WDI.DE - Wirecard AG

XETRA - XETRA Delayed Price. Currency in EUR
86.81
-0.09 (-0.10%)
As of 10:02AM CEST. Market open.
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    2W - 6W
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    6W - 9M
  • Long Term
    9M+
Previous Close86.90
Open87.00
Bid86.89 x 37100
Ask86.96 x 20900
Day's Range86.35 - 87.67
52 Week Range72.00 - 159.80
Volume294,485
Avg. Volume2,994,893
Market Cap10.727B
Beta (5Y Monthly)0.51
PE Ratio (TTM)22.28
EPS (TTM)3.90
Earnings DateJun 16, 2020
Forward Dividend & Yield0.20 (0.23%)
Ex-Dividend DateJun 19, 2019
1y Target Est205.49
Fair Value is the appropriate price for the shares of a company, based on its earnings and growth rate also interpreted as when P/E Ratio = Growth Rate. Estimated return represents the projected annual return you might expect after purchasing shares in the company and holding them over the default time horizon of 5 years, based on the EPS growth rate that we have projected.
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    • Financial Times

      Wirecard postpones issuing annual results again

      Wirecard has postponed the publication of its 2019 annual results for the third time this year as its auditor EY needs additional time to finish its work, the German payments company said in a regulatory statement issued after markets closed on Monday night. Its shares have fallen by more than a third since late April when it published the results of a company-commissioned special audit by KPMG. The Big Four accountancy firm could not verify that the “lion’s share” of Wirecard’s operating profits between 2016 and 2018 were genuine.

    • Investor TCI files criminal complaint against Wirecard managers
      Reuters

      Investor TCI files criminal complaint against Wirecard managers

      The investor TCI Fund Management said on Tuesday that it has filed a criminal complaint against Wirecard managers with public prosecutors in Munich. Wirecard, which has repeatedly denied allegations including accounting irregularities and disclosures violations, said TCI's complaint was "completely unfounded". TCI has disclosed that it has net short positions against Wirecard stock, a bet that the shares will fall.

    • Financial Times

      German watchdog opened probe into Wirecard accounting last year

      Germany’s accountancy watchdog opened an investigation into payments company Wirecard last year after whistleblower allegations of accounting fraud, according to people familiar with the matter. The news of the probe by the Berlin-based Financial Reporting Enforcement Panel (FREP) comes just weeks after a special audit Wirecard commissioned from KPMG was unable to verify the genuineness of the fintech’s sales and profits from third parties between 2016 and 2018. Wirecard’s shares have tumbled more than 40 per cent since the findings of the special audit were published.

    • Financial Times

      TCI files Wirecard complaint with Munich prosecutors

      TCI Fund Management has filed a complaint against Wirecard executives in Munich, an escalation of the activist campaign against the German payments group by the short seller Christopher Hohn. The call from one of Europe’s most successful investors for a criminal investigation into alleged accounting fraud adds to the pressure on the Dax-listed fintech long regarded as one of Germany’s most promising technology companies. “The KPMG report published by Wirecard on April 28, 2020 as well as public reporting, including that in the Financial Times and Wirtschaftswoche, reveal anomalies that may have criminal relevance,” TCI said in a statement on Tuesday.

    • PR Newswire

      Wirecard Enhances Payment Suite for Xsolla, Global Video Game Business Engine

      Wirecard, the global innovation leader for digital financial technology, today announces Xsolla, the global video game business engine, as a new client for digital payments in Europe. Wirecard will complement Xsolla's card payments offerings, so that gamers continue to have their favorite payment options available in their territories.

    • Wirecard shares plunge as Dubai-based partner shuts shop
      Reuters

      Wirecard shares plunge as Dubai-based partner shuts shop

      Shares in Wirecard fell to more than two-year lows on Friday after a Dubai-based business partner closed its doors even as the German payments company played down the impact on operations. The shares dropped after a tweet pointed to a May 11 liquidation notice in the newspaper Gulf Today by Al Alam Solution Provider FZ based in Dubai. Al Alam was one of Wirecard's routing partners for payment transactions.

    • Germany's BaFin has no plans to ban Wirecard short-selling
      Reuters

      Germany's BaFin has no plans to ban Wirecard short-selling

      Germany's financial watchdog BaFin said it has no plans to ban short-selling in payments company Wirecard even as hedge funds increased their bets speculating on a fall in the company's share price. "We are not currently planning a short sale ban for Wirecard," the BaFin spokeswoman told Reuters in an emailed statement. Hedge funds have significantly increased their bets on falling shares over the past few days.

    • Financial Times

      Wirecard’s Dubai business partner enters liquidation

      Wirecard’s most significant business partner of recent years, a Dubai business central to whistleblower allegations that the German payments group fraudulently inflated sales and profits, has announced its liquidation. The liquidation of payment processor Al Alam Solution Provider comes after KPMG said late last month that it could not verify that large portions of Wirecard revenues and profits were genuine. Shares in Wirecard plunged as much as 16 per cent on Friday, to €73, after the short seller MCA Mathematik drew attention to the liquidation on Twitter, and Deutsche Bank separately suspended its investment rating on Wirecard.

    • Wirecard Hangs On to Full-Year Estimates, Stays Silent on Audit
      Bloomberg

      Wirecard Hangs On to Full-Year Estimates, Stays Silent on Audit

      (Bloomberg) -- Wirecard AG said it still expects full-year earnings to rise, even as some business customers struggle with the lockdown.Earnings before interest, taxes, depreciation and amortization will be 1 billion euros ($1.1 billion) to 1.2 billion euros in 2020, the company said in its preliminary first-quarter earnings statement on Thursday. Adjusted first-quarter ebitda rose 29% to about 204 million euros.The German payment processor didn’t further address an inconclusive audit by KPMG released last month that was meant to clear the company of accusations about its accounting practices. Chief Executive Officer Markus Braun has dismissed calls to step down instead saying the company will implement sweeping measures to improve compliance and control.Key InsightsThe company has said it would expand its management board to seven members and appoint a chief compliance officer. On Wednesday, it appointed Joerg Brand, First Data GmbH’s former management board spokesman and head of sales, to oversee Wirecard’s risk-management division.The independent KPMG audit of Wirecard said it was unable to obtain the data it needed and criticized the company for internal “shortcomings” and an unwillingness by its third-party partners to contribute to the report.Germany’s financial regulator said it is reviewing the KPMG report on Wirecard to see if it contains new information on whether the company is a reliable owner of a bank. BaFin said with every bank it looks at the reliability of the owners when a report like KPMG’s comes out.Market ContextWirecard shares have plunged 35% in the last 12 months through Wednesday.The full first-quarter statement will be published on June 16.Get MoreWirecard Faces Investor Lawsuit Over Compliance AllegationsWirecard Says KPMG Could Not Review All Data for AuditSee the full numbers here: Wirecard AG: Wirecard AG: Preliminary result Q1 2020 For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

    • German watchdog conducts multiple investigations into Wirecard
      Reuters

      German watchdog conducts multiple investigations into Wirecard

      Germany's financial watchdog BaFin said on Tuesday that it was conducting multiple investigations into payments company Wirecard. The probes add to the turmoil surrounding the prominent German company, which faces continuing allegations including accounting irregularities and disclosure violations, assertions it has denied. BaFin officials said that they were looking at Wirecard's reliability as the owner of Wirecard Bank, as well as at communication with investors directly ahead of the publication of a critical audit by KPMG.

    • Munich court to drop case against British short seller over Wirecard shares
      Reuters

      Munich court to drop case against British short seller over Wirecard shares

      A Munich court is planning to drop proceedings against British short seller Fraser Perring for suspected manipulation of the share price of German payment processor Wirecard <WDIG.DE>, a court spokesman said on Monday. The deal concludes an investigation that was launched in 2016 after the stock took a battering from short sellers after Perring's Zatarra Research accused the company of misleading accounting and fraud, charges Wirecard has strongly denied. The deal was contingent upon Perring making a payment to a charitable organization to the tune of a low five-digit thousand euro figure.

    • Reuters

      European shares gain as UK, Italy outperform

      European stocks rose on Monday, with UK markets posting sharp gains after the government outlined plans to gradually ease the lockdown, while shares in Germany's Wirecard jumped after it revamped its management board. The pan-European STOXX 600 rose 0.5% by 0718 GMT, adding to slim gains made so far in May. Germany's DAX still rose as payments company Wirecard jumped 10.8% after announcing a reshuffle of its management board amid allegations including accounting irregularities and disclosure violations, which it denied.

    • Reuters

      Wirecard revamps management board amid probes

      Wirecard <WDIG.DE> Chief Executive Markus Braun apologised to shareholders on Friday as the company announced a reshuffle of its management board and appointed a new compliance officer, days after the hedge fund TCI demanded Braun's removal. In a bid to assuage investors, Wirecard hired KPMG to conduct an independent audit but the accounting firm said it had insufficient information to disprove the allegations, made by the Financial Times, leading to a 26% drop in Wirecard's share price and prompting calls from TCI to overhaul the company. Wirecard announced the management changes as Germany's financial market watchdog BaFin intensifies a probe into whether the company may have withheld information before KPMG published its report.

    • PR Newswire

      Wirecard Cooperates With PINAR Water&Beverages, Leading Turkish Bottled Water Brand, for Digital Payments and Contactless Delivery

      Wirecard, the global innovation leader for digital financial technology, is cooperating with PINAR Water&Beverages;, Turkey's first bottled water brand, to enable contactless digital payments via a mobile platform where users can order drinkable water and other beverages such as carbonated soft drinks, lemonade and mineral water variants. The collaboration means PINAR Water&Beverages; can offer its customers throughout Turkey an improved customer experience with in-app payments and a safer, more convenient solution during the COVID-19 pandemic and beyond, by removing the need for cash payments.

    • Bloomberg

      Wirecard’s Chairman Must Finish What He Started

      (Bloomberg Opinion) -- The threat posed by an activist shareholder is normally correlated with their stake in the target. But agitators with no shares can be formidable adversaries if they have good arguments. Look at Chris Hohn’s demands of Wirecard AG.The billionaire hedge fund manager is calling for management change at the German payments group even though his firm TCI Fund Management Ltd. is short the stock. Hohn’s investment implies he thinks the shares will fall regardless of his prescriptions. All the same, Wirecard Chairman Thomas Eichelmann would be wise to treat the challenge as if it came from a major investor.The immediate trigger for Hohn’s intervention was an audit that failed to clear up questions raised about Wirecard’s historic revenue by articles in the Financial Times last year. Accounting firm KPMG AG was unable to verify, among other things, Wirecard revenue generated through arrangements with partner businesses — the area the FT had focused on. What’s more, KPMG said partner companies had not provided it with the evidence it needed to do its job, and Wirecard staff didn’t proffer, or delayed, useful information.Wirecard has drawn attention to the fact that KPMG found no reason to correct past accounts. Yet its shares have fallen by a third. Investors don’t see an all-clear while gaps remain.The constituent of Germany’s Dax index is effectively back to where it was in October when it commissioned the accounting review, having categorically rejected allegations of impropriety and argued that the FT drew incorrect conclusions from its source material. Some questions are the same, some have been settled, and some new ones have surfaced.Hohn is rightfully calling for the supervisory board to take responsibility for completing the audit. While both Wirecard’s supervisory and management boards decided to call in KPMG, the auditor answered only to the former. Finishing the job is partly about restoring confidence. As a financial company, it’s also imperative Wirecard knows where its revenue comes from to combat money laundering.Eichelmann suggested to German daily Handelsblatt that constraints resulting from the pandemic hampered the collection of evidence; a forensic audit will often depend on original documentation. In that case, Wirecard should come up with a plan to address these issues. Investors would rather have the full picture late than never.Next, there need to be consequences if Wirecard employees actively stalled KPMG’s work as opposed to being caught up in the response to the virus. The supervisory board appoints the management board and that gives it leverage to ask tough questions here. For his part, Hohn thinks Chief Executive Officer Markus Braun should go.Eichelmann has hinted at boardroom change, pointing out to Handlesblatt that the contracts of some directors are up for renewal later this year. But he says now would be the wrong time for Braun to leave and points to governance changes that were already underway before last week. That message, echoed by Braun himself in comments to Bloomberg News, sounds complacent amid the shock investors feel at KPMG’s report. Wirecard appointed Eichelmann last June. But he was in charge of supporting KPMG from the start. A crisis he inherited now belongs to him. His challenge is to finish the audit and deal with anyone who got in the way. Regardless of TCI’s short position, that’s the right thing to do.This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Chris Hughes is a Bloomberg Opinion columnist covering deals. He previously worked for Reuters Breakingviews, as well as the Financial Times and the Independent newspaper.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

    • Wirecard CEO Resists Calls to Quit, Plans Business Overhaul
      Bloomberg

      Wirecard CEO Resists Calls to Quit, Plans Business Overhaul

      (Bloomberg) -- Germany’s Wirecard AG plans to regain the confidence of investors with sweeping measures to improve compliance and control, said Chief Executive Officer Markus Braun, dismissing calls to step down.The payment processing company will reveal details of nine projects to improve “global internal control systems including how it reports and punishes compliance violations and dealings with business partners,” Braun told Bloomberg News late on Sunday.It follows an independent KPMG audit of Wirecard that caused its shares to fall more than 30% last week. KPMG said it was unable to obtain the data it needed and criticized the company for internal “shortcomings” and an unwillingness by its third-party partners to contribute to the report.Wirecard managers had hoped the KPMG probe would resolve lingering concerns around the Munich-based firm’s third-party business, merchant payments and business activities in India and Singapore, after a series of articles by the Financial Times accused it of fraud in those areas.However, the report was repeatedly delayed and KPMG said evidence provided for revenues of 1 billion euros ($1.1 billion) in transactions with third parties was sufficient for reporting purposes but insufficient for the forensic probe. It said Wirecard has an “accumulation of software contracts without economic substance.”Braun renewed a previous commitment to improve compliance and move away from doing business with third-party business partners, which process payments in countries where Wirecard has no license to operate. Such contracts represented about half of its transaction volumes last year.“We will massively cut back our third-party business and replace it with our own licenses within the next two years,” Braun said by phone. He said the measures won’t affect revenue and profit margins.Rating CutsThe KPMG report has stirred concern among some of the longest-running Wirecard backers, with analysts from Kepler Cheuvreux, HSBC and Morgan Stanley each cutting or suspending their long-term buy ratings.Wirecard’s shares were down another 4.6% as of 10:39 a.m. in Frankfurt.While Braun acknowledged there’s more to be done, he said progress has already been made, pointing to a project launched in mid-2019 to strengthen internal controls in Singapore that was rolled out worldwide and has improved standards.He said the company is boosting staff in its compliance department to 160 from 100. Chairman Thomas Eichelmann last week said it would add compliance and sales specialists to its management board.Braun rejected a call from billionaire activist investor Chris Hohn of TCI Fund Management Ltd. last week for him to step aside. The CEO said he brings “substantial value-enhancing potential to Wirecard, with a clear plan to boost its revenues and profits by multiple times” within the next ten years.“We are on course to meet our financial targets for 2020 and keep our long-term guidance,” Braun said.He said the coronavirus crisis has weighed on the firm’s business with airlines but helped in other areas such as online retail.“All growth drivers are intact and will be strengthened by the digitalization trend and accelerated by corona,” Braun said. Wirecard is due to present first-quarter earnings on May 14 and its long-awaited, audited annual report on June 4.(Updates to add latest analyst rating cuts in eighth paragraph. An earlier version of this story was corrected to fix the date of first-quarter earnings in final paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

    • PR Newswire

      Wirecard Helps Food Service Restaurants and Merchants Strengthen Their Businesses With Digital Services

      Wirecard, the global innovation leader for digital financial technology, is cooperating with Everesto, a delivery service management platform, to support food service merchants in expanding their core business to include delivery services. Everesto's platform already handles thousands of transactions for restaurants of all sizes to accept orders and receive payment even before delivery has taken place. Customers can also pick up their orders at the restaurant, which strengthens out-of-home sales and is another source of revenue for restaurants in times of COVID-19. Wirecard is taking over the payment processing for transactions, thus further advancing digitalization in the retail and restaurant industries.

    • KPMG Knocks Wirecard Leaving Shorts With Over $1 Billion In Profits
      Benzinga

      KPMG Knocks Wirecard Leaving Shorts With Over $1 Billion In Profits

      This week, Wirecard AG (OTCMKTS: WCAGY) shares slumped after the firm failed to successfully address concerns about accounting discrepancies.This comes after KPMG International was hired to address allegations regarding fake transactions and inflated revenue numbers.As a result of the investigation, KPMG could not verify revenues for the years spanning 2016-2018 because Wirecard did not provide the documents requested."We cannot make a final judgment on whether the documentation and information are complete, correct and free of contradiction," KPMG said in a 58-page report.As part of the development, Wirecard shares plummeted, leaving short position holders with over $1 billion in profits.In a statement on the development, Peter Hillerberg, Co-Founder and CTO of London-based ORTEX Global Equity Analytics told Benzinga "ORTEX data shows that over 20 million of Wirecard's shares are on loan, these shares can now be bought back €50 per share cheaper, making a total profit of over 1 billion euros for the short-sellers."According to Hillerberg, flagged short-sellers include Marshall Wace LLP, Slate Path Capital LP, TCI Fund Management Limited, as well as Viking Global Investors LP."Our data shows that some of the asset managers have already started to realize the profits, although a majority of short-sellers have increased their short positions even after the recent price drop."Alongside the development, activist investor Christopher Hohn of TCI called on Wirecard to remove CEO Markus Braun as a result of the firm's mismanagement."In our opinion, the necessary intervention is now to remove the CEO from all management duties," Hohn said.In response, the chairman of Wirecard's supervisory board, Thomas Eichelmann, voiced his support for Braun, stating "I do not see a removal of Dr. Braun at the moment."To keep up with the latest on this development, visit Benzinga.com.Photo courtesy of ORTEX. See more from Benzinga * Fireblocks Secures Billion In Digital Asset Transfers * 'Saving For Your Child's Future': UNest Launches 529 College Savings App For Millennials, Tech-Focused Parents * Stash Secures 2M In Series F Led By LendingTree, T.Rowe Price, Union Square Ventures(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

    • A Trader Goes Short on Wirecard, Then Files a Criminal Complaint
      Bloomberg

      A Trader Goes Short on Wirecard, Then Files a Criminal Complaint

      (Bloomberg) -- A trader changed his position on Wirecard AG from long to short. Then he asked prosecutors and regulators to investigate the German fintech company.The former investment bank employee, who can only be identified as Armin S., filed a criminal complaint with police and market regulator Bafin seeking an investigation into whether Wirecard violated EU market manipulation rules.The request came just after an independent audit into Wirecard by KPMG criticized the payment processor for internal “shortcomings” and unwillingness by its third-party partners to contribute to the report.Wirecard hired KPMG in October to look into its third-party partner business and its operations in India and Singapore following articles by the Financial Times that accused the company of accounting fraud in several countries. The German fintech had drip-fed parts of the report to the market, including a statement earlier this month that the accounting firm had not made any substantial findings of questionable accounting methods.“The company repeatedly said that KPMG didn’t find any wrongdoing, while they concealed that the auditor wasn’t able to get the necessary documents from Wirecard itself,” Armin S. said in an interview.The trader admitted in the complaint, however, that he changed his position on the company’s shares on the same day as the KPMG report. In the filing, Armin. S. said that he bought Wirecard shares through January as “he believed in the company,” but on Tuesday he changed his position, buying derivatives that allowed him to profit from falling Wirecard stock prices.Wirecard’s press office didn’t immediately reply to an e-mail seeking comment. A Bafin spokeswoman said she can’t immediately comment.The trader said in an interview that he isn’t a “typical” short seller, who bets on a company’s stock falling.“I have been long on Wirecard for a long period and really made good money,” Armin S. said in an interview. “I believed what the company communicated and now we saw it wasn’t based on facts. So when the report came out on Tuesday, I switched to short. And that has already worked well.”The company’s shares fell as much as 36% after the KPMG report was published before rebounding 4.9% Thursday. Activist investor Christopher Hohn called on Wirecard to remove Chief Executive Officer Markus Braun, putting additional pressure on the stock this week.Wirecard, based in Aschheim near Munich, on Tuesday said “no incriminating evidence was found” in the KPMG report “for the publicly raised accusations of balance sheet manipulation.”BNP Wins Dismissal of Suit Over $186 Million ‘Fat Finger’ ErrorThis isn’t the first time that Armin S. has made headlines. The trader sued French lender BNP Paribas SA over what he called a 163 million-euro ($177 million) “fat-finger” mistake on a transaction.He lost a ruling in the case in Frankfurt and has appealed. He has also sued BNP in Paris.“It angers me when I see that big players think they are above the law and can interpret the rules as they please,” Armin S. said. “The small trader is immediately being held accountable for the slightest issue because it’s easy to get after him. I’ve seen that many times.”Bafin spokeswoman Anja Schuchhardt declined to comment. Bafin has long been conducting a market manipulation probe into Wirecard and will also add the information from the KPMG report to its investigation, she said.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

    • Wirecard slides again after short seller demands CEO's head
      Reuters

      Wirecard slides again after short seller demands CEO's head

      Shares in Wirecard slumped again on Wednesday as a prominent short seller demanded the sacking of CEO Markus Braun after a special audit of the German payments company was unable to verify its financial statements. Chris Hohn, head of $24 billion fund TCI, said in an open letter to Wirecard's supervisory board that the audit by KPMG raised questions over management's compliance with anti-money laundering and know-your-customer laws. "We are of the view that the supervisory board is legally obliged to intervene," Hohn wrote in the letter, addressed to Wirecard Chairman Thomas Eichelmann and other supervisory board members.

    • Activist Hohn Calls on Wirecard to Remove CEO Markus Braun
      Bloomberg

      Activist Hohn Calls on Wirecard to Remove CEO Markus Braun

      (Bloomberg) -- Billionaire activist investor Christopher Hohn has called on Wirecard AG to remove Chief Executive Officer Markus Braun after an independent audit of past revenues criticized the German payments processor for internal “shortcomings.”The probe by KPMG was unable to obtain the data needed to verify revenues of 1 billion euros ($1.1 billion) in transactions with third parties. Wirecard hired the accounting firm in October to look into its third-party partner business as well as operations in India and Singapore following a series of reports by the Financial Times that accused the company of accounting fraud in several countries.Shares in Wirecard fell 12.6% in early trading in Frankfurt, taking the drop since start of trading Tuesday to 37%.Given management didn’t provide KPMG with the necessary documentation to verify the revenue, “we are of the view that the supervisory board is legally obliged to intervene,” Hohn’s TCI Fund Management Ltd. said in a letter also posted on its website.“In our opinion, the necessary intervention is now to remove the CEO from all management duties,” TCI said. Failing that, the board must take responsibility for the investigation and remove Wirecard’s management from involvement in the audit until the allegations have been resolved, it said.TCI has a short position in Wirecard, equivalent to 1.04% of the company’s stock.Hohn’s hedge fund, which managed about $30 billion before suffering its steepest ever monthly decline in March, specializes in taking large stakes in companies and agitating for change to boost the firms’ share prices.His bets have included companies such as ABN Amro Bank NV, News Corp. and most recently some attempted agitation against the London Stock Exchange Group Plc.The tactic has worked well for TCI -- it’s made money every year since 2008. It gained 41% in 2019, its best annual performance in six years.(Updates with share price, corrects company name.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

    • Wirecard shares crash 26% after critical KPMG audit
      Reuters

      Wirecard shares crash 26% after critical KPMG audit

      An independent investigation by auditor KPMG into Wirecard <WDIG.DE> found on Tuesday the German payments company did not provide sufficient documentation to address all allegations of accounting irregularities made by the Financial Times. Following the release of the report, Wirecard said the KPMG audit had not uncovered any incriminating evidence to support allegations it manipulated its accounts and it would not restate its accounts for the years 2016 through 2018. "I would like to underline that, overall and in every point, the allegations were not confirmed," CEO Markus Braun told a conference call with reporters.

    • Wirecard Says KPMG Could Not Review All Data for Audit
      Bloomberg

      Wirecard Says KPMG Could Not Review All Data for Audit

      (Bloomberg) -- An independent audit into Wirecard AG concluded that it was unable to obtain the data needed to confirm past revenues, and criticized the payment processor for internal “shortcomings” and unwillingness by its third-party partners to contribute to the report.As a result, KPMG couldn’t check on revenues of 1 billion euros ($1.1 billion) in transactions with third parties. Wirecard said the data needed to conclusively approve revenues from 2016 to 2018 is “primarily in the control of third parties,” but the company provided its own numbers to the auditor. Those didn’t reveal “any deviations between the reported revenues and account balances,” the German fintech said in a statement Tuesday.Wirecard hired the accounting firm in October to look into its third-party partner business as well as its operations in India and Singapore following a series of reports by the Financial Times that accused the company of accounting fraud in several countries. Since then, the German fintech has drip-fed parts of the report to the market, including a statement last week that said KPMG had not made any substantial findings of questionable accounting methods in all four areas of the audit.Shares dropped as much as 22%, the biggest intraday decline since February 2019. The stock fell 18% to 108.08 euros at 10:29 a.m. in Frankfurt.The report was plagued by delays. The company failed to supply some of the documents KPMG requested in the course of the investigation, or didn’t supply them until several months after they had been requested, which delayed the investigation overall, according to the report. Wirecard also postponed individual agreed interview appointments several times, and failed to put an internal control system in place for key parts of its operations in Singapore, KPMG said.Wirecard said complications from the Covid-19 pandemic were behind the late submissions, and the data needed to conclusively approve revenues from 2016 to 2018 is “primarily in the control of third parties.” It added that its 2019 accounts will not be released on April 30, due to the Covid-19 virus and the audit report.Read more: Wirecard Says Audit Finds No ‘Substantial’ Accounting QuestionsAny positive reaction to Wirecard not having to restate earnings will be muted because of the need for further detail on the review of the third-party business, analysts from Morgan Stanley said Tuesday.Wirecard’s revenue soared in 2018 following an acquisition spree. The company’s technology helps its customers accept online payments and use its banking licenses to issue their own payment instruments.The company had previously hired law firm Rajah & Tann to investigate its Singapore subsidiaries. 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 that it was linked to Wirecard headquarters.The Financial Times also reported that substantial sales and profits were processed by Wirecard’s Dubai-based partner company Al Alam Solutions in the names of several clients that didn’t exist or had no record of a relationship with the firm. The company “categorically rejects” the allegations, calling them “nonsense,” a spokeswoman said in October.(Updates with details from the KPMG audit report from the first paragraph throughout, analyst comment)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

    • European stocks advance on hopes over reopening economies
      MarketWatch

      European stocks advance on hopes over reopening economies

      European stocks advanced on Tuesday, continuing the recovery from the lows of the coronavirus crisis.

    • MarketWatch

      Wirecard shares slump after saying KPMG didn't have all data needed to prove revenue of unit

      Shares of Wirecard slumped 16% in early trade after saying a KPMG special investigation did not have all the data necessary to prove the revenue in the Third Party Acquiring business. The digital payments firm continued to maintain it will not have to restate its results from 2016 to 2018, and said it will publish the KPMG report soon, which made no "substantial" findings. Wirecard said KPMG has identified documentation and organizational weaknesses during the audit period, which it said had already been identified by Wirecard. Wirecard also delayed the publication of its annual report, and said the KPMG report will be made available shortly.