LEAWOOD, Kan., Oct. 20, 2021 (GLOBE NEWSWIRE) -- Euronet Worldwide, Inc. (“Euronet” or the “Company”) (NASDAQ: EEFT), a leading electronic payments provider, reports third quarter 2021 financial results.
Euronet reports the following consolidated results for the third quarter 2021 compared with the same period of 2020:
- Revenues of $816.6 million, a 23% increase from $664.4 million (22% increase on a constant currency1 basis).
- Operating income of $114.5 million, a 73% increase from $66.1 million (72% increase on a constant currency basis).
- Adjusted operating income2 of $114.5 million, a 69% increase from $67.6 million (68% increase on a constant currency basis).
- Adjusted EBITDA3 of $155.2 million, a 48% increase from $105.0 million (47% increase on a constant currency basis).
- Net income attributable to Euronet of $73.9 million, or $1.37 diluted earnings per share, compared with net income of $40.2 million, or $0.76 diluted earnings per share.
- Adjusted earnings per share4 of $1.77, a 58% increase from $1.12
- Euronet's cash and cash equivalents were $1,048.5 million and ATM cash was $669.7 million, totaling $1,718 million as of September 30, 2021, and availability under its revolving credit facilities was approximately $920 million.
See the reconciliation of non-GAAP items in the attached financial schedules.
"I am extremely pleased that we were able to deliver a very good third quarter where revenue exceeded our third quarter 2019 revenue and where earnings nicely exceeded our expectations as we benefitted from a strong improvement in global travel as borders reopened," stated Michael J. Brown, Euronet's Chairman and CEO. "Our EFT transactions rebounded in line with the increase in European travel patterns. epay delivered its fifth consecutive quarter of double-digit earnings growth from continued strength in both mobile and digital media content delivered through digital distribution. And, money transfer continued to deliver strong growth rates in U.S. and Europe outbound and direct-to-consumer digital transactions. Moreover, we continued to make significant advances in digital product and distributions powered by our cutting-edge REN technology platform."
The stronger than expected third quarter results were largely driven by an immediate improvement in EFT transactions from travelers who were quick to resume their travel plans as European borders were generally opened to fully vaccinated passengers within Europe and from certain countries outside of Europe.
Adjusted operating income in the third quarter 2020 included a $1.5 million intangible asset impairment charge in the money transfer segment. In order to provide more comparable operating results, this impairment charge is excluded from third quarter 2020 adjusted operating income, adjusted EBITDA and adjusted EPS.
Taking into consideration current trends in the business, the latest global COVID-19 landscape and historical seasonal patterns, the Company anticipates that its fourth quarter 2021 revenues will be generally in-line with the third quarter, recognizing seasonal shifting in the mix of revenue between the EFT and epay segments. Adjusted EBITDA is expected to be in the range of approximately $120 million to $130 million. This outlook does not include any change in foreign exchange rates, changes in COVID-19 containment, adjustments to intangible and other long-lived assets or unusual factors that may develop throughout the quarter.
Segment and Other Results
The EFT Processing Segment reports the following results for the third quarter 2021 compared with the same period or date in 2020:
- Revenues of $227.1 million, a 58% increase from $144.1 million (56% increase on a constant currency basis).
- Operating income of $63.2 million, a 919% increase from $6.2 million (908% improvement on a constant currency basis).
- Adjusted EBITDA of $85.8 million, a 210% improvement from $27.7 million (207% improvement on a constant currency basis).
- Transactions of 1,173 million, a 29% increase from 910 million.
- Total of 47,474 installed ATMs as of September 30, 2021, a 2% decrease from 48,208. Operated 45,520 active ATMs as of September 30, 2021, a 4% increase from 43,956.
Revenue, operating income, and adjusted EBITDA growth in the third quarter 2021 were driven by increased domestic and international withdrawal 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.
The EFT Segment's total installed ATMs were lower than the prior year due to the fourth quarter 2020 removal of nearly 1,750 low-margin outsourced ATMs in India and approximately 2,000 outsourced ATMs for which the ATM processing was taken in-house, partially offset by the addition of more than 3,000 Euronet-owned ATMs. The difference between installed and active ATMs is due to ATMs that have been deactivated due to seasonal closures or COVID-19-related travel restrictions. At the end of the third quarter of 2021, approximately 1,950 ATMs remained closed due to seasonal locations or continued COVID-19 travel restrictions -- 2,300 fewer than the 4,250 that were closed at the end of the third quarter 2020.
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