LEAWOOD, Kan. -- Euronet Services Inc. announced record revenues of $41.5 million for 1999, an increase of 249 percent over 1998 revenues of $11.9 million. The operating loss was $26.8 million for 1999, up from a 1998 loss of $22.6 million, while the net loss for 1999 was $30.9 million compared with a net loss of $28.4 million for 1998.
According to Euronet, the losses were in line with management's expectations for the development of the company's software capabilities and further investment in its ATM network.
Euronet's ATM network services division produced a positive EBITDA of $400,000 for the fourth quarter. EBITDA results for the ATM network services division in the fourth quarter of 1999 improved by over $2.7 million compared with the first quarter of the year. Included in the fourth quarter operating results was a gain of $657,000 resulting from the sale of the Croatian network assets.
This positive EBITDA result for the ATM network services division, however, was offset by expected losses in the software division due to weak fourth quarter revenues.
The EBITDA loss for the software division was $2.1 million for the fourth quarter, and $3.4 million for the company as a whole including the corporate division.
Michael J. Brown, Euronet's chairman and CEO, said, "Reaching positive EBITDA for the ATM network during the fourth quarter is a major milestone in confirming the success of our business strategy. Our success has not been limited to a few countries -- all our mature operations are showing strong improvement in operating performance."
Software revenues for the fourth quarter were 45 percent lower than the
previous quarter. "We expect this factor will negatively impact recognized revenue in the first quarter and into the second quarter of 2000," Brown said. "We have invested in the development of some exciting new e-commerce and m-commerce products that should enhance this division's performance as we move further into 2000."
As of Dec. 31, 1999, Euronet owned or operated a total of 2,283 ATMs, compared with 1,271 ATMs at the year-end 1998. Of the 2,283 ATMs, 69 percent are owned by Euronet as part of its proprietary network, and
31 percent are customer-owned and operated by Euronet under outsourcing
agreements. Euronet owns or operates ATMs in Hungary, Poland, Germany, Croatia, the Czech Republic, France, the U.K. and the U.S.
Euronet also offers the Arksys software suite of integrated products for electronic payment and transaction delivery systems.
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