German payments company reports strong year results as it expands into Chinese market
Wirecard forecasts strong growth in the coming quarter and fiscal year, says CEO
German payments company, Wirecard generated consolidated revenues of €1.9 million (£1.6m, $2.1) in the first nine months of 2019, an increase of 36.7 per cent on the previous year.
In the same period, the transaction volume processed via the Wirecard platform grew by 37.7 per cent to €124 billion from €90.2 billion last year.
Operating earnings before interest, tax, depreciation and amortisation (EBITDA) increased by 38.4 per cent to €553.1 million.
Meanwhile, in the third quarter of 2019, consolidated revenues increased by 36.8 per cent to €731.5 million and EBITDA increased by 42.8 per cent to €211.1 million.
Earnings after tax in the first nine months of 2019 increased by 53.2 per cent to €386.7 million and the cash flow from operating activities (adjusted) stood at €486.8 million.
Dr. Markus Braun, Wirecard chief executive, said the company is able to forecast “strong growth” in the fourth quarter and the coming fiscal year for its shareholders.
The management board confirmed its forecast for the current 2019 fiscal year of EBITDA of between €765 million and €815 million.
In addition, the management board issued its first EBITDA forecast for the following fiscal year and said that it expects EBITDA of between €1 billion and €1.12 billion in 2020.
At the same time, Wirecard has expanded its platform by entering the Chinese market.
The Munich-based company revealed it is investing in a comprehensive license portfolio for digital payments through an acquisition in China and will gradually acquire all shares in the Bejing-based AllScore Payment Services in a deal worth up to €109m.