June 7, 2020 / 7:42 PM / a month ago

Wirecard says it is cooperating with investigation, reiterates outlook

FILE PHOTO: The headquarters of payments company Wirecard AG in Aschheim near Munich, Germany, April 25, 2019. REUTERS/Michael Dalder

BERLIN (Reuters) - Wirecard (WDIG.DE) is cooperating with authorities investigating the German payments company over possible market manipulation, it said on Sunday as it reiterated its 2020 earnings outlook.

Munich prosecutors on Friday said they had searched Wirecard’s headquarters and opened proceedings against the company’s entire management board as part of an investigation initiated by Germany’s financial regulator BaFin.

Wirecard faces allegations including accounting irregularities and disclosure violations, which it denies.

“The management board and the company respect the investigations and cooperate with the authorities. All data requested by the authorities during the search were provided at short notice,” Wirecard said in a statement.

“The Company is confident that the facts of the case will be clarified and the allegations will prove to be unfounded.”

The company founded in 1999 has profited from a boom in online payments but its share price has plunged after allegations of fraud and false accounting by the FT and the postponement of Wirecard’s annual results after an independent audit by KPMG failed to verify its financial reports.

Wirecard said it would publish consolidated financial statements for 2019 on June 18, adding: “The company expects that there will be no major deviations from the reported preliminary figures.”

It also reiterated the outlook it gave in February for the 2020 financial year, forecasting core profit of between 1 billion euros ($1.13 billion) and 1.12 billion euros.

Writing by Paul Carrel; Editing by David Goodman

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