Digi-Capital Mobile Internet Investment Review Q2 2014 Executive Summary

download Digi-Capital Mobile Internet Investment Review Q2 2014 Executive Summary

of 43

  • date post

    23-Aug-2014
  • Category

    Mobile

  • view

    1.982
  • download

    1

Embed Size (px)

description

Executive Summary of full Review of global mobile internet market, including economics, industry dynamics, trends, 2011 to Q2 2014 M&A and investment transactions, public company and M&A comparable valuations, and operational metrics analysis across sectors. The full Review can be downloaded at www.digi-capital.com/reports

Transcript of Digi-Capital Mobile Internet Investment Review Q2 2014 Executive Summary

  • Mobile Internet Investment Review Q2 2014 Executive Summary Contact: info@digi-capital.com Digi-Capital 2014www.digi-capital.com Authorised and regulated by the Financial Conduct Authority
  • 2 Disclaimer This document has been produced by Digi-Capital Limited and is furnished to you solely for your information and may not be reproduced or redistributed, in whole or in part, to any other person. No representation or warranty (expressed or implied) is made as to, and no reliance should be placed on, the fairness, accuracy or completeness of the information contained herein and, accordingly, Digi-Capital Limited does not accept any liability whatsoever arising directly or indirectly from the use of this document. In particular, the inclusion of any financial projections are presented solely for illustrative purposes and do not constitute a forecast. The recipient should independently review the underlying assumptions of the financial projections. This document is intended for initial contact with individuals and entities known to Digi-Capital Limited. This document is intended for use by the individual to whom it is sent, it is confidential and may not be reproduced in any form, further distributed to any other person, passed on, directly or indirectly, to any other person or published, in whole or in part, for any purpose without the prior written consent of Digi-Capital Limited. In the event that you are not the recipient indicated and you have inadvertently received this document, please delete it immediately. This document does not constitute or form part of, and should not be construed as, an offer, solicitation or invitation to purchase, subscribe for, or otherwise acquire any securities nor shall it or any part of it nor the fact of its distribution form the basis of or be relied upon in connection with any contract or commitment whatsoever. Any investment decision should be made solely on final documentation, and then only after review of the diligence materials and consideration of all relevant risks. Digi-Capital Limited does not have any responsibility for the information contained herein and does not make any representations or warranties, express or implied, as to the adequacy, accuracy or completeness of any statements, estimates or other information contained in this document. The information contained herein, while obtained from sources believed to be reliable, is not guaranteed as to its accuracy or completeness. This document may include forward-looking statements, including, but not limited to, statements as to future operating results and potential acquisitions and contracts. Forward-looking statements are sometimes, but not always, identified by their use of a date in the future or such words as anticipates, aims, could, may, should, expects, believes, intends, plans or targets. By their nature, forward-looking statements are inherently predictive, speculative and involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future. There are a number of factors that could cause actual results and developments to differ materially from those expressed or implied by these forward-looking statements. No assurances can be given that the forward-looking statements in this document will be realised. Digi-Capital Limited does not intend to update these forward-looking statements. No securities regulatory authority has approved or expressed an opinion about Digi-Capital Limiteds business prospects or any related securities. Any such securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "Securities Act"), or any other state or federal securities laws and may not be offered or sold in the United States of America absent registration under the Securities Act or an exemption from the registration requirements thereof. Digi-Capital Limited and any entity referred to in this document have not and will not be registered under the United States Securities Exchange Act of 1934, as amended or the US Investment Company Act of 1940, as amended, and any related securities may not be offered or sold or otherwise transferred within the United States or to, or for the account or benefit of, U.S. persons except under circumstances which will not require Digi-Capital Limited or any associated entity to register in the United States in accordance with the foregoing laws or any other law. Digi-Capital Limited is authorised and regulated by the Financial Conduct Authority. Digi-Capital Limited is the copyright owner of this document and does not grant you any licence to copy, adapt or distribute it, in whole or in part, without Digi-Capital Limiteds written permission to do so.
  • Executive summary Public company and M&A comparables Operational metrics analysis Mobile internet sector reviews (revenue forecasts, public company comparable valuation multiples, public company indices, M&A transactions, M&A valuation multiples, investment transactions - Q1 2011 to Q2 2014, operational metrics analysis)* Advertising/marketing App store/distribution Books Business Education Enterprise mobility/B2B Entertainment Finance Food & drink Games Health & fitness Lifestyle mCommerce Medical About Digi-Capital 3 Messaging Music Navigation News Photo & video Productivity Social networking Sports Mobile Tech Travel/transport Utilities Wearables Weather 19 41 47 49 94 102 107 114 122 151 171 183 195 239 247 257 292 496 300 319 333 340 345 364 372 392 399 443 460 488 493 * Where available - see detailed table of contents for individual sector contents Note: investments 3x to $700B* by 2017 Mobile internet revenue to grow >3x to $700B* by 2017F driven by mCommerce, IAPx and App as a Service mCommerce growth to >$500B sales by 2017F driven by Asia, America and Europe (almost half in Asia) Consumer apps to >$70B by 2017F with non-games apps to double revenue share from 26% to 51% Mobile internet investment record >$14B in last 12 months Mobile internet M&A record >$47B in the last 12 months (>$28B excluding Facebook/WhatsApp) Opportunities across mobile internet Investment Quadrant with >20 billion dollar companies already Mobile internet public and private company relative valuations vary significantly across sectors Deep metrics understanding enables data driven approach to mobile internet investment and growth * Note: Approximate mobile value added ecosystem revenue forecast 2017F X IAP = in-app- purchase
  • -30% -20% -10% 0% 10% 20% 30% 40% 50% 60% -40% -20% 0% 20% 40% 60% 80% Consumer media consumption marketshare/growth (Size of bubble = marketshare 2013) Sources Digi-Capital, eMarketer, Business Intelligence, US data, other smaller media not shown Dramatic mobile usage growth is disrupting incumbents Mobile 20% Print 4% Long term CAGR (09-13) Short term growth (12-13) Radio 12% TV 38%Online 20% 6 Digi-Capital 2014 Online Pain Mobile cannibalizing Online faster than TV Mobile Gain Mobile has grown total media usage by 13.6%
  • $516B $74B $53B $42B $11B $133B $21B $26B $12B $3B Mobile internet revenue to grow >3x to $700Bx by 2017 7 Sources: Digi-Capital, PWC, AppAnnie, Companies, Gartner, Strategy Analytics, Zenith Optimedia, Business Insider, Goldman Sachs * Note: In-app advertising revenue included in consumer apps revenue Note: Excludes smartphone/tablet sales and mobile subscription revenue x Note: Approximate revenue for mobile value added ecosystem Digi-Capital 2014 mCommerce dominates with mCommerce, in-app purchase, App as a Service, advertising models driving revenue growth 2013 2017 mCommerce Consumer apps Enterprise mobility Mobile web adspend Wearables
  • mCommerce to >$500B sales driven by Asia, America and Europe 8 mCommerce regional sales ($B) Sources: Digi-Capital, Goldman Sachs, eMarketer, Companies - 100 200 300 400 500 600 2013 2014F 2015F 2016F 2017F Asia North America Western Europe Eastern Europe Latin America ME/Africa The Asian mCommerce century Asia to account for almost half of global mCommerce by 2017F Digi-Capital 2014 mCommerce sector forecasts by smartphone and tablet in full Review
  • 0 10 20 30 40 50 60 70 80 2011 2012 2013 2014F 2015F 2016F 2017F Games Social Networking Books Music Medical Productivity Education Entertainment News Photo & Video Navigation Travel Lifestyle Utilities Business Sports Health & Fitness Finance Weather Other 9 Consumer apps to >$70B revenue driven by explosion of diversity Sources: Digi-Capital, PWC, AppAnnie, Companies, Gartner Note: does not include mobile web advertising (see separate mobile advertising revenue forecasts in advertising/marketing chapter), mCommerce direct sales, enterprise/B2B revenue, or mobile tech revenue 51% 74% 49% Global Mobile Apps Sector Revenue($B) 26% Digi-Capital 2014 Game changer Non-games categories to match games revenue by 2017 Individual sector forecasts in full Review
  • Travel/ Transport 3.4 Utilities 1.5 mCommerce 1.4 Games 1.0 Tech 0.9 Social Networking 0.8 Enterprise/ B2B 0.8 Advertising/ marketing 0.7 Messaging 0.7 Photo & Video 0.6 Music 0.4 Food & Drink 0.4 Finance 0.3 Lifestyle 0.2 Entertainment 0.2 App store/ distribution 0.2 Health & Fitness 0.2 Medical 0.2 Other 0.7 10 Mobile internet investment record >$14B in last 12 months Note: See transactions by category in full Review Note: Transaction value includes only disclos