NETGEM (EPA:ALNTG) - Activity Q3 2020: Continuing net income growth

Transparency directive : regulatory news

21/10/2020 07:30

Press Release

                             Activity Q3 2020:
                        Continuing net income growth

Paris, October 21, 2020,

Netgem's activity in the third quarter of 2020 was marked by a continuation of
the commercial dynamics of its "as a service" model with operators (in B2B and
B2B2C mode) or with its direct customers (in B2C mode), which overall
represents more than 90% of the activity his quarter. The highlights for the
quarter are:

- Growth in net income, confirmed quarterly and more markedly from year to year
  due to the integration of Vitis,
- Continued growth of the subscribers base in Finland with Elisa, in Great
  Britain with various Very Broadband operators and in France with the
  integration of Comcable in particular,
- The launch at the beginning of October of the new range of MESH products in
  France to VIDEOFUTUR customers.

For Mathias Hautefort, CEO of NETGEM, "The third quarter was marked by a
revival of post-containment B2C and B2B2C commercial activities, in particular
on the French and British markets, which should have a positive impact on net
revenue of the coming quarters. NETGEM's technological platform in SaaS mode -
associated with the Group's expertise in Content - demonstrates its technical
and economic robustness, and new operator customers should be launched in the
coming months"

Turnover and net revenue (*) (in millions of euros, IFRS, unaudited)

Netgem Group    Q3 2020    Q2 2020     Q3 2019     Change      Change.
                                                  Q3 / Q2      Q3 / Q3

Turnover           6.6        7.4        5.7       - 11%         + 16%
Net revenue        6.4        6.3        3.2        + 2%        + 100%

9 months     9 months     Change
  2020         2019      9 months

22.0          18.8        + 17%
19.5           9.9        + 97%

(*) defined as the turnover less the cost of the equipment sold.

In the 3rd quarter of 2020, despite an 11% drop in turnover resulting from the
foreseen decline in historical BOX activities, net revenue was up 2% compared
to the previous quarter. This reflects the now predominant share of subscribers
fleet management services within the Group's activity. The consolidation of the
French activities (Vitis) brings EUR 4.0m out of the total net revenue of EUR
6.4m, and drives the 100% growth over the same period in 2019.

The Group's gross cash position amounted to EUR 8.0 million at the end of
September. A credit line of EUR 1.6 million was drawn in early October in
anticipation of future collections of research tax credits.

Approval of the transfer of the listing to Euronext Growth

As indicated in the press release dated September 11, 2020, this transfer of
listing will allow the Group to benefit from the dynamics and visibility of
Euronext Growth, while controlling its overheads. Euronext Growth has indeed
asserted itself since its creation as the preferred market for growth companies
with a market capitalization of less than one billion euros and a free float of
more than 2.5 million euros.

NETGEM's General Meeting of Shareholders held on October 20, 2020 approved the
application for admission of the Company's shares to trading on the Euronext
Growth Paris market, and concomitant delisting from Euronext Paris (compartment
C). NETGEM's Board of Directors met on the same day and decided to implement
this transfer, which will be effective in January 2021 subject to Euronext's
agreement.

In a separate press release, also dated October 21, 2020, NETGEM details the
reasons, the terms, the main consequences and the provisional timetable for
this transfer. It is also recalled on this occasion that NETGEM's shares are
eligible to the PEA - PME scheme.

Financial communication calendar

* Q4 2020 revenue and net revenue        January 22, 2021, pre-market
* 2020 results                           March 19, 2021, pre-market
* Q1 2021 turnover and net revenue       April 21, 2021, pre-market
* Annual general meeting                 May 26, 2021
* H1 2021 results                        July 30, 2021, pre-market
* Q3 2021 sales and net revenue          October 20, 2021, pre-market

Contacts
Investor and Analyst Relations
Bertrand Soleil
bertrand.soleil@double-digit.com
Tel: +33 (0) 6.23.31.06.53

Press Relations
Patricia Ouaki
patricia.ouaki@forcemedia.fr
Tel: +33 (0) 1.44.40.24.01

About Netgem
Netgem is an independent provider of ultra-broadband consumer services. The
customers managed by the Group are located in Europe, mainly in France, Great
Britain and Finland. They are managed for Netgem's own account (in France) and
for the account of third-party operators. In France, the Group operates in
rural areas in conjunction with infrastructure investments underwritten by
public authorities aiming to reduce the digital divide and improve regional
planning.
The Group stands out thanks to its end-to-end technological mastery of its
digital TV, video and music streaming offer with a unified and unique
experience on TV, mobile and voice control, including the biggest brands of
local and global content.
Netgem is listed on Euronext Paris Compartment C
(ISIN: FR0004154060, Reuters: ETGM.PA, Bloomberg: NTG: FP) www.netgem.com

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