Solid 2015 sets up Netgem for new markets in next twelve months


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Joseph O'Halloran

| 15 January 2016




Ending a year in which it made traction in securing a number of content partnerships, telco TV and end-to-end video entertainment provider Netgem has revealed solid annual growth for its 2015 fiscal year.



For the quarter ended 31 December 2015, Netgem announced consolidated revenue of €18.2 million, bringing total consolidated revenue for 2015 to €78.8 million, up 9% compared with 2014. By this time, the company had made 29 additional content partnerships for the UK and European markets throughout the year , bringing the total number of partners to more than 50 and providing over 400 TV channels with on-demand video assets such as YouTube, Wuaki.TV, Sky’s Now TV, Eurosport, National Geographic, Cartoon Network, France 24, Mubi and Netflix.

Netgem says that the latter’s recent deployment in 130 countries demonstrates the acceleration and globalisation of the telco TV market which it serves. And with this in mind its objective for 2016 is to open business in five new markets, beyond the 14 in which it currently has a distribution. It adds that if the positive trend in the active markets is confirmed, this would lead to another year of growth.

Looking at what could be the possible market drivers, Netgem says that mobile is becoming the primary screen to consume content, creating an opportunity for operators and content providers to implement mobile TV solutions. In addition, it expects smart content discovery — helping users find the right content across multiple providers, through social recommendations — will be of the essence for sustainable consumer loyalty.

From its own corporate perspective, Netgem noted that because of the growing role of software and services, and the shift to the cloud of functionality previously performed in set-top boxes, its KPI for growth in 2016 should be gross profit (net of hardware costs) rather than revenue.