Euronet Worldwide Updates Fourth Quarter 2016 Guidance Due To Cash Supply Shortage In India And Changes In Foreign Currency Exchange Rates

LEAWOOD, Kan., Nov. 29, 2016 (GLOBE NEWSWIRE) -- Euronet Worldwide, Inc. ("Euronet" or the "Company") (NASDAQ:EEFT), a leading electronics payments provider, today announces an update to its fourth quarter earnings estimates following continued cash supply shortages in India together with continued strengthening of the U.S. dollar against many of the currencies of the countries where it operates. 

Effective November 9, 2016, the Indian government made a surprise announcement that the Rs 500 and Rs 1000 banknotes would no longer be recognized as legal currency and would be removed from circulation. According to the Reserve Bank of India's March 2016 annual report, Rs 500 and Rs 1000 banknotes comprised 86% of the country's total currency. The notes will be replaced with a new Rs 500 note and a new Rs 2000 note, retiring (or demonetizing) completely the Rs 1000 banknote. Initial comments from the Indian government indicated that the demonetization of the Rs 500 and Rs 1000 banknotes would result in a temporary cash supply shortage of a few days. However, based on recent communications from the Indian authorities, together with the Company's experience through the end of November, the Company now believes that access to cash will be limited for a longer period than originally anticipated. Consequently, the cash supply shortage will adversely impact Euronet's fourth quarter revenue earned from ATM cash withdrawals on the more than 12,000 ATMs Euronet owns or operates as well as revenue earned from money transfer remittance payout in India. 

"The economic situation in India is unfortunate for our business, but it is transitory and we expect to resume normal operations in India soon. In the meantime, our hearts go out to the millions of Indians impacted by the cash shortage who are unable to obtain cash to pay for their bare necessities," said Michael J. Brown, Euronet's Chairman and Chief Executive Officer. "I am proud of our teams in India who are doing everything possible to help bring cash to Indian residents across the country."

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