Netgem posts mixed half-year results

by bold-lichterman

Netgem, solutions provider for the connected home, today unveils its half-year results.

In the first half of 2011, the group thus recorded a net profit of € 6.5 million and a current operating profit of € 8.5 million, a decrease of two thirds compared to the first six months of 2010. Netgem explains this decline by recalling that current operating income for the first half of 2010 included the exceptional income related to the sale of license rights to SFR.

Netgem posts mixed half year results

The group’s turnover for its part reached € 43.3 million, down 42%. Its gross margin amounts to € 17.4 million, or 40% of turnover. These latest figures reflect in particular international development (+ 58% compared to the first half of 2010), and a favorable weight in the first half of sales of services and software in France, compared to sales of decoders, within the framework of the renewal of the contract with SFR.

Netgem intends to pursue its commercial development efforts, while controlling its operational costs. Thus, the Group plans to launch 2 new IPTV offers in Europe by the end of the year. These new offers should generate their first effects at the end of 2011 and more broadly will contribute to the diversification of the clientele in 2012.