Fintech player Wirecard upped its full year earnings forecast, with bosses’ confidence boosted by accelerating growth throughout its global footprint over the first half of the year.
The Germany-headquartered business increased its annual EBITDA forecast after an opening six months which CEO Markus Braun (pictured) said had left the company “extremely optimistic” about the remainder of the year. It now expects the metric to come in at between €765 million and €815 million, both of which are €5 million higher than previously anticipated.
In a statement, Wirecard explained its bullish outlook was based on factors including continued growth in the global e-commerce market; a trend of digitalisation among traditional retailers; an expanding customer base, along with cross-selling opportunities with existing clients; and growth in the broader value chain, specifically new services including data analytics, loyalty programmes and loans.
The company cited a deal with SoftBank as one of several “important partnerships” agreed over the six months. The Japanese company agreed a €900 million investment to develop digital payment solutions “with the aim of expanding the business fields in Japan and South Korea”. In its half year report, Wirecard said this and other deals struck during the period “were concluded in order to expand our network in terms of both specialist expertise and the customer groups being addressed”.
Transaction volume increased from €56.2 billion in H1 2018 to €77.3 billion. Europe generated 46.6 per cent of this figure, with the remainder from other global markets.
Earnings after tax increased from €83.9 million in H1 2018 to €131.4 million on revenue of €643 million, up from €467.9 million.Subscribe to our daily newsletter Back