NETGEM (EPA:ALNTG) - 2017 full year revenue and gross profit +18% growth of subscribers base

Transparency directive : regulatory news

18/01/2018 06:00

2017 full year revenue and gross profit
+18% growth of subscribers base

Paris-La Défense, January 18th, 2018

Revenue, gross profit, activity and outlook

                                                 FYE    FYE
Consolidated    Q4 2017   Q4 2016    Change      2017   2016       Change
Revenue
(EUR million)    16.5      15.5   +1.0    +6%    61.8   74.3   -12.5    -17%
Gross profit
(EUR million)     6.8       6.0   +0.8   +13%    24.6   27.5    -2.9    -11%
Subscribers
base ('000)     1 990     1 684   +306   +18%

For the quarter ending December
31st, 2017, Netgem announces a consolidated revenue of EUR 16.5 million and a
gross profit of EUR 6.8 million, bringing the consolidated revenue and gross
profit for 2017 to respectively EUR 61.8 million and EUR 24.6 million
(unaudited).

Revenue and Gross profit were up in Europe in 2017 compared to 2016, but were
impacted by the software licensing agreement with ZTE and Totalplay in Mexico
and the subsequent decrease of hardware sales.

The active subscribers base went up 18% compared to the end of December 2016,
reaching circa two million daily users at the end of December 2017.

Vitis, a 56% subsidiary of Netgem and provider of fiber-to-the home
entertainment services in France, continued to grow its subscribers base. Vitis
is not consolidated in the figures reported for 2017. Had Vitis not been
consolidated in 2016, the comparable revenue and gross profit for the full year
2016 would have been respectively EUR 70.3 million and EUR 26.4 million(1).

As at December 31st, 2017, the Group net cash position amounted to 10.2 MEUR,
post completion of the public share buy back of EUR 25 million in November
2017.

(1) Such pro forma financial information addresses a hypothetical situation and
does not represent the company's actual financial position or results.

Significant events and transactions

At the Las Vegas CES, Voxtok - Netgem's music division - announced a global
partnership with Napster that will add 40 million titles to the Voxtok Music
service and the Soundbox soundbar. Soundbox is a unique family entertainment
solution combining mobile and TV content services with an innovative device.

Netgem believes future growth in the digital entertainment market will be
driven by the transition to Over The Top services ("OTT") and in particular
by:

- growing the addressable customer base of its Clients beyond their network
   footprint.
- winning new operators to its end-to-end OTT TV service;
- opening new distribution routes via licensing for its devices and content
   partnerships.

The Group owned about 6.3% of its capital as at December 31st, 2017 and is
continuing its share buyback program.

Indicative financial communication calendar

- Results 2017:                         March 9th, 2018 before market opening

- Revenue and gross profit for Q1'2018: May 3rd, 2018, before market opening

- Annual shareholders' meeting:         May 3rd, 2018

- Revenue and results for H1'2018:      August 3rd, 2018, before market opening

- Revenue and gross profit for Q3'2018: October 18th, 2018,
                                        before market opening
About Netgem
Netgem is the publisher of Diamond, a software platform for next generation
entertainment and connected home services, and a solutions providers to the
telecoms industry. Diamond is available under license for service operators,
content providers and device manufacturers looking to benefit from the OTT
digital transformation of the TV, video and audio industries, or as part of
end-to-end solutions to the telecoms industry. Netgem extensive experience and
technological assets in software, user experience and security, combined with
its global partnerships in content and device manufacturing make it a unique
one-stop outsourcing partner for telecom service providers seeking to increase
revenue and build loyalty on an existing consumer base. Through its customers,
Netgem solutions address several million households in more than 20 countries.
Netgem is long term driven by innovation, simplicity, privacy, affordability
and operational excellence. Netgem is listed on Euronext Paris Compartment C
(ISIN: FR0004154060, Reuters: ETGM.PA, Bloomberg: NTG:FP)

www.netgem.com

NETGEM's latest news

30/04/2024 17:45

NETGEM (EPA:ALNTG) - 2017 full year revenue and gross profit +18% growth of subscribers base

Transparency directive : regulatory news

NETGEM's latest news

Other stories