Investment Opportunity June 2013 Company Snapshot
Confidential Investment Opportunity June 2013 Company Snapshot Background and Overview V Liberty Global has retained Morgan Stanley to explore strategic alternatives for Chellomedia, including a potential sale of the business V Chellomedia is a wholly owned subsidiary of Liberty Global, Inc. – A leading producer and distributor of thematic Pay TV channels globally – Significant majority of revenues generated from subscriptions (over 75% of channel business revenues) – Strong portfolio of 65 (1) television channels, reaching c. 391 million TV subscribers globally as at March 2013, and with revenues of c. €335 MM in 2012 (actual, not adjusted for acquisitions e.g. only includes 5 months of consolidated MGM LatAm business) – Offers TV entertainment in the 6 popular genres: Sports, Movies, Entertainment, Lifestyle, Children’s and Factual Programming – Active consolidator with track record of creating value through acquisitions and significant scope for future strategic actions – Significant majority of revenue and profitability generated from a diversified, non-LGI customer base – The company also provides digital services, such as broadcasting solutions, creative, and play-out services, and operates a wholesale advertising brokerage business – Employs over 1,250 employees in over 25 locations, with main offices in London, Amsterdam, Madrid, Budapest, Miami and Buenos Aires, with further regional offices and agents in Central Europe, China and Singapore V Chellomedia runs its business through five key operating companies and units: Chello Zone, Chello Multicanal, Chello Central Europe (including AtMedia, a wholesale advertising brokerage business), Chello Latin America and Chello DMC, which provides technical services to both Chellomedia internally as well as to external third party clients Revenue Breakdown (2) By Business Unit (Q1 2013A) By Type (Q1 2013A) Chello DMC 10% Chello Zone Chello LatAm 23% Other 13% 34% Subscription 55% Chello >75% of total Multicanal channel business (3) 17% revenues Chello Central Advertising Europe 11% 37% 1.
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