NETGEM

Results of the 1st half of 2014

Results of the 1st half of 2014

  

Neuilly-sur-Seine, 31 July 2014

 

Activity, Results and Financial Position - consolidated data

 

The Group changes the follow-up of its revenue to reflect the evolution of its internal organization. Its "Hardware" activities are now presented as "NetBox", separate from its "Software and Services" activities which are presented as "NetgemTV", without distinguishing between France and International.

 

in million €	1st Half 2014	1st Half 2013	Change
Revenue	37.7	33.6	+12%
of which NetgemTV	17.9	15.1	+19%
of which NetBox	19.8	18.6	+7%
Gross profit	14.9	15.0	-
Current operating income	0.0	4.1	-99%
Net profit, Group share	- 0.6	3.7	n.m.

 

During the last six months to June 2014, the Group has continued its international expansion in Europe, Asia Pacific and Mexico and consolidated turnover for the period reached € 37.7 million, an increase of 12%. Gross profit remained stable at €14.9 million, reflecting a shift to a product mix favoring thin terminal clients, less costly for operators.

 

Given the rise in operating expenses (€ 14.9 million in 2014 against € 10.9 million in 2013, an increase of 36%), the Group generated a current operating income close to zero.

 

This rise in expenses mainly results from a sustained effort in R&D, the marketing efforts around the launch of the Box VideoFutur, an increase of the provision for risks and charges and Group reorganization costs.

 

After taking into account a non-recurring charge of € 0.3 million, financial income of € 0.2 million and an income tax expense of € 0.6 million, the Group recorded a net loss of € 0.6 million (group share). 

  

IFRS in € million	30/06/2014	31/12/2013
Equity and debt	60.9	67.8
Shareholders' equity	60.2	66.8
Current and non-current financial liabilities	0.7	0.9
Net cash = (C) + (D)	42.3	53.9
A. Cash	43.0	54.7
B. Current financial liabilities	-0.7	-0.9
C. Current net cash = (A) + (B)	42.3	53.8
D. Non-current financial liabilities	-	-

 

 

IFRS in million €	1st Half 2014	1st Half 2013
Cash flow related  to operating activities	-4.1	2.7
Cash flow related to investing activities	-1.6	-5.0
Cash flow related to financing	-6.0	-1.1
Net change in cash	-11.6	-3.4

 

At 30 June 2014, cash and equity amounted respectively to € 43.0 million and € 60.2 million.

 

The self-financing capacity (before tax and investment income) amounted to € 2.6 million in H1 2014. Cash flow related to operations includes a negative impact of € 7.0 million due to the increase in net working capital, which includes € 2.6 million in tax and social security receivables and liabilities and € 3.3 million in trade receivables.