MUL multiemedia limited

--what they are saying

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    KEY POINTS FROM A BROKERS REVIEW
    ! Data & Internet Solutions in Australia including ISDN have an estimated market of
    A$6 billion. Our revenue forecasts during 2004-2006 for Multiemedia reflect market shares
    of 2% - 8% with 1 satellite transponder in 2004 rising to 3 transponders in 2006.
    ! The satellite hub & terminal equipment infrastructure will be provided by USA-based ViaSat
    to Multiemedia. ViaSat are up to be 5x faster with bandwidth downlink speed compared
    with the competitors (Hughes & Gilat). In Australia Optus the satellite fleet operator
    provides hub & terminal equipment using a maximum one spot beam compared with 6 by
    Multiemedia’s satellite NSS6.
    ! In FY2004 the rapid deal flow from Multiemedia’s superiority is expected to generate
    operating revenues of A$100m including 70% from space & end user equipment.
    Multiemedia commence commercial satellite operations on October 1, 2003 with a 5-year
    contract to increase from 1 to 3 transponders. Each transponder generates A$100m of
    revenues at current prices.
    ! We value Multiemedia @ 10-15x FY2004 earnings forecast at A$34m implying a valuation of
    A$340-510m representing 37-56c per share using current issued capital of 910m securities.
    We have assumed a dividend payout ratio of 25% if the business plan is realized.
    ! Investors will receive clear signals of Multiemedia’s emerging broadband superiority
    through Australian Government Agencies’ preference for Multiemedia’s services for new
    business contracts. Head-to-head bidding against Optus is currently raging for broadband
    contracts.
 
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