400,000 subscribers at the end of May 2022: Netgem confirms its objective of half a million subscribers (+37%) by the end of 2022
Paris, June 1, 2022,
The total number of subscribers to services of the Group reached 400,000 at the end of May 2022, compared to 363,000 at the end of December 2021, i.e. an annualized growth rate of 25%. Netgem expects more pronounced growth in the second half of the year - due in particular to the recent launch of a series of partnerships - and confirms its objective of half a million subscribers by the end of 2022.
The Group's B2B and B2B2C markets demonstrate their growth potential, thanks to the success of the partnership model with telecommunications and entertainment operators and the rich and diversified offer of Netgem content:
- In the United Kingdom, the launch of the Talk Talk 4K by NetgemTV product on all distribution channels in March 2022 is a success, with in particular one of the most complete products on the English market integrating content partners such as Freeview, BT Sport, Netflix, NowTV, Amazon Prime Video or TikTok. The group has also signed new agreements with several local alternative operators to provide them with its NetgemTV solution.
- In Northern Europe, Elisa is continuing its growth with the Elisa Viidhe product in line with the past two years.
- In France, the group strengthened its portfolio of 100% OTT solutions fully operated by Netgem, in particular for publisher customers, with the launch of the Gaumont Classique SVOD service. This last service is a showcase of the Group's know-how through a partnership with the oldest film studio in the world. The Group has also strengthened the scope of its offer with the availability of VIVA by VIDEOFUTUR on AndroidTV, AppleTV and with the launch of the VIVA Smart subscription option
The Group is also continuing its technological and environmental innovation efforts with the launch of “Responsible Streaming” currently being extended to all of its OTT services. “Responsible Streaming” allows each user to voluntarily limit their bandwidth level, without significant degradation of viewing quality, in order to reduce environmental impact. In addition, the group chose the Freeview hybrid solution to be deployed in the United Kingdom, which consumes significantly less bandwidth than other solutions and is more efficient in terms of environmental impact.
In the context of emerging from the health crisis and current geopolitical tensions, the Group is little affected by the Russian-Ukrainian conflict and has taken the necessary measures to limit its impact on its activity.
In the current inflationary context, Netgem has already obtained price readjustments from its customers to preserve the profitability of its contracts. Under these conditions, the growth of the subscriber base will lead in 2022 to the growth of turnover and gross margin, with a positive effect on EBITDA and on cash generation. As previously announced, confident in its outlook, the Group has proposed that today's General Meeting decide on the payment of a dividend of 3 c€ per share.
For Mathias Hautefort, CEO of NETGEM, “The start of 2022 confirms Netgem's growth trajectory thanks to our Content-as-a-Service model. Netgem reaffirms its ambition to continue its development at the service of entertainment players, by expanding its end-to-end managed offer and its customer base. In addition to its main line of development with Telecom Operators, Netgem is successfully developing a new commercial line with Publishers, thus capitalizing on its know-how to enrich the access to media”.
Financial communication calendar
- Annual general meeting Wednesday, June 1, 2022
- H1 2022 results Friday, July 29, 2022
- Business update Thursday, October 20, 2022
Press releases are distributed before market opening..
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Netgem works in partnership with entertainment and communication players to provide them with technological solutions and services enabling them to enhance their content, brand and customer assets. The solutions provided by Netgem favor end-to-end managed offers, remunerated on a recurring basis in order to align the interests of Netgem and its customers around the satisfaction of the end customer.
Netgem develops, markets and operates the NetgemTV digital entertainment platform which allows telecommunications operators and digital content publishers to create or boost their entertainment offers in streaming mode, accessible on all screens, supplemented if necessary by optimized WiFi SuperStream.
Netgem deploys NetgemTV in Europe and the United States, according to a B2B “Content-as-a-Service” model, requiring no infrastructure investment and generating recurring income over time, indexed to the number of active end-users.
With more than 25 years of experience in the digital entertainment market, Netgem has acquired the recognition of leading telecommunications operators, the know-how necessary to conclude agreements with the largest content owners, and the right combination of hardware and software technological skills to offer its customers the most robust solutions.
Netgem is listed on Euronext Growth.
(ISIN: FR0004154060, Reuters: ETGM.PA, Bloomberg: ALNTG FP)
 includes any end-user subscriber of the services of the Netgem platform, subject to invoicing, either indirectly (B2B and B2B2C modes), or directly (B2C mode).