NETGEM 2021 Results and 2022 Targets – March 31, 2022 – 7:30 AM

2021 results

Over 30% growth in subscribers to 363,000 at the end of the year

Operational performance surge: EBITDA €4.3m (x 4.8)

Increase in net cash to €4.0m (+€2.2m)

Resumption of dividend payments

Goals for 2022

Another year of growth with half a million subscribers at the end of the year


Paris, March 31, 2022

The Board of Directors of Netgem met on March 30, 2022 and approved the financial statements for 2021.

2021 results

IFRS data in millions of euros 2021 2020 Variation
turnover 28.3 30.3 -6%
Gross profit 17.6 15.9 +11%
exploitation (13.3) (15.0) -eleven%
EBITDA 4.3 0.9 +378%
current operating income (4.4) (6.0) +27%

2021 is the year of successful rollout of Content as a Service netham in the main markets:

– In the Nordic countries, netham accompanied the strong growth of its partner Elisa Viihde’s Premium TV offer, despite tensions over the availability of components,

– In the UK market offer Netham TV experienced a year of commercial success with many alternative fiber operators and Say Sayoperator 1st level

– In the French market, netham launched several new OTT services such as Viva by VIDEOFUTUR.

Total number of subscribers[1] The services group reached 363,000 at the end of December, up over 30% year over year. During the past financial year, Netgem generated a consolidated income of 28.3 million euros. Gross profit grew by 11% over the period to €17.6 million, of which more than 90% came from recurring revenue.

EBITDA increased from 0.9 million euros to 4.3 million euros (+378%) due to the combined effect of growth in gross margin and cost reduction plan. Initiated in March 2020 as part of the ONE NETGEM plan, it has paid off throughout 2021, with operating costs down 11%. Operating profit of -4.4 million euros increased by 1.6 million euros. The increase in depreciation charges, mainly due to the capitalization of equipment provided to new customers as part of service offerings, reflects the growth in the subscriber base over the past two years. They also include €2 million depreciation on assets identified as part of Vitis’ inclusion in the consolidated volume in January 2020.

IFRS data in millions of euros 2021 2020 Variation
operating income (3.7) 4.2 -187%
bottom line (0.1) (0.1)
taxes 0.5 +3106%
Net profit (Group share) (1.3) 7.2 -118%

Operating profit for the past financial year was -3.7 million euros compared to +4.2 million euros for the previous financial year. As a reminder, in 2020 this included a €10 million capital gain recognized as Vitis entered the consolidated volume. Excluding this accounting method, an operating result of -3.7 million euros compared to -5.8 million euros, an improvement of 1.9 million euros.

Net profit, the Group’s share was -1.3 million euros due to the minority interest (Caisse des Dépôts and Oceinde) in the Vitis subsidiary, 53% owned by Netgem SA as at 31 December 2021.

IFRS data in millions of euros 2021 2020
Operating cash flow (A) 6.0
Out of which :
Possibility of self-financing before taxes
1.0 Decrease (increase) in BFR 0.9
2.8 Cash flow from investments (B) (6.8)
(6.0) Operating cash flow (A+B)
(0.9) (2.3) Funding cash flow (C)
(2.9) 4.0
Out of which :
Capital increase 0.3
Net purchase of own shares 0.2
Problems/Repayment of loans and financial debts (3.1) 3.7
Ceased operations and currency fluctuations (D)

Net change in cash (A+B+C+D)



Excluding restatement in accordance with IFRS 16 The Group’s operations generated EUR 6.0 million in cash in 2021 compared to EUR 3.8 million in the previous financial year, up 58% due to an increase in EBITDA. Investment flows in 2021 will amount to 6.8 million euros. They mainly include expenses associated with the growth of the subscriber base, in particular capitalized equipment.
The financing cash flows of -€2.9 million reflect the repayment of a loan pending repayment by the government of debts in respect of the research tax credit and loans from the lending institution and BPI.
IFRS data in millions of euros 31.12.21 12/31/20
Equity and debt Equity, Group share 24.0
Short-term and long-term financial liabilities 2.0 7.5
Net cash analysis A. Cash 6.4
10.2 B. Current financial liabilities 1.8
6.1 C. Net cash flow (A) – (B) 4.6
4.1 D. Long-term financial liabilities 0.2
1.4 E. Net cash (C)-(D) before IFRS 16 is applied 4.4
2.7 F. Impact of IFRS 16 0.4


G. Net Cash (E)-(F)



Net cash increased by €2.2 million in the most recent financial year, mainly due to the redemption of Vitis shares on bonds bought back by Caisse des Dépôts and a loan related to the research tax credit, as described below.


Confident in the Netgem Group’s strategy and its ability to generate operating cash, the Board of Directors will propose to the General Meeting that the dividend of 3 cents per share be resumed.
Outlook 2022


The crisis did not directly affect the group, it does not operate in Ukraine or Russia and has taken a number of measures to protect against possible risks in the transportation or supply of certain components. Price increase In the face of inflation, Netgem has secured price adjustments from its customers to keep contracts profitable and also continues to tightly control its cost structure.

Goals for 2022

In 2022, Netgem’s goal is to exceed half a million subscribers. In addition to major agreements with Elisa in the Nordic countries, Say Say

in the United Kingdom, OTT services in France such as VIDEOFUTUR’s Viva or ZeopTV, Netgem intends to continue signing agreements with other alternative operators and strengthen its platform with new content publishers. Thus, in the first quarter of 2022, NetgemTV will become the first multi-screen TV streaming platform to integrate the TikToK service into its set-top boxes as part of its TalkTalk rollout.

  • The Group aims for further growth during the year, which will positively impact revenue, gross margin, EBITDA, and cash generation from operations.
  • For Matthias Hautefort, CEO of Netgem,
  • “I would like to thank all of the Netgem teams and our partners for their efforts which have resulted in a notable growth momentum in 2021 that should continue into 2022, and for the good financial results that result from this. Outsourcing of all or part of TV and video services by telecom operators is a strong and long-term trend, as it improves their financial performance and customer satisfaction. Netgem is the reference player in this market in Europe. 2022 is the year of commercial acceleration, endogenous and exogenous if opportunities arise.”

Financial communications calendar

Annual General Meeting and Activity Report Wednesday, June 1, 2022

1H 2022 Results July 29, 2022

Activity update Thursday, October 20, 2022

Press releases are distributed before the market opens.

The audit procedures for the 2021 annual accounts have been completed and the auditors’ report regarding their certification is in the process of being published. contactsAbout Netgham

Netgem develops, markets and operates the NetgemTV digital entertainment platform, which enables carriers and digital content publishers to create or expand their entertainment offerings with streaming content available on all screens, supplemented as needed by Wi-Fi optimized for SuperStream.

Netgem rolls out NetgemTV on a B2B model

“as a service”

[1] requiring no investment in infrastructure and generating regular income over time, indexed by the number of final active subscribers.

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