NETGEM (EPA:ALNTG) - 2016 Full Year results - April 6 2017

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06/04/2017 07:00

2016 Full Year results

Paris-La Défense, April 6th, 2017

2016 Results and Financial Position

EUR million - Consolidated IFRS           2016(1)    2015           Change

Revenue                                   74.3       78.8       -4.4      -6%
Gross profit                              27.5       25.8       +1.7      +7%
Current operating income                   5.5        1.9       +3.6    +195%
Operating income                           8.7        1.6       +7,1    +430%
Net income                                 6.3        1.4       +4.9    +339%
OCI                                        0.2        0.4       -0.2     -46%
Total comprehensive income                 6.5        1.8       +4.7    +261%

Revenues for 2016 reached EUR 74.3 million (-6% year-on-year) and gross profit
reached EUR 27.5 million (+7% year-on-year).

Current operating income for 2016 amounted to EUR 5.5 million, a 195% increase
over 2015. Operating expenses decreased by 8% to EUR 22.0 million, notably due
to the streamlining of operations in France, while R&D effort was reinforced.

Including a result of cession linked to the Vitis transaction
(+EUR 3.9 million), Operating income reached EUR 8.7 million in 2016
(+430% year-on-year).

Financial income was EUR 1.1 million, of which EUR 0.4 million from investment
of the Group's cash balance and EUR 0.7 million from foreign exchange hedging
positions.

Group tax charges reached EUR 3.4 million, of which EUR 1.8 million were offset
with deferred tax assets.

The Group recorded a net profit of EUR 6.3 million in 2016 (group share) and
total comprehensive income (IFRS) amounted to EUR 6.5 million.

(1) The last two months of the year 2016 of the Vitis Fiber-to-the-Home and
content business is accounted according to the equity method.

EUR million - Consolidated IFRS                               2016(2)    2015

Cash flow related to operations - after tax (A), of which:     4.9        2.8
- before tax and changes in working capital                    7.6        4.8
- taxes paid                                                   0.1       -0.4
- decrease (increase) in working capital                      -2.8       -1.7
Cash flow related to investments (B)                         -11.4       -1.4
Operating cash flow (A + B)                                   -6.5        1.4
Cash flow related to financing                                 2.9       -5.7
Net change in cash                                            -3.6       -4.3

The Group's operations generated EUR 4.9 million of cash after tax in 2016. The
increase in working capital of EUR 2.8 million in 2016 is mainly due to delays
in reimbursement of French VAT credits.

Cash flows related to investment mainly relates (EUR 10.0 million) to the use
of cash position to provide secured medium-term financing solutions.

Cash flow related to financing encompasses -EUR 5.9 millions of dividends, -EUR
1.8 million of share buy back, +EUR 0.4 million of interests received and +EUR
10.0 millions of factoring linked to the financing solutions mentioned above.

The Group's cash balance at 2016 year end amounted to EUR 32.8 million, a
year-on-year decrease of EUR 3.6 million.

EUR million - Consolidated IFRS                    31/12/2016(3)    31/12/2015
Shareholders' equity and debt
Equity, Group share                                     54.2             54.9
Current and non-current financialliabilities             9.6              0.6
Analysis of net cash
A.Cash                                                  32.8             36.4
B.Current financial liabilities                          3.3              0.6
C.Current net cash (A) - (B)                            29.5             35.8
D.Non-current financial liabilities                      6.3                -
E.Net cash (C) - (D)                                    23.3             35.8

Group financial statements were approved by the board on 5 April 2017.
Statutory audit work was completed and auditors' report is in the process of
being published.

(2) The last two months of the year 2016 of the Vitis Fiber-to-the-Home and
content business is not included in the reported figures.
(3) Vitis Fiber-to-the-Home and content business is consolidated according to
the equity method in the reported figures as at 31/12/2016.

Significant transactions and events

The Group continues its share buyback program and now owns about 7.6% of its
capital.

At the General Meeting of June 1, 2017, the Board of Directors will propose to
maintain the annual dividend to EUR 0.15 per share for 2016.

Calendar of Financial Communication

- Revenue and gross profit Q1'2017:     May 3, 2017, before market opening

- Annual shareholders' meeting:         June 1st, 2017

- Revenue and results for H1 2017:      July 28, 2017, before market opening

- Revenue and gross profit Q3'2017:     October 13, 2017, before market opening

About Netgem

Netgem designs software to connect the daily lives of consumers and their
families. Service Providers around the world use our #TelcoTV solutions built
around our software to deliver bespoke innovative digital entertainment
services to their customers.
From software licensing, to turnkey, white-label, TV as a Service offering,
Netgem offer Telco Service Providers, a complete suite of software, solutions,
content, services and direct access to Telco-grade quality digital devices from
our global industrial partners.
Our #TelcoTV solutions enable Telcos to differentiate, increase ARPU/service
revenue and build customer base loyalty.
Netgem is listed on NYSE Euronext Paris Compartment C (ISIN: FR0004154060,
Reuters: ETGM.PA, Bloomberg: NTG:FP)

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NETGEM (EPA:ALNTG) - 2016 Full Year results - April 6 2017

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