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Wirecard boosts 2025 profit forecast on growth, SoftBank deal
[MUNICH] Wirecard AG raised its long-term outlook, saying it expects operating profit to climb to more than 3.8 billion euros (S$5.76 billion) in 2025 on growth in online payments and partnerships with the likes of SoftBank Group Corp.
That's a boost of about 15 per cent from a previous forecast of more than 3.3 billion euros of earnings before interest, taxes, depreciation and amortisation. The German payments firm also increased its sales forecast to more than 12 billion euros by 2025, up from more than 10 billion euros, it said on Tuesday.
"In addition to ongoing success with smaller and medium-sized customers and business partners, the increased focus on large companies will lead to a significant increase in transaction volumes - while at the same time realising profitable economies of scale," Wirecard said in a statement released ahead of an investor meeting in New York later on Tuesday.
Wirecard, which raised its profit outlook for this year in August, in recent months won clients including home-improvement retailer Leroy Merlin in Brazil and African airline Royal Air Maroc. The company is developing new finance products with Auto1 Group, the used-car-sales platform backed by Japan's SoftBank.
A series of Financial Times reports on suspicions of fraud at some units in Asia caused the payment firm's shares to whipsaw earlier this year. Wirecard found accounting quality issues at a software licence business and is bolstering compliance procedures by conducting more audits, tightening payments processes and improving training.
SoftBank said in April it would invest US$1 billion via convertible bonds into Wirecard, opening up its portfolio of startups to pen their own deals with the payments company.