Wirecard share: this may be the star of the German financial sector – 25.08.18



After years of thriving business, the largely unknown financial technology and the Wirecard banking group are about to move to the first Stock Exchange competition in Germany. The operating profit of the online payment processor of the Aschheim suburb in Munich is increasing by one-third every year, CEO Markus Braun is constantly setting higher sales and profit targets and the share price has doubled since the beginning of the year.

Wirecard, with a market value of more than 20 billion euros, even exceeds Deutsche Bank and makes Commerzbank an indisputable place in the Dax. If Wirecard rises to the first-class class on September 24, the 19-year-old FinTech company would be the youngest member of the leading index dominated by traditional companies.

But unlike the two large banks with their tens of thousands of employees, the TecDax company employs only 5,000 people worldwide. The annual turnover was only 1.5 billion euros, but is expected to double within two years. CEO Brown, who usually describes his own business prospects as "conservative" and has repeatedly performed in the past, finds modesty inappropriate when it comes to the future of Wirecard: "Everything we've achieved so far is just a little tired, to my opinion A copy of what we can achieve in the next ten years, "he said at the annual press conference in April.

Like some other companies in the financial sector, Wirecard benefits from the worldwide shift of money flows to the internet. The service provider uses online technology to handle payment transactions for other companies and to collect commissions for them. Regardless of whether consumers buy books or travel books on websites or via a smartphone app, download software for a fee or pay for online games: Wirecard is often the central intermediary between buyers, sellers and their banks in the background. The company ensures that the money is credited to the recipient and also takes on risk management. Its partners include financial institutions such as Commerzbank, Mastercard and Visa, technology groups such as Microsoft and Apple, transport companies such as the Austrian Federal Railways and retail chains such as Aldi and Lidl. From Europe, Wirecard initially expanded to Asia, where the Chinese internet company Alibaba is one of the most important partners, and two years ago also to North America.

ONLINE PAYMENT IN THE SHOPPING CART

Wirecard is also increasingly penetrating the traditional retail sector. According to CEO Braun, smartphones with Bayern payment apps and their partners such as Apple and Google would not only earn cash, but plastic credit cards and bank cards would also be unnecessary until the end. It makes radio technology possible NFCequipped with the newer phones. While the world still dominates the money, only 15 to 20 percent of payments would be processed electronically, such as a card, and calculate business information technology. Of that, only a maximum of one-tenth of a full digital run. "This opens up a huge market potential," says Braun.

The 48-year-old Austrian has built up the company considerably. 16 years ago, three years after its foundation, Braun joined Wirecard at the management consultancy firm KPMG and took over as CEO. The technically savvy manager, who may seem a bit embarrassed at first impressions, begins to engage in specialized conferences when explaining his expansion plans to IT experts or financial analysts. With a seven percent share package, the CEO is also the largest shareholder of Wirecard.

The group's success led to repeated doubts about doubts as to whether money laundering, support for illegal gambling providers, UK or India crooked companies, accusations of anonymous sources on the Internet or in media reports, which were regularly associated with a fall in the share price, The rumors sometimes reminded of the early days of the company when gambling and porn companies were among the most important customers. Did not harden any of the accusations. Instead, financial regulator Bafin and the public prosecutor's office focused on possible market manipulation. The suspicion: investors who benefit from the so-called short selling of a price drop could be behind the rumors. The stock has not permanently damaged it. On Friday the newspaper reached a record high of EUR 188.50.

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Source: wirecard AG


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