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Zenitel reports increased profitability mainly driven by non-recurring OPEX savings caused by COVID-19

Highlights

  • Total revenue decreased to 73.0 million euro compared to 76.3 million euro in 2019. This represents a decline of 4.3 %.
  • EBITDA amounted to 10.9 million euro, representing an increase of 4.4 million euro compared to 2019, to a large extent due to non-recurring net cost savings caused by COVID-19. Pre-IFRS-16 EBITDA∞ amounts to 9.3 million euro in 2020 compared to 4.7 million euro in 2019.
  • EBIT amounted to 8.6 million euro, compared to 3.9 million euro in 2019.
  • Net profit from operations was 7.1 million euro, compared to 3.0 million euro in 2019.
  • Financial cash position of 26.2 million euro at the end of 2020, compared to 21.3 million euro in 2019.
  • 2020 was an exceptional year due COVID-19, causing non-recurring operating costs savings and postponed CAPEX investments which resulted in an exceptionally high EBITDA and cash flow generation.
  • COVID-19 may negatively impact the business in all end-markets across all regions in 2021.

Koen Claerbout, CEO of Zenitel, commented:

“2020 was a very challenging and exceptional year due to the unprecedented market conditions and working circumstances caused by COVID-19. At Zenitel we were able to limit the impact on the revenue thanks to the relentless efforts of our employees and customers. At the same time, we realized non-recurring savings in operational expenses due to COVID-19 related limitations for business travel and trade shows. On top of the COVID-19 related cost savings, an increased organizational performance and cost effectiveness has been implemented, including the integration of Phontech being fully realized.

During 2020 we continued to invest in new product development and business development. Certain CAPEX investments were however postponed due to COVID-19 and Zenitel will need to catch up on these investments in 2021. In 2021 we will as well further develop our business and strengthen our market position in intelligent critical communication through innovation, commercial and operational excellence.”

Download the full report

The complete financial press release 2020 results report, including the consolidated financial statements, can be downloaded here. Reports are available in English and Dutch.

Location: Global