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Delivery Hero rises to the Dax

2020-08-19T20:22:25.302Z


After less than two years, the payment service provider Wirecard is out of the top tier of the stock market. A previous start-up is benefiting from the descent of the scandalous group.


After less than two years, the payment service provider Wirecard is out of the top tier of the stock market. A previous start-up is benefiting from the descent of the scandalous group.

Frankfurt / Berlin (dpa) - The international food delivery service Delivery Hero rises in the German share index (Dax). The company, based in Berlin, is taking over from Wirecard in the leading index, as announced by Deutsche Börse in Frankfurt.

The payment service provider is insolvent after a billion-dollar accounting scandal. After the real estate group Deutsche Wohnen, Delivery Hero will be the second Berlin company to rise to the top stock exchange league within a few weeks. Previously, the German capital had not had a company in this prestigious segment for 14 years.

The food delivery service is one of the beneficiaries of the corona epidemic. The former start-up operates order platforms for food from local suppliers in more than 40 countries and employs 25,000 people, including around 1,300 in Berlin. They mediate delivery services between restaurants and their customers. Most of the money comes from commissions paid by the participating restaurants. However, Delivery Hero also operates its own delivery services and large kitchens.

The company has not accepted orders from German customers since last year: the German business with the brands Pizza.de, Lieferheld and Foodora was sold. The Dutch competitor Takeaway has incorporated it into its own Lieferando platform. Delivery Hero made more than half of its sales in 2019 in the Middle East and North Africa.

The company is still in the red. In the first half of the year, the loss before interest, taxes, depreciation and amortization, adjusted for special items, was EUR 319.5 million according to preliminary figures. The final half-year results will follow on August 27th.

Thanks to the strong growth in the corona crisis, the Berliners have already increased the forecast for the full year. Sales between 2.6 and 2.8 billion euros are expected, almost doubling compared to the previous year.

The company, founded in 2011, is the second youngest DAX member after the Bayer spin-off Covestro. The fragrance and flavor manufacturer Symrise from Holzminden in Lower Saxony had also been given opportunities to climb the Dax.

Due to the accounting scandal surrounding alleged air bookings, Wirecard had lost considerable value in the financial markets. In view of the insolvency of the DAX member, Deutsche Börse also revised its rules and regulations after consulting with market participants. According to the new requirements, insolvent companies are now removed from the Dax selection indices with a period of two trading days. Wirecard had only taken the vacant place of Commerzbank in the Dax in September 2018.

Index changes are especially important for funds that precisely replicate indices. There must then be reallocated, which usually has an impact on the courses. Belonging to the Dax is also a question of prestige: especially for international investors, the most important German stock market barometer is the flagship of the economy.

© dpa-infocom, dpa: 200819-99-232207 / 2

Source: merkur

All news articles on 2020-08-19

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