Wirecard (WDI GY): Understanding Wirecard's Cash Flow Dynamics

European Event-Driven Analyst

Patryk Basiewicz

PGB Research

Forensic Accounting

Network International Holdings / Forensic Accounting

<p><a href="https://www.smartkarma.com/entities/network-international-holdings-plc" target="_blank" rel="noopener">Network International Holdings (NETW LN)'</a>s share price has fallen by half this year. Though much of this decline likely occurred due to COVID-related hit in its brick-and-mortar retail/tourist business, it is quite likely that <a href="https://www.smartkarma.com/entities/wirecard-ag" target="_blank" data-smartkarma-citation="entities:21743:1" rel="noopener">Wirecard AG (WDI GR)</a> crisis had a part to play. Seemingly, there are several parallels. There are already some Twitter haters out there. </p>
<p>Below I analyse <a href="https://www.smartkarma.com/entities/network-international-holdings-plc" target="_blank" data-smartkarma-citation="entities:28918:1" rel="noopener">Network International Holdings (NETW LN)</a> cash flow dynamics using the information they provided in public disclosure. I do that because Wirecard's poor cash generation was the canary in the coal mine, that many (myself included) overlooked and downplayed. I show how different business models between NETW and Wirecard lead to different adjustments of reported cash flow figures. Note that, just like Wirecard, NETW does not disclose cash flow in a way that fully reflects economic reality. </p>

Network International Holdings (NETW LN)'s share price has fallen by half this year. Though much of this decline likely occurred due to COVID-related hit in its brick-and-mortar retail/tourist business, it is quite likely that Wirecard AG (WDI GR) crisis had a part to play. Seemingly, there are several parallels. There are already some Twitter haters out there. 
Below I analyse Network International Holdings (NETW LN) cash flow dynamics using the information they provided in public disclosure. I do that because Wirecard's poor cash generation was the canary in the coal mine, that many (myself included) overlooked and downplayed. I show how different business models between NETW and Wirecard lead to different adjustments of reported cash flow figures. Note that, just like Wirecard, NETW does not disclose cash flow in a way that fully reflects economic reality. 

Network International (NETW LN): It Is Not Wirecard Just Yet. Cashflow Comparison.