cyan AG: Covid-19 slowed the growth of cyan AG down in 2020
DGAP-News: cyan AG / Key word(s): Annual Report
Covid-19 slowed the growth of cyan AG down in 2020
Munich, April 29, 2021 – The 2020 financial year was, as for many companies and people, an extraordinary year marked by many uncertainties, but also by new insights. The global spread of the Covid-19 pandemic largely shut down social and economic life nationally and also internationally and led to significant stagnation in the global economy. Our company was also subject to a severe test, but despite the pandemic we were able to make some important progress with existing and new partners, even if this was slower than initially planned.
Despite the exceptional economic circumstances, we were able to achieve a respectable result. Total earnings was EUR 25.4 million in 2020, compared to EUR 32.5 million in the previous year.
EBITDA in the 2020 financial year was EUR -5.1 million (2019: EUR 11.7 million) and was heavily impacted by one-off effects in the amount of EUR 9.3 million, which included write-downs on receivables of EUR 4.8 million in the wake of the Wirecard insolvency.
The key figures for the past fiscal year are as follows:
Significant progress was made in some integration projects. After the software solution was handed over at Orange France at the beginning of the year, the technical testing phase was completed and “Friendly Customer Testing”, an early access programme with a four-digit number of interested customers, was started in preparation for the commercial launch. As planned, Orange France entered regular commercial operation in April 2021. In addition, detailed discussions and negotiations were initiated with other Orange national companies, where a faster implementation is expected due to the less complex network environment.
In addition, further partnerships were concluded in the past financial year. In cooperation with Aon, the Aon CySec app was uploaded to the Google Play Store and the Apple App Store. In May 2020, a partnership was agreed with MobiFone, a member of the MobiFone Group, one of the largest telecommunications companies in Vietnam, for cyan child protection solutions. In the contract extension with Magenta (formerly T-Mobile Austria), a substantial broadening of the potential customer base by several hundred thousand end customers was determined, and in July 2020 cyan AG succeeded in concluding an important contract for 83 million end customer licenses with Virgin Mobile for the countries Mexico, Colombia and Chile.
Furthermore, a contract with SMARTEL was fixed in the second half of the year and a partnership with the US company Secure64 for the development of 360-degree security solutions in the field of DNS technology was announced in December. In January 2021, an extension of the partnership with Grameenphone in Bangladesh for at least another five years was also communicated.
Frank von Seth, CEO of cyan AG: “The year 2020 was groundbreaking for our company. The short-term goals could not be fully achieved due to the pandemic, as it was the case for many other companies. However, new opportunities and markets have opened up for us, which we must exploit in the medium term. Despite some delays, we were able to achieve important successes in integration projects and new partnerships. As a result, we will benefit from significantly increasing recurring revenues in the future. In addition, we have created some additional financial leeway by issuing a convertible bond program with a total volume of up to EUR 8.4 million. This will allow us to invest in our technology and our brand.”
In view of the resilient project pipeline, the Management Board is cautiously optimistic about the new financial year. After a very large one-off licence agreement was concluded with Virgin Mobile in the previous year, which is unlikely to be repeated in 2021, the Management Board is currently assuming sales in 2021 at the same level as the previous year, but with a significantly increased share from the Cybersecurity segment and thus annually recurring revenues.
The annual report is available for download at https://ir.cyan-development.com/publications/.
Today, the group of companies has more than 50 international customers, through which cyan products are sold to approximately 50 million end customers. cyan can offer products along the entire value chain from platform, data optimization to cyber security. In addition, cyan operates its own Research & Development Centre with the aim of identifying trends in the industry at an early stage and developing optimal product solutions. In December 2018, cyan was able to win a global group contract with Orange in an international tendering process. cyan’s cooperation partners include the world’s leading insurance broker Aon or Magenta Telekom.
Further information is available at www.cyansecurity.com
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