Netgem picks up EE TV but revenues fall in third quarter
| 09 October 2014
Connected home video entertainment solutions and services provider Netgem has posted its third quarter results revealing a challenging 2014.
For the quarter ended 30 September 2014, Netgem announced consolidated revenue of Ä20.5 million, down 15% year-on-year, bringing the consolidated revenue for the first nine months of 2014 to Ä58.3 million, inching back 1% on a yearly basis. Revenues for the Netgem TV business line slid 14% year-on-year to Ä9.1 million and those of the NetBox fell further, 16%, to Ä11.4 million. On a nine-month basis, Netgem TV revenues were up 5% year-on-year to Ä27 million but those of NetBox fell 3% to Ä31.3 million.
Looking at specific business areas, Netgem confirmed a sharp drop of its shipments to Australia in the second half of 2014 and said that it did not anticipate any activity there in 2015 other than the maintenance of the existing estates.
However the company was pleased to announce a number of key wins which it believes will drive future revenues. Sri Lanka Telecom, the country's fixed line incumbent operator, is deploying the first IPTV offer in the country, PEO TV, which incorporates bouquets of HD channels, catch-up TV, VOD, games and e-learning. Yet most excitingly, Netgem has won the rights to deliver the service offer for EE TV, the recently launched multiscreen TV service from UK mobile telco EE which will offer 24-hour replay, catch-up and on-demand channels.