STRATEGIC PARTNERS
August 9, 1999
OVERKABD PARK, Kansas -- Euronet Services Inc. announced revenues of $18.9 million for the first six months of 1999, a four-fold increase over the same period last year. The net loss for the first six months was $16.5 million, compared with a net loss of $7.9 million for the same period last year. Comparing the first and second quarters of 1999, Euronet increased, revenues by 24 percent, from $8.2 million in the first quarter to $10.7 million in the second quarter. The operating loss for the quarter decreased by 11 percent, from $7.7 million to $7 million, and EBITDA loss decreased by 15 percent, from $5.4 million to $4.7 million. The net loss and comprehensive loss decreased from $9.7 million and $11.8 million in the first quarter to $6.9 million and $5.8 million in the second quarter, respectively. For the second quarter, Euronet's ATM network and related services contributed $5.9 million (or 55 percent) of revenues, while ARKSYS software and related services accounted for $4.8 million (or 45 percent) of total revenues. Michael Brown, Euronet's Chairman and CEO, said, "We are encouraged by this quarter's revenue growth at ARKSYS, which has been driven by increased software delivery capacity and a strengthened international network of sales and support staff. Our ATM network continues to show improved results, especially in our more mature markets of Hungary, Poland and Germany. The growing operations in France and the UK have begun to accelerate their development." Brown warned that software-related revenue could be lower than expected, as financial institutions increasingly focus on short term operational issues related to Y2K compliance. "We expect this to be a third and fourth quarter issue, not long-term," he said. As of July 31, Euronet was operating 1,434 ATMs as part of its proprietary network, including 364 in Hungary, 492 in Poland, 381 in Germany, 74 in Croatia, 53 in the Czech Republic, 49 in the U.K., and 21 in France. Euronet also operates 197 bank-owned ATMs under outsourcing agreements. Increases in the proprietary network in the U.K. and Poland were offset by ATM de-installations in Germany made in connection with the reorganization of the recently acquired Service Bank network.
