Euronet Worldwide(EEFT)

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Euronet Worldwide (EEFT) Up 7.3% Since Last Earnings Report: Can It Continue?
ZACKS· 2025-05-23 16:37
Core Viewpoint - Euronet Worldwide (EEFT) has seen a 7.3% increase in share price over the past month, outperforming the S&P 500, raising questions about the sustainability of this trend leading up to the next earnings release [1] Group 1: Earnings and Estimates - Estimates for Euronet Worldwide have remained flat over the past month [2] - The most recent earnings report is essential for understanding the key drivers of the company's performance [1] Group 2: VGM Scores - Euronet Worldwide has an average Growth Score of C and a Momentum Score of D, but it received an A grade for Value, placing it in the top 20% for this investment strategy [3] - The overall aggregate VGM Score for the stock is B, which is significant for investors not focused on a single strategy [3] Group 3: Outlook - Euronet Worldwide holds a Zacks Rank of 3 (Hold), indicating an expectation of an in-line return from the stock in the upcoming months [4] Group 4: Industry Performance - Euronet Worldwide is part of the Zacks Financial - Miscellaneous Services industry, where Moody's (MCO) has also gained 7.3% over the past month [5] - Moody's reported revenues of $1.92 billion for the last quarter, reflecting a year-over-year increase of 7.7%, with EPS rising from $3.37 to $3.83 [5] - Moody's is projected to post earnings of $3.33 per share for the current quarter, showing a year-over-year change of 1.5% [6]
Euronet Worldwide(EEFT) - 2025 Q1 - Quarterly Report
2025-05-07 10:31
Revenue Segments - Euronet's EFT Processing Segment generated approximately 25% of total consolidated revenues for Q1 2025, driven by transaction fees and management fees from ATMs [108]. - The epay Segment accounted for about 29% of total consolidated revenues in Q1 2025, with digital media content now representing approximately 71% of its revenues [109]. - The Money Transfer Segment contributed around 46% of total consolidated revenues for Q1 2025, primarily from transaction fees and foreign currency exchange margins [110]. - Total revenues for the EFT Processing Segment were $232.5 million for the three months ended March 31, 2025, an increase of $15.3 million or 7% compared to the same period in 2024 [122]. - Total revenues for the epay Segment were $267.4 million for the three months ended March 31, 2025, an increase of $10.3 million or 4% compared to the same period in 2024 [133]. - Money Transfer Segment total revenues increased to $417.7 million for the three months ended March 31, 2025, up $33.1 million or 9% year-over-year [144]. Profitability and Income - Operating income for the EFT Processing Segment was $23.3 million for the three months ended March 31, 2025, an increase of $1.8 million or 8% compared to the same period in 2024 [130]. - Operating income for the Money Transfer Segment rose to $45.1 million, reflecting a $7.9 million or 21.2% increase compared to the same period in 2024 [150]. - Gross profit for the EFT Processing Segment was $96.0 million for the three months ended March 31, 2025, an increase of $9.9 million or 11% compared to the same period in 2024 [126]. - Gross profit for the epay Segment was $65.3 million for the three months ended March 31, 2025, an increase of $3.3 million or 5% compared to the same period in 2024 [136]. - Gross profit increased to $193.2 million, a rise of $18.0 million or 10% year-over-year, with gross margin improving to 46.3% [146]. - Net income attributable to Euronet was $38.4 million, an increase of $12.2 million or 47% compared to the same period in 2024 [161]. Operational Metrics - Euronet operates a network of 55,512 ATMs and approximately 1,214,000 POS terminals globally, enhancing its transaction processing capabilities [103]. - Active ATMs as of March 31, 2025, increased to 51,875, up by 2,585 or 5% compared to the previous year [121]. - Transactions processed in the EFT Processing Segment increased to 3,464 million for the three months ended March 31, 2025, a rise of 961 million or 38% compared to the same period in 2024 [121]. - Direct-to-consumer digital transactions grew by 31%, indicating strong consumer demand for digital products [144]. Expenses and Costs - Direct operating costs for the EFT Processing Segment were $136.5 million for the three months ended March 31, 2025, an increase of $5.4 million or 4% compared to the same period in 2024 [123]. - Selling, general and administrative expenses for the epay Segment were $12.8 million for the three months ended March 31, 2025, an increase of $3.2 million or 33% compared to the same period in 2024 [139]. - Salaries and benefits expenses were $87.9 million, an increase of $7.2 million or 9% compared to the same period in 2024 [147]. - Depreciation and amortization expenses for the Money Transfer Segment decreased to $6.1 million, down $1.2 million or 16% year-over-year [149]. Financial Position and Cash Flow - Working capital increased significantly to $1,565.3 million as of March 31, 2025, compared to $810.5 million as of December 31, 2024 [162]. - Interest expense rose to $19.4 million, an increase of $4.5 million or 30% year-over-year, driven by higher interest rates [155]. - Operating cash flows decreased to $1.7 million in Q1 2025 from $30.0 million in Q1 2024, primarily due to a decrease in deferred income taxes [165]. - Cash used in investing activities was $54.7 million in Q1 2025, down from $96.8 million in Q1 2024, mainly due to the acquisition of Infinitum in 2024 [166]. - Financing activities generated $162.6 million in Q1 2025, compared to $81.3 million in Q1 2024, with net borrowings on the Credit Facility increasing to $710.0 million from $82.6 million [167]. Foreign Currency Exposure - Approximately 74% of Euronet's revenues are denominated in currencies other than the U.S. dollar, making it sensitive to foreign currency exchange rate fluctuations [106]. - A 10% fluctuation in foreign currency exchange rates could impact reported net income and working capital by approximately $140 million to $150 million annually [183]. - Foreign currency exchange rate fluctuations positively impacted cash by $91.8 million in Q1 2025, compared to a negative impact of $47.2 million in Q1 2024 [168]. - The company held foreign currency derivative contracts with a total notional value of $0.9 billion, primarily in U.S. dollars, euros, British pounds, Australian dollars, and New Zealand dollars, with the majority maturing within the next twelve months [188]. - The company uses derivatives primarily as economic hedges and does not designate foreign currency derivatives as hedging instruments pursuant to accounting standards, recording gains and losses in earnings in the period of change [186]. Strategic Initiatives - The company aims to expand its market presence through both physical and digital assets, which may increase transaction volumes across its networks [112]. - The company is exploring additional acquisitions to support growth, which may require integration of new assets and management resources [116]. - The amended Credit Facility increased from $1.25 billion to $1.9 billion, with a maturity extended to December 17, 2029 [170]. - The company anticipates capital expenditures of approximately $85 million to $95 million for 2025, with $23.2 million spent in Q1 2025 [176]. - Total capital expenditures for Q1 2025 were primarily for ATMs, POS terminals, and IT equipment, indicating a focus on market expansion and technology [176].
Euronet Worldwide(EEFT) - 2025 Q1 - Earnings Call Transcript
2025-04-25 04:49
Financial Data and Key Metrics Changes - The company reported revenue of $916 million, adjusted operating income of $75 million, and adjusted EBITDA of $119 million for Q1 2025, marking record results across all three metrics [13] - Adjusted EPS was $1.13, down from $1.28 in the prior year, but on a pro forma basis, adjusted EPS grew 18% year-over-year [14][15] - The company achieved an 18% increase in operating income compared to the prior year [7] Business Line Data and Key Metrics Changes - The EFT segment saw revenue growth of 10%, adjusted operating income growth of 15%, and adjusted EBITDA growth of 10% [20] - Epay revenue grew by 8%, with adjusted operating income and adjusted EBITDA growing by 22% and 20% respectively, excluding a one-time tax payment [21][42] - Money Transfer revenue, operating income, and adjusted EBITDA grew by 10%, 23%, and 17% respectively, driven by a 31% increase in digital transactions [22][45] Market Data and Key Metrics Changes - The company noted that most major currencies operated in low to mid-single digit declines year-over-year [18] - The company generated three-fourths of its revenues from outside the United States, mitigating potential impacts from U.S. macroeconomic policies [8] Company Strategy and Development Direction - The company focuses on two key revenue pillars: payment and transaction processing, and cross-border and foreign exchange [10] - The growth strategy includes global expansion of the cross-border payments network, emphasizing high-value FX transactions [26] - The company aims to expand its merchant services into new geographies, including Portugal, Spain, and Italy [90] Management's Comments on Operating Environment and Future Outlook - Management reaffirmed expectations for 12% to 16% earnings growth for the year, citing strong first-quarter results and a diversified global business [9][55] - The management expressed confidence in the business's resilience against macroeconomic uncertainties, particularly due to its international revenue base [8] Other Important Information - The company repurchased approximately $492 million of convertible notes, maintaining a conservative net debt leverage of about one times EBITDA [17] - The company continues to invest in technology and product offerings across all segments to drive future growth [15][52] Q&A Session Summary Question: Follow-up on Dandelion and Visa integration - Management noted a 33% growth in Dandelion, with the Visa Direct integration expected to enhance digital money transfer capabilities [58][59] Question: ATM side in Europe and summer travel - Management indicated that European travel is tracking according to plan, with expectations for increased traveler numbers this summer [68] Question: FX impact on adjusted EPS growth guidance - Management stated that FX rates are generally expected to hold flat, with no significant increases built into the numbers [71] Question: Consumer willingness to pay ATM fees in Europe - Management observed that consumers are accustomed to paying fees for using ATMs outside their bank networks, similar to practices in the U.S. [85] Question: Ria digital shift and gross profit retention - Management highlighted strong growth in the Ria business, with a 30% increase in digital transactions, and noted stability in gross profit per transaction [96][99] Question: LATM opportunity and productivity of ATMs outside Europe - Management acknowledged significant opportunities in Latin America, particularly for cross-currency transactions, but could not provide specific quantifications at this time [107] Question: Regulatory environment and compliance - Management expressed confidence in their compliance record and did not anticipate significant adverse impacts from recent regulatory changes [145]
Euronet Worldwide(EEFT) - 2025 Q1 - Earnings Call Transcript
2025-04-24 19:35
Financial Data and Key Metrics Changes - The company reported revenue of $916 million, adjusted operating income of $75 million, and adjusted EBITDA of $119 million for Q1 2025, marking record results across all three metrics [13][19][20] - Adjusted EPS was $1.13, down from $1.28 in the prior year, but on a pro forma basis, adjusted EPS grew 18% year-over-year [13][14][15] - The company achieved an 18% increase in operating income compared to the prior year [7][15] Business Line Data and Key Metrics Changes - The EFT segment saw revenue growth of 10%, adjusted operating income growth of 15%, and adjusted EBITDA growth of 10% [20] - Epay revenue grew by 8%, with adjusted operating income and adjusted EBITDA growing by 22% and 20% respectively, excluding a one-time tax payment [21][42] - Money Transfer revenue, operating income, and adjusted EBITDA grew by 10%, 23%, and 17% respectively, driven by a 31% increase in digital transactions [22][45] Market Data and Key Metrics Changes - The company noted that most major currencies operated in low to mid single-digit declines year-over-year [18] - The company generated three-fourths of its revenues from outside the United States, mitigating potential impacts from U.S. macroeconomic policies [8][9] Company Strategy and Development Direction - The company focuses on two key revenue pillars: payment and transaction processing, and cross-border and foreign exchange [10][26] - The growth strategy includes global expansion of the cross-border payments network and enhancing digital transaction capabilities [25][26] - The company aims to continue leading in innovative payment solutions while expanding its global reach [29][54] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving 12% to 16% earnings growth for the year, reaffirming this guidance based on strong Q1 results [9][55] - The management acknowledged ongoing macroeconomic discussions but did not foresee significant adverse impacts on business performance [8][9] Other Important Information - The company repurchased approximately $492 million of convertible notes, maintaining a conservative net debt leverage of about one times EBITDA [17] - The company continues to invest in technology and expand its product offerings across all segments [15][52] Q&A Session Summary Question: Follow-up on Dandelion and Visa integration - Management noted a 33% growth in Dandelion, with the Visa Direct integration expected to enhance digital money transfer capabilities [58][59] Question: ATM side in Europe and summer travel - Management indicated that European travel is tracking according to plan, with expectations for increased travelers this summer [68][69] Question: FX impact on adjusted EPS growth guidance - Management stated that FX rates are generally expected to hold flat, with no significant increases built into the numbers [71][72] Question: Consumer willingness to pay ATM fees in Europe - Management indicated that consumers are accustomed to paying fees for ATM usage outside their bank networks, similar to practices in the U.S. [83][85] Question: Update on merchant services expansion - Management is expanding into Portugal, Spain, and Italy, leveraging successful strategies from Greece [90][91] Question: Ria digital shift and gross profit retention - Management reported strong growth in the Ria business, with a 30% increase in digital transactions [96][99] Question: LATM opportunity and Prosegur partnership - Management highlighted significant opportunities in Latin America, particularly in cross-currency transactions [107][108] Question: Regulatory environment and compliance - Management expressed confidence in their compliance record and did not anticipate significant adverse effects from recent regulatory changes [143][145]
Euronet Worldwide(EEFT) - 2025 Q1 - Earnings Call Presentation
2025-04-24 17:23
First Quarter 2025 Financial Results Forward Looking Statements Statements contained in this news release that concern Euronet's or its management's intentions, expectations, or predictions of future performance, are forward-looking statements. Euronet's actual results may vary materially from those anticipated in such forward-looking statements as a result of a number of factors, including: conditions in world financial markets and general economic conditions and tariffs, including impacts from pandemics; ...
Euronet Worldwide (EEFT) Reports Q1 Earnings: What Key Metrics Have to Say
ZACKS· 2025-04-24 14:35
Core Insights - Euronet Worldwide reported revenue of $915.5 million for the quarter ended March 2025, reflecting a year-over-year increase of 6.8% [1] - The company's EPS was $1.13, down from $1.28 in the same quarter last year, with no surprise against the consensus estimate [1] - The revenue fell short of the Zacks Consensus Estimate by 0.09% [1] Revenue Breakdown - EFT Processing Segment generated $232.50 million, which is a 7% increase year-over-year but below the average estimate of $238.42 million [4] - The epay Segment reported revenue of $267.40 million, a 4% increase from the previous year, slightly missing the estimate of $268.64 million [4] - Money Transfer Segment achieved $417.70 million in revenue, an 8.6% year-over-year increase, exceeding the average estimate of $410.68 million [4] Stock Performance - Euronet Worldwide's shares have declined by 11.1% over the past month, compared to a 5.1% decline in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]
Euronet Worldwide(EEFT) - 2025 Q1 - Quarterly Results
2025-04-24 10:27
Financial Performance - Revenues for Q1 2025 were $915.5 million, a 7% increase from $857.0 million, with a 9% increase on a constant currency basis[7]. - Operating income reached $75.2 million, an 18% increase from $64.0 million, translating to a 22% increase on a constant currency basis[7]. - Adjusted EBITDA was $118.7 million, a 9% increase from $108.8 million, with a 12% increase on a constant currency basis[7]. - Total revenues for Q1 2025 increased to $915.5 million, up 6.5% from $857.0 million in Q1 2024[31]. - Operating income rose to $75.2 million in Q1 2025, compared to $64.0 million in Q1 2024, reflecting a 17.6% increase[31]. - Net income attributable to Euronet Worldwide, Inc. was $38.4 million for Q1 2025, a significant increase of 46.5% from $26.2 million in Q1 2024[31]. - The company reported total operating expenses of $840.3 million for Q1 2025, an increase of 6.0% from $793.0 million in Q1 2024[31]. - Interest expense increased to $19.4 million in Q1 2025 from $14.9 million in Q1 2024, reflecting a rise of 30.1%[31]. Segment Performance - The EFT Processing Segment reported revenues of $232.5 million, a 7% increase from $217.2 million, with a 10% increase on a constant currency basis[10]. - Total transactions in the EFT Processing Segment increased by 38% to 3,463 million[10]. - The Money Transfer Segment achieved a 31% growth in direct-to-consumer digital transactions, driven by strong consumer demand[12]. Cash and Assets - Unrestricted cash and cash equivalents were $1,393.6 million as of March 31, 2025, up from $1,278.8 million at the end of 2024[16]. - Total current assets increased to $4,173.7 million as of March 31, 2025, compared to $4,036.5 million as of December 31, 2024[29]. - Total liabilities rose to $4,751.8 million as of March 31, 2025, compared to $4,605.3 million as of December 31, 2024[29]. - Cash and cash equivalents increased to $1,393.6 million as of March 31, 2025, up from $1,278.8 million as of December 31, 2024[29]. - Total assets reached $6,053.5 million as of March 31, 2025, compared to $5,834.5 million as of December 31, 2024[29]. Shareholder Returns and Guidance - The company repurchased 0.6 million shares for $59.6 million during Q1 2025, expected to improve future earnings per share by 1%[17]. - Euronet expects to achieve 12% to 16% earnings growth for the year, reaffirming its strategic focus on global payment networks[5]. - Adjusted EPS was $1.33, an 18% increase from $1.13 in Q1 2024, excluding a one-time operating tax charge[4][7]. - Adjusted earnings per share for Q1 2025 were $1.13, down from $1.28 in Q1 2024, reflecting a decrease of 11.7%[35].
Euronet Worldwide Reports First Quarter 2025 Financial Results - Highlighted by 18% Operating Income Growth
Newsfilter· 2025-04-24 03:28
Core Insights - Euronet Worldwide, Inc. reported strong financial results for the first quarter of 2025, achieving double-digit constant currency growth in adjusted operating income and adjusted EBITDA, with an 18% increase in adjusted operating income compared to the previous year [4][5]. Financial Performance - Total revenues reached $915.5 million, a 7% increase from $857.0 million, with a 9% increase on a constant currency basis [8]. - Operating income was $75.2 million, an 18% increase from $64.0 million, translating to a 22% increase on a constant currency basis [8]. - Adjusted EBITDA was $118.7 million, a 9% increase from $108.8 million, with a 12% increase on a constant currency basis [8]. - Net income attributable to Euronet was $38.4 million, or $0.85 diluted earnings per share, compared to $26.2 million, or $0.55 diluted earnings per share [8]. Segment Performance - The EFT Processing Segment reported revenues of $232.5 million, a 7% increase from $217.2 million, with a 10% increase on a constant currency basis [9]. - The Money Transfer Segment experienced constant currency revenue growth driven by double-digit growth in cross-border transactions, with direct-to-consumer digital transactions growing by 31% [11]. - The epay Segment's revenue growth was supported by continued payments and digital media growth, although operating income growth was impacted by a one-time tax resolution payment [10]. Operational Highlights - Euronet expanded its cross-border payments network and launched operations in the Dominican Republic and Peru [10]. - The company operated 55,512 ATMs as of March 31, 2025, a 5% increase from the previous year [9]. - The company repurchased 0.6 million shares for $59.6 million during the first quarter, which is expected to improve future earnings per share by 1% [16]. Balance Sheet and Financial Position - Unrestricted cash and cash equivalents were $1,393.6 million as of March 31, 2025, up from $1,278.8 million at the end of 2024 [13]. - Total indebtedness increased to $2,202.5 million as of March 31, 2025, compared to $1,949.8 million at the end of 2024 [13].
Euronet Worldwide Reports First Quarter 2025 Financial Results - Highlighted by 18% Operating Income Growth
Globenewswire· 2025-04-24 03:28
Core Insights - Euronet Worldwide, Inc. reported strong financial results for the first quarter of 2025, achieving double-digit constant currency growth in adjusted operating income and adjusted EBITDA, with an 18% increase in adjusted operating income compared to the previous year [4][5] - The company reaffirmed its expectation for 12% to 16% earnings growth for the year, citing a diversified global business model [5] Financial Performance - Total revenues reached $915.5 million, a 7% increase from $857.0 million (9% increase on a constant currency basis) [8] - Operating income was $75.2 million, an 18% increase from $64.0 million (22% increase on a constant currency basis) [8] - Adjusted EBITDA was $118.7 million, a 9% increase from $108.8 million (12% increase on a constant currency basis) [8] - Net income attributable to Euronet was $38.4 million, or $0.85 diluted earnings per share, compared to $26.2 million, or $0.55 diluted earnings per share [8][32] Segment Performance - The EFT Processing Segment reported revenues of $232.5 million, a 7% increase from $217.2 million (10% increase on a constant currency basis) [9] - The Money Transfer Segment experienced double-digit growth in cross-border transactions, with direct-to-consumer digital transactions growing by 31% [11] - The epay Segment's revenue growth was driven by continued payments and digital media growth, although operating income growth was impacted by a one-time tax resolution payment [10] Operational Highlights - Euronet expanded its ATM network to 55,512 installed ATMs, a 5% increase from the previous year [9] - The company launched operations in the Dominican Republic and Peru, contributing to transaction growth [10] - The company repurchased 0.6 million shares for $59.6 million during the first quarter, which is expected to improve future earnings per share by 1% [16] Balance Sheet and Financial Position - Unrestricted cash and cash equivalents increased to $1,393.6 million as of March 31, 2025, compared to $1,278.8 million at the end of 2024 [13] - Total indebtedness rose to $2,202.5 million as of March 31, 2025, from $1,949.8 million at the end of 2024 [13] - The company reported a decrease in corporate expenses to $20.0 million from $21.3 million year-over-year [12]
Euronet and Prosegur Cash Launch Independent ATM Network in Peru and the Dominican Republic
Globenewswire· 2025-04-22 13:00
Core Insights - Euronet and Prosegur Cash have launched an Independent ATM Network in Peru and the Dominican Republic as part of their joint venture branded as LATM, aimed at deploying independent ATMs across Latin America [1][4] - The initiative is supported by local financial institutions, Banco Alfin in Peru and Banco BHD in the Dominican Republic, focusing on providing ATM solutions in high-demand cash locations [2] Company Overview - Prosegur Cash operates in cash logistics and management, employing around 45,000 people across 31 countries, with revenues of €1,861 million in 2023 [5] - Euronet is a leader in payments processing and cross-border transactions, with a global network that includes 55,248 ATMs and services in over 200 countries [6][7] Joint Venture Details - The joint venture utilizes Euronet's Ren payments platform and Prosegur Cash's operational services for cash management and hardware [3] - The LATM-branded ATMs will be strategically placed in locations frequented by international travelers, enhancing cash accessibility [2] Future Prospects - The launch in Peru and the Dominican Republic is seen as a model for rapid growth and expansion into other Latin American countries [4]