Klarna trims full-year revenue, volume outlook as German retail weakens

Stockholm, Aug 18 - Swedish buy now, pay later services provider and online bank Klarna reported a second-quarter profit on Tuesday, but slashed its full-year revenue and volume outlook, citing sluggish conditions in Germany, its largest market. The company's shares fell by 17% in premarket trading following the guidance. Despite the downward revision, Klarna's Q2 net profit of $9 million exceeded expectations of a $17.4 million loss, and adjusted operating income increased to $91 million from $29 million a year ago.

The company's revenue in the April-June period grew by 27% to $1.04 billion, surpassing analysts' forecast of $993.8 million, while GMV rose by 18% to $36.6 billion. The new full-year GMV forecast of $149 billion to $151 billion is lower than the previous estimate of greater than $155 billion, and its full-year revenue expectations have dropped to $4.08 billion to $4.16 billion from $4.34 billion.