Netgem H1 2020 results

(31/07/2020)

NETGEM H1 2020 results

The accounts for H1 2020, approved by the Board of Directors on July 30, 2020 and presented below, are the first to reflect the new consolidated scope including the control of Vitis-Videofutur, and translating in the figures the withdrawal from the equipment supplier business and the strategic reorientation towards the services started several years ago. 

This semester was marked by the following events: 

● Major change in scope with strategic refocusing and synergies. 

● Good resilience to the Covid crisis. 

● Acquisition finalized in early July of a very high-speed subscriber base.

Resilience of the business:

• In the first half of 2020, Netgem demonstrated the resilience of its market and its business model. Thus, its turnover and net income remained at levels very close to those of the 1st quarter, despite the consequences of the Covid-19 crisis. More generally, the epidemic has not had a significant impact on strategic orientations, performance, cash flows and balance sheet aggregates.
• On the French market, the slowdown in customer acquisitions in the 2nd quarter was partially offset by the decrease in churn rate on the existing subscriber base and by a significant consumption of video on demand (+50%).
• In Great Britain, NetgemTV was launched commercially with fiber operators Pure telecom, Origin and Gigaclear.
• Finland was little impacted by the crisis and sales of the service Elisa Viidhe Premium remained strong on that market.

Outlook for the second half of 2020: 

• In France, Netgem anticipates that the deteriorating economic context could lead to pressure on the acquisition of new subscribers. Conversely, the strong trends in teleworking reinforce the importance of fiber in lower density territories, the Group's natural market in France. 
• The contribution of new operator partners in the United Kingdom, continued growth in Finland and the impact of the acquisition of Comcable's business should reduce the consequences of this uncertainty, and should make it possible to post sequential growth on the second semester. In addition, the operational synergies made possible by the change in consolidation scope should demonstrate their first effects by a reduction in the structure of fixed costs from the second half of this year. 
• NETGEM thus has the assets to emerge stronger from this economic and health crisis, primarily because of its agile organization, its new market positioning - Fiber and digital - and its good financial health.

Financial communication calendar 
● Q3 2020 Turnover and Net revenue: October 21, 2020, before market


Sources:
En : https://www.netgem.com/medias/document/other/1470/2020-07-31-pr-h1-2020-netgem-eng.pdf
Fr : https://www.netgem.com/medias/document/other/1468/2020-07-31-pr-h1-2020-netgem-fr.pdf