(Paris, March 19, 2021)
NETGEM Press release: Annual results 2020 - Outlook 2021
Successful Pivot:✓ In 2020, the Group has shown that the pivot that began several years ago towards the business of streaming video access provider (OTT) is bearing fruit.
✓ 90% of Net Revenue is now recurring and the growth in Gross Margin coupled with synergies linked to the integration of Vitis enables to post a positive EBITDA in the second half of 2020.
✓ The group is targeting further growth in 2021 with an improvement of its key financial aggregates.
For Mathias Hautefort, CEO of Netgem, “The year 2020 has been exceptional due to both the health crisis and the responses we have had to provide. The group's profound transformation into an OTT operator for the connected home has demonstrated its relevance. With a solid financial situation, the group is equipped to continue its growth in 2021."
Outlook
Over 2021, the Group intends to consolidate its growth and improve its key financial indicators (Net Revenue, Gross Margin, Ebitda) from half-year to half-year by relying on the favorable outlook in its 3 main markets:
In France, the distribution model of The Group relies on the direct-to-consumer distribution of NetgemTV in a bundle with the resale of fiber access in the local area under the VIDEOFUTUR brand and on indirect distribution via telecom operator partners. The NetgemTV offer in French is particularly rich, and various options for expanding its distribution are being studied.
The English market is experiencing very strong momentum in its fiber market, which is extremely fragmented with around a hundred operators. This context is very favorable to the indirect distribution model favored in this territory. 14 partners have already been signed up, including 6 since the second half of 2020. In 2021 growth will be driven by the ramp-up of signed operators, the expected signing of new ones and the arrival of new content partners to enrich the offer.
In Finland, the Group is benefiting from the growth of Elisa, the leading operator in the region and long-standing partner of the Group for more than 15 years. The Elisa Viidhe product, built on the Netgem Group's technologies, is very successful and is marketed as a bundle with the Elisa Group’s fiber offers, but also independently in order to benefit from the cord-cutting trend towards other Finnish operators.
The Group is closely monitoring the global tension on the supply of chipsets and the potential consequences on its ability to support the growth of its activity.
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Financial communications calendar
● Turnover and Net Revenue Q1 2021 April 21, 2021, before market
● Annual General Meeting May 26, 2021
● H1 2021 Results July 30, 2021, before market
● Turnover and net revenue Q3 2021 October 20, 2021, before market
SOURCE:
https://live.euronext.com/sites/default/files/cpr03_lesechos_16165_970465_2021_03_19_PR_resultats_2020__Netgem__ENG.pdf
https://live.euronext.com/en/product/equities/FR0004154060-XPAR
https://www.netgem.com/medias/media/other/87/sfaf-19-mars-2021.pdf