Netgem: 2022 Half-Year Results and Outlook +28% annual growth in the number of subscribers: Confirmed objective of half a million subscribers by the end of 2022

  • 411,000 subscribers[1] at the end of June 2022, the result of the deployment of NetgemTV offers with telecom operators and video service providers.
  • This level of activity, combined with good control of costs and customer margins despite the current inflationary context, is reflected in the growth in turnover (+11%), gross margin (+7%) and EBITDA (+60%) compared to 2021.
  • In the United Kingdom, commercial launch of TalkTalk TV+ powered by Netgem with the first integration of the social network Tik Tok.
  • In France, launch of Gaumont Classique and strengthening of the partnership with the Oceinde group to supply ZeopTV powered by Netgem to its Very High Speed ​​subscribers.

Paris, July 29, 2022

On July 28, 2022, Netgem’s board of directors closed the accounts for the first half of 2022.

For Mathias Hautefort, CEO of Netgem, “Our Content-as-a-service strategy is paying off, semester after semester. All financial indicators are growing, such as the number of our partnerships with operators and the publisher. We confirm the goal of half a million subscribers in 2022.”

Activity and outlook

On the French market, the group signed an agreement strengthening its partnership with the Reunionese operator Zeop. From the 4th quarter of 2022, the Netgem group will operate under the ZeopTV brand powered by Netgem television offers intended for Zeop’s 100,000 very high-speed subscribers. This agreement initially covers the island of La Réunion and is intended to extend to other territories in the Indian Ocean. Due to the synergies, this agreement will contribute to the Group from 2023.

This partnership illustrates Netgem’s ability to take over the management of existing customer bases, opening up prospects for other similar operations in Europe.

In France, the Group has identified the video service provider market as an area of ​​development complementary to that of services to telecom operators. Its commercial conquest efforts have yielded initial results with new reference customers such as Gaumont Classique launched in May 2022, and it is studying various options to accelerate in this sector through organic or strategic growth.

In the Nordic region, deliveries to the operator Elisa for its Premium offer Elisa Viidhe in Finland will remain strong throughout the year.

In the United Kingdom, the Group anticipates an acceleration of the deployment of TalkTalk TV powered by Netgemthanks to the opening of new distribution channels and the improvement of the content offer with the launch of NowTV.

Under these conditions, Netgem is able to confirm its objective of half a million subscribers to its services by the end of 2022, leading to the improvement of its main financial indicators.

The Group is little affected by the Russian-Ukrainian conflict. In the global inflationary context which has repercussions on internal costs and the increase in certain transport costs, as well as the negative effects of the dollar/euro parity, it has taken a series of pricing measures with its customers. It also anticipated the purchase of component stocks to secure its supplies for the whole of 2022 and the first half of 2023, with an upward impact on the working capital requirement over the past half-year.

Results for the 1st half of 2022

in millions of euros
2022 S1 2021 S1 CHANGE
Revenue 16.3 14.7 +11%
Gross profit 9.6 9.0 +7%
Opex (6.5) (7.0) -seven%
EBITDA 3.2 2.0 +60%
current operating income (1.3) (2.2) +41%
in millions of euros
2022 S1 2021 S1
Operational results (1.3) (2.1)
bottom line (0.1) (0.0)
Taxes 0.0 0.0
Net profit
(group share)
(0.5) (1.0)

Growth of subscriber base and revenue; improved profitability

The total number of subscribers to the group’s services stood at 411,000 at the end of the past half-year, up by 48,000 in the first half of 2022 and by 91,000 compared to the end of June 2021, i.e. an increase of 28% over a full year.

Revenue for the first half of 2022 amounted to €16.3 million (H1 2021: €14.7 million), an increase of 11% compared to the same period in 2021. This growth results in a 7% increase in gross margin to 9.6 million euros. Compared to the second half of 2021, the change is more marked for both revenue (+20%) and gross margin (+12%) due to a strong rebound in activity at the start of 2022.

Thanks to the control of operating costs, this semester is reflected in a 60% growth in EBITDA, which stands at €3.2 million (H1 2021: €2.0 million).

Current operating income amounted to €(1.3)m (H1 2021: €(2.2)m). The latter remains impacted by the depreciation of assets identified as part of the entry of Vitis into the consolidated scope, most of which end in 2022, as well as the depreciation of equipment provided to new subscribers. Net profit attributable to the Group[2] also improving and amounted to (0.5) million euros compared to (1) million euros in the first half of 2021.

Cash flow for the 1st half of 2022

in millions of euros (unaudited)
2022 S1 2021 S1
Cash flow from operating activities (A) 3.3
Whose :
Cash flow before payment of taxes 3.0
1.7 Tax paid
Reduction (increase) of BFR 0.3
1.6 Cash flow from investing (B) (3.6)
(3.6) Operating cash flow (A+B)
(0.3) (0.2)
Cash flow from financing (C)
(1.0) (2.3) Whose :
Dividends (0.9)
Net buyback of own shares 0.2
Issue/repurchase of borrowings and financial debts (0.3) (2.4)

Net change in cash (A+B+C)



before IFRS 16 impact
The Group’s activity generated €3.3 million in cash in the first half of 2022 as in 2021 over the same period, despite the impact of a cash advance of €1 million made for the payment of components in order to secure the deliveries in the 3rd quarter of 2022 Cash flow related to investments of 3.6 million euros mainly includes capitalized equipment due to the growth of the subscriber base. Cash flow from financing mainly reflects the payment of the annual dividend in June 2022. Equity and debt, net cash
IFRS DATA in millions of euros 06/30/2022
31/12/2021 Equity and debt
Equity, Group share 23.0
24.0 Current and non-current financial liabilities 1.7
A- Cash 5.1
6.4 B- Current financial liabilities 1.6
1.8 C- Current net cash (A) – (B) 3.6
4.6 D- Non-current financial liabilities 0.2
0.2 E- Net cash (C)-(D) before IFRS 16 impact 3.4
4.4 F- Impact of IFRS 16 0.2


G- Net Cash (E)-(F)3.2

  • 4.0

As of June 30, 2022, gross cash amounted to €5.1 million and net cash to €3.2 million.

Financial communication calendar
Quotation point Thursday, October 20, 2022, before market
Investor and Analyst Relations
Bertrand Sun
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Patricia Ouaki

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About Netgem With more than 25 years of experience in the digital entertainment market, Netgem has acquired the recognition of the largest international publishers for the secure distribution of their digital content and has the know-how and legitimacy to operate services for the main distributors such as telecommunications operators.Netgem offers its customers, players in digital video entertainment, services allowing them to enhance their intangible assets (content, brand and customers).

These services are based on the proprietary NetgemTV software platform. They enable complete “end-to-end” management of the streaming video and television offer accessible from all screens. In this, they respond to the Over The Top evolution of consumer uses.

Netgem deploys NetgemTV in a cloud-operated B2B model

[1] “as a service”

[2] . This model does not require investment in infrastructure and generates recurring revenue over time, indexed to the number of active end subscribers.

Netgem is listed on Euronext Growth.

(ISIN: FR0004154060, Reuters: ETGM.PA, Bloomberg: ALNTGFP)

includes any end user subscribing to the services of the Netgem platform, subject to invoicing, either indirectly (B2B and B2B2C modes), which is the group’s main development axis, or directly (B2C mode). (Caisse des Dépôts and Groupe Océinde) in the French subsidiary Vitis, 55% owned by Netgem as of June 30, 2022Receive the company’s next press releases by email by subscribing to, it’s free© 2022 NewsNews


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