Tough fiscal picture for 2018 as Netgem unveils services strategy
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Editor
| 24 January 2019

It may have endured a tough 2018 with marked falls in both its revenues and profits but telco TV technology and services provider Netgem believes that it has opened up a new chapter in its story of the connected home.

At the end of the fourth quarter of 2018, Netgem posted consolidate revenue of €10.8 million, plunging 34% compared with 2017 and a consolidated net revenue of €4.7 million, down by a similar amount on a comparable yearly basis. For the full year 2018, Netgem reported consolidated revenue of €41.8million, tumbling 32% compared with the end of 2017 and consolidated net revenue for the year of €19.7 million, a fall of 22%.

The company said that the results confirmed the expected slowdown in operators' investments in set-top-box-based services which it had observed since the beginning of 2018. It added that the more moderate slowdown in net revenue was due mainly to the contributory effect of services activities within the scope of consolidation of Netgem.

However, there was much better news for the Videofutur Fiber business line, for which Netgem is the largest stakeholder, where revenue grew 82% to exceed € 10 million.

“By creating Netgem in 1996, our ambition was to offer everyone the services of a connected home,” commented Joseph Haddad, founding president of Netgem Group. “Boxes have been the solutions for us to connect millions of televisions. It has been a successful first step. With Fiber, we open ourselves to the market of new services and uses of the whole family. This is where we want to invest from now on.”