LEAWOOD, Kan., July 27, 2021 (GLOBE NEWSWIRE) -- Euronet Worldwide, Inc. (“Euronet” or the “Company”) (NASDAQ: EEFT), a leading electronic payments provider, reports second quarter 2021 financial results.

Euronet reports the following consolidated results for the second quarter 2021 compared with the same period of 2020:

• Revenues of $714.7 million, a 35% increase from $527.8 million (28% increase on a constant currency¹ basis).
• Operating income of $30.1 million, compared with an operating loss of $101.3 million.
• Adjusted operating income² of $30.1 million, an 812% increase from $3.3 million (748% increase on a constant currency basis).
• Adjusted EBITDA³ of $74.7 million,  a 104% increase from $36.6 million (92% increase on a constant currency basis).
• Net income attributable to Euronet of $8.6 million or $0.16 diluted earnings per share, compared with net loss of $115.8 million or $2.18 diluted loss per share.
• Adjusted earnings per share⁴ of $0.53, compared with $0.04.
• Euronet's cash and cash equivalents were $994.5 million and ATM cash was $565.1 million, totaling $1,560 million as of June 30, 2021, and availability under its revolving credit facilities was approximately $950 million.

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

"I am very pleased that the epay and Money Transfer segments each delivered record second quarter earnings, with both segments posting double-digit earnings growth for the fourth consecutive quarter," stated Michael J. Brown, Euronet's Chairman and CEO. "Our industry leading technology, expansive physical networks and continued investment in growing our digital channel presence continue to produce strong growth trends in both segments - including strong double-digit digital transaction growth rates of 74% and 51% year-over-year in Money Transfer and epay, respectively.  I am also happy to see improving transaction trends in EFT as more countries have opened their borders and eased quarantine restrictions."  

The stronger than expected second quarter revenue growth rate was largely the result of continued strength in year-over-year growth trends in the Money Transfer segment as the Company's physical and digital networks continue to expand.  In the EFT Segment, we saw immediate improvement in transactions in the early part of the quarter as borders began to reopen and quarantine restrictions were lifted.  However, the pace of these reopening efforts was more irregular than we expected which resulted in fewer higher-value cross-border transactions than we anticipated at the beginning of the quarter resulting in consolidated adjusted EBITDA coming in at the lower end of our expected range.  Year-over-year cross-border transaction growth accelerated in mid-June and continued into the beginning of July as certain countries eased quarantine requirements for vaccinated travelers. 

Taking into consideration current trends in the business, the current COVID-19 management mandates, trends in more contagious COVID variants, current vaccination rates and approximately 3,700 more active Euronet-owned ATMs than the prior year for this year's peak travel season, the Company anticipates that its third quarter 2021 adjusted EBITDA will be in the range of approximately $135 million to $145 million.  

In the second quarter of 2020, the Company recorded a $104.6 million non-cash goodwill impairment charge stemming from the economic impacts of the COVID-19 pandemic; the Money Transfer and EFT Segments, recorded goodwill impairment charges of $82.7 million and $21.9 million in the second quarter 2020, respectively.  In order to provide more comparable operating results, these impairment charges are excluded from second quarter 2020 adjusted operating income, adjusted EBITDA and adjusted EPS.

Segment and Other Results

The EFT Processing Segment reports the following results for the second quarter 2021 compared with the same period or date in 2020:

• Revenues of $113.5 million, a 45% increase from $78.5 million (36% increase on a constant currency basis).
• Operating loss of $25.3 million, a 55% improvement from an operating loss of $56.6 million (60% improvement on a constant currency basis).
• Adjusted operating loss of $25.3 million, a 27% improvement from an adjusted operating loss of $34.7 million (35% improvement on a constant currency basis).  
• Adjusted EBITDA of ($3.1 million), a 79% improvement from ($14.8 million) (86% improvement on a constant currency basis).
• Transactions of 988 million, a 46% increase from 679 million.
• Total of 46,246 installed ATMs as of June 30, 2021, a 7% decrease from 49,719.  Operated 43,559 active ATMs as of June 30, 2021, a 5% increase from 41,648.

Revenue, adjusted operating loss, and adjusted EBITDA improvements in the second quarter 2021 were driven by increased transactions resulting from the partial lifting of travel restrictions across Europe, together with a continued benefit from a significant volume increase in low-value point-of-sale transactions in Europe and low-value payment processing transactions from an Asia Pacific customer's bank wallet and e-commerce site.  Adjusted operating loss in the second quarter 2020 excluded intangible asset impairment charges of $21.9 million.