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An audit of Wirecard's key business in Europe and the US reportedly shows its internal financial numbers are far worse than previously thought

An audit of Wirecard's key business in Europe and the US reportedly shows its internal financial numbers are far worse than previously thought
Lennart Preiss/Getty



Wirecard's primary business operations in Europe and the US have been unprofitable for years, according to a Financial Times investigation, bringing into question official financial reports which showed significant profits.




An internal audit conducted by KPMG shows that Wirecard's outsourced activities in Asia made up for the "lion's share" of its group profits, but added no real contribution to its tax-free earnings.




Underperformance of its operations in Asia have created challenges for the firm's administrator, which is looking to sell Wirecard's remaining business.




Unless a sale of its subsidiaries takes place within a few weeks, Wirecard will lose any remaining value, one expert said.




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Wirecard's primary business operations in Europe and the US have been unprofitable for years, according to a Financial Times investigation, bringing into question official financial reports which showed significant profits.
Operations in the company's two key regions have, in fact, been lossmaking.
Between 2016 and 2018, Wirecard's financial reports audited by EY show that it produced operating margins of 22% and doubled its interest-and-tax-free annual earnings to €439 million, the FT said.
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