Q1 2024 Euronet Worldwide Inc Earnings Call Transcript
Key Points
- Record first quarter with revenue of $857 million, adjusted operating income of $64 million, and adjusted EBITDA of $109 million, marking a significant increase across all metrics.
- Adjusted EPS reached a record-breaking $1.28, a 47% increase over the previous year, driven by strong performance in international transactions and strategic market expansions.
- EFT segment showed robust growth with a 12% increase in revenue, 220% growth in adjusted operating income, and 54% growth in adjusted EBITDA, fueled by higher domestic and international cash withdrawal transactions.
- Money Transfer segment revenue grew by 7%, with operating income and adjusted EBITDA increasing by 17% and 10% respectively, supported by a 23% increase in direct-to-consumer digital transactions.
- Strategic acquisitions and technology investments, such as the acquisition of Infinitium Holdings, enhance Euronet's market position and product offerings, contributing to long-term growth.
- Despite overall growth, the epay segment experienced a slight decline in EBITDA and adjusted operating income by about 2% to 3% due to investments in product and geographical expansion.
- Inflationary pressures particularly in the European markets have impacted margins, especially within the epay segment.
- The intra U.S. transactions in the Money Transfer segment continue to decline, although at a slower rate, affected by digital payment alternatives like Venmo and Cash App.
- The company faces ongoing challenges from regulatory changes and market conditions that could affect surcharge and interchange rates in the future.
- While the company is expanding geographically, each new market entry requires significant effort and time due to regulatory hurdles and the need to establish operations from scratch.
Greetings and welcome to the Euronet Worldwide First Quarter 2024 Earnings Call. (Operator Instructions). Please be advised that today's conference is being recorded.
It is now my pleasure to introduce your host, Mr. Scott Claassen, General Counsel for Euronet Worldwide. Thank you. Mr. Claassen, you may begin.
Thank you. Good morning, everyone, and welcome to Euronet's First Quarter 2024 Earnings Conference Call. On the call today, we have Mike Brown, our Chairman and CEO; and Rick Weller, our CFO.
Before we begin, I need to call your attention to the forward-looking statements disclaimer on the second slide of the PowerPoint presentation we will 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 of factors that
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