Netgem unveils plan to focus business on streaming

Netgem, the company behind digital entertainment platform Netgem.tv, has unveiled revenues of €36.3 million and operating profit of €20.1 million for fiscal 2022, up 28% and 14% year on year respectively. At the same time, the company has announced plans to withdraw from the sale of access equipment and double down on streaming.

According to Netgem, it finished the year with “508,000 netgem.tv subscribers, managed on behalf of 20 fixed telco operators in Europe, under the operators’ brands”

Total annual turnover resulting from the TV streaming activity stands at €29.5 million, of which €14.4 million is annual recurring revenue (ARR). The Company anticipates growth in its subscriber base of 20% in 2023, driving a similar growth in its ARR.

Netgem’s non-streaming revenues are mostly related to the sale of access equipment, the business it is withdrawing from. Explaining why, the company attributed the decision to the “rapid evolution of the market towards standardised set-top boxes based on android TV”. The plan is to sell all assets not related to TV streaming, and focus future investment on enriching its product and in expanding its market.

Mathias Hautefort (left), CEO of Netgem, said: “Our figures show that netgem.tv meets consumer expectations for integrated family entertainment offers at the right price, and the needs of telecom operators to rely on business experts in the extremely dynamic digital entertainment sector. Building on these successes, we need to improve our product and expand its distribution even more. The sale of our diversification activities will give us the resources for this and guarantee the focus of the company.”