NETGEM

Results of the 1st half of 2014 - Seite 2

 

During the 1st half of 2013, cash flow related to investing activities included the acquisition Videofutur for € 4.1 million.

 

Cash flows related to financing included the dividend paid in June 2014 of € 6 million (15 euro cents per share), whereas the previous one had been paid in July 2013.

 

Perspectives

 

The Group expects a very significant drop in shipments during the second half of 2014 in Australia and considers now that it will not be in a position to achieve its objective of doubling its international revenue .

The arrival of European mobile operators in the triple play market remains the main opportunity for the Group in the coming months.

To prepare for it, the Group has already made many adjustments to its organization and offerings:

 

• The separation of hardware and software and services is now the norm to participate in the tenders of the operators and has led to the internal reorganization mentioned above. It also corresponds to a technological logic since more and more of the software value is provided on mobile devices and in the cloud, without a necessary connection with the TV terminal;
   
• Greater sharing of support functions and services. The pole France (box VideoFutur) was merged into the European NetgemTV pole, enabling the company to offer, at the European level, a fully managed and shared TV as a service in the cloud. This TV as a Service approach allows partners-operators to offer their customers an innovative range of services without incurring the associated investment;
   
• Stricter management of overheads and R&D expenses.

 

The Group has the financial and human resources necessary to make these adjustments and pursue its development.

 

Pro Forma Data

 

Pro forma consolidated results below include Videofutur since 1 January 2013 (when the consolidated accounting data only includes Videofutur since 1 April 2013).

 

Data in million €	1st Half 2014	1st Half 2013[1]	Change
Revenues	37.7	35.5	+6%
Current operating income	0.0	3.2	- 98%
Net income (group share)	- 0.6	3.7	n.m.

 

Significant events and transactions

 

During the last six months, Netgem Mexico SA de CV was incorporated to support the development of our customers in Latin America.

 

Provisional timetable for financial communications

Turnover of the 3r^d quarter of 2014: Week of October 6th, 2014

About Netgem

Netgem Group is a provider of solutions and services for video entertainment in the connected home.

Combining proven technological assets and expertise in content and new uses on all screens, Netgem's offers allow multi-service operators around the world to enhance and enrich the relationship with their subscribers. Netgem is present in Europe, Asia and South America with over 4 million active households worldwide. Netgem is listed on NYSE Euronext Paris, Compartment C (ISIN: FR0004154060, Reuters: ETGM.PA, Bloomberg: NTG FP)