News

Euronet Worldwide reports Q1 financials

Currency fluctuations significantly affected first quarter results for the company, which derives 70 percent of its revenues from overseas operations.

May 7, 2015

Electronic payments provider Euronet Worldwide Inc., reported its first quarter 2015 financial results last week.

According to a news release from the company, consolidated year-over year results for the period were as follows:

• revenues of $395.2 million, a 12 percent increase from $353.3 million (25 percent increase on a constant currency basis);
• operating income of $32.2 million, a 32 percent increase from $24.4 million (55 percent increase on a constant currency basis);
• adjusted EBITDA of $52.4 million, a 20 percent increase from $43.6 million (38 percent increase on a constant currency basis);
• net income attributable to Euronet of $7.2 million or 13 cents diluted earnings per share, compared with net income of $16 million or 30 cents diluted earnings per share;
• adjusted cash earnings per share of 56 cents, a 22 percent increase from 46 cents; and
• transaction volume of 635 million, an 8 percent increase from 590 million.

"For the first quarter, we delivered 55 percent constant currency operating income growth and 22 percent adjusted cash EPS growth — the ninth consecutive quarter we have achieved double-digit, year-over-year adjusted cash earnings per share growth," said Euronet CEO, Chairman and President Michael J. Brown. "Each segment delivered strong constant currency operating results."

The company produces approximately 70 percent of its revenue outside of the United States and foreign currency fluctuations had a significant impact on first quarter reported results.

Compared with the U.S. dollar, the euro, the Hungarian forint and the Polish zloty each declined by 18 percent year over year. The Brazilian real declined 17 percent, the Australian dollar declined 12 percent, and the British pound declined 8 percent.

The EFT processing segment

Year-over-year results for Q1 2015 were as follows:

• revenues of $74.7 million, compared with $74.6 million (14 percent increase on a constant currency basis);
• operating income of $11.4 million, an 11 percent decrease from $12.8 million (4 percent increase on a constant currency basis);
• adjusted EBITDA of $18.6 million, an 8 percent decrease from $20.2 million (8 percent increase on a constant currency basis).
• transaction volume of 303 million, a 1 percent increase from 301 million; and
• 20,863 ATMs in operation as of March 31, a 12 percent increase from 18,558.

Constant currency revenue, adjusted EBITDA and operating income growth were driven by a 12 percent expansion of the ATM networks, primarily in India and Europe, as well as an increase in the number of value added transactions on both ATMs and point-of-sale terminals, the company said.