Business Update

Continuing growth strategy
in the entertainment technology market

Netgem confirms its targets of recurring revenue growth

and improved profitability in 2024

Paris, 30 May 2024,

The Netgem group is pursuing its growth strategy in the European Entertainment Technology market.

Netgem offers a B2B platform of technological services dedicated to the exploitation of cinematographic and audiovisual works and, more recently, video games.

The platform is two-sided, with Netgem's customers and partners being both the rights owners of the works and the exhibitors/distributors, in particular telecoms operators.

Netgem's mission is to promote audiovisual creation through its monetisation, while reducing the cost of exchanges in the technological chain and improving the end customer's experience of accessing content.

The reduction in costs is made possible by a software platform developed in-house, operated in the cloud in 'multi-tenant' mode (complete mutualisation) between all the partners/clients, and independent of the media used to exploit the works.

The end-customer experience is the fruit of the Group's 25 years of innovation, initially developed for its core business around navigation software for telecoms operators' boxes and now extended to all screens.

Netgem's development strategy is based on the one hand on the constant expansion of both sides of the platform: new content partnerships attract new distributors, who attract new content; and on the other hand on the enhancement of the service offering thanks to an ongoing effort in software innovation, the financing of which is made possible by the high recurrence of subscription revenues on the platform.

The first few months of 2024 have been particularly rich in these respects:

• The Group's Digital Preservation and Enhancement services have been selected for new releases such as Luc Besson's Dogman, La passion de Dodin Bouffant, L'abbé Pierre and Une Vie et Vivants, as well as for certain corporate content such as the French Senate's audiovisual assets. Contracts with Mediawan and Newen/TF1 have been strengthened.

• The world of streaming is undergoing a new revolution with the emergence of Fast channels (themed linear streaming channels financed by interactive advertising). To meet this demand, the Group has launched its 'Fast Lane' package of content and services for its operator customers, already deployed in 6 territories including the UK with Talk Talk, France with zeop, and Switzerland with Netplus.

• Anticipating the convergence of streaming and video games through cloud gaming technology, enabling access to AAA games without consoles, Netgem has entered into a partnership with specialist Gamestream, for the exclusive distribution and integration of its technology and content in Europe. The resulting service is already distributed by zeop. The 'Cloud Gaming' offering distributed by Bouygues Telecom under the 'Pleio' brand has also been operated directly by Netgem for several weeks now, with the aim of supporting this operator's customers in their quest for an increasingly immersive experience.

Taken together, these initiatives will enable the Group to confirm its target of growing recurring revenues and improving profitability in 2024.

The Group is also pursuing its policy of pooling costs, particularly innovation costs, and improving G&A, in particular with the integration of Eclair Préservation and Eclair Valorisation.

Mathias Hautefort, CEO of Netgem, comments: "Cinema, audiovisual and video games have long operated in silos. Digital technology and artificial intelligence are in the process of overturning the service industry in these sectors, as well as the consumption patterns of end customers.

Our ambition is to become the new benchmark partner for audiovisual creators and exhibitors/distributors - primarily telecoms operators and media groups - by providing them with our technological and business expertise in an end-to-end 360° vision.

To achieve these objectives, we are open to strategic opportunities should they arise".

Financial communication calendar

• General Meeting Thursday 30 May 2024, 2.30pm
• H1 2024 results Wednesday 31 July 2024
• Point T3 2024 Friday 18 October 2024

Press releases are issued before the opening of the stock market.

Contacts

About Netgem

Netgem supports the audiovisual sector in its digital transformation and is a key partner for telecoms operators and media groups in developing new immersive entertainment solutions. Netgem is the publisher of the digital entertainment service netgem.tv, distributed through a network of fixed and mobile telecoms operators in Europe, under the operator's brand (B2B2C model) to more than 670,000 subscribing households.

Netgem is listed on Euronext Growth.

(ISIN: FR0004154060, Reuters: ETGM.PA, Bloomberg: ALNTG FP)