LEAWOOD, Kan. -- Euronet Worldwide, Inc. (NASDAQ: EEFT) reported net income of $15.4 million or 57 cents a share for 2003's first quarter.
According to a news release, the earnings included a one-time gain of $18 million on the sale of Euronet's UK ATM network and foreign exchange translation losses of $1.8 million. Excluding the effects of the sale and the foreign exchange losses, the first quarter's net loss would be $700,000 or 3 cents a share. Euronet also benefited from its acquisition of e-pay Limited, which contributed $17.4 million in revenues to the consolidated group for the quarter. Consolidated operating income for the quarter was $1.2 million, compared to $100,000 for 2002's first quarter. Euronet will report e-pay's operations as a separate business segment, called the Prepaid Processing segment, according to the release. Euronet also renamed its Processing Services segment the EFT Processing segment. The EFT Processing segment posted 2003 first quarter revenues of $11.9 million, down from $12.1 million in 2002's first quarter. Included in the results is revenue from a termination fee of $800,000 for a contract signed but not implemented. Also included is $500,000 in operating losses related to the segment's efforts in developing the Asian/Pacific markets, notably India. The EFT Processing segment processed 23.4 million transactions in 2003's first quarter compared to 15.6 million transactions in 2002's first quarter. The segment completed the quarter with 2,994 ATMs owned or operated compared to 2,548 ATMs at the end of the first quarter 2002. Euronet owns and/or operates ATMs in Hungary, Poland, Germany, Croatia, the Czech Republic, the UK, Greece, Kosovo and Egypt. The Prepaid Processing segment reported first quarter 2003 revenues of $17.4 million and operating income of $1.5 million, reflecting the operating results of e-pay from the beginning of February 2003 through the end of the quarter. The Software Solutions segment reported $3.8 million in revenues compared to $4.9 million in revenues for first quarter 2002. First quarter 2002 revenues included $1.3 million in revenues from the Alltel Information Services licensing agreement.
