• Revenue: $1.1 billion for the third quarter.

• Operating Income: $182 million for the third quarter.

• Adjusted EBITDA: $226 million for the third quarter.

• Adjusted EPS: $3.03, excluding an additional $0.28 per share from an investment gain.

• Free Cash Flow: Nearly $100 million generated in the third quarter.

• Unrestricted Cash: $1.5 billion at the end of the third quarter.

• Debt: $2.3 billion as of September 30, 2024.

• Money Transfer Revenue Growth: 10% in constant dollars for the third quarter.

• Epay Revenue Growth: Double-digit revenue and transaction growth.

• Digital Transactions Growth: 30% increase in direct-to-consumer digital transactions.

• Merchant Services Expansion: Added over 4,600 new merchants in the third quarter.

• New Market Growth: Expansion in Albania, Belgium, Mexico, Egypt, Philippines, and Morocco.

• ATM Network Expansion: Acquired 800 ATMs in Malaysia.

• Warning! GuruFocus has detected 4 Warning Signs with EEFT.

Release Date: October 24, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Euronet Worldwide Inc (NASDAQ:EEFT) delivered a record third quarter with revenue of $1.1 billion, operating income of $182 million, and adjusted EPS of $3.03.

• The company achieved double-digit growth in its EFT segment, with operating income and adjusted EBITDA growth.

• Money transfer segment saw a 10% revenue growth and a 30% increase in direct-to-consumer digital transactions.

• Epay segment experienced double-digit revenue and transaction growth, driven by digital media and mobile growth.

• Euronet Worldwide Inc (NASDAQ:EEFT) continued to produce strong free cash flows, generating nearly $100 million in the third quarter.

Negative Points

• Euronet Worldwide Inc (NASDAQ:EEFT) missed the average analyst EPS estimate of $3.11, reporting $3.03.

• The company noted a gradual earnings mix shift out of the third quarter, affecting quarterly earnings expectations.

• Operating income and EBITDA growth in the epay segment were impacted by changes in product mix and inflationary pressures.

• The company faced a decrease in intra-US money transfer transactions, offsetting some of the growth in cross-border transactions.

• Despite strong performance, the company acknowledged that the use of cash is in a slow decline, impacting its traditional ATM business.

Q & A Highlights

Q: Can you discuss the sustainability of same-store sales growth for international ATM transactions and how they relate to the overall market trends? A: Michael Brown, CEO: International transactions are down by only 0.7%, which is roughly flat. We are expanding into new markets where tourists are underserved, allowing us to outperform the global trend. Rick Weller, CFO: We have an unequaled ATM network in Europe, and as banks close branches, our network becomes more valuable. This gives us a competitive edge in capturing a larger share of the market.