Q2 2024 Euronet Worldwide Inc Earnings Call Transcript
Key Points
- Euronet Worldwide Inc (EEFT) delivered a record second quarter with revenue of $986 million, adjusted operating income of $134 million, adjusted EBITDA of $178 million, and adjusted EPS of $2.25.
- The EFT segment showed double-digit constant currency growth across all financial measures, driven by improvements in travel trends across Europe, strong performance from the merchant services business, and expansion into new markets.
- The company produced strong free cash flows of over $80 million and repurchased $114 million of its shares, which is expected to improve future earnings per share by 2%.
- Money transfer revenue grew 8%, with direct-to-consumer digital transaction growth accelerating to 24%, highlighting the success of increased marketing and promotional campaigns.
- Euronet Worldwide Inc (EEFT) expanded its ATM network by launching in three new markets and closing strategic acquisitions, contributing to a 60% growth in adjusted EBITDA in the EFT segment.
- Epay results were similar to the prior year, with muted growth due to the timing of customer promotional activities, which did not recur in the second quarter of 2024.
- Adjusted EBITDA for the money transfer segment declined by 1%, and operating income grew only 2%, partly due to increased marketing and promotional spend.
- The company faces hyper-competitive dynamics in the money transfer business, with some competitors exiting markets, which could impact market share and margins.
- The timing of promotional activities in the epay segment creates unevenness in quarterly results, making it challenging to predict consistent performance.
- Despite the strong performance in the EFT segment, the company still faces challenges in expanding domestic access fees to larger markets like Poland, which could limit potential revenue growth.
Greetings and welcome to the Euronet Worldwide second-quarter 2024 earnings conference call. (Operator Instructions) Please be advised that today's conference is being recorded. It is now my pleasure to introduce your host, Mr. Adam Godderz, General Counsel for Euronet Worldwide.
Thank you. Mr. Godderz, you may begin.
Thank you. Good morning, everyone, and welcome to Euronet's second-quarter 2024 earnings conference call. On today's call, we have Mike Brown, our Chairman and CEO, and Rick Weller, our CFO.
Before we begin, I would like to call your attention to the forward-looking statements disclaimer on the second slide of the PowerPoint presentation we'll be making today. Statements made on this call 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 these forward-looking statements as a result of a number
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