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Netgem profits stumble

March 27, 2013

Netgem’s current operating profit for 2012 amounted to €12.3 million (-3 per cent compared to 2011) or 15 per cent of full-year revenue of €81.2 million (-4 per cent compared to 2011). Gross margin for 2012 amounted to €30.2 million (37 per cent of revenue) as compared to €32.4 million in 2011 (38 per cent of revenue).

Operating expenses decreased nine per cent to €17.9 million in 2012, compared to €19.8 million in 2011, while the number of active customers increased, reflecting the control over operational costs and risks without any impact on the R&D effort.

Netgem recorded a net profit of €9.3 million in 2012, which included a one-off loss of €0.8 million, financial products of €0.6 million and €2.8 million of corporate income tax. The Group’s net cash position amounted to €55.2 million at the end of the year, up €5.2 million from the previous year-end, and included the payment for the acquisition of PlugnSurf, dividend payments (€4.8 million) and the repurchase of shares (€2.5 million).

Since its share-buyback programme was activated at the end of 2011, the Group has bought back 1.7 million of its own shares, equivalent to 4.5 per cent of its capital, of which 531,000 have been used for the free shares granted to employees.

In France, Netgem has set itself the target of returning to growth by addressing the opportunity represented by connected television. The public tender offer on Videofutur fits into this approach.

At the international level, the Group will continue to support the deployment and penetration of its customers’ offerings in their respective markets, notably by providing and integrating new services. The Group has intensified its R&D effort in order to grow its range of products quickly, particularly in the areas of Internet access and multi-screen content distribution in the home.

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