(CercleFinance.com) – Netgem rose sharply on the Paris Stock Exchange on Wednesday after announcing the day before the signing of an agreement to sell its fiber business in France
Shortly before 12:00 p.m., the title of the specialist in digital entertainment services climbed more than 3%, which brought its gains to more than 40% since the start of the year.
As part of its strategy to refocus on its TV streaming business for telecom operators, Netgem sold its consumer fiber operator business in France to Nordnet, a subsidiary of Orange.
Netgem will continue to provide its netgem.tv television service to Nordnet for all divested subscribers.
In its press release, the digital entertainment group specifies that the turnover and the gross margin of the divested activity amounted to 4.7 million and 1.4 million euros respectively in 2022.
This disposal, expected to be finalized during the first half of 2023, will have a positive impact on cash of around three million euros.
The company specifies that the use of this sum will be the subject of a future communication.
Netgem last week announced revenue of 36.3 million euros for the 2022 financial year, with a gross margin of 20.1 million, up 28% and 14% respectively from a year. on the other.
With the rapid evolution of the market towards standardized set-top boxes based on androidTV, the group intends to completely withdraw from the sale of access equipment and the associated working capital requirements.
In this favorable context, the company plans to sell its activities other than TV streaming.
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