Euronet Worldwide Reports Third Quarter 2024 Financial Results
Euronet Worldwide (NASDAQ: EEFT) reports strong Q3 2024 financial results with revenues of $1,099.3 million, up 9% year-over-year. Operating income increased 9% to $182.2 million, while net income reached $151.5 million. The company achieved adjusted earnings per share of $3.03, an 11% increase from $2.72 in Q3 2023. All three segments - EFT Processing, epay, and Money Transfer - showed growth, with notable performance in digital transactions and ATM operations. The company maintains its 2024 adjusted EPS growth guidance of 10-15% and projects similar growth for 2025.
Euronet Worldwide (NASDAQ: EEFT) ha riportato risultati finanziari robusti per il terzo trimestre del 2024, con ricavi pari a $1.099,3 milioni, in aumento del 9% rispetto all'anno precedente. Il reddito operativo è aumentato del 9% raggiungendo $182,2 milioni, mentre l'utile netto ha raggiunto $151,5 milioni. L'azienda ha registrato utili per azione rettificati di $3,03, con un incremento dell'11% rispetto a $2,72 nel terzo trimestre del 2023. Tutti e tre i segmenti - Elaborazione EFT, epay e Trasferimento di denaro - hanno mostrato crescita, con prestazioni notevoli nelle transazioni digitali e nelle operazioni di sportello automatico. L'azienda mantiene la sua previsione di crescita per l'EPS rettificato del 2024 tra il 10% e il 15% e prevede una crescita simile per il 2025.
Euronet Worldwide (NASDAQ: EEFT) ha reportado resultados financieros fuertes para el tercer trimestre de 2024, con ingresos de $1,099.3 millones, un aumento del 9% en comparación con el año anterior. El ingreso operativo aumentó un 9% a $182.2 millones, mientras que el ingreso neto alcanzó $151.5 millones. La empresa logró unas ganancias por acción ajustadas de $3.03, un incremento del 11% desde $2.72 en el tercer trimestre de 2023. Los tres segmentos - Procesamiento EFT, epay y Transferencia de Dinero - mostraron crecimiento, con un rendimiento notable en transacciones digitales y operaciones de cajeros automáticos. La empresa mantiene su guía de crecimiento de EPS ajustado de 10-15% para 2024 y proyecta un crecimiento similar para 2025.
유로넷 월드와이드 (NASDAQ: EEFT)는 2024년 3분기 강력한 재무 실적을 보고했으며, 수익은 $1,099.3 백만으로 전년 대비 9% 증가했습니다. 운영 수익은 9% 증가하여 $182.2 백만에 달했고, 순이익은 $151.5 백만에 도달했습니다. 조정된 주당순이익은 $3.03으로 증가했으며, 이는 2023년 3분기의 $2.72에서 11% 증가한 수치입니다. EFT 처리, epay 및 송금의 세 가지 부문 모두 성장했으며, 디지털 거래 및 ATM 운영에서 두드러진 성과를 보였습니다. 회사는 2024년 조정된 주당순이익 성장 가이던스를 10-15%로 유지하며, 2025년에도 비슷한 성장을 예측합니다.
Euronet Worldwide (NASDAQ: EEFT) a rapporté des résultats financiers solides pour le troisième trimestre 2024, avec des revenus de $1,099.3 millions, en hausse de 9% par rapport à l'année précédente. Le bénéfice d'exploitation a augmenté de 9% pour atteindre $182.2 millions, tandis que le bénéfice net a atteint $151.5 millions. L'entreprise a réalisé un bénéfice par action ajusté de $3.03, soit une augmentation de 11% par rapport à $2.72 au troisième trimestre 2023. Les trois segments - Traitement EFT, epay et Transfert d'Argent - ont montré une croissance, avec des performances notables dans les transactions numériques et les opérations de guichets automatiques. L'entreprise maintient sa prévision de croissance du BPA ajusté pour 2024 entre 10% et 15% et prévoit une croissance similaire pour 2025.
Euronet Worldwide (NASDAQ: EEFT) hat starke Finanzresultate für das dritte Quartal 2024 gemeldet, mit Einnahmen von $1.099,3 Millionen, ein Anstieg von 9% im Jahresvergleich. Der Betriebsgewinn stieg um 9% auf $182,2 Millionen, während der Nettogewinn $151,5 Millionen erreichte. Das Unternehmen erzielte angepasste Ergebnisse pro Aktie von $3,03, was einem Anstieg von 11% gegenüber $2,72 im dritten Quartal 2023 entspricht. Alle drei Segmente - EFT-Verarbeitung, epay und Geldüberweisung - zeigten ein Wachstum, wobei digitale Transaktionen und ATM-Betrieb herausragende Leistungen zeigten. Das Unternehmen behält seine Prognose für das Wachstum des angepassten EPS für 2024 von 10-15% bei und plant ein ähnliches Wachstum für 2025.
- Revenue growth of 9% YoY to $1,099.3 million
- Net income increased 45% to $151.5 million
- Adjusted EPS grew 11% to $3.03
- Strong liquidity position with $2,329.5 million in total cash
- Money Transfer digital transactions grew 30%
- ATM network expanded 4% to 55,292 installations
- Corporate expenses increased due to higher salaries and compensation
- epay operating income growth (3%) lagged behind revenue growth (10%) due to inflationary pressures
- Decrease in intra-US money transfer transactions
Insights
Strong Q3 results showcase Euronet's robust performance with
Particularly noteworthy is the Money Transfer segment's
The balance sheet remains healthy with
LEAWOOD, Kan., Oct. 23, 2024 (GLOBE NEWSWIRE) -- Euronet Worldwide, Inc. (“Euronet” or the “Company”) (NASDAQ: EEFT), a leading global financial technology solutions and payments provider, reports third quarter 2024 financial results.
Euronet reports the following consolidated results for the third quarter 2024 compared with the same period of 2023:
- Revenues of
$1,099.3 million , a9% increase from$1,004.0 million (9% increase on a constant currency1 basis). - Operating income of
$182.2 million , a9% increase from$167.0 million (9% increase on a constant currency basis). - Adjusted EBITDA2 of
$225.7 million , a6% increase from$212.5 million (6% increase on a constant currency basis). - Net income attributable to Euronet of
$151.5 million , or$3.21 diluted earnings per share, compared with$104.2 million , or$2.05 diluted earnings per share. - Adjusted earnings per share3 of
$3.03 , an11% increase from$2.72 . - Euronet's cash and cash equivalents were
$1,524.1 million and ATM cash was$805.4 million , totaling$2,329.5 million as of September 30, 2024, and availability under its revolving credit facilities was approximately$669.8 million .
See the reconciliation of non-GAAP items in the attached financial schedules.
“I am pleased that we achieved a third quarter adjusted EPS of
"Money Transfer produced strong third quarter results compared to the prior year across all financial metrics. EFT produced solid results across all metrics with double digit growth in operating income and adjusted EBITDA. epay delivered double-digit revenue and transaction growth."
Taking into consideration recent trends in the business and the global economy, continued double-digit quarterly earnings growth, and historical seasonal patterns, the Company remains confident in its previously announced expectations that its 2024 adjusted EPS will grow 10
Segment and Other Results
The EFT Processing Segment reports the following results for the third quarter 2024 compared with the same period or date in 2023:
- Revenues of
$373.0 million , an8% increase from$345.8 million (7% increase on a constant currency basis). - Operating income of
$117.3 million , a12% increase from$104.8 million (12% increase on a constant currency basis). - Adjusted EBITDA of
$142.1 million , a10% increase from$128.7 million (10% increase on a constant currency basis). - Transactions of 2,982 million, a
34% increase from 2,231 million. - Total of 55,292 installed ATMs as of September 30, 2024, a
4% increase from 53,272. We operated 54,020 active ATMs as of September 30, 2024, a5% increase from 51,496 as of September 30, 2023.
Constant currency revenue, operating income, and adjusted EBITDA growth in the third quarter 2024 was driven by travel, growth in the merchant services business and growth within recent market expansion. Operating margins benefited from transactions driven by continued travel recovery together with effective expense management.
The increase in active ATMs includes the acquisition of 800 ATMs in Malaysia together with the addition of approximately 800 outsourcing ATMs, and the impact of winterizing 500 more ATMs in the prior year at September 30, 2023, compared to September 30, 2024.
Transaction growth outpaced revenue growth due to continued growth in high-volume low-value transactions in India.
The epay Segment reports the following results for the third quarter 2024 compared with the same period or date in 2023:
- Revenues of
$290.3 million , a10% increase from$264.5 million (10% increase on a constant currency basis). - Operating income of
$29.1 million , a3% increase from$28.3 million (2% increase on a constant currency basis). - Adjusted EBITDA of
$31.0 million , a3% increase from$30.1 million (3% increase on a constant currency basis). - Transactions of 1,126 million, a
22% increase from 925 million. - POS terminals of approximately 766,000 as of September 30, 2024, a
5% decrease from approximately 810,000. - Retailer locations of approximately 348,000 as of September 30, 2024, unchanged from prior year.
Double-digit revenue and transaction growth was driven by continued digital media and mobile growth. Operating income and adjusted EBITDA growth did not keep pace with the overall growth in revenue due to inflationary pressures in the business and expenses incurred to launch new proprietary product offerings.
The Money Transfer Segment reports the following results for the third quarter 2024 compared with the same period or date in 2023:
- Revenues of
$438.2 million , an11% increase from$395.9 million (10% increase on a constant currency basis). - Operating income of
$58.1 million , an8% increase from$53.7 million (7% increase on a constant currency basis). - Adjusted EBITDA of
$64.1 million , a6% increase from$60.7 million (4% increase on a constant currency basis). - Total transactions of 45.1 million, an
11% increase from 40.6 million. - Network locations of approximately 595,000 as of September 30, 2024, a
10% increase from approximately 540,000.
Constant currency revenue growth was primarily driven by near double-digit growth in cross-border transactions, offset by a decrease in intra-US transactions. Direct-to-consumer digital transactions grew by
Corporate and Other reports
Balance Sheet and Financial Position
Unrestricted cash and cash equivalents on hand was
Total indebtedness was
The Company repurchased 1 million shares for
Non-GAAP Measures
In addition to the results presented in accordance with U.S. GAAP, the Company presents non-GAAP financial measures, such as constant currency financial measures, operating income, adjusted EBITDA, and adjusted earnings per share. These measures should be used in addition to, and not a substitute for, revenues, operating income, net income and earnings per share computed in accordance with U.S. GAAP. We believe that these non-GAAP measures provide useful information to investors regarding the Company's performance and overall results of operations. These non-GAAP measures are also an integral part of the Company's internal reporting and performance assessment for executives and senior management. The non-GAAP measures used by the Company may not be comparable to similarly titled non-GAAP measures used by other companies. The attached schedules provide a full reconciliation of these non-GAAP financial measures to their most directly comparable U.S. GAAP financial measure.
The Company does not provide a reconciliation of its forward-looking non-GAAP measures to GAAP due to the inherent difficulty in forecasting and quantifying certain amounts that are necessary for GAAP and the related GAAP and non-GAAP reconciliation, including adjustments that would be necessary for foreign currency exchange rate fluctuations and other charges reflected in the Company's reconciliation of historic numbers, the amount of which, based on historical experience, could be significant.
(1) Constant currency financial measures are computed as if foreign currency exchange rates did not change from the prior period. This information is provided to illustrate the impact of changes in foreign currency exchange rates on the Company's results when compared to the prior period.
(2) Adjusted EBITDA is defined as net income excluding, to the extent incurred in the period, interest expense, income tax expense, depreciation, amortization, share-based compensation and other non-operating or non-recurring items that are considered expenses or income under U.S. GAAP. Adjusted EBITDA represents a performance measure and is not intended to represent a liquidity measure.
(3) Adjusted earnings per share is defined as diluted U.S. GAAP earnings per share excluding, to the extent incurred in the period, the tax-effected impacts of: a) foreign currency exchange gains or losses, b) share-based compensation, c) acquired intangible asset amortization, d) non-cash income tax expense, e) non-cash investment gain f) other non-operating or non-recurring items and g) dilutive shares relate to the Company's convertible bonds. Adjusted earnings per share represents a performance measure and is not intended to represent a liquidity measure.
Conference Call and Slide Presentation
Euronet Worldwide will host an analyst conference call on October 24, 2024, at 9:00 a.m. Eastern Time to discuss these results. The call may also include discussion of Company developments on the Company's operations, forward-looking information, and other material information about business and financial matters. To listen to the call via telephone please register at Euronet Worldwide Third Quarter 2024 Earnings Call. The conference call will also be available via webcast at http://ir.euronetworldwide.com. Participants should register at least five minutes prior to the scheduled start time of the event. A slideshow will be included in the webcast.
A webcast replay will be available beginning approximately one hour after the event at http://ir.euronetworldwide.com and will remain available for one year.
About Euronet Worldwide, Inc.
Starting in Central Europe in 1994 and growing to a global real-time digital and cash payments network with millions of touchpoints today, Euronet now moves money in all the ways consumers and businesses depend upon. This includes money transfers, credit/debit card processing, ATMs, POS services, branded payments, foreign currency exchange and more. With products and services in more than 200 countries and territories provided through its own brand and branded business segments, Euronet and its financial technologies and networks make participation in the global economy easier, faster and more secure for everyone.
A leading global financial technology solutions and payments provider, Euronet has developed an extensive global payments network that includes 55,292 installed ATMs, approximately 949,000 EFT POS terminals and a growing portfolio of outsourced debit and credit card services which are under management in 113 countries; card software solutions; a prepaid processing network of approximately 766,000 POS terminals at approximately 348,000 retailer locations in 64 countries; and a global money transfer network of approximately 595,000 locations serving 205 countries and territories. Euronet serves clients from its corporate headquarters in Leawood, Kansas, USA, and 67 worldwide offices. For more information, please visit the Company's website at www.euronetworldwide.com.
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, including impacts from the COVID-19 or other pandemics; inflation; the war in the Ukraine and the related economic sanctions; military conflicts in the Middle East; our ability to successfully integrate any acquired operations; economic conditions in specific countries and regions; technological developments affecting the market for our products and services; our ability to successfully introduce new products and services; foreign currency exchange rate fluctuations; the effects of any breach of our computer systems or those of our customers or vendors, including our financial processing networks or those of other third parties; interruptions in any of our systems or those of our vendors or other third parties; our ability to renew existing contracts at profitable rates; changes in fees payable for transactions performed for cards bearing international logos or over switching networks such as card transactions on ATMs; our ability to comply with increasingly stringent regulatory requirements, including anti-money laundering, anti-terrorism, anti-bribery, consumer and data protection and privacy; changes in laws and regulations affecting our business, including tax and immigration laws and any laws regulating payments, including dynamic currency conversion transactions; changes in our relationships with, or in fees charged by, our business partners; competition; the outcome of claims and other loss contingencies affecting Euronet; the cost of borrowing (including fluctuations in interest rates), availability of credit and terms of and compliance with debt covenants; and renewal of sources of funding as they expire and the availability of replacement funding. These risks and other risks are described in the Company's filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. Copies of these filings may be obtained via the SEC's Edgar website or by contacting the Company. Any forward-looking statements made in this release speak only as of the date of this release. Except as may be required by law, Euronet does not intend to update these forward-looking statements and undertakes no duty to any person to provide any such update under any circumstances. The Company regularly posts important information to the investor relations section of its website.
EURONET WORLDWIDE, INC. | |||||
Condensed Consolidated Balance Sheets | |||||
(in millions) | |||||
As of | |||||
September 30, | As of | ||||
2024 | December 31, | ||||
(unaudited) | 2023 | ||||
ASSETS | |||||
Current assets: | |||||
Cash and cash equivalents | $ | 1,524.1 | $ | 1,254.2 | |
ATM cash | 805.4 | 525.2 | |||
Restricted cash | 18.9 | 15.2 | |||
Settlement assets | 1,461.0 | 1,681.5 | |||
Trade accounts receivable, net | 273.2 | 370.6 | |||
Prepaid expenses and other current assets | 303.2 | 316.0 | |||
Total current assets | 4,385.8 | 4,162.7 | |||
Property and equipment, net | 340.3 | 332.1 | |||
Right of use lease asset, net | 142.9 | 142.6 | |||
Goodwill and acquired intangible assets, net | 1,118.9 | 1,015.1 | |||
Other assets, net | 301.2 | 241.9 | |||
Total assets | $ | 6,289.1 | $ | 5,894.4 | |
LIABILITIES AND EQUITY | |||||
Current liabilities: | |||||
Settlement obligations | $ | 1,461.0 | $ | 1,681.5 | |
Accounts payable and other current liabilities | 877.4 | 816.9 | |||
Current portion of operating lease liabilities | 51.4 | 50.3 | |||
Short-term debt obligations | 1,081.4 | 151.9 | |||
Total current liabilities | 3,471.2 | 2,700.6 | |||
Debt obligations, net of current portion | 1,195.5 | 1,715.4 | |||
Operating lease liabilities, net of current portion | 95.4 | 95.8 | |||
Capital lease obligations, net of current portion | 1.9 | 2.3 | |||
Deferred income taxes | 77.6 | 47.0 | |||
Other long-term liabilities | 85.5 | 83.6 | |||
Total liabilities | 4,927.1 | 4,644.7 | |||
Equity | 1,362.0 | 1,249.7 | |||
Total liabilities and equity | $ | 6,289.1 | $ | 5,894.4 |
EURONET WORLDWIDE, INC. | |||||||
Consolidated Statements of Operations | |||||||
(unaudited - in millions, except share and per share data) | |||||||
Three Months Ended | |||||||
September 30, | |||||||
2024 | 2023 | ||||||
Revenues | $ | 1,099.3 | $ | 1,004.0 | |||
Operating expenses: | |||||||
Direct operating costs | 634.0 | 576.7 | |||||
Salaries and benefits | 169.6 | 153.6 | |||||
Selling, general and administrative | 80.6 | 73.9 | |||||
Depreciation and amortization | 32.9 | 32.8 | |||||
Total operating expenses | 917.1 | 837.0 | |||||
Operating income | 182.2 | 167.0 | |||||
Other income (expense): | |||||||
Interest income | 6.5 | 4.0 | |||||
Interest expense | (24.2 | ) | (15.0 | ) | |||
Foreign currency exchange gain (loss) | 27.4 | (8.8 | ) | ||||
Other income | 16.5 | — | |||||
Total other income (expense), net | 26.2 | (19.8 | ) | ||||
Income before income taxes | 208.4 | 147.2 | |||||
Income tax expense | (56.8 | ) | (43.0 | ) | |||
Net income | 151.6 | 104.2 | |||||
Net loss attributable to non-controlling interests | (0.1 | ) | — | ||||
Net income attributable to Euronet Worldwide, Inc. | $ | 151.5 | $ | 104.2 | |||
Add: Interest expense from assumed conversion of convertible notes, net of tax | 1.1 | 1.1 | |||||
Net income for diluted earnings per share calculation | $ | 152.6 | $ | 105.3 | |||
Earnings per share attributable to Euronet Worldwide, Inc. stockholders - diluted | $ | 3.21 | $ | 2.05 | |||
Diluted weighted average shares outstanding | 47,554,606 | 51,470,603 | |||||
EURONET WORLDWIDE, INC. | |||||||||||||||||||
Reconciliation of Net Income to Operating Income (Expense) and Adjusted EBITDA | |||||||||||||||||||
(unaudited - in millions) | |||||||||||||||||||
Three months ended September 30, 2024 | |||||||||||||||||||
EFT Processing | epay | Money Transfer | Corporate Services | Consolidated | |||||||||||||||
Net income | $ | 151.6 | |||||||||||||||||
Add: Income tax expense | 56.8 | ||||||||||||||||||
Less: Total other income, net | (26.2 | ) | |||||||||||||||||
Operating income (expense) | $ | 117.3 | $ | 29.1 | $ | 58.1 | $ | (22.3 | ) | $ | 182.2 | ||||||||
Add: Depreciation and amortization | 24.8 | 1.9 | 6.0 | 0.2 | 32.9 | ||||||||||||||
Add: Share-based compensation | — | — | — | 10.6 | 10.6 | ||||||||||||||
Earnings before interest, taxes, depreciation, amortization, share-based compensation (Adjusted EBITDA) (1) | $ | 142.1 | $ | 31.0 | $ | 64.1 | $ | (11.5 | ) | $ | 225.7 | ||||||||
Three months ended September 30, 2023 | |||||||||||||||||||
EFT Processing | epay | Money Transfer | Corporate Services | Consolidated | |||||||||||||||
Net income | $ | 104.2 | |||||||||||||||||
Add: Income tax expense | 43.0 | ||||||||||||||||||
Add: Total other expense, net | 19.8 | ||||||||||||||||||
Operating income (expense) | $ | 104.8 | $ | 28.3 | $ | 53.7 | $ | (19.8 | ) | $ | 167.0 | ||||||||
Add: Depreciation and amortization | 23.9 | 1.8 | 7.0 | 0.1 | 32.8 | ||||||||||||||
Add: Share-based compensation | — | — | — | 12.7 | 12.7 | ||||||||||||||
Earnings before interest, taxes, depreciation, amortization and share-based compensation (Adjusted EBITDA) | $ | 128.7 | $ | 30.1 | $ | 60.7 | $ | (7.0 | ) | $ | 212.5 |
EURONET WORLDWIDE, INC. | |||||||
Reconciliation of Adjusted Earnings per Share | |||||||
(unaudited - in millions, except share and per share data) | |||||||
Three Months Ended | |||||||
September 30, | |||||||
2024 | 2023 | ||||||
Net income attributable to Euronet Worldwide, Inc. | $ | 151.5 | $ | 104.2 | |||
Foreign currency exchange (loss) gain | (27.4 | ) | 8.8 | ||||
Intangible asset amortization(1) | 5.1 | 5.5 | |||||
Share-based compensation(2) | 10.6 | 12.7 | |||||
Income tax effect of above adjustments(3) | 4.9 | (4.7 | ) | ||||
Non-cash investment gain(4) | (16.9 | ) | — | ||||
Non-cash GAAP tax expense(5) | 8.8 | 6.2 | |||||
Adjusted earnings(6) | $ | 136.6 | $ | 132.7 | |||
Adjusted earnings per share - diluted(6) | $ | 3.03 | $ | 2.72 | |||
Diluted weighted average shares outstanding (GAAP) | 47,554,606 | 51,470,603 | |||||
Effect of adjusted EPS dilution of convertible notes | (2,781,818 | ) | (2,781,818 | ) | |||
Effect of unrecognized share-based compensation on diluted shares outstanding | 320,885 | 185,073 | |||||
Adjusted diluted weighted average shares outstanding | 45,093,673 | 48,873,858 | |||||
(1) Intangible asset amortization of
(2) Share-based compensation of
(3) Adjustment is the aggregate U.S. GAAP income tax effect on the preceding adjustments determined by applying the applicable statutory U.S. federal, state and/or foreign income tax rates.
(4) Non-cash investment gain of
(5) Adjustment is the non-cash GAAP tax impact recognized on certain items such as the utilization of certain material net deferred tax assets and amortization of indefinite-lived intangible assets.
(6) Adjusted earnings and adjusted earnings per share are non-GAAP measures that should be considered in addition to, and not as a substitute for, net income and earnings per share computed in accordance with U.S. GAAP.
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