Wirecard sees core profits growing sixfold by 2025

Key Points
  • Sees EBITDA of at least 3.3 billion euros in 2025
  • Transaction volumes to top 710 bln euros; revenues 10 bln
  • Confirms guidance for this year and for 2020
  • Shares rise 4.9 percent in early trade
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Wirecard, the German fintech company recently admitted to the DAX blue-chip index, said on Tuesday it expects core profits to grow sixfold by the middle of the next decade on the back of a global boom in e-commerce and digital payments.

Earnings before interest, taxation, depreciation and amortization (EBITDA) are forecast to exceed 3.3 billion euros ($3.79 billion), according to key points from Wirecard's Vision 2025 strategy released ahead of an investor day in London.

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That compares with EBITDA guidance for this year of between 530 and 560 million euros, which Wirecard confirmed along with its existing forecasts for 2020.

Shares in Wirecard rose 4.9 percent in early Frankfurt trade WDIG.F, making them the biggest gainers on the DAX .GDAXI.

The company recently ousted Commerzbank from the blue-chip index thanks to a rise of nearly 80 percent in its shares this year. More broadly, the digital payments sector led by Paypal is in vogue with investors.

Wirecard said it would focus on an accelerated convergence of online, mobile and point-of-sale payments through new technologies that would enable so-called 'omnichannel' commerce. It would also deploy data-driven services to help merchants convert more sales leads into business.

In 2025, Wirecard expects transaction volumes to increase to more than 710 billion euros, while revenues are expected to reach at least 10 billion euros.

By comparison, the company forecasts transaction volumes of at least 215 billion euros in 2020, revenues of more than 3 billion euros and an EBITDA margin of 30 to 35 percent.