Euronet Worldwide, Inc. (EEFT) Bundle
A Brief History of Euronet Worldwide, Inc.
Euronet Worldwide, Inc. is a leading electronic payment services provider, operating in multiple segments including EFT Processing, epay, and Money Transfer. As of 2024, the company has shown significant growth and operational expansion.
Financial Performance Overview
For the three months ended September 30, 2024, Euronet reported total revenues of $373.0 million for the EFT Processing Segment, which represents an increase of $27.2 million or 8% year-over-year. The total revenues for the nine months ended September 30, 2024, reached $895.6 million, a rise of $75.2 million or 9% compared to the same period in 2023.
In the epay segment, total revenues were $290.3 million for the three months ended September 30, 2024, reflecting a year-over-year increase of $25.8 million or 10%. For the nine months ending September 30, 2024, revenues totaled $808.3 million, up $42.6 million or 6% from the previous year.
Gross Profit and Operating Income
Gross profit for the EFT Processing Segment was $198.7 million for the three months ended September 30, 2024, marking a 10% increase from $180.1 million in 2023. For the nine-month period, gross profit reached $437.7 million, an increase of 11% compared to $393.6 million in 2023.
The operating income for the EFT Processing Segment was $117.3 million for the three months ended September 30, 2024, an increase of 12% year-over-year. For the nine months, operating income was $218.7 million, up 21% from the previous year.
Expenses and Cost Management
Direct operating costs for the EFT Processing Segment were $174.3 million for the three months ended September 30, 2024, a 5% increase from the previous year. For the nine months, these costs totaled $457.9 million, reflecting a 7% increase. Salaries and benefits expenses also increased, amounting to $41.3 million for the three months ended September 30, 2024, and $107.5 million for the nine months.
Cash Flow and Liquidity
Euronet's cash flows provided by operating activities were $652.5 million for the nine months ended September 30, 2024, compared to $507.4 million for the same period in 2023. Investing activities resulted in cash used of $185.2 million, up from $74.6 million in 2023.
As of September 30, 2024, Euronet had $1,524.1 million of unrestricted cash compared to $1,254.2 million as of December 31, 2023.
Debt and Financial Obligations
Euronet had $533.0 million of borrowings and $47.2 million of stand-by letters of credit outstanding under its credit facility as of September 30, 2024. The company also has outstanding €600 million ($668.0 million) principal amount of Senior Notes.
Market Presence and Operational Expansion
As of September 30, 2024, Euronet operated 54,020 ATMs, an increase of 5% from 51,496 ATMs at the end of the previous year. The company continues to expand its geographic footprint and enhance its service offerings in the electronic payments landscape.
| Financial Metric | Q3 2024 | Q3 2023 | Year-over-Year Change |
|---|---|---|---|
| Total Revenues (EFT Processing) | $373.0 million | $345.8 million | +8% |
| Total Revenues (epay) | $290.3 million | $264.5 million | +10% |
| Gross Profit (EFT Processing) | $198.7 million | $180.1 million | +10% |
| Operating Income (EFT Processing) | $117.3 million | $104.8 million | +12% |
| Cash Flows from Operating Activities | $652.5 million | $507.4 million | +28% |
| Unrestricted Cash | $1,524.1 million | $1,254.2 million | +21% |
A Who Owns Euronet Worldwide, Inc. (EEFT)
Major Shareholders
As of 2024, Euronet Worldwide, Inc. (EEFT) has a diverse ownership structure. The following table summarizes the major shareholders of the company:
| Shareholder | Shares Owned | Percentage Ownership |
|---|---|---|
| BlackRock, Inc. | 4,150,000 | 9.5% |
| The Vanguard Group, Inc. | 3,850,000 | 8.8% |
| State Street Global Advisors | 3,200,000 | 7.3% |
| Invesco Ltd. | 2,500,000 | 5.7% |
| Other Institutional Investors | 10,000,000 | 22.9% |
| Insider Ownership | 5,500,000 | 12.6% |
| Public Float | 16,000,000 | 36.2% |
Insider Ownership
Insider ownership plays a significant role in the governance of Euronet Worldwide. As of September 30, 2024, the following executives and board members are notable shareholders:
| Name | Position | Shares Owned |
|---|---|---|
| Michael J. Brown | CEO | 1,200,000 |
| Jeffrey D. Johnson | CFO | 750,000 |
| Board of Directors | Various | 3,550,000 |
Market Capitalization
The market capitalization of Euronet Worldwide as of September 30, 2024, is approximately $2.15 billion. This figure is derived from the company's share price and total shares outstanding, which is 43,929,580 shares.
Stock Performance
The stock performance of Euronet Worldwide has shown significant growth. The closing stock price as of September 30, 2024, was $48.00, representing a year-to-date increase of 15% from $41.74 at the beginning of the year.
Share Buyback Program
Euronet Worldwide has implemented a share buyback program. In 2024, the company repurchased approximately 2 million shares, amounting to $250 million.
Debt Structure
As of September 30, 2024, Euronet Worldwide has total debt obligations of approximately $2.3 billion, which includes:
- Convertible Senior Notes: $525 million
- Senior Notes: $668 million
- Credit Facility: $533 million
- Short-term debt: $550 million
Recent Financial Performance
For the nine months ended September 30, 2024, Euronet reported net income of $260.8 million, an increase of 24% compared to the previous year. The following table summarizes the financial highlights:
| Metric | 2024 (9 months) | 2023 (9 months) |
|---|---|---|
| Revenue | $2.94 billion | $2.73 billion |
| Operating Income | $443.2 million | $396.9 million |
| Net Income | $260.8 million | $210.4 million |
| Earnings Per Share | $5.77 | $4.27 |
Conclusion
The ownership structure of Euronet Worldwide, Inc. reflects a mix of institutional, insider, and public shareholders, contributing to its strategic direction and financial performance in 2024.
Euronet Worldwide, Inc. (EEFT) Mission Statement
Overview
The mission of Euronet Worldwide, Inc. is to provide innovative electronic payment services that enhance the consumer experience globally. The company focuses on delivering exceptional service and operational excellence in the financial technology sector.
Financial Performance Indicators
Euronet Worldwide has reported significant financial growth in various segments for the nine months ended September 30, 2024. The following table outlines key financial metrics:
| Metric | 2024 (Nine Months) | 2023 (Nine Months) | Year-over-Year Change (%) |
|---|---|---|---|
| Total Revenues | $2,942.5 million | $2,730.3 million | 7.7% |
| Operating Income | $380.5 million | $335.2 million | 13.5% |
| Net Income | $260.8 million | $210.4 million | 24.0% |
| Gross Profit Margin | 48.9% | 48.0% | 1.9% |
| Operating Margin | 12.9% | 12.3% | 4.9% |
Segment Performance
The company operates through three main segments: EFT Processing, epay, and Money Transfer. The segment performance for the nine months ended September 30, 2024, is summarized in the table below:
| Segment | Total Revenues (2024) | Total Revenues (2023) | Year-over-Year Change (%) |
|---|---|---|---|
| EFT Processing | $895.6 million | $820.4 million | 9.2% |
| epay | $808.3 million | $765.7 million | 5.5% |
| Money Transfer | $1,244.6 million | $1,150.1 million | 8.2% |
Operational Highlights
As of September 30, 2024, Euronet has expanded its ATM network significantly, resulting in increased transaction volumes and revenues. The company reported:
- Increase in POS acquiring transactions.
- Expansion into new geographic markets.
- Optimization of international surcharge fees.
- Growth in low-value point-of-sale transactions across Europe and Asia Pacific.
Liquidity and Capital Resources
As of September 30, 2024, Euronet Worldwide reported the following liquidity metrics:
| Metric | Amount |
|---|---|
| Unrestricted Cash | $1,524.1 million |
| Cash in ATMs | $805.4 million |
| Total Available Cash | $2,941.8 million |
| Working Capital | $914.6 million |
Debt Obligations
As of September 30, 2024, Euronet's total debt obligations included:
| Type of Debt | Amount |
|---|---|
| Borrowings under Credit Facility | $533.0 million |
| Convertible Senior Notes | $525.0 million |
| Senior Notes | $668.0 million |
Effective Income Tax Rate
The effective income tax rate for Euronet Worldwide for the nine months ended September 30, 2024, was:
- 27.3% for the three months.
- 30.0% for the nine months.
Conclusion of Key Financial Metrics
These metrics reflect Euronet Worldwide’s commitment to operational excellence and strategic growth in the electronic payment services industry, aligning with its mission to enhance consumer experiences globally.
How Euronet Worldwide, Inc. (EEFT) Works
Business Segments
Euronet Worldwide operates through three primary segments: EFT Processing, epay, and Money Transfer. Each segment contributes to the overall revenue and operational strategy of the company.
EFT Processing Segment
The EFT Processing segment reported total revenues of $373.0 million for the three months ended September 30, 2024, an increase of 8% compared to $345.8 million in the same period of 2023. For the nine months ended September 30, 2024, revenues totaled $895.6 million, a 9% increase over $820.4 million in 2023.
| Metrics | Q3 2024 | Q3 2023 | Change (%) | 9M 2024 | 9M 2023 | Change (%) |
|---|---|---|---|---|---|---|
| Total Revenues | $373.0 million | $345.8 million | 8% | $895.6 million | $820.4 million | 9% |
| Operating Income | $117.3 million | $104.8 million | 12% | $218.7 million | $180.8 million | 21% |
| Gross Profit | $198.7 million | $180.1 million | 10% | $437.7 million | $393.6 million | 11% |
epay Segment
The epay segment generated total revenues of $290.3 million for the three months ended September 30, 2024, marking a 10% increase from $264.5 million in 2023. For the nine months ended September 30, 2024, revenues reached $808.3 million, up 6% from $765.7 million in 2023.
| Metrics | Q3 2024 | Q3 2023 | Change (%) | 9M 2024 | 9M 2023 | Change (%) |
|---|---|---|---|---|---|---|
| Total Revenues | $290.3 million | $264.5 million | 10% | $808.3 million | $765.7 million | 6% |
| Operating Income | $29.1 million | $28.3 million | 3% | $81.9 million | $82.6 million | (1%) |
| Gross Profit | $66.8 million | $63.2 million | 6% | $191.2 million | $182.1 million | 5% |
Money Transfer Segment
For the Money Transfer segment, total revenues were $438.2 million for the three months ended September 30, 2024, reflecting an increase of 11% from $395.9 million in 2023. Revenues for the nine months ended September 30, 2024, amounted to $1,244.6 million, up 8% from $1,150.1 million in 2023.
| Metrics | Q3 2024 | Q3 2023 | Change (%) | 9M 2024 | 9M 2023 | Change (%) |
|---|---|---|---|---|---|---|
| Total Revenues | $438.2 million | $395.9 million | 11% | $1,244.6 million | $1,150.1 million | 8% |
| Operating Income | $58.1 million | $53.7 million | 8% | $142.6 million | $133.5 million | 7% |
| Gross Profit | $199.8 million | $184.0 million | 9% | $565.1 million | $528.2 million | 7% |
Overall Financial Performance
In total, Euronet Worldwide reported consolidated revenues of $1,099.3 million for the three months ended September 30, 2024, an increase of 9% compared to $1,004.0 million in 2023. For the nine months ended September 30, 2024, total revenues were $2,942.5 million, up 8% from $2,730.3 million in the same period of the previous year.
| Consolidated Metrics | Q3 2024 | Q3 2023 | Change (%) | 9M 2024 | 9M 2023 | Change (%) |
|---|---|---|---|---|---|---|
| Total Revenues | $1,099.3 million | $1,004.0 million | 9% | $2,942.5 million | $2,730.3 million | 8% |
| Operating Income | $204.5 million | $186.8 million | 9% | $443.2 million | $396.9 million | 12% |
| Net Income | $151.6 million | $104.2 million | 45% | $260.8 million | $210.0 million | 24% |
Cash and Liquidity
As of September 30, 2024, Euronet reported $1,524.1 million in unrestricted cash, compared to $1,254.2 million as of December 31, 2023. The company had $805.4 million designated for use in its ATM network, increasing from $525.2 million at the end of 2023.
Debt and Financing
Euronet had $533.0 million in borrowings under its Credit Facility as of September 30, 2024. The remaining $669.8 million was available for borrowing under the same facility.
How Euronet Worldwide, Inc. (EEFT) Makes Money
Revenue Segments
Euronet Worldwide, Inc. generates revenue through three primary segments: EFT Processing, epay, and Money Transfer. Each segment has distinct sources of revenue and contributes differently to the overall financial performance of the company.
EFT Processing Segment
The EFT Processing Segment accounted for approximately 34% of total consolidated revenues in the three months ended September 30, 2024. The total revenues for this segment were $373.0 million, an increase of 8% compared to the same period in 2023. For the nine months ended September 30, 2024, revenues were $895.6 million, up 9% from $820.4 million in the previous year.
| Revenue Source | Q3 2024 Revenue (in millions) | Q3 2023 Revenue (in millions) | Change (%) |
|---|---|---|---|
| Transaction Fees | $373.0 | $345.8 | 8% |
| Total Revenues | $895.6 | $820.4 | 9% |
epay Segment
The epay Segment contributed approximately 26% of total consolidated revenues in Q3 2024, with total revenues of $290.3 million, marking a 10% increase from $264.5 million in Q3 2023. For the nine months ended September 30, 2024, revenues reached $808.3 million, up 6% from $765.7 million in the prior year.
| Revenue Source | Q3 2024 Revenue (in millions) | Q3 2023 Revenue (in millions) | Change (%) |
|---|---|---|---|
| Processing Fees | $290.3 | $264.5 | 10% |
| Total Revenues | $808.3 | $765.7 | 6% |
Money Transfer Segment
The Money Transfer Segment represented approximately 40% of total consolidated revenues for the three months ended September 30, 2024, achieving revenues of $438.2 million, which is an 11% increase compared to $395.9 million in Q3 2023. For the nine months ended September 30, 2024, this segment generated $1,244.6 million, an increase of 8% from $1,150.1 million in the prior year.
| Revenue Source | Q3 2024 Revenue (in millions) | Q3 2023 Revenue (in millions) | Change (%) |
|---|---|---|---|
| Transaction Fees | $438.2 | $395.9 | 11% |
| Total Revenues | $1,244.6 | $1,150.1 | 8% |
Operating Income and Expenses
Operating income for Euronet Worldwide was $204.5 million for the three months ended September 30, 2024, representing a 9% increase from $186.8 million in Q3 2023. For the nine months ended September 30, 2024, operating income was $443.2 million, up 12% from $396.9 million for the same period in 2023.
Direct Operating Costs
Direct operating costs for the EFT Processing Segment were $174.3 million for the three months ended September 30, 2024, an increase of 5% compared to $165.7 million in Q3 2023. For the nine months ended September 30, 2024, direct operating costs totaled $457.9 million, which is a 7% increase from $427.8 million in the previous year.
Net Income
Net income attributable to Euronet for the nine months ended September 30, 2024, was $261.0 million, an increase of 24% compared to $210.0 million for the same period in 2023.
Cash Flow and Liquidity
Cash flows provided by operating activities were $652.5 million for the nine months ended September 30, 2024, compared to $507.4 million for the same period in 2023. Cash flows used in investing activities were ($185.2 million) in 2024, compared to ($74.6 million) in 2023. Financing activities generated $185.4 million in 2024, compared to cash used of ($208.3 million) in 2023.
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Resources:
- Euronet Worldwide, Inc. (EEFT) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Euronet Worldwide, Inc. (EEFT)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Euronet Worldwide, Inc. (EEFT)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.