking
French Internet that deals with general
community
news, leisure, culture, IT products,
Online community network that allows
women
community members to connect or
Offers the service "Copains d'Avant"
reconnect to other people in the
(equivalent of Friends Reunited in
network
France)
Passado can be used to find old
friends, university friends, former
business colleagues, or to network and
make new connections
Leading connection site in Europe,
Germany, Italy and Spain and rapidly
growing in France, Austria and Mexico
Services include blogging, photo
sharing, forums and broadcasts
Subscription based online networking
platform in Europe and Asia for
professional and secure contact
management
Offers search engines, telephone
conferences, event management, a
database of information on business
managers and language translations
Premium services enables enhanced
search options and other advanced
features
Users
>4 million members
3.7m users
>1 million members
Owners/
Shareholders
2 school friends
Benchmark Group
Lars Hinrichs, founder and managing
shareholder
Wellington Partners Venture Capital
and other individual investors funded €
5.7 million
Latest News
NA
December 2005: Launch of “Cartes de
Voeux” services
21-Feb-2006: openBC acquires First
Tuesday AG Zurich in an undisclosed
transaction
17-Jan-2006: Udo Hamm joins
openBC as Chief Networking Officer
27
General (Cont’d)
Date Founded
March 2004
NA
NA
HQ Location
UK
UK
Ireland
Type
General
General
General
Description
Social network service with online
invitation community which is not open
to public
Online meeting website
Users can chat online, through video
or through audio with friends without
the need for downloading
Calls itself "The Biggest Party on
Earth"
The network allows members to
connect, reconnect and interact with
other members
The free networking service allows
members to join an interest group or
announce an event as well as sharing
pictures with friends or the world
Other features include forum, groups,
messaging service, suggestions and
ratings for travel and restaurants and
city based resources
Other features include blogging,
personal voice greeting and speed
dating
Users
Around 200K members
Thousands of members
NA
Owners/
Shareholders
Eric Wachtmeister (CEO) is founder
NA
NA
Latest News
NA
23-Jul-2005: Launched its events
division by staging the Big Gay Out
festival in London's Finsbury Park
11-Mar-2206: Website upgraded with
flash technology
21-Jul-2005: Userplane, a provider of
live community software, announced
its deployment of Userplane
Webmessenger and Webchat on
websites for Mooble
28
General/Specialists
Date Founded
July 1999
NA
December 2002
HQ Location
Paris, France
UK
London, UK
Type
Specialist
General
Description
Web portals for women that offers different kinds of
content and services such as health, beauty and
marriage
Develops and sells SmartAdServer, Internet
advertising server for websites, agencies and
advertisers
Offers more than 1,400K different pages of Internet
specific content
Operates in France , Spain, Italy, Germany and UK
Key results for FY 2005:
— Net turnover: €8,684K
— EBIT: €4,106K
— Net Profit: €4,616K
— Net Debt: (€3,447K)
Main source of revenues is advertising for major
clients including Groupe L'Oréal, Unilever, Groupe
LVMH, Group Estée Lauder, France Télécom,
Peugeot, and Renault
Listed on the Eurolist B of the Paris Stock Exchange
since July 2000
2.4 million unique visitors in Europe
0.8 million users as on March 2006
200K active users
Owners/ Shareholders
Dubanton Marc, Pastel Anne, Henderson Global,
Oppenheimer Fund, Societe Financiers
Advance Finance Network (ADVFN), , a European
stocks and shares website
Latest News
14-Dec-2005: Launched the High Definition online
Film
July 2005: Fotothing was acquired by ADVFN.
ADVFN also owns the free dating site CupidBay
Key Shareholders:
— Felix Miller
— Michael Breidenbrucker
— Martin Stiksel
— Richard W Jones
Aug 2005: merged with sister site Audioscrobbler
Users
Specialist
Fotothing is a blog, with photos instead of words – a Internet radio station and recommendation station
photo blog
Creates personalised radio stations for every user
Allows to share photos with friends, family and the
User have access to profile of other user
rest of the world
Users can post comments on other users’ photos,
and the most recently updated Fotothings appear on
the home page
Key features available to a registered users are:
— Upload photos
— Create a slide show
— Send and receive private messages
— Browse other users’ profile
— Keep track of comments made and received
User can register for free to website
29
General/Specialists (Cont’d)
Date Founded
1998
November 2002
HQ Location
London, UK
London, UK
Type
Specialist
General
Description
Jobpartners provides software solutions for qualitative
human resources management and People Relationship
Management (PRM)
Some solutions available in 25 different languages
including some Asian languages
Jobpartner’s ActiveSuite is a set of flexible and
collaborative solutions built to help attract, develop and
retain the right people
Key clients in:
— Europe includes Carrefour, Rabobank, Xerox and
Deutsche Post
— US includes DHL, State Street Bank and Redcats
Everyones Connected is a free networking and photo
sharing community for friends and family
This network allows users to chat online with other users
and to post photos that can be viewed by other users from
within their particular network
User can publish online paper for others or can subscribe
free papers
Offer different classes of membership:
— Free, silver and gold
Users
>50 customers using ActiveSuite solutions in over 40
different countries worldwide
NA
Privately Owned
Setup by a group of friends
Latest News
Jan-2006: Jobpartners' ActiveRecruiter to be implemented NA
at Henkel to manage worldwide recruitment process
Dec-2005: Jobpartners to double its manpower by the end
of March 2006 to meet the demands of the rapidly growing
PRM market
Jun-2005: Jobpartners, dedicated to the PRM market,
announced that it has achieved 8 million euros of revenue
in the 2004/ 2005 fiscal year
Jun-2004: French online recruitment websites Emailjob
and Jobpartners have joined forces in the e-recruitment
30
Business
Date Founded
1998
June 2003
2004
NA
HQ Location
UK
UK
UK
UK
Type
Business
Business
Business
Business
Description
Networking environment by which
business professionals seek to
make contact with each other
Mediabuddies.com is a reunion
and networking club for the
exclusive use of those working in
or retired from the international
media industry
Bring together like minded
business oriented and
professional people in an informal
and supportive environment
Members can find expertise,
knowledge and advise to help with
business problems from various
business minds throughout the
world
Provides business introductions,
referrals and trading, advertising
for businesses and admission to
networking events around the
world
The company’s website provides
tools to build and manage
networks and businesses and
facilitates the sharing of help,
knowledge and advice from
professional business brains
Membership is free and also
includes access to exclusive
services such as jobs, freelance
work, and future events
Provides email groups with
ongoing interaction with other
members of a similar position
Facilitates bulletin boards which
allow users to turn virtual
discussions into “real world” face
to face interactions, expanding
networks of friends and
associates
Service lets users expand their
network, meeting like minded
people in order to bounce ideas
off, share business knowledge and
be exposed to potential career
opportunities
Annual registration fees of £15
Bulletin boards can be used for
posting and finding opportunities
for skill swaps, freelance projects
and job opportunities
Offers four levels of membership
with free basic services and
premium services for an annual
fees ranging between €25 to
€1,020
Membership is available free of
charge and various products and
services are available for a fees
Users
0.7 million members
Around 1,500 members
NA
NA
Owners/
Shareholders
Penny Power (founder)
David Davis is founder of
Mediabuddies
Lois Dunn and Bill Morrow
founded Kickstart Connect
NA
Latest News
13-Oct-2005: ecademy update its 17-Jan-2005: Mediabuddies
releases global study on secrets
website
of journalism
NA
01-Jul-2005: Launched the
‘Request For Help’ facility on the
website
31
Youth
Date Founded
HQ Location
Type
Description
2000
January-2000
2002
Helsinki, Finland
UK
Stockholm, Sweden
Youth
Youth
Youth
Virtual meeting place and a game
environment for teens
Sulake's top brand franchise
Interactive entertainment company
specialised in developing, publishing and
distributing multiplayer online games and
communities
Operates in 16 countries
LunarStorm Sweden dominates the youth
community space in Sweden with over 65%
membership in its target demographic and
over 95% unassisted recall in the general
population
Users
>5.4 million users per month
1.2 million members
Taivas Group (Finnish advertising agency,
Rickard Ericsson is founder and co-owner
with backing of a venture capital
partly owned by WPP), 3i Group, Elisa
Corporation (Finnish telecom company),
Benchmark Capital and Sulake personnel
Till date, there have been 5 rounds of
financing totalling € 25.7 million
26-Jan-2006: Sulake Corporation OPTIC
28-Feb-2006: Teamed up with free internet
Communications have signed an
voice call provider Skype to allow internet
agreement to launch Habbo Hotel in China
calling for its members
08-Dec-2005: Creators of Habbo Hotel
23-Feb-2006: Appointed Andrew FawcettWolf as consultant commercial director
receive the "Finland Prize" from the Ministry
of Education
02-Jun-2005: CHUM Television and
MyThum Interactive bring mobile
commerce to Habbo Hotel
Dec-2005: Ranked 8th in Deloitte's
Technology Fast 500 EMEA list
19-Jan-2005: Benchmark Capital lead an
investment of € 18m
Stardoll (formerly known as
Paperdollheaven.com) is an online celebrity
dress-up, make over destination and online
community
Site offers more than 320 celebrity paperdolls
and terms of thousands of garments and
accessory
Most of users are girls and boys between age
group of 7 and 17
Users spread across Europe, Asia and US
>0.9 million and more than 1 million unique
visitors each week
Lisa, a retired woman in her late 50s, born
in Scandinavian
Index Ventures and angel investors
Latest News
17-Feb-2006 : secured a $4m Series A
investment from Index Ventures and angel
investors
17-Feb-2006: Mattias Miksche, serial
entrepreneur responsible for DVD rental
site Boxman and E-TRADE Northern
Europe, joins as CEO
32
Mobile
Date Founded
March 2000
NA
HQ Location
Glasgow, UK
UK
Type
Mobile
Mobile
Description
Mobile/ online content and social networking company
Created the popular 'WeeMee' personal digital identity, which
can be used both online and on their owner's mobile phone
handset
To create cross platform Intelligent Visual Identity, allowing the
user to express themselves online and on their mobile phone,
search, find, communicate and have fun, via their Handset and
PC.
In 2003 Fortune magazine awarded the 'Coolest International
Business' award
Txt Party enables photo sharing and online chat with
other users within a live chat room
The network allows users to play free interactive photo
games in order to win prizes
It also provides a world ranking system for photos,
along with a service whereby members can send text
messages to friends, find new friends as well as
potential dating partners that live nearby
Users
c. 8.5 million unique visitors
5.9 million members
Owners/
Shareholders
Cowles Magazines
Benchmark Capital
NA
Latest News
25-Aug-2005: WeeWorld, creator of the WeeMee visual identity
has teamed up with MSN, to create and experience emotionally
intelligent WeeMees within MSN Messenger 7.5
Celia Francis, Executive VP of business marketing, T-Mobile
International has joined as the CFO
NA
33
Mobile (Cont’d)
Date Founded
October 2002
NA
2003
HQ Location
London, UK
UK
France
Type
Mobile
Mobile
Mobile
Description
Mamjam is location-based instant
messaging platform for mobile
phones
Mamjam is a system that references
a user’s location in real time
The service is network-independent
and works on all existing GSM mobile
handsets
FY March 31, 2004 Financial
indicators:
— Revenue: £396K
— Loss before tax: £1,441K
Online journal or scrapbook that user Provides a service that detects all
nearby Bluetooth devices allowing
can send text and images to via
cell phones to ring or vibrate when it
mobile phone
finds one. This enables users send
Gives registered users the ability to
messages and photos for free to
create multiple moblogs (mobile
friends or strangers with no need for
phone web logs)
cell phone numbers.
Moblogs can be updated either via
the website or via their MMS enabled Also lets other users send and
receive profiles from other
mobile phone
Mobiluckers including there photo
BusyThumbs is a free service with the
exception of fees set by the mobile
phone provider for sending an MMS
Users
NA
NA
NA
Owners/
Shareholders
NA
NA
Mobiluck is a joint stock company
with a Management Board and a
supervisory Board, with stated capital
of €116,800 and id hosted by
Telecom Paris.
Latest News
NA
11-Jan-2006: Trackback has been
NA
temporarily removed due to
exploitation and spamming with
unsavoury links
03-Nov-2005: Announcement for
commissioning of a new development
phase soon
34
Dating
Date Founded
HQ Location
Type
Description
2001
November 2001
January 2003
Hamburg, Germany
Boulogne, France
Germany
Dating
Dating
Dating
UK's first and Europe's leading compatibility-based
online dating service
Coverage in Europe includes France, Spain, Italy,
Netherlands, Germany, Austria, Switzerland, and
Belgium
Each user has a personality profile and undergoes
compatibility tests
Search criteria offers options such as physical
location, age, height, smoker/ non-smoker,
children/ no children
Country Manager: Tony Blin-Stoyle
Operates in Germany, Italy, France, Poland, Spain,
UK, US as well as Turkey, Russia and China
Users

3.3 million members with more than 60 million site
visits and 420 page impressions

Latest News

Leading European online dating website
Operates in 13 European countries and China
The site includes examples of members' true
stories about how they met
Web offers many tools to let search, communicate
find other user
Features includes view profiles, photos, ads, voice
ads, chat with members, search modules, e-mail
messaging service, customised control panel and
others
The meetshake, compatibility calculation software
provides user with a list of members who match the
search
>1.5 million members
c.225k users excluding Lexa’s users
More than 13.9 million profiles registered since its
creation
Approx 87% owned by German media group
Executives: 44.9%
Holtzbrinck
Free Float: 27.3%
Retail Investors: 11.2%
Corporate Investors: 10.0%
Financial Investors: 6.1%
Employees: 0.4%
22-Dec-2005: partnered with Whatsonstage.com, 17-Feb-2006: Acquired one of the major Dutch
dating sites, Lexa, for € 11.5m in cash (Revenue:
a news and information source for UK theatres, to
€ 4 million, Users: 0.03million)
create a co-branded dating channel
Dec-2005: Chooses 24/ 7 Real Media, Inc. to Lead 03-Feb-2006: Revenue for 2005 almost doubled to
€ 43 million from € 21.3 million for 2004
Marketing Campaign
16-Jun-2005: Parship to spend over £1m to launch 18-Jan-2006: Meetic to buy 70% stake in Beijing
peer eFriendsNet for around $20 million to $25
in the UK, after signing the former MD of
million in cash (Revenue 2005: estimated $2.8
UpMyStreet, Tony Blin-Stoyle, as its country
manager
million and database of around 4 million user
profiles)
03-Jan-2006: launch of mobile dating service
13-Oct-2005: IPO on Paris Stock Exchange
59% owned by Stroer (Outdoor Marketing
company)
27-Feb-2006: Orangemedia adds neu.de to its
customer portfolio and will market the company
going forward.
02-Dec-2004: Break-even profit in 2004 with
revenues of €5m (compared to €1.5m revenues in
2003)
35
Gaming
Date Founded
2001
August 2003
NA
HQ Location
NA
London, UK
UK
Type
Gaming
Gaming
Gaming
Description
Website dedicated to playing online games
Online games including single player to
hard-core massive multiplayers games
Miniclip.com games are fun, free, easy to
use
Won Webby’s award for Internet's Best
Game Site 2005
CEO: Robert Small
Advertisers include Coca Cola, Gillette, and
Starburst
One of the world’s largest skill gaming site
King.com site is now available in 8
languages and 4 currencies
Every month hosts more than 15 million
games played and pays out more than $3m
to customers
Development facility in Stockholm, Sweden
Skill Jam is the Internet’s leading
destination for cash prize skill games
Offers nearly 100 exciting games
Created community-based features,
including tournaments and message boards
Acquired by Fun Technologies on July
2004 for consideration of £ 4.5 million cash
and revenue sharing for 5 years from
eUniverse
Net revenues of approx £2.03m for FY
March 2004
Users
27 million unique users per month in Nov
2005
15 million games played in January 2005
>9 million registered users in H2 2005
Privately held
Toby Rowland, Ricardo Zacconi, Apax
Partners
Fun Technologies, UK
Latest News
18-Oct-2005: Miniclip.com claim that on its 15-Dec-2005: MidasPlayer to promote
own it has more unique users worldwide
rebrand as King.com
than EA's entire network of 34 websites and 4-Sep-2005: Apax Partners has invested
also has more users than IGN's network of
€34m for an undisclosed minority stake in
22 websites
Midasplayer.com
11-Aug-2005: Massive to place ads within
Miniclip games
07-Mar-2005: Miniclip.com teams up with
24/ 7 Real Media for online ad management
6-Feb-2006: To create a private-label skillgaming platform for The Sun Online
18-Jan-2006: Acquired all of the assets of
Arizona-based Octopi, developer of online
games for initial $3 million and an earn-out
of up to $3 million
23-Nov-2005: Liberty Media to buy 51%
stake in Fun Technologies for $195 million
36
Gaming (Cont’d)
Date Founded
HQ Location
Type
Description
2001
July 1999
UK
London, UK
Gaming
Online betting
Provider of multiplayer online games
The company's offerings range from smaller, free-to-play, minigames to its flagship online 3D adventure game
The game is played primarily via the company's web site, or via
partner sites, allowing members to play anywhere
Offerings range from smaller, free-to-play "mini-games" to its
flagship online 3D adventure game, RuneScape, which is one of the
most popular MMORPGs (Massive Multi-Player Online Role-Playing
Games) in the world
Users
>5 million unique users
Investors includes Insight Venture Partners
Latest News
26-Oct-2005: Secured an investment from Insight Venture Partners
World's leading online betting exchange
Enables punters to choose their own odds and bet against each
other, even after an event has started
— Processes 5 million transactions a day and more than 300 bets a
second
— Annual revenues have recently broken through £100m
— Launched a new interface on February 2006, which were
criticised on the Betfair forums. Later many of the problems were
fixed
Betfair currently has over 100,000 clients and a turnover in excess
of £50m/ week.
Private company
Key shareholders:
Co-founders Andrew Black and Edward Wray
Benchmark Capital, Index Ventures, JPMorgan Partners and UBS
Capital
At least half its employees, currently more than 650, also own part
of the company through its SAYE scheme
28-Feb-2006: To sell up to 23% of its shares to Softbank, the
Japanese technology group, in a deal that values the internet
betting exchange at more than €2.2bn
27-Feb-2006: Signed an agreement with PayPal, the online
payment processing group that stopped working with gambling
operators when it was acquired by Ebay three years ago
16-Jan-2006: Andrew Black named Britain's Top 100 Entrepreneurs
2006 per Management Today
37
Appendix A: Selected European Internet Company Profiles
Selected European Internet Company Profiles
38
Real Estate
Date Founded
HQ Location

1992

February 2000

Paris, France

Registered office:
Milton Keynes, UK
Technology office:
London, UK
Type
Description

Real estate

Online publisher of real estate housing listings for real estate agencies
Poliris’ real estate listing web sites are:
—
SeLoger and
—
ImmoStreet
Realized sales growth of 34%, annualized, from 2003 through 2005

Operates in the UK residential property industry, connecting people to
properties
Customers - estate agents, rental agents and new home developers, pay
fees to have their properties displayed on the website, which provides
home hunters with property details to search
FY December 2005 results:
Revenue: £18 million
Operating profit: £8.7m
78% market share among the top 4 property websites by pages viewed

Users

>4 million visitors per month and run a total of 470,000 advertisements
simultaneously

1.9 million registered users
Over 13.5 million visitors in January 2006
Owners/
Shareholders

CEO Denys Chalumeau and managing director Amal Amar along with
other directors
European Capital S.A. SICAR
3i Group

Jointly owned by four of the UK's biggest estate agency chains:
Countrywide Assured: 22.5%
Halifax: 21.7%
Connells: 21.7%
Royal & Sun Alliance: 4.9%
Free Float: 18.0% approx
Others: 11.2% approx
Latest News

24-Jan-2006: European Capital S.A. SICAR, a buyout and mezzanine
fund, has invested € 13m in the mezzanine facility of Poliris
28-Nov-2005: 3i Group plc has paid €60 million to take a 34% stake in
Poliris, valuing it at €180 million

10-Mar-2006: Stock price risen more than 17 per cent to 392.25p, on
debut day at London Stock Exchange
2-Mar-2006: Indicative offer price range has been revised to 275-335
pence per share, which compares with the previous indicative range of
240-315 pence
15-Feb-2006: Rightmove announces intention to float

39
Payments
Date Founded
HQ Location
Type
Description
Users
Owners/
Shareholders
Latest News
1999
Switzerland, Zurich
Financial
Webpay is leading commerce platform provider that
allows enterprises such as telcos, ISPs and financial
institutions to build a profitable business around the
paid content and service market
Webpay's Click&Buy platform is powering online
commerce in digital content and services on the
Internet and in the mobile space
The Click&Buy Solution was developed to address
these merchant needs and to deliver a proven,
profitable, commerce solution that enables online
merchants to generate revenue from online content
and services
Key people:
— CEO: Norbert Stangl
— CFO: Frank Brinker
— CTO: Fabian Siegel

>3 million consumers and 3K online merchants are
using Click&Buy in 14 countries worldwide
Privately Owned including 3i

1999
Douglas, Isle of Man
Financial
Operates a secure online funds transfer service
Account acts as an e-wallet that enables customers to
load, withdraw and transfer funds
Customers can instantly transfer funds to/ from any
merchant website that supports NETELLER's online
payments system, and to/ from other NETELLER
customers
Customers can transfer funds by using their account
IDs, secure IDs, and the amounts
Over $3.4 billion in transactions processed in 2004
Over 450 employees
CEO: Ron Martin
Key financial numbers for six months ended June 30,
2005:
— Revenue: $73.5 million
— EBT: $40.6 million
— Net Debt: ($86.0 million)
Listed on London AIM exchange
>2.3 million customers
Key shareholders:
— Corvina International (founder): 8.4%
— 1098853 Alberta (founder): 6.8%
— Eagle Medallion Fortress (founder): 5.5%
— Morgan Stanley: 5.0%
7-Nov-2005: Founders stock placed with institutional
Jan-2006: 3i, the world's leading private equity and
clients in UK, Europe and North America, reducing
venture capital company, have announced a $23
holding to below 30% of issued share capital of the
million investment
company
May-2005: Billing Concepts and Webpay will create a
31-Oct-2005: Acquired Netinvest Limited and its
joint venture offering the new, global payment and
subsidiary Netbanx Limited, one of the leading UK
billing service, Click&Buy, for online digital content to
independent full service payment service providers for
the U.S
cash consideration of £12.36 million paid to Transact
Jun-2004: Bluewin, a subsidiary of Switzerland’s
Group Limited
largest Telecommunication provider Swisscom Fixnet,
and Webpay introduce the Internet payment solution
Click&Buy in Switzerland
April 1999
Saint-Ouen, France
Business
Leader in High Tech e-commerce in France
Pure Internet player selling IT and electronics
products on the Internet
>10,000 references
€179m revenue in FY 2005

>1 million registered users in France
Apax 12.18%
Groupe Alpha 10.57%
Patrick Jacquemin 8.73%
Gauthier Picquart 8.73%
ESD/ PESD 7.45%
Galiléo 6.64%
Managers 4.43%
Free Float 41.27%
16-Jan-2006: Q3 2005 Sales increased 24.7% to
€79.6m vs. Q3 2004
27-Oct-2005: Rue du Commerce starts trading on
Euronext

40
E-Commerce
Date Founded
HQ Location
1998
France
July 1999
Hanover, Germany
Type
Description
Online store
The company sells online DVD players and home
theatres, computer products and accessories, audio
players, cameras and mobile phones, as well as
household appliances, ready-to-wear clothes, game
consoles, books, music and wines
Employs around 550 staff at present, including about
100 casual workers
Turnover increased by over 60 per cent in 2003 to
€195 million
Users
Delivers >450,000 parcels a month
Around 600K to 800K internet users every day
Subsidiary of French retailing group Casino
Online store
Market leader in the European online tyre retail
market
More than 100 tyre brands
Around 25.000 different tyres
Has 50 online shops in 25 European countries in the
e-commerce-business
Expanding its range of car products
Company claims that customer comparisons in
European online retailers show that prices are 25 to
30 percent cheaper at Delticom
Annual sales increased to €129 million in 2005 from
€22 million in the 2001
Headed by the two former continental managers
Rainer Binder (47) and Dr. Andreas Prüfer (42).
Key awards:
— Deutscher Internetpreis 2003
— World Summit Award 2003
— Deloitte Technology Fast50 2004
NA
Owners/
Shareholders
Latest News
10-Jan-2006: Bordeaux criminal court fined
Cdiscount for misleading advertising regarding its
delivery service and violation of the sales laws
29-Jul-2005: Agreement with Debitel France, a
subsidiary of German mobile telecommunications
services provider Debitel AG
24-Sep-2004: eBay France to offer products through
Cdiscount

Binder GmbH: 37%
Prüfer GmbH: 35%
Deutsche Venture Capital Gesellschaft: 10%
Friends & Family and Investors: 18%
Jan-2006: Company exceeds 2005 sales target
Jan-2006: Company considering various options
including to go public
2002
Headquartered in Germany with offices in the United
States, France, Switzerland and United Kingdom
Business
Leading provider of custom, online apparel in Europe
and is growing rapidly in the United States
E-Merchandising or Micro-Merchandising
Spreadshirt’s concept:
— It allows private and commercial website owners
to benefit from the popularity of their homepages
with the chance to make a profit from the start and
without costs or risks
— It provides all the technology needed to create
individual products and online shops
— Shop Partners don't need to keep stock, produce
items, ship merchandise, programme software or
manage payments. In addition, consumers at
Spreadshirt can easily and quickly order online tshirts and more in the style of their choice
>60,000 online shop partners throughout Europe in
beginning of 2005
Privately held company
28-Feb-2006: Spreadshirt.com to launch a new site
called Spreadshirt Latino that empowers consumers
to design and customize their own unique apparel
and gift items
29-Jan-2005: Mark E Seremet, co-founder of Take
Two Interactive Software, the publishers of Grand
Theft Auto, has joined the company as its new CEO
29-Jul-2004: Spreadshirt won the "Business Vision
Award" from Hewlett Packard (HP) Germany
41
Mobile
Date Founded
HQ Location
Type
Description

July-2003
Vienna, Austria
Mobile
Premium sms services, premium online services for
example photo-upload and mobile entertainment
products like logos, ring tones
Offers users not a multitude of possibilities to present
oneself online, using personal nickpages and ways to
communicate with others for example email, guestbook
entries, mobile using sms, mms and i-mode
Works on the move, means not only within the web, or
from web to mobile; but also mobile to web, or mobile
to mobile
Offers the platform, the users deliver and control the
content
Other important services are free-mail, mobile
entertainment platform, photo service and community
features such as chat and discussion forums
Sale of media products on the website
5.68 million users
Users

Owners/
Shareholders
Private Company
Co-founder and chairman: Marwan Saba
Latest News
20-Apr-2005: Uboot.com plans to enter local the local
telephony market , competing with seven rivals

June 2000
Lancaster, UK
Mobile
Key business lines
— Consumer services (88% of 2004 revenues): chat,
celebrity gossip, music, film, sports. 400,000 subs
(Mob club, See Mee, Jet Set Club) at the end of
2004
— Network services (12% of 2004 revenues)
Key products:
— Ring tones and games

1995
Florence, Italy
Mobile
Direct to Consumer
— D2C Community: average 4.5m unique visitors per
month in 2004 on web chat, forum, blog + ring
tones, music
— D2C Entertainment (ring tones, images,
screensavers, wallpaper, music, video, MMS, Java
games)
Business (indirect model)
— 60 big corporate clients
— 50,000 SMEs
Key products: ring tones, images, games, music,
entertainment and news
Around 3.2 million mobile subscribers
860,000 active mobile subs at end Feb 2005 (total
number of subs served: 2m)
Subsidiary of Italian ISP Dada group
Directors: 44.9%
Artemis Investment Management: 8.4%
TecCapital Limited: 7.4%
Framlington UK Select Opportunities Fund: 6.27%
New Star Select Opportunities Fund: 3.57%
Others: 29.46%
Acquired ATOP Century Limited, a leading provider of Jan-2006: The average month-on-month rise in
DADAmobile's turnover between October and
value added mobile content services in China in a cash
December 2005 stood at 30 pct
and stock deal (Revenue and EBITDA in H1 2005 of
March 2005: Dada signed a 2-year partnership
$6.5 million and $4.0 million respectively)
agreement with Linktone
In 2004-2005, bought
— Mediaprom (a specialist competition and gaming
company) for £10.6m
— Phunky Phones (provider of mobile content,
primarily through the Vodafone Live! Portal) for
£0.75m
— 9 Squared (A US based company providing
products and services to several international
networks) for £1.6m
— Upper Mobile Limited for £19.11m
— Unrealmind Interactive Berhad (MonsterMob
increased its ownership to 98% in May 2005)

42
Mobile (Cont’d)
Date Founded
1996
1995
2000
HQ Location
Madrid -Spain
Milan, Italy
London, UK
Type
Mobile
Mobile
Mobile
Description
LaNetro Zed is a leader in developing, marketing and
distributing unique games, entertainment,
personalization products, communication tools and
Location Based Services (LBS)
Agreements with over 50 mobile operators worldwide
distributing Buongiorno Vitaminic’s services to a
potential audience of over 900 ml clients (45% of the
total 2 billion mobile users worldwide)
A catalogue of about 250,000 digital contents
(sounds, images, multimedia games)
Over 300 ml digital contents delivered every month to
mobile and email users
An efficient technical/ operational platform-B!3A-well
supporting the complexity (growing exponentially with
its size/ diversification) of the business (170 servers,
three date centres, 300m messages delivered per
month
Stream was established in 2000 to develop and market
a complete range of mass-market entertainment and
information products through IVR, SMS, online and
offline
Stream’s portfolio of products is marketed in the UK and
internationally both through partners and direct to
consumers - delivered via mobile (data) and fixed line
(voice) telephony
Stream Group plc currently comprises four main
businesses that encompass mobile (data) services,
voice services and telecoms services
— Stream Mobile
— MChex
— Stream Live Services
— Talk Telecom, music, entertainment and news
Users
Company services >40 carriers in 13 countries
NA
NA
Owners/
Shareholders
Subsidiary of the Wisdom group

Latest News
Feb 2006: Netsize, the leading global wireless
solution enabler has been selected by LaNetro Zed to
launch its services in France
Feb 2005: Revenues for 2004 in excess of £94
million. This represents an increase of 400% from the
year before. Also, the company has invested over
£20M in the acquisition of Zed and £9M in the
restructuring of the group
Announced plans to officially launch U.S. services in
October, capitalizing on its vast catalogue of
proprietary mobile content and experience in some of
the world’s most developed wireless markets
27-Feb-2006: Luc Maas is the new President of
Buongiorno Northern Europe
10-Feb-2006: Buongiorno Vitaminic, 2005 revenues
(€136m) and EBITDA (€12.2m) objectives exceeded
26-Jan-2006: Buongiorno and Mitsui decide to
complement initial investment in JV
Mauro Del Rio 25.11%
Jorge Mata Jimenez 2.95%
Barilla Holding SpA 2.27%
Holger Van Den Heuvel 3.69%
Schroder Investment Management Ltd 4.76%
Free Float 61.22%

Reef Investments 30.0%
Fleming Mercantile Investments 7.5%
Michael Spencer 6.6%
Others 55.9%
28-Feb-2006: 2005 results announced (₤13.2m
revenue, £2.2m EBITDA)
43
Mobile (Cont’d)
Date Founded
Apr-2002
August 1987
HQ Location
Paris, France
Toulouse, France
Type
Mobile
Mobile
Description
Provides value-added sites and services on a mobile phone
such as site navigation, content management and multimedia
services
Tekora is the European leader in Mobile Internet sites and
services. Tekora ASP product line provides tools,
technologies and services, which help to rapidly deploy an imode/wap site or any mobile site. With Tekora, master your
pocket Internet site in a few minutes - simplicity, performance
and reliability are guaranteed
Interactive features such as Weblog, Forum, Golden book,
Picture, Video, Music Gallery, Ring tone Gallery, Newsletter,
Pop eMail and Directory
Offers basic services for free and premium services for fees
Leading designer of value added mobile products and
services aimed at the general public and companies in
France and in most of Western Europe, and other countries
such as Thailand
Provides users with services that customize their mobile
telephones, such as ring tones, logos, Java-based games,
voicemail messages, video content, ring back tones,
interactive jokes, ring and voicemail videos, information,
news, social contact possibilities, and games/ contests
Users
NA
NA
Owners/
Shareholders
Ten private investors provide financial support to Tekora
Index Intercontinental Holdings: 70.15%
Others: 29.85%
Latest News
25-Oct-2005: The company launched Mobitype, a
moblogging solution at Blogs 2.0 in Paris
20-Dec-2005: 123 Multimedia’s company name changed to
Index Multimedia
16-Dec-2005: Index Intercontinental Holdings Ltd acquired
the 123 Multimedia shares held by Patrick Abadie and his
wife via the G5 Holding Company for €42.01 million
12-May-2005: Revenue for Q1 2005 is €38.8 million
— B-to-C: € 30.2 million or 77.8%
— B-to-B: €7.1 million or 18.4%
13-Dec-2004: 123 Multimédiato list on Euronext Paris/ Final
offer price of 34 euros per share
44