News

Euronet reports strong Q1 earnings

April 30, 2014

Leawood, Kan.-based Euronet Worldwide Inc., an electronic payments provider, reported first quarter 2014 financial results yesterday. And the results were positive across the board.

Euronet reported the following consolidated results for Q1 2014 compared with the same period of 2013:

• Revenues of $353.3 million, a 5 percent increase from $335.6 million (6 percent increase on a constant currencybasis).
• Operating income of $24.4 million, a 27 percent increase from $19.2 million (24 percent increase on a constant currency basis).
• Adjusted EBITDAof $43.6 million, an 11 percent increase from $39.4 million (9 percent increase on a constant currency basis).
• Net income attributable to Euronet of $16 million or 30 cents diluted earnings per share, compared with net income of $12 million or 24 cents diluted earnings per share.
• Adjusted cash earnings per share of 46 cents, a 21 percent increase from 38 cents.
• Transactions of 590 million, a 5 percent increase from 562 million.

The company's EFT processing segment reported the following results for Q1 2014 compared with 2013:

• Revenues of $74.6 million, an 18 percent increase from $63.3 million (20 percent increase on a constant currency basis).
• Operating income of $12.8 million, a 94 percent increase from $6.6 million (88 percent increase on a constant currency basis).
• Transactions of 301 million, a 9 percent increase from 276 million.
• Operated 18,558 ATMs as of March 31, a 3 percent increase from 17,949 in 2013.

"This was an exciting start to 2014 for Euronet, highlighted by our announcements of the pending acquisition of HiFX and our partnership with Walmart," said Michael J. Brown, Euronet chairman and CEO. "Operationally, our EFT segment had another outstanding quarter. Money transfer continued to see strong revenue growth across our markets and epay remained consistent through sustained sales of higher-margin products, all contributing to starting the year off with a strong 21 percent growth year-over-year in cash EPS."

The company currently expects adjusted cash earnings per share for Q2 to be approximately 57 cents, assuming foreign currency exchange rates remain stable through the end of the quarter.