Enterprise Values of 22 Public Mobile Entertainment Companies Aug 2010

Update June '10: Enterprise Values of 21 Public Mobile Entertainment Cos Including Motricity

Updated Enterprise Values of 15 Public Mobile Entertainment Companies

What a difference a week makes. I'm already updating this spreadsheet with some new data. Here are some notable changes:

• Buongiorno posted Q1 2010 earnings
• Velti filed updated earnings with the SEC as part of their bid to go public on the NASDAQ (they're currently listed on LSE)... their numbers are pretty impressive (more on that soon)
• Mandalay Media, parent of Twistbox & AMV, changed its name to NeuMedia, Inc. & announced a notice of default related to a cash balance provision from a key creditor
• ROK Entertainment's stock is down over 50% today (guessing they'll be more news to follow). Btw - did y'all know the biggest shareholder in ROK is the DeJoria family, which controls the Paul Mitchell salon product empire? Always thought the guy in the ads was Paul Mitchell... but that's actually John Paul DeJoria (Mitchell was his founding partner). Anyhoo, probably hasn't been a great investment no matter how you cut & color it

Latest Enterprise Values of 15 Public Mobile Entertainment Companies

• Data for Velti & ROK Entertainment should be taken with a grain of salt, since they haven't released financials in recent quarters
• It looks like a couple of these companies should consider giving their cash back to the investors, and calling it a day. Some of them shouldn't be public at all (and are barely going concerns)
• I think the shining stars of this lot are the mobile games publishers Gameloft, GAMEVIL & Com2uS
• I look forward to adding Motricity into the mix, once (if?) they go public
• Let me know your thoughts on this and if there are any other public mobile entertainment companies I should be tracking

Velti Forecasts $106mil in 2009 Revenue

UK mobile advertising outfit Velti Plc (VEL), the company that bought AdInfuse last year, got a jump on FY 2009 earnings season by forecasting revenues of over $106mil... which represents 24% year on year growth. The company claims to have run over 2k campaigns for over 450 brands during the last year and indicated that demand for its products remains strong. While the company is trying to spin the earnings as "in-line", many analysts had them pegged in the $115mil range, so the company's stock took a 3% hit in London trading today. It'll be interesting to see the rest of the numbers when they report full details in the next few weeks. Despite the near miss, Velti is probably the biggest of the mobile advertisers, with revenues more than double those of hyped US plays like Millennial and AdMob (in the process of being acquired by Google for $750mil) and at least 5x the revenues of Quattro (which is being acquired by Apple for $275mil). Oh, and by the way, these guys actually turned a (real) net profit last year. One wonders why, in light of Velti's performance and the recent frothy valuations of other mobile advertisers, that its market cap is only around $153mil.

Cabana Mobile Entertainment Top 20 by Revenue

€/$=1.4849

? = best estimate

Enterprise Values of 15 Public Mobile Entertainment Companies

Enterprise Values of 12 Public Mobile Entertainment Companies

Cabana Mobile Entertainment Top 20 by Revenue

All numbers are in US$ based on annual reports or last 4 quarters.

As usual, please comment with any suggested changes.

Velti's Prelim 1H 2009...Still Hard To Read The Health Of Mobile Marketing

London-based mobile marketing platform provider Velti (VEL), which recently bought Ad Infuse, estimates that it's Jan - June revenue has grown 50% to about $30mil on "strong demand" for it's technology, according to Reuters. The company, founded in 2000, has contracts with big mobile operators like Vodafone, Orange France & Telefonica Mexico and a bunch of blue-chip brands like Microsoft, Mastercard, Nestle, Disney, Colgate-Palmolive and Bacardi. Velti claims its platform can currently reach up to 2bil people in 35 countries (hmm...but how many people have actually ever seen a Velti message?). While ostensibly encouraging, what's totally unclear from this statement is whether there's any organic growth going on here, or whether gains are solely attributable to the Ad Infuse acquisition. I guess we will see when the real numbers are released in the next few weeks.

btw -- there's been a lot of speculation about how much Velti paid for San Francisco-based Ad Infuse...but the fact that the company is now disclosing that it's borrowed $14mil from investors to fund the purchase (and other activities) should help give us a clue...again, all should be revealed with official 1st half results.

Updated Cabana Mobile Entertainment Top 20 by Revenue

Cabana Mobile Entertainment Top 20 by Revenue

Revenues are in US$ and are based on latest annual reports or industry estimates. The range of revenue on this list goes from a low of ~$50mil to a high of ~$550mil. Total revenue for the Top 20 is ~$4bil.

Please let me know if you think I'm missing a company or if you think I might have the order wrong.