Zip Posts Severe Losses For 2021 As Competitors Circle
Zip made a big global expansion play this year, which resulted in declining earnings, and a total reported loss of $653 million.
Zip reported cash earnings before tax, depreciation and amortisation as a $22.9 million loss, despite analyst expectations of a positive cash result in the ballpark of $8-9 million.
This follows a EBTDA of $3.5 million in 2020.
Zip spent $71 million on marketing during the past financial year, made an accounting adjustment to the tune of $306 million after underpaying for US business acquisition Quadpay, and made share-based payments of $142 million to staff.
Cash operating costs rose to $221.4 million, more than tripling 2020’s $77.5 million, while the company bled money elsewhere, with salary costs doubling to $97.7 million, and IT costs doubling.
It’s total reported loss of $653 reflected these moves.
Zip shares fell 1.5 per cent to $7.21 after reporting its financials.