NETGEM (EPA:ALNTG) - Q1 2018 revenue
Transparency directive : regulatory news
03/05/2018 06:01
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Q1 2018 revenue
Paris-La Défense, May 3rd, 2018
Revenue and activity
EUR Million - consolidated IFRS Q1 2018 Q1 2017 Change
Non audited
Revenue 11.0 14.7 -3.7 -25%
Net revenue 5.3 6.4 -1.1 -17%
The growth in the number of active users was lower than expected in the first
quarter of 2018 (+34,000 compared to the last quarter of 2017), causing a
slowdown in the deliveries of new terminals. As a result, revenue reached EUR
11.0 million in the first quarter of 2018, down 25% compared to the first
quarter of 2017.
The impact on net revenue, which reached EUR 5.3 million in the past quarter,
is less significant, given the growing share of revenue related to the
subscribers base (SaaS effect). It is worth noting the EUR 0.5 million negative
impact on net revenue compared to 2017 due to the application of IFRS 15 since
January 1st, 2018 (maintenance revenue billed in the first quarter are spread
over the year). Without this accounting effect, the decline in net revenue
would have been 9%.
On the French market, Vitis, Netgem's participation that is active as a
provider of fiber-to-the-home services, continues to grow and has just
announced:
- An agreement with TDF, representing a potential of 700,000 additional home
passed;
- The addition of a mobile phone offer;
- The launch of its new Videofutur brand platform.
Significant events, strategy and outlook
The Group is preparing to launch in the UK its Soundbox product, a complete TV
and OTT music offering coupled with a connected soundbar and voice control.
This "service product", launched on Amazon at the next TV Connect on May 9th,
will be gradually distributed in the whole British market and in other
territories over the year.
The joint developments of OTT and new services in the connected home open new
perspectives in the box market. The Soundbox is the first step that the company
is taking to value its historic assets in this new market.
The Group continues its transition to the SaaS business model, which aligns net
revenue with the growth of its active pool of terminals. The transition to the
new generation of 4K terminals and the launch of product binding TV and music
are the main vectors of this evolution.
The dividend of EUR 0.10 per share will be proposed to the general meeting of
May 3rd, 2018, with payment on May 18, 2018.
The Group continued its share purchase program and held 7.1% of its own capital
at the end of April 2018.
Calendar of Financial Communication
- Revenue and results for H1'2018: August 2rd, 2018, before market
opening
- Revenue and gross profit for Q3'2018: October 18th, 2018, before market
opening
About Netgem
Netgem is the provider of a new generation of connected devices for digital
entertainment and related services.
Netgem's connected devices and related services are used daily by millions of
homes around the world and operate under the brands of our distribution
partners, telecom and entertainment service providers.
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