Netgem claims growth, profitability and innovation in first half of 2023
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Editor
| 31 July 2023
After announcing a strategic business plan refocusing on digital entertainment at the start of the year, telco TV service provider Netgem has released financial results showing organic growth driving a solid half year.
Netgem TikTok 17May2022
For the half year ended 30 June 2023, Netgem said it saw marked growth in its subscribers base, up 26% comparted with the end of 2022 thanks to the momentum of its operator customers, particularly in Finland with Elisa, in the UK with Talk Talk, and also in Luxembourg with the switchover of POST to the NetgemTV platform.

Revenue for H1 2023 amounted to €18.1 million, up 11% on the same period in 2022. ARR was €10.1 million, up 65% on an annual basis. This growth translates into a 4% increase in gross margin to €10 million.

Continued control of operating costs combined with growth in gross margin resulted in a 21% yearly increase in EBITDA to €3.8b million. Profit from recurring operations was positive at €0.2 million, compared with a H1 2022 loss of €1.3 million.

Citing reasons for its growth, Netgem noted that it had announced in July 2022 that it had identified the video service providers market as a development axis complementary to that of services to telecom operators. The Group strengthened its position in this field with the acquisition of Eclair Préservation and Eclair Digital Services, a transaction finalised in early July 2023.

Business was also said to have been boosted by the sale of the company’s fibre business to Nordnet and the continuation of the TV business operated for the latter following this transaction, as well as a refocusing on the platform business, combined with the gradual withdrawal from hardware with the switch to Android technologies.

The group also launched several new products and services including its first complete offering of operated TV services integrating an Android BOX for operator Zeop and several services on the Amazon Channel platform, in particular Gaumont Classique.

Commenting on the first half results, Netgem CEO Mathias Hautefort said: "The first half of 2023 confirmed the improvement in. The Group has also implemented projects to open up other growth levers, both strategically and in terms of innovation, with the same vision: to be the reference partner for players in the digital entertainment sector. We are confident and have raised our ARR growth target to 30% for 2023."