Paris, January 25, 2022,
The total number of subscribers[1] to the Group's services reached 363,000 at the end of December 2021, up more than 30% over the year. Over the period gross profit grew by 11% to reach €17.5 million. More than 90% of gross profit is built on recurring revenues.
This performance is the result of the development of the "Content-as-a-service" offer on Netgem's main markets:
In 2022, Netgem anticipates that this commercial dynamic will come into full play and will result in an acceleration of the growth of its subscriber base with the objective of exceeding half a million subscribers. Despite the persistent tension on the components market, the Group believes that it will benefit, as in 2021, from a level of supply enabling it to meet its objectives.
In an inflationary context, Netgem obtained price readjustments from its customers to preserve the profitability of its contracts. Netgem also continues to tightly control its cost structure. The expected growth in the subscriber base will lead not only to revenue growth but also to gross profit growth, with a positive effect on both EBITDA and cash generation.
The group's gross cash amounted to €6.4 million at the end of December 2021.
For Mathias Hautefort, CEO of NETGEM, “Thanks to our existing portfolio of customer contracts, the year 2022 promises to bring growth, profitability and balance between our different markets. The outsourcing by telecom operators of all or part of their TV and video services is a strong and long-lasting trend. It improves both the financial performance of operators and the satisfaction of their subscribers. We are showing everyday that Netgem is a credible partner in this market. We have to accelerate commercially, endogenously and exogenously if opportunities arise.”
Revenue and gross profit (in millions of euros, IFRS, unaudited)
Netgem Group | H2 2021 | H2 2020 | Variation | 2021 | 2020 | Variation |
Revenue | 13.6 | 14.9 | -9% | 28.3 | 30.3 | -6% |
Gross profit | 8.5 | 8.3 | 3% | 17.5 | 15.9 | 11% |
Financial communication calendar
As of the current quarter, Netgem will replace quarterly communications on revenue with an Trading Summary aimed at providing more information on its main operational and commercial developments.
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Contacts
Investor and Analyst Relations Bertrand Soleil bertrand.soleil@double-digit.com +33 (0)6.23.31.06.53 |
Press Relations Patricia Ouaki patricia.ouaki@forcemedia.fr +33 (0)1.44.40.24.01 |
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About Netgem
Netgem develops, markets and operates the NetgemTV digital entertainment platform which allows telecommunications operators and digital content publishers to create or boost their entertainment offers in streaming mode, accessible on all screens, supplemented if necessary by optimized WiFi SuperStream.
Netgem deploys NetgemTV in Europe and the United States, according to a B2B “Content-as-a-Service” model, requiring no infrastructure investment and generating recurring income over time, indexed to the number of active end-users.
With more than 25 years of experience in the digital entertainment market, Netgem has acquired the recognition of leading telecommunications operators, the know-how necessary to conclude agreements with the largest content owners, and the right combination of hardware and software technological skills to offer its customers the most robust solutions.
Netgem is listed on Euronext Growth.
(ISIN: FR0004154060, Reuters: ETGM.PA, Bloomberg: ALNTG FP)
[1] includes any end-user subscriber of the Netgem platform services, subject to billing, either indirectly (B2B and B2B2C modes), or directly (B2C mode).
Regulated information:
Inside Information:
- Information on annual revenues
Full and original press release in PDF: https://www.actusnews.com/news/72890-2022-01-25-pr-point-activite-netgem-eng-def.pdf