Netgem: Growth of +30% in ARR guaranteed for 2023

Growth of +30% in Annual Recurring Revenue

already guaranteed for 2023

Trading Update of 19 October 2023

"Confirmation of the ARR* growth objective of 30% in 2023:

 ✓ Strong commercial activity for Netgem’s “Immersive TV” offer integrating Content and Cloud Gaming for operators 

✓ Continuing integration of the acquired Eclair subsidiaries to provide new offers from 2024, and an axis of profitability and complementary growth 

✓ ESG Gold mark (score 73/100) attributed by Ethifinance for year 2022

The group is also continuing to grow its subscriber base in its different geographic markets, in particular with its customers Zeop in France, Elisa in Finland and TalkTalk in the United Kingdom. British telecom operator brsk also launched its new television service"Better.TV" with the Netgem TV platform.

  France Channel launched its service on Amazon Channel. (...)"

*  Annual Recurring Revenue.

 
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Revenue:

Revenue in 2021 = 28.3 MEur

Revenue in 2022 = 36.3 MEur  (+28%)

Revenue in 2023 =~ ? MEur  (+?%) 

Revenue for H1 2023 amounts to €18.1M (H1 2022: €16.3M), up 11% on the same period in 2022. ARR H1 2023 was €10.1M (H1 2022: €6.1M), up 65%. This growth translates into a 4% increase in gross margin to €10M.

Continued control of operating costs combined with growth in gross margin resulted in a 21% increase in Ebitda H1 2023 to €3.8M (H1 2022: €3.2M).

Source:

https://www.netgem.com/en/investors/regulatory-press-releases

https://www.netgem.com/en/investors/regulatory-information

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24 OCTOBRE 2023:

Source

Netgem S1 2023: Amélioration de tous les indicateurs économiques

Résultats semestriels 2023 et Perspectives 

Croissance, rentabilité et innovation 

✓ Amélioration de tous lesindicateurs économiques 

✓ 647000 abonnés à fin Juin 2023 

 ✓ Relèvement de l’objectif de croissance de l’annual recurring revenue (ARR) à 30% *

✓ Acquisitions de Eclair Préservation et de Eclair Digital Services finalisées!

👉 * "...en mai 2023 Netgem á déjà releveillé sa prévision annuelle de croissance de l’ARR à « plus de 25% », contre « plus de 20% » "

Source:

https://www.netgem.com/fr/investisseurs/communiques-de-presse-reglementes

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Pas de RN significativement positif pour le S1 2023, parce que:
A rapeller le 23 juin 2023:

✓ Acquisition des sociétés Eclair Préservation et Eclair Digital Services

✓ Rachat des intérêts minoritaires de Vitis (activités France)

✓ Placement privé de 5 millions d’euros entièrement souscrit par la Caisse des Dépôts et Manco

L’acquisition des sociétés Eclair Préservation et Eclair Digital Services s’élève à 4 millions d’euros en valeur d’entreprise et celle des minoritaires de Vitis à 3,4 millions d’euros.

👉 Le changement de périmètre résultant de ces opérations devrait augmenter le résultat 2024 par action du groupe (EPS) de plus de 10% après synergies. L’objectif des parties est de pouvoir finaliser ces opérations début juillet 2023, avec un effet contributeur aux résultats dès le second semestre 2023.

Netgem raises ARR for 2023 to over 25% !

25th May 2023 -  Investor's Presentation - Analysts meeting

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2023 05 25 - PR CP Netgem | point d'activité ENG:

✓ At the end of April, the group had 609,000 NetgemTV subscribers, 

   managed on behalf of its operator customers, up 19% since the start of the year

 ✓ Netgem raises its ARR  growth target for 2023 to over 25% 

✓ The period was marked by the sale of the fibre business to French operator Nordnet. 

Netgem: ARR growth > 20% in 2023

  

NETGEM anticipates ARR* growth of more than 20% in 2023.

"(...)

Dividend

Renewing its confidence in Netgem’s strategy and its ability to generate cash, and in view of the exceptional resources freed up by the sale of the Fiber business, the Board of Directors will propose to the General Meeting to increase the dividend from 3 cents to 5 cents per share.

Perspectives for 2023

As announced at the end of January 2023, Netgem has decided to initiate the sale of its Fiber business, which has been effective as of April 1, 2023 with a positive net cash effect of €3 million. The resources freed up will enable the Company to increase its investments in innovation in order to strengthen its market position.

The rapid evolution of the market towards standardized set-top box terminals based on androidTV should also allow the Group to withdraw from the sale of access equipment.

These changes in scope will enable the company to reduce its operating costs despite the inflationary context.

The Company anticipates ARR* growth of more than 20% in 2023. The cash flows generated by the subscribers base will thus be progressing and will be sufficient to finance this growth. (...)"

2023/03/31 - Netgem turnover 2022 and Outlook 2023

* "Annual recurring revenue (ARR) refers to all ongoing revenue for a product or business, projected over one year. Companies that offer yearly subscriptions use this metric to determine how much revenue they can expect each year."

Source: https://www.netgem.com/en/investors