Euronet Worldwide, Inc. · NASDAQ:EEFT
Euronet Worldwide — Q3 2022 Earnings Presentation
22 slides from Euronet Worldwide's earnings presentation, Oct 21, 2022
Slide 1: Third Quarter 2022 Financial Results
Third Quarter 2022 Financial Results PRESENTERS: MICHAEL J. BROWN, CHAIRMAN & CEO RICK L. WELLER, EVP & CFO SCOTT CLAASSEN, GENERAL COUNSEL 20 October 2022 | Slide 1
Slide 2: Forward Looking Statements
Forward Looking Statements Statements contained in this news release that concern Euronet's or its management's intentions, expectations, or predictions of future performance, are forward-looking statements. Euronet's actual results may vary materially from those anticipated in such forward-looking
Slide 3: Defined Terms
Defined Terms Unless specifically noted otherwise within this presentation, the following terms are hereby defined as follows: Constant currency measures are computed as if foreign currency exchange rates did not change from the prior period. This information is provided to illustrate the impact of
Slide 4: Financial Highlights Third Quarter 2022
Financial Highlights Third Quarter 2022 RICK L. WELLER, EVP & CFO 20 October 2022 | Slide 4
Slide 5: Financial Highlights Third Quarter 2022
Financial Highlights Third Quarter 2022 ‣ Revenue - $931.3 million ‣ 14% increase from $816.6 million for Q3 2021 ‣ 27% increase on a constant currency basis ‣ Operating Income - $168.5 million ‣ 47% increase from $114.5 million for Q3 2021 ‣ 71% increase on a constant currency basis ‣ Adjusted EBIT
Slide 6: Balance Sheet Overview
Financial Highlights Third Quarter 2022 Balance Sheet Overview USD 6/30/2022 9/30/2022 (in millions) Unrestricted Cash $ 1,014.9 $ 967.1 ATM Cash 890.8 646.1 Settlement Assets 1,057.4 1,034.9 Total Assets 5,195.5 4,827.8 Total Debt 2,094.0 1,736.2 Total Debt to Trailing Twelve Month Adjusted EBITDA
Slide 7: Same Quarter Prior Year Comparison
Financial Highlights Third Quarter 2022 Same Quarter Prior Year Comparison USD (in millions) Revenue Operating Income Adjusted EBITDA Q3 2021 Q3 2022 Q3 2021 Q3 2022 Q3 2021 Q3 2022 EFT Processing $ 227.1 $ 319.5 $ 63.2 $ 116.4 $ 85.8 $ 139.5 % Change 41% 84% 63% epay 238.3 248.9 25.9 29.1 28.2 30.5
Slide 8: Same Quarter Prior Year Comparison – Constant Currency
Financial Highlights Third Quarter 2022 Same Quarter Prior Year Comparison – Constant Currency* USD (in millions) Revenue Operating Income Adjusted EBITDA Q3 2021 Q3 2022* Q3 2021 Q3 2022* Q3 2021 Q3 2022* EFT Processing $ 227.1 $ 368.1 $ 63.2 $ 133.9 $ 85.8 $ 160.3 % Change 62% 112% 87% epay 238.3
Slide 9: Business Update
Business Update MICHAEL J. BROWN, CHAIRMAN & CEO 20 October 2022 | Slide 9
Slide 10: The Model Works
The Model Works ‣ Within the factors we can control, we have demonstrated that we have a resilient business ‣ Consumers across the globe are still withdrawing cash ‣ There is a growing demand for mobile and branded digital payment content ‣ Consumers and businesses want and need to send cross-border
Slide 11: EFT Quarterly Highlights
EFT Quarterly Highlights ‣ Expanded Distribution: ‣ Launched: ‣ Independent ATM Network in Estonia ‣ Acquired 500 non-branch ATMs from the Bank of the Philippine Islands (BPI) ‣ Signed: ‣ ATM network participation agreement with Mediolanum Bank in Spain ‣ ATM outsourcing agreements with 15 credit un
Slide 12: epay Quarterly Highlights
epay Quarterly Highlights ‣ Launched: ‣ T-Mobile activation program to independent dealer channel in the US ‣ New Apple Gift Card launched in Europe ‣ Disney+ physical and digital gift cards launched across Germany and Austria ‣ Airbnb physical and digital gift card launch across Germany, Spain, Fra
Slide 13: Money Transfer Quarterly Highlights
Money Transfer Quarterly Highlights ‣ Network Growth: ‣ Our network reaches: ‣ 509,000 total retail network locations ‣ 188 countries and territories ‣ 3.6 billion bank accounts and 454 million wallet accounts ‣ Correspondent Expansion: ‣ Launched 14 new correspondents in 12 countries ‣ Cash pickup
Slide 14: Update
Update • Results: • Achieved 44% year-over-year revenue growth • Pipeline • 70 banks in the pipeline • Exploring Dandelion partnership with national/regional switches • Network • Real-time payments to bank accounts in 103 countries & territories • Corporate payments to bank accounts in 118 countries
Slide 15: Euronet Technology Success Update
Euronet Technology Success Update ‣ Signed agreement with AE Trade to develop a new pan-African payments switch using Euronet’s REN payments platform ‣ Signed agreement with Advance Intelligence Group to utilize REN to develop and launch a new digital bank in Singapore ‣ Signed open-loop issuer proc
Slide 16: Conclusion
Conclusion ‣ Our balance sheet remains strong providing stability and flexibility in our operations ‣ The business is resilient as demonstrated by the double-digit, constant currency growth in all three segments during the third quarter. ‣ The EFT travel recovery has been robust and we believe it wi
Slide 17: Supplemental Data
Supplemental Data 20 October 2022 | Slide 17
Slide 18: Reconciliation of Net Income to Operating Income and Adjusted EBITDA
Supplemental Data EURONET WORLDWIDE, INC. Reconciliation of Net Income to Operating Income (Expense) and Adjusted EBITDA (unaudited - in millions) Three months ended September 30, 2022 EFT Money Corporate Processing epay Transfer Services Consolidated Net income $ 97.6 Add: Income tax expense 44.0 A
Slide 19: Reconciliation of Net Income to Operating Income and Adjusted EBITDA (2021)
Supplemental Data EURONET WORLDWIDE, INC. Reconciliation of Net Income to Operating (Expense) Income and Adjusted EBITDA (unaudited - in millions) Three months ended September 30, 2021 EFT Money Corporate Processing epay Transfer Services Consolidated Net Income $ 73.7 Add: Income tax expense 22.7 A
Slide 20: Reconciliation to Constant Currency Amounts by Segment
Supplemental Data EURONET WORLDWIDE, INC. Reconciliation of Revenue, Operating (Expense) Income and Adjusted EBITDA to Constant Currency Amounts by Segment (unaudited - in millions) (unaudited - in millions) Three months ended ended September 30, 2022 EFT Money Corporate Processing epay Transfer Ser
Slide 21: Reconciliation of Adjusted Earnings per Share
Supplemental Data EURONET WORLDWIDE, INC. Reconciliation of Adjusted Earnings per Share (unaudited - in millions, except share and per share data) Three Months Ended September 30, 2022 2021 Net income attributable to Euronet Worldwide, Inc. $ 97.7 $ 73.9 Foreign currency exchange loss 15.8 8.1 Intan
Slide 22: Thank You
Thank You EURONET WORLDWIDE, INC. 20 October 2022 | Slide 22