News

Cardtronics CEO sees a retail opportunity for Bank Machine

February 10, 2011

Steven Rathgaber, Cardtronics Inc. CEO, sees more opportunities for Bank Machine Ltd., Cardtronics United Kingdom subsidiary, but Rathgaber is not as optimistic about Cardtronics Mexico.

“Banks in the UK are retreating from the ATM environment because they are facing a financial crunch due to the economy,” Rathgaber said during last week's analysts’ conference call about the company’s 2010 fourth quarter and yearend earnings. Because banks are pulling back, it opens the door for Bank Machine particularly among retailers, Rathgaber said.

“There are 65,000 ATMs in the U.K., and Bank Machine has 2,900 ATMs [2,944],” he said. “Consumers know our ATMs, and they know they work.” 

Rathgaber sees a strong opportunity for Bank Machine to install ATMs in one unnamed retail outlet. “Whether it materializes or not remains to be seen,” he said. Bank Machine ATMs are free-to-use machines. The ATMs earn revenue from interchange instead of surcharge fees. In 2010’s fourth quarter, Bank Machine reported revenues of $21.88 million, up 7.6 percent compared with $20.30 million in the fourth quarter of 2009.

Rathgaber said Cardtronics Mexico, Cardtronics Inc.’s partly owned subsidiary, is not doing as well because ATM “cash withdrawals are trailing off.” He explained that this is occurring because of Mexico’s regulatory environment, and it is affecting all of Mexico’s ATM operators, not just Cardtronics Mexico.

 Cardtronics Mexico, which is based in Mexico City, reported 2010 fourth-quarter revenues of $6.10 million, up 9.5 percent compared with $5.57 million in 2009’s fourth quarter. The company represented 2 percent of Cardtronics Inc.’s overall fourth-quarter revenues of $134.74 million. Cardtronics Mexico had 2,947 transacting ATMs in the fourth quarter.

Bank Machine, which is based in Hatfield Hertfordshire, however, represents 17 percent of Cardtronics’ revenues, and the United States represents 81 percent of the independent sales organization’s revenues.