Netgem sees subs surge drive 2021 profits | Major Businesses | Business | News | Rapid TV News
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Growth of more than 30% in the number of subscribers to 363,000 at year-end and an operational performance that rose sharply are the standout dynamics of the financial year of Netgem Group.
Netgem 27Sep2021
By 31 December 2021, the total number of subscribers to the leading telco TV provider’s services reached 363,000, up more than 30% over the year. Netgem also achieved consolidated revenue of €28.3 million with gross profit growth over the period rising 11% on an annual basis to reach €17.6 million, more than 90% of which was recurring revenue.

Thanks to the combined effect of growth in the gross profit and the cost reduction plan, EBITDA rocketed 378% year-on-year from €0.9 million to €4.3 million, initiated in March 2020 as part of the ONE NETGEM plan, this bore fruit for a full year in 2021, with operating costs down 11%. The current operating loss of €4.4 million was actually an improvement of €1.6 million on a yearly basis. Operating loss amounted to €3.7 million over the financial year.

Looking at the highlights of the year, Netgem pointed to the successful deployment of its content-as-a-service offer in its main markets. In Nordic countries, Netgem supported the strong growth of its partner Elisa Viihde's Premium TV offer, despite worries over the availability of components. In the UK market, the NetgemTV offer enjoyed a year of commercial success, with many alternative fibre operators, and with Tier 1operator TalkTalk. In France, Netgem launched several new OTT services such as Viva by VIDEOFUTUR.

Commenting on Netgem's  2021 results,  CEO Mathias Hautefort said: “,I would like to thank all the Netgem teams and our partners for their efforts which have led to a marked growth dynamic in 2021 which should continue in 2022, and for the resulting good financial results. The outsourcing of all or part of TV and video services by telecom operators is a strong and long-lasting trend, as it improves their financial indicators and customers satisfaction. Netgem is a benchmark player in this market in Europe. 2022 is the year of commercial acceleration, endogenously and exogenously if opportunities arise.”

In 2022, the group is targeting continued growth over the year, positively impacting revenue, gross profit, EBITDA and operating cash generation.

Its objective is to exceed half a million subscribers. In addition to major agreements with Elisa in the Nordic countries, TalkTalk in the UK, OTT services in France such as Viva by VIDEOFUTUR or ZeopTV, Netgem intends to continue to sign agreements with other alternative operators and to strengthen its platform with new content publishers. In the first quarter of 2022, NetgemTV will be the first multi-screen TV streaming platform to integrate TikTok