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ATM deployer Euronet reports Q1 financial results

May 2, 2019

Euronet Worldwide Inc., an electronic payments provider, has reported consolidated year-over-year results for the Q1 2019 as follows (percentage on a constant currency basis is shown in parentheses):

• Revenues of $577.5 million, a 5% (11%) increase from $550.5 million.
• Operating income of $56.1 million, a 23% (31%) increase from $45.5 million.
• Adjusted EBITDA of $87.2 million, a 15% (23%) increase from $75.5 million.
• Net income attributable to Euronet of $34.5 million or $0.62 diluted earnings per share, compared with $26.4 million or $0.49 diluted earnings per share.
• Adjusted earnings per share of $0.85, a 16% increase from $0.73.
• Transaction volume of 1.06 billion, a 17% increase from 904 million.

"I am pleased we were able to deliver adjusted earnings per share of $0.85, a 16% year-over-year increase," Euronet chairman and CEO Michael J. Brown said in a press release. "EFT growth was the result of continued ATM and product deployments. Money transfer delivered a strong quarter with continued success in both physical and digital channels. And e-pay continued to benefit from digital media growth, formerly referred to as nonmobile content."

EFT results

Year-over-year results for the EFT processing segment were as follows:

• Revenues of $145.7 million, a 7% (16%) increase from $135.7 million.
• Operating income of $16.8 million, a 46% (54%) increase from $11.5 million.
• Adjusted EBITDA of $33.4 million, a 21% (29%) increase from $27.7 million.
• Transaction volume of 692 million, an 11% increase from 622 million.
• 42,034 ATMs in operation as of March 31, a 10% increase from 38,358.

Double-digit constant currency revenue, operating income and adjusted EBITDA growth was largely the result of a 10% year-over-year increase in active ATMs and an 11% increase in transactions, the company said.  

The increase in transactions was primarily from growth in Europe and India, including an increase in traditional cash withdrawals and value-added transactions (i.e., dynamic currency conversion, domestic and international surcharge and foreign currency dispensing transactions) at both ATMs and point-of-sale terminals.

E-pay results

Year-over-year results for the e-pay segment were as follows:

• Revenues of $176.1 million, essentially no change (6% increase in constant currency) from $176.8 million.
• Operating income of $18.0 million, a 7% (15%) increase from $16.9 million.
• Adjusted EBITDA of $19.8 million, a 5% (13%) increase from $18.8 million.
• Transaction volume of 338 million, a 31% increase from 258 million.
• Approximately 707,000 POS terminals in operation as of March 31, a 4% increase from approximately 680,000.
• Approximately 332,000 retailer locations as of March 31, a 4% increase from approximately 318,000.

During the quarter, the e-pay segment adopted the term "digital media" to refer to the breadth of content beyond mobile.

According to the release, transaction growth was the result of increases across Europe and strong contributions from India, including a large volume of low-margin mobile transactions.

Money transfer results

Year-over-year results for the money transfer segment were as follows:

• Revenues of $256.6 million, a 7% (11%) increase from $238.9 million.
• Operating income of $30.7 million, a 16% (22%) increase from $26.5 million.
• Adjusted EBITDA of $38.8 million, a 13% (18%) increase from $34.4 million.
• Transaction volume of 26.6 million, a 10% increase from 24.3 million.
• Approximately 377,000 network locations as of March 31, an 8% increase from approximately 350,000.

Double-digit constant currency revenue, operating income and adjusted EBITDA growth was driven by strong growth across most sectors of the money transfer business, including both physical and digital transfers.

Money transfers grew 10% during the quarter and nontransfer transactions, such as currency exchange and check cashing, grew 5%, resulting in total transaction growth of 10%, the company said.

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Euronet Software Solutions

We move money in all the ways the world depends upon

Euronet Software Solutions, a division of Euronet Worldwide, is an industry leader in electronic transaction processing, providing solutions to financial institutions, retailers, service providers and consumers. Our solutions include Real-time Payment Hubs, ATM Fleet Management, as well as Credit, Debit, & Prepaid Card and Merchant Management.

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