Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Wirecard shares sink after FT report alleging company inflated sales

Published 15/10/2019, 09:52
Updated 15/10/2019, 10:41
Wirecard shares sink after FT report alleging company inflated sales

Wirecard shares sink after FT report alleging company inflated sales

LONDON (Reuters) - Shares in Wirecard (DE:WDIG) sank more than 20% in early trading on Tuesday after the Financial Times newspaper published documents on the company's accounting practices alleging an effort to inflate sales and profits, dealers said.

At 0806 GMT, shares were down 15% after hitting their lowest since April 24, making them the biggest faller on Germany's DAX 30 (GDAXI) and on track for their worst day since early February.

A Wirecard spokesman declined to comment on the report.

The newspaper said the documents included internal company spreadsheets and related correspondence between senior members of Wirecard's finance team, which appear to indicate an effort to inflate sales and profits at its businesses in Dubai and Ireland, as well as to potentially mislead EY, its tier-one auditor.

The report comes after the paper published a series of stories earlier this year alleging fraud and false accounting at Wirecard's Singapore office and that a key Middle East unit was not properly audited.

The company has denied the FT's allegations, saying that although Dubai-based subsidiary Card Systems was not individually audited, its books had undergone higher-level "full-scope" scrutiny by auditor EY.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.