Wirecard Beats Highest Estimate, Waits for Results of KPMG Audit

Sarah Syed, Bloomberg News

An employee demonstrates the Wirecard AG online payment smartphone app on the company's exhibition stand at the Noah Technology Conference in Berlin, Germany, on Thursday, June 13, 2019. The annual tech conference runs June 13 -14 and brings together future-shaping executives and investors. Photographer: Krisztian Bocsi/Bloomberg , Bloomberg

(Bloomberg) -- Wirecard AG posted full-year revenue that beat the highest analyst estimates, at a time when the German payments processor struggles to move on from reports over alleged questionable accounting methods.

The company reported full year revenue of 2.8 billion euros ($3 billion), versus analyst projections of 2.7 billion euros.

Wirecard also confirmed its 2020 outlook, and reported 2019 earnings before interest, tax, depreciation and amortization of 785 million euros, below the estimate of 792.3 million euros.

Both Wirecard and investors are waiting on the findings of an independent audit into its accounting methods. Wirecard’s shares have whipsawed after media reports first raised allegations about its accounting methods, all of which the company has rejected. In an attempt to assuage rattled investors, Wirecard said in October it will give auditing firm KPMG unrestricted access to information.

Read more: Wirecard Chairman Resigns in Midst of Accounting Controversy

Wirecard’s revenue soared in 2018 after it bought more than 15 companies in a few years. But in a series of articles last year, the Financial Times reported allegations of accounting fraud at Wirecard in Singapore and other Asian countries. The company hired law firm Rajah & Tann to investigate. A final report from the firm in March 2019 acknowledged accounting oversights and potential criminal liability among some Singapore staff, but didn’t find evidence of criminal activity linked to Wirecard’s German headquarters.

The FT then reported in October that payments processed by a Dubai-based partner company in 2016 and 2017 may not have taken place. Wirecard called those allegations “total nonsense,” but controversy has continued to dog the company, a member of Germany’s benchmark DAX index.

Wulf Matthias resigned as chairman of the supervisory board in January and was replaced by Thomas Eichelmann -- head of the body’s audit committee.

Why Germany’s Wirecard Is No Stranger to Controversy: QuickTake

To contact the reporter on this story: Sarah Syed in London at ssyed35@bloomberg.net

To contact the editors responsible for this story: Giles Turner at gturner35@bloomberg.net, Edwin Chan