Euronet Worldwide(US:EEFT)2024-08-02 20:03Revenue Segments - Euronet's EFT Processing Segment generated approximately 31% and 28% of total consolidated revenues for the three and six months ended June 30, 2024, respectively[108]. - The epay Segment accounted for about 26% and 28% of total consolidated revenues for the same periods, with digital media content now producing approximately 66% of its revenues[110]. - The Money Transfer Segment represented approximately 43% and 44% of total consolidated revenues for the three and six months ended June 30, 2024, primarily from transaction fees and foreign currency exchange margins[111]. Operational Metrics - Euronet operates a network of 54,005 active ATMs and approximately 833,000 POS terminals, facilitating a wide range of electronic payment services[103]. - Transactions processed in the EFT Processing Segment increased to 2,737 million for the three months ended June 30, 2024, a 34% increase compared to 2,035 million in the same period in 2023[123]. - Active ATMs as of June 30, 2024, totaled 54,005, an increase of 2,603 or 5% compared to 51,402 in the same period in 2023[123]. Financial Performance - Total revenues for the EFT Processing Segment were $305.4 million for the three months ended June 30, 2024, an increase of $23.0 million or 8% compared to the same period in 2023[124]. - Total revenues for the six months ended June 30, 2024, were $522.6 million, an increase of $48.0 million or 10% compared to the same period in 2023[124]. - Operating income for the EFT Processing Segment was $79.9 million for Q2 2024, an increase of $10.8 million or 16% year-over-year[132]. - Money Transfer Segment total revenues increased to $421.8 million for the three months ended June 30, 2024, a 7% increase from $394.8 million in 2023[143]. - Gross profit for the three months ended June 30, 2024, was $190.1 million, a 5% increase from $181.1 million in 2023, with a gross margin of 45.1%[145]. Costs and Expenses - Direct operating costs for the EFT Processing Segment were $152.5 million for the three months ended June 30, 2024, an increase of $10.4 million or 7% compared to the same period in 2023[125]. - Direct operating costs increased due to a higher number of ATMs and an increase in high volume low value cash transactions in Asia Pacific[127]. - Salaries and benefits expenses increased to $34.4 million for Q2 2024, up $3.6 million or 12% year-over-year[129]. - Selling, general and administrative expenses decreased to $13.5 million for Q2 2024, down $3.1 million or 19% year-over-year[130]. Currency Sensitivity - 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]. - Fluctuations in foreign currency exchange rates increased revenues by approximately $4.4 million for the three months ended June 30, 2024, compared to the same period in 2023[124]. - The negative impact of foreign currency exchange rates on cash and cash equivalents was $53.2 million for the six months ended June 30, 2024, compared to $77.4 million for the same period in 2023[166]. Tax and Net Income - The effective income tax rate for the three and six months ended June 30, 2024, was 32.0% and 33.5%, respectively, compared to 27.3% and 31.9% for the same periods in 2023[155]. - Net income attributable to Euronet was $83.1 million for the three months ended June 30, 2024, a decrease of $3.0 million or 3% compared to the same period in 2023, while for the six months, it was $109.3 million, an increase of $3.1 million or 3%[158]. Cash Flow and Capital Expenditures - Cash flows provided by operating activities were $212.2 million for the six months ended June 30, 2024, compared to $220.2 million for the same period in 2023[163]. - Cash flows used in investing activities increased to $155.2 million for the six months ended June 30, 2024, primarily due to $90.8 million paid for acquisitions[164]. - Total capital expenditures for the six months ended June 30, 2024, were $57.2 million, with estimates for 2024 ranging from $90 million to $100 million[175]. Debt and Financing - As of June 30, 2024, total debt outstanding was $2,273.1 million, with $525.0 million (23%) related to contingent Convertible Notes at a fixed interest rate of 0.75%[181]. - The company had $396.6 million of borrowings and $51.4 million of stand-by letters of credit outstanding under the Credit Facility as of June 30, 2024[168]. - The company has $642.6 million (28%) of total debt related to Senior Notes with a fixed coupon rate of 1.375%[181].