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 (see story), Weller said, also citing new agreements in India.
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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