Economic pressures that caused volume to decline in Europe and decreases in mobile-operator rates in some markets contributed to a relatively poor second quarter financially for Euronet Worldwide Inc.
The Leawood, Kan.-based electronic-payments processor, which conducts the majority of its operations outside the United States, on July 28 reported a net loss of $1.5 million during the quarter ended June 30; it posted net income of $15.6 million during the same period last year. Revenues declined 1.8%, to $244.2 million from $248.6 million.
Transactions processed during the quarter totaled 406.4 million, up 9% from 373 million a year earlier.
The electronic funds transfer processing segment reported revenue of $46.5 million, up 2% from $45.6 million. The segment processed 197.3 million transactions during the quarter, up 13.2% from 174.3 million. The segment continued to benefit from higher transaction fees in Germany, added ATMs under management and grew its Cashnet network in India, Mike Brown, chairman and CEO, told analysts during a conference call July 28.
The epay unit, which processes point-of-sale transactions initiated at 515,000 terminals deployed in 241,000 retail location in Europe, the Asia-Pacific and the U.S., reported revenue of $137.6 million, down 5.2% from $145.2 million. It processed 204.4 million transactions during the quarter, up 5.3% from 194.2 million.
The company attributed the segment’s revenue decline to mobile operator rate decreases in certain markets, most of which were passed through to retailers, and to the effect of volume declines in the United Kingdom, Australia and Spain caused by economic pressures.
Euronet’s Money Transfer segment reported revenue of $60.1 million, up 4% from $57.8 million. It processed 4.7 million funds transfers during the quarter, up 4.4% from 4.5 million.
Expansion of the agent and correspondent payout networks in new and existing markets plus the addition of new products drive the unit’s transaction growth, according to Euronet. The segment serves 120 countries and operates a network of 104,400 locations, up from 79,200 locations at the end of June last year.
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