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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
Financial Performance - Revenue reached $915.5 million, a 7% increase compared to $857.0 million in Q1 2024[22, 23] - On a constant currency basis, revenue increased by 9%[23] - Adjusted EBITDA was $118.7 million, a 9% increase from $108.8 million in Q1 2024[22, 23] - On a constant currency basis, Adjusted EBITDA increased by 12%[23] - Operating income increased by 18% to $75.2 million, compared to $64.0 million in Q1 2024[23] - Adjusted EPS decreased by 12% to $1.13, compared to $1.28 for Q1 2024[23] Business Segment Performance (As Reported) - EFT Processing revenue increased by 7% to $232.5 million[26] - epay revenue increased by 4% to $267.4 million[26] - Money Transfer revenue increased by 9% to $417.7 million[26] Balance Sheet - Unrestricted cash increased to $1,393.6 million as of March 31, 2025, compared to $1,278.8 million at the end of 2024[24] - Total debt increased to $2,202.5 million as of March 31, 2025, compared to $1,949.8 million at the end of 2024[24]
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 Worldwide (EEFT) Q1 Earnings on the Horizon: Analysts' Insights on Key Performance Measures
ZACKS· 2025-04-22 14:20
Core Viewpoint - Analysts expect Euronet Worldwide (EEFT) to report quarterly earnings of $1.13 per share, reflecting an 11.7% year-over-year decline, while revenues are projected to be $916.3 million, up 6.9% from the previous year [1] Earnings Estimates - Changes in earnings estimates are crucial for predicting investor reactions to stock performance, with empirical studies showing a strong correlation between earnings estimate revisions and short-term stock price performance [2] Analyst Forecasts - Analysts predict the following revenue figures for Euronet Worldwide's segments: - EFT Processing Segment: $238.42 million, a 9.8% increase year-over-year [4] - Money Transfer Segment: $410.68 million, a 6.8% increase year-over-year [4] - epay Segment: $268.64 million, a 4.5% increase year-over-year [4] Stock Performance - Euronet Worldwide shares have declined by 15.6% over the past month, compared to a 8.9% decline in the Zacks S&P 500 composite, with a Zacks Rank of 3 (Hold), indicating expected performance in line with the overall market [5]
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]
Euronet Announces First Quarter 2025 Earnings Release Date and Conference Call Details
Globenewswire· 2025-04-17 00:25
Company Overview - Euronet Worldwide, Inc. is a leading global financial technology solutions and payments provider, established in Central Europe in 1994, and has developed a comprehensive global payments network [4][5] - The company operates a real-time digital and cash payments network with millions of touchpoints, facilitating money transfers, credit/debit card processing, ATMs, POS services, branded payments, and foreign currency exchange [4][5] Financial Performance - Euronet is set to release its first quarter 2025 earnings results on April 24, 2025, prior to market opening [1] - A conference call will be held on the same day at 9:00 a.m. Eastern Time to discuss the earnings results [1] Access to Information - The conference call and accompanying slide show presentation will be available via webcast, with a replay accessible approximately one hour after the event and available for one year [2][3] - Participants can register for the conference call to receive dial-in information, and it is recommended to join five minutes early [2] Global Presence - Euronet operates 55,248 installed ATMs and approximately 1,160,000 EFT POS terminals across 64 countries, along with a prepaid processing network of around 777,000 POS terminals at approximately 362,000 retailer locations [5] - The company has a global money transfer network with approximately 607,000 locations serving 197 countries and territories [5] Corporate Headquarters - Euronet is headquartered in Leawood, Kansas, USA, and has 67 worldwide offices [5]