More agreements, more products and more locations helped drive double-digit first-quarter revenue and transaction growth across all of Euronet Worldwide Inc.’s operating units, the electronic funds transfer processor reported April 25.
Euronet reported companywide revenues rose 13.3% for the three-month period ended March 31, to $297.6 million from $262.6 million. Net income was $13.1 million, down 25.6% from $17.6 million a year earlier.
Bolstered by the addition of 1,400 ATMs–bringing to 15,614 the total under management–transaction growth in all EFT markets, sales of valued-added products and acquisitions made the previous quarter, the Leawood, Kan.-based company’s EFT Processing segment reported revenue of $49.9 million, up 12.4% from $44.4 million a year earlier.
Transaction volume in the unit rose 29.1%, to 266 million from 206 million, “driven by our operations in India, Pakistan and Poland together with our cross-border acquiring business,” Rick Weller, Euronet chief financial officer, said during an April 25 conference call with analysts. The quarter also benefited from Euronet’s purchase of the 51% of outstanding shares in the Euronet Middle East joint venture from Arab Financial Services Co.
The company also saw a lift from two fourth-quarter acquisitions, which included ATMs from Diebold's cash4you network in Poland and Smart PayNetwork SA in Romania (
Euronet’s epay segment benefited from September’s acquisition of Cadooz Holding gmbH, a German company specializing in corporate payment vouchers and loyalty/rewards programs. The unit reported revenues of $176.4 million, up 13.7% from $155.1 million a year earlier. The total number of transactions processed rose 9.5%, to 266 billion from 243 million, driven by growth in the U.S., United Kingdom and Germany, Weller said. The unit processed transactions initiated from 607,000 point-of-sale terminals, up 8% from 562,000. Total retailer locations rose 5.8%, to 294,000 from 278,000.
The company’s Money Transfer unit generated $71.4 million in revenues, up 13% from $63.2 million. Total funds transfers reached 6.7 million, up 26.4% from 5.3 million. Network locations grew 44.9%, to 155,000 as of March 31 from 107,000 a year earlier.
“This growth was driven by an increase in U.S. transfers of 15%, including a 17% increase in transfers to Mexico, our largest corridor,” Weller said. “Transfers initiated outside of the U.S. increased 12%, despite European economic and regulatory pressures.”
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