Zeal Network headquarters in Germany has released its 2020 annual report. It reveals that revenue fell to €87m ($102.6m) from €113.5m the previous year.
The company reports that the overall decline was because of a shift in its business strategy and expected dis-synergies. It also led to a lower adjusted EBITDA of €12.7m, down from €29.4m in 2019.
Despite this, Zeal confirmed some positives, including the gain of 918,000 new customers in Germany and a rise in the total number of monthly active users to 986,000.
Despite a rise in marketing costs, the company could reduce its cost base by €13.8m in personal and operating expenses. It met its cost-synergy goal a year ahead of time.
The CFO of Zeal Network headquarters, Jonas Mattsson, stated: “We kept our commitments and have already fully realized the expected cost synergies in the fourth quarter of 2020. At the same time, we expanded our company and introduced new products. We are happy that all of this reflects in the success of our stock price.”
Moreover, In 2020, Zeal Network headquarters donated 40% of its stakes to charitable organizations. Also, over €3.1 billion was allocated to state budgets or beneficiaries. This equates to €8.6 million a day given by Zeal to German programs in welfare, sports, and culture.
In 2021, the company intends to broaden its business as an online service. It anticipates sales of about €95 million and adjusted EBITDA of at least €20 million.
Dr. Helmut Becker, CEO of Zeal Network headquarters, adds, “We have set the path for a highly promising future with our combination of strategically sensible marketing investments, fast new customer development, powerful technology, and exciting product innovations.”