Netgem: 3rd quarter 2021 activity: Continued growth in Gross Margin Stronger outlook with the signing of the TalkTalk contract

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Paris, October 20, 2021,

NETGEM’s activity in the third quarter of 2021 was marked by the good momentum for the deployment of the NetgemTV platform in B2B (2C) ”Content as a service” fashion :

  • The signing of the agreement with TalkTalk, as announced on October 12, 2021, a British tier 1 operator, for the supply of the NetgemTV platform as part of the next generation TalkTalk 4K service.
  • The continued growth of the subscriber base in Finland with Elisa.
  • The commercial launch of new content platforms in France, in particular VIVA by VIDEOFUTUR, FRANCE CHANNEL and the announcement of the PREMIERE MAX by VIDEOFUTUR partnership.
  • Gross margin growth confirmed thanks to our recurring revenue model.

For Mathias Hautefort, CEO of NETGEM, “This 3rd quarter was marked by the launch of numerous services with our partners and sustained commercial activity. In October, we signed a new UK contract with TalkTalk. We are strengthening our presence in the growing digital entertainment market, to which we address a virtuous economic model and thanks to our SaaS NetgemTV platform, proven and validated by the largest owners of premium content. “

Revenue and gross margin (in millions of euros, IFRS, unaudited)

Netgem Group 2021
T3
2020
T3
2021
YTD
2020
YTD
Switch
T3 / T3
Switch
YTD
Returned 6.3 6.6 21.0 22.0 -4% – 4%
Gross profit 4.0 3.6 13.0 11.1 + 10% + 17%

The “Content as a service” The model and the growth of the subscriber base made it possible to post a gross margin growth of 17% over the first 9 months of the year and of 10% over the quarter, compared to the same periods in 2020.

During the past quarter, the English operator Origin, a customer of the Group, suddenly placed itself under the protection of an administrator. In this context, and out of prudence, Netgem has taken the decision not to record up to the end of September € 500,000 in turnover corresponding to unpaid bills linked to income from TV customers and associated services. As Origin’s customer base was acquired by TalkTalk in October, old Origin NetgemTV subscribers will be billed by Netgem to TalkTalk in the future.

Despite the global shortage of components, which will have slowed growth throughout 2021, and after taking into account the exceptional negative impact of Origin, of the order of 3 growth points, the group is targeting growth of 12 % of its Gross Margin in 2021..

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Financial communication calendar

  • Q4 2021 revenue and gross margin January 25, 2022, before market
  • 2021 results March 31, 2022, before market

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Contacts

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About Netgem

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 SuperStream WiFi optimized.

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 revenues 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 the main telecommunications operators, the know-how to close deals with the largest content owners, and the right mix of technological skills. hardware and software to offer its customers the most robust solutions.

Netgem is listed on Euronext Growth.

(ISIN: FR0004154060, Reuters: ETGM.PA, Bloomberg: ALNTG FP)

www.netgem.com



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