Cardtronics Reports Strong Third Quarter Earnings
HOUSTON – Cardtronics, the biggest ATM operator in the country, on Tuesday said strong revenue growth helped it double net income for the third quarter to $17.4 million.
The independent ATM operator reported a 6% increase in net income for the third quarter, to $136.6 million, which was driven by a combination of increases in transactions per machine, year-over-year surcharge rate increases implemented in the United States, and unit growth in the company's England and Mexico operations. Cardtronics also continued to see increased bank branding and surcharge-free network revenues in the U.S. due to the continued growth of its Allpoint surcharge-free offerings. Partially offsetting these increases was a decline in revenues from the company's lower-margin merchant-owned account base.
Cardtronics has emerged as the most important electronic fund transfer services provider to credit unions, with connections to the CO-OP Financial Services and Credit Union 24 networks, and Financial Service Centers Cooperative’s shared branch network.
Third quarter highlights included expansion of the company’s Allpoint operations into Australia, a secondary stock offering of 7.6 million shares and signing of an alliance with MasterCard Worldwide to provide prepaid MasterCard issuers the opportunity to expand their ATM footprints through the Company's Allpoint Network.
For the first three quarters of the year Cardtronics reported an 8% increase in revenues to $397.3 million, and an increase in net income to $29.6 million, from $3.8 million for the first nine months last year.