Euronet Worldwide, Inc. · NASDAQ:EEFT
Euronet Worldwide — Q2 2023 Earnings Presentation
23 slides from Euronet Worldwide's earnings presentation, Jul 26, 2023
Slide 1: Second Quarter 2023 Financial Results
Second Quarter 2023 Financial Results Michael J. Brown | Chairman & CEO Rick L. Weller | EVP & CFO Scott Claassen | General Counsel Euronet | www.euronetworldwide.com 1 121322-1
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 Second Quarter 2023
Financial Highlights Second Quarter 2023 Rick L. Weller | EVP & CFO Euronet | www.euronetworldwide.com 4 121322-1
Slide 5: Financial Highlights Second Quarter 2023
Financial Highlights Second Quarter 2023 • Revenue - $939.1 million • Adjusted EBITDA - $165.8 million • 11% increase from $843.3 million for Q2 2022 • 13% increase from $147.2 million for Q2 2022 • 11% increase on a constant currency basis • 13% increase on a constant currency basis • Operating Inc
Slide 6: Balance Sheet Overview
Financial Highlights Second Quarter 2023 Balance Sheet Overview USD 3/31/2023 6/30/2023 (in millions) Unrestricted Cash $ 1,065.8 $ 1,139.1 ATM Cash 627.2 776.3 Settlement Assets 1,085.5 1,206.5 Total Assets 5,010.6 5,221.0 Total Debt 1,646.4 1,760.8 Total Debt to Trailing Twelve Month Adjusted EBIT
Slide 7: Same Quarter Prior Year Comparison
Financial Highlights Second Quarter 2023 Same Quarter Prior Year Comparison Adjusted Operating USD (in millions) Revenue Adjusted EBITDA Income Q2 2022 Q2 2023 Q2 2022 Q2 2023 Q2 2022 Q2 2023 EFT Processing $ 249.0 $ 282.4 $ 54.8 $ 66.1 $ 80.5 $ 89.9 % Change 13% 21% 12% epay 227.7 263.8 24.3 26.8 2
Slide 8: Same Quarter Prior Year Comparison – Constant Currency
Financial Highlights Second Quarter 2023 Same Quarter Prior Year Comparison – Constant Currency* Adjusted Operating USD (in millions) Revenue Adjusted EBITDA Income Q2 2022 Q2 2023* Q2 2022 Q2 2023* Q2 2022 Q2 2023* EFT Processing $ 249.0 $ 281.6 $ 54.8 $ 66.3 $ 80.5 $ 89.9 % Change 13% 21% 12% epay
Slide 9: Business Update
Business Update Michael J. Brown| Chairman & CEO Euronet | www.euronetworldwide.com 9 121322-1
Slide 10: Percent Growth Q2 2023 vs Q2 2019
Percent Growth Q2 2023 vs Q2 2019 70% 60% 50% 40% 30% 20% 10% 0% Revenue Adj EBITDA EFT epay Money Transfer Percent Growth Revenue Adj EBITDA Transactions EFT 29% 0.3% 170% epay 52% 60% 167% Money Transfer 46% 30% 42% • Through COVID, we continued to invest across all three segments which has provid
Slide 11: Business Segment: EFT
Business Segment EFT • New Markets Entered • Independent ATM Networks (IAD) in Morocco and Latvia • Relaunched IAD in Malaysia • Signed: • ATM outsourcing agreement with Santander Bank in Poland for 1,100 ATMs • POS acquiring agreements with approx. 4,300 new merchants • Cardless cash withdrawal agr
Slide 12: EFT Active and Installed ATM Rollforward
Business Segment EFT • Active ATM Rollforward Active ATM Rollforward Sequential ATMs at Beginning of Quarter 47,430 Traditional High Value ATM Changes Independently Deployed ATMs 568 Outsourcing ATMs 228 Low-Margin India ATMs 21 Seasonally Re-activated / (De-activated) ATMs 3,155 ATMs at June 30, 20
Slide 13: Business Segment Highlights: epay
Business Segment Highlights • Launched: • Xbox e-codes on Amazon Marketplace in India • Meta digital codes in large retailers Argos (UK) & Media Saturn (Germany) • Microsoft 365 Renewals at Micro Center • In the U.S., we expanded our prepaid mobile activation business to include eSIM for AT&T, T-Mob
Slide 14: Business Segment: Money Transfer
Business Segment Money Transfer • Network Growth: • Our network reaches: • 191 countries and territories • 533,000 total locations, a 6% increase vs. 2Q 2022 • 4.0* billion bank accounts and 1.9 billion wallet accounts • Correspondent Expansion • Launched 24 correspondents in 23 countries • Includes
Slide 15: Dandelion Update
Solution • Dandelion partners expanded to 14 new countries in Q2 and transactions from our existing partners grew 45% year-over-year • Signed: • Agreement with Inter & Co, a leading super app in Brazil • Agreement with Transfer Galaxy, a leading European digital money transfer service 15
Slide 16: Ren Update
Solution • Signed: • QR-based payment agreement with Tangent Solutions, Inc., one of the largest non- bank POS terminal networks for in Philippines • Ren Self-Service agreement with Citizen’s Bank of Guyana • Banco Guayaquil S.A. (Ecuador) agreement to provide issuer and multi-channel acquirer proce
Slide 17: Summary
Summary • Our balance sheet remains strong providing stability and flexibility in our operations • Euronet delivered a record second quarter across all financial metrics • Euronet generated more than $90 million of cash flows from operations • EFT continues to grow through network expansion, togethe
Slide 18: Supplemental Data
Supplemental Data Euronet | www.euronetworldwide.com 18 121322-1
Slide 19: Reconciliation of Net Income to Operating Income and Adjusted EBITDA (Q2 2023)
Reconciliation of Net Income to Operating Income (Expense) and Adjusted EBITDA Three months ended June 30, 2023 EFT Money Corporate Processing epay Transfer Services Consolidated Net income $ 86.0 Add: Income tax expense 32.3 Add: Total other expense, net 4.3 Operating income (expense) $ 69.1 $ 26.8
Slide 20: Reconciliation of Net Income to Operating Income and Adjusted EBITDA (Q2 2022)
Reconciliation of Net Income to Operating Income (Expense) and Adjusted EBITDA Three months ended June 30, 2022 EFT Money Corporate Processing epay Transfer Services Consolidated Net income $ 57.1 Add: Income tax expense 20.7 Add: Total other expense, net 23.3 Operating (loss) income $ 54.8 $ 24.3 $
Slide 21: Reconciliation to Constant Currency Amounts by Segment
Reconciliation of Revenue, Adjusted Operating Income (Expense) and Adjusted EBITDA to Constant Currency Amounts by Segment Three months ended June 30, 2023 EFT Money Corporate Processing epay Transfer Services Consolidated Revenue $ 282.4 $ 263.8 $ 394.8 $ (1.9) $ 939.1 Add: Estimated foreign curren
Slide 22: Reconciliation of Adjusted Earnings per Share
Reconciliation of Adjusted Earnings per Share Three Months Ended June 30 2023 2022 Net income attributable to Euronet Worldwide, Inc. $ 86.1 $ 57.3 Foreign currency exchange (gain) loss (6.3) 14.7 Intangible asset amortization 6.6 7.7 Share-based compensation 12.5 10.1 Non-cash gain (3.0) - Income t
Slide 23: Thank you
Thank you Euronet | www.euronetworldwide.com 23