Netgem shares rose sharply on the Paris Bourse on Wednesday, after announcing the previous day that it had signed an agreement to sell its fiber business in France

Shortly before 12:00 pm, shares in the digital entertainment services specialist climbed more than 3%, bringing their year-to-date gains to over 40%.

As part of its strategy to refocus on its TV streaming business for telecom operators, Netgem has sold its consumer fiber business in France to Nordnet, an Orange subsidiary.

Netgem will continue to provide its netgem.tv service to Nordnet for all sold subscribers.

In its press release, the digital entertainment group states that sales and gross margin for the sold business amounted to 4.7 million and 1.4 million euros respectively in 2022.

The sale, scheduled for completion in the first half of 2023, will have a positive impact on cash flow of around three million euros.

The company states that the use of this sum will be the subject of a forthcoming communication.

Netgem announced last week sales of 36.3 million euros for the 2022 financial year, with a gross margin of 20.1 million, up 28% and 14% respectively year-on-year.

As the market rapidly evolves towards standardized set-top boxes based on AndroidTV, the group intends to withdraw completely from the sale of access equipment, and the associated working capital requirements.

In this favorable context, the company plans to divest its activities other than TV streaming.

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