Wirecard predictably strong in fourth-quarter, reiterates guidance

  • Feb 14, 2020
  • WHBL

BERLIN (Reuters) - Wirecard reported another set of predictably strong quarterly results on Friday as the Munich-based payments company reiterated its guidance for core profits to grow by 34% this year.

There was no update on an outside audit by KPMG, due by the end of March, to address allegations of fraud and false accounting by the Financial Times that have dogged Wirecard over the past year.

CEO Markus Braun has denied the allegations, in a series of investigations by FT reporter Dan McCrum, that have led Singapore police to raid Wirecard's local office and sparked a legal battle between Wirecard and the financial paper.

The company's shares, which have rallied by 28% in the year to date on the absence of any negative news around the KPMG investigation, were indicated down 0.6% in early Frankfurt trade.

Commenting on the financial update, Braun said: "This is a strong result on our path for profitable growth. Above all, it is very clear evidence of the sustained profitability of our business model."

Wirecard forecast core profits of 1-1.12 billion euros ($1.08-$1.21 billion) this year, implying growth at the mid-point of 34% from the 794 million euros it made in 2019.

Fourth-quarter adjusted earnings before interest, taxation, depreciation and amortization (EBITDA) came in at 241 million euros, up 46% year-on-year and in line with expectations in a Refinitiv poll of analysts.

The results were preliminary. Wirecard will published audited figures on April 8.

(Reporting by Douglas Busvine; Editing by Michelle Martin)