IMGCAP(1)]
Citing, in part, changes in the value of foreign currencies compared with the U.S. dollar, Euronet Worldwide Inc. today reported significantly higher net income but lower revenue for the second quarter ended June 30. The Leadwood, Kan.-based electronic-payments processor, which conducts about 75% of its operations outside the United States, reported net income of $15.6 million, up 164% from $5.9 million for the same period last year. Revenue fell 6%, however, to $248.6 million from $264.5 million. Euronet reported a gain of $9.6 million based on foreign exchange rates, compared with a $400,000 loss the previous year. "The declines in foreign currency exchange rates against the U.S. dollar were significant year over year ... and have a big impact on our prior-year comparisons," Mike Brown, Euronet CEO, told analysts during a conference call this morning. Euronet's electronic funds transfer segment brought in $45.6 million in revenue, down 13% from $52.4 million. The company processed 179.3 million EFT transactions during the quarter, up 6.3% from 168.6 million during the same period last year. Euronet operated 9,336 ATMs as of June 30, down 8.1% from 10,160 ATMs a year earlier. Prepaid processing brought in $145.2 million in revenue, down 4.8% from $152.6 million. Euronet processed 194.2 million prepaid transactions during the quarter, up 14.6% from 169.5 million. Its funds-transfer business generated revenues of $57.8 million, down 2.9% from $59.5 million. The company processed 4.5 million money transfers, down 4.7% from 4.3 million transfers a year earlier.
