NETGEM Q3 2020 activity: growth continues!

 (20/10/2020)

NETGEM 3rd quarter 2020 activity:

Net income growth continues!s

NETGEM's activity in the third quarter of 2020 was marked by a continuation of

the commercial dynamics of the “as a service” model of its activity with

operators (in B2B and B2B2C) or with its direct customers (B2C), who represent

this quarter more than 90% of the activity. The highlights are:

• A growth in net income that is confirmed every quarter and more marked from one year to the next due to the integration of Vitis,
• The continued growth of the subscriber base in Finland with Elisa, by Great Britain with the various Very Broadband operators and in France including the integration of Comcable.
• The launch in early October of the new range of MESH products in France with VIDEOFUTUR customers.

In the 3rd quarter of 2020, despite an 11% drop in turnover stemming from the foreseeable decrease in Box's historical sales activities, the net income is up 2% from the previous quarter. This reflects the now predominant share of management services activities customer base in the Group's business. Consolidation of French activities (Vitis) contributes € 4.0m out of the total € 6.4m of Net Income, and thus enables to show 100% growth.

The group's gross cash flow amounted to € 8.0 million at the end of September. A line of credit of € 1.6 million was collected in early October in anticipation of future refunds under the research tax credit.

Financial communication calendar

• Q4 2020 turnover and net income: January 22, 2021, before market
•  Euronext Growth Paris - admission des titres de la Société aux négociations sur le marché (réserve de l'accord d'Euronext): janvier 2021 
• 2020 results: March 19, 2021, before market
• Q1 2021 turnover and net income: April 21, 2021, before market

Sources:
Fr : https://www.netgem.com/medias/document/other/1507/2020-10-21-pr-q3-2020-netgem-fr-def.pdf

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Interesting Q3 note from Sweden:

(https://www.broadbandtvnews.com/2020/10/26/mediavision-swedes-add-700-000-svod-subscriptions-netflix-with-loss-for-the-first-time/)

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