Revs fall but Netgem turns around profit for 2017 | IPTV | News | Rapid TV News
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netgem 27sep2017In a year that the telco TV technology provider says reflects a solid performance in Europe and a change in business model outside, Netgem has reported a mixed set of results for its 2017 fiscal year.

In the year ended 31 December 2017, the company reported revenues of €61.8 million, a 17% annual fall. 2017 current operating income amounted to €6.3 million, 14% up on 2016, confirming, said Netgem, a 'solid' return to profitability that began 12 months earlier. 2017 operating expenses decreased by 17% year-on-year to €18.3 million, mostly due to the deconsolidation of Vitis, the service provider of La Fibre Videofutur in France.

Operating income reached €7 million in 2017, positively impacted by the planned capital increases in Vitis, subscribed by Réunicable in 2017 to finance development. The 2016 operating income included a one-time contribution of €3.9 million related to the deconsolidation of Vitis. Net income was €4.7 million, dropping 26%.

Going forward, Netgem said that by the end of 2018 it will finalise the transformation of its offer and business model from that of a set-top box vendor to a TV-as-a-service provider with value now resulting from end-user content technology services. Netgem expects this transformation to strongly align for the long term and believes that as a strategic growth opportunity it is in the unique position to leverage the cloud as an infrastructure and content aggregation built for its customers' triple-play services to address the over-the-top (OTT) market.