myWorld Group – A look behind the scenes with figures

Capital jump before the ‘IPO’ – and now unanswered questions

Shortly before the announced IPO, the share capital of myWorld International AG was increased from 100,000 euros to 12 million euros within a few weeks. The central question is: Where did this capital come from and where is it now? This will now be the task of the insolvency administrator to investigate. There are increasing indications that funds were deliberately diverted and that there was a systematic devaluation of the marketers’ investments.

Shareholding structure raises questions

The currently documented share structure of myWorld International AG comprises 11,380,208 shares. Of these,

• 7,520,000 voting ordinary shares are held by timeRiver Ltd., controlled by Dominic Kollmann, son of founder Hubert Freidl.
• The so-called EliteClub, based in Dubai, holds a further 1,011,850 non-voting shares and 480,000 voting shares.
• Lyconet mSP GmbH additionally owns 2,364,119 preference shares.

For marketers who entered the system on the basis of promises of participation, this raises the question: What share am I entitled to and what is its real value? The answer is likely to be sobering.

Marketer earnings: facts instead of fantasy

For a long time, official statements from the myWorld Group spoke of over 15 million active partners. Court documents paint a different picture: at the peak of the so-called ‘clouds’ from 2015 to 2019, 704,726 marketers worldwide were working for the former Lyoness Europe AG, a huge discrepancy compared to the figures communicated publicly. Incidentally, in 2015, it was claimed that there were over 9 million marketers.

According to the same documents, the shopping community generated a cumulative purchasing volume of around 3.6 billion euros during this period – revenue that came mainly from recruiting new sales partners. Cashback apparently played only a minor role. Even in purely mathematical terms, such a turnover purely from cashback sales is utopian – as economic reports confirm.

Commission records without a sustainable business model

The year 2018 stands out in particular: at that time, over 152 million euros in commissions were paid out to marketers, a sum that was heavily concentrated in the upper echelons of the remuneration system (levels 6 to 8+). According to records, the average annual income of active marketers in 2018 was only £907.07, equivalent to £75.58 per month.