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Netgem takes loss as it invests in future growth

Netgem's box for EE

Netgem’s box for EE

French technology provider Netgem, which yesterday revealed that it was providing the set-tops and platform for the TV service of UK operator EE, has posted a net loss of €619,000 for the first half, compared with a €3.753 million profit last year.

Netgem saw its revenues increase by 12% to €37.940 million in the first half. The company reported hardware and services activities separately, combining domestic French and international activities, for the first time. Netgem TV, the group’s services arm, posted revenues of €17.9 million, up 19%, while Netbox, its hardware division, saw revenues rise by 7% to €19.8 million.

Netgem said its operational expenses had increased in the course of the year as a result of R&D investment, marketing efforts around its Videofutur consumer service, which had 28,000 subscribers at the end of June, increased provisions against risks and charges and reorganisation costs. Netgem posted a non-recurring charge of €300,000, leading to an operational loss of €300,000.