Sunday , March 7 2021

Wirecard pushes the profit to predict again

MunichPayment service provider Wirecard introduced third-day data on Wednesday morning. These are the most important facts:

  • group earnings sleep with EUR 395.4 million after nine months of 2018, is as high as expected. A year ago, it was 286.6 million euros. One of the main reasons is the continuation of strong development in Asia.
  • Especially this volume of transactions Wirecard platform was positive. During the first nine months it increased by 44.2 percent 90.2 billion euros,
  • she's All year round forecast Dax newcomer has already been raised again. Now it will be Profit (Ebitda) in the period from Between 550 and 570 million euros predict In the fourth quarter, as well as in 2019, management expects strong business development.

This is a positive one

Wirecard has done it again. This year, for the third time, Dax has raised his prediction. And it has become even more specific. Between € 550 and € 570 million should now be the projected profit before interest, tax and amortization (Ebitda). It was only in the summer that one had gone from 530 to 560 million euros.

Thus, between the upper and the lower ends are only 20 million euros, before it was 30 million euros. The reason for this is the continuous strong business development. Compared to the corresponding period of the previous year, Wirecard platform transactions increased by 44.2 percent to 90.2 billion euros in the first nine months.

Thus, strong growth in profits is driven by a significant increase in real business. Since the end of October, there are known sales and profit figures. They have now been finalized. As a result, earnings growth (Ebitda) increased by 38 percent to 395.4 million euros in the first nine months, and revenue growth of 41.4 percent to 1.4 billion euros was not surprising.

This is negative

Wirecard is increasingly being reduced to pure growth in the stock market. It is a danger. But is the leadership of CEO and founder Markus Braun primarily linked to the unquestionable progress of strong growth? However, notifications are missing.

This applies, on the one hand, to Asian markets, where Wirecard now accounts for more than half of its sales. On the other hand, the headquarters of Aschheim extend to the outskirts of Munich. The office space is already leased side by side. As for Wirecard, it is also about the creation of internal structures.

The future of Wirecard may be rosy, has now entered the stock market. However, the question is whether Wirecard will be able to benefit from it.

What's going on now

Wirecard is currently traditionally the best in the quarter, and it is expected that the business will grow fast next year. With revised projections, profits will fall, or even a structural crisis, as in the rest of the financial world, investors are not expected to wait.

Instead, the global trend, starting with cash and non-cash payments, will continue as customers increasingly buy online. In the future, this mainly means buying with a smartphone. Three quarters of online sales should take place by 2021, it recently said in a study. Wirecard is well-trained for this purpose and has offered an appropriate platform for a long time.

In Europe, and in particular in Germany, this is about the widespread recognition of non-cash payments. In Germany, payment institutions are still an exception, not a rule, using a smartphone in stores. The potential of Wirecard is huge, it's all about its emptying.

Therefore, a major challenge for the company will be to find a simple and easy solution for the mass, in which the client recognizes the advantages over their previous habits.

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