LEAWOOD, Kan. - Euronet Worldwide Inc. reported second quarter revenue of $153.8 million, up from $132.2 million last year. The EFT Processing segment brought in $32.4 million, up 24.5 percent from 2Q '05; Prepaid Processing pulled $114.2 million, up 11.4 percent; and Software Solutions brought in $7.2 million, a 93.3 percent increase.
Net income across the company also saw an increase, up from $2.7 million, 7 cents per share, in 2Q '05 to $11.1 million, 28 cents per share, in 2Q '06. Operating income looked healthy for all segments except Prepaid Processing, for which operating income dipped from $8.3 million in 2Q '05 to $8.1 million. The dip led to a sharp drop in the company's per-share trading price on the market July 26.
The company attributed the year-over-year in the EFT Segment to a 20 percent increase in the number of ATMs it manages and transaction growth from those ATMs, as well as business acquisitions completed after the second quarter 2005. The company acquired Instreamline, now known as Euronet Card Services, during the fourth quarter of 2005. And in December 2005, Euronet increased its ownership in Europlanet, a Serbian ATM and card-processing business, to wholly owned.
The EFT Segment completed the quarter with 7,866 owned or operated ATMs, including 58 ATMs installed in China. The company increased its ATMs in the EFT Segment by 1,301 units from the end of 2Q '05.
Euronet now owns and/or operates ATMs in Hungary, Poland, Germany, Croatia, the Czech Republic, the United Kingdom., Greece, Romania, Slovakia, Albania, Serbia, Montenegro, India and China.
Combining all segments, transactions processed in 2Q '06 were 221.4 million, up 28 percent from 173 million in 2Q '05, a 28 percent increase. The increase was impacted by the implementation of ATM outsourcing agreements and overall growth, the company said.
