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Euronet Worldwide Reports Third Quarter 2012 Financial Results

Stocks in this article: EEFT

Euronet Worldwide, Inc. (“Euronet” or the “Company”) (NASDAQ: EEFT), a leading electronic payments provider, reports third quarter 2012 financial results.

Euronet reports the following consolidated results for the third quarter 2012 compared with the same period of 2011:

  • Revenues of $316.4 million, a 6% increase from $299.5 million (15% increase on a constant currency (1) basis).
  • Operating income of $24.2 million, a 20% increase from $20.1 million (32% increase on a constant currency basis).
  • Adjusted EBITDA (2) of $42.6 million, a 13% increase from $37.6 million (24% increase on a constant currency basis).
  • Net income attributable to Euronet of $14.6 million or $0.28 diluted earnings per share, compared with net loss of $3.2 million or $0.06 diluted loss per share.
  • Adjusted cash earnings per share (3) of $0.42, a 14% increase from $0.37.
  • Transactions of 587 million, a 12% increase from 524 million.

See the reconciliation of non-GAAP items in the attached financial schedules.

"I am pleased with our 32% constant currency operating income growth in the quarter," stated Michael J. Brown, Euronet's Chairman and Chief Executive Officer. "The EFT and Money Transfer Segments delivered exceptional 80% and 38% constant currency operating income growth, respectively. While we continue to see decreases in the epay Segment versus the same quarter last year, the segment's results improved sequentially, posting revenue and operating income growth of 4% and 1%, respectively. We are optimistic that epay will soon contribute more to earnings growth as we continue to refocus our sales initiatives, introduce more non-mobile content and rollout additional value added services."

Segment and Other Results

The EFT Processing Segment reports the following results for the third quarter 2012 compared with the same period of 2011:

  • Revenues of $64.9 million, a 29% increase from $50.2 million (47% increase on a constant currency basis).
  • Operating income of $14.5 million, a 61% increase from $9.0 million (80% increase on a constant currency basis).
  • Adjusted EBITDA of $20.9 million, a 47% increase from $14.2 million (65% increase on a constant currency basis).
  • Transactions of 302 million, a 22% increase from 247 million.
  • Operated 17,370 ATMs as of September 30, 2012, a 37% increase from 12,668.

Revenue, operating income and Adjusted EBITDA growth in the third quarter was driven by a 37% increase in ATMs under management, transaction growth in virtually every market and increased sales of value added services in Europe which are seasonally higher during the third quarter compared to other quarters. While costs increased to support this growth, they did not increase commensurate with revenue, reflecting the leveragability of the business.

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