Euronet Worldwide, Inc. · NASDAQ:EEFT
Euronet Worldwide — Q4 2023 Earnings Presentation
31 slides from Euronet Worldwide's earnings presentation, Feb 7, 2024
Slide 1: Fourth Quarter and Full Year 2023 Financial Results
Fourth Quarter and Full Year 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 Fourth Quarter 2023
Financial Highlights Fourth Quarter 2023 Rick L. Weller | EVP & CFO Euronet | www.euronetworldwide.com 4 121322-1
Slide 5: Financial Highlights Fourth Quarter 2023
Financial Highlights Fourth Quarter 2023 • Revenue – $957.7 million • Adjusted EBITDA - $147.6 million • 11% increase from $865.7 million for Q4 2022 • 16% increase from $127.0 million for Q4 2022 • 7% increase on a constant currency basis • 14% increase on a constant currency basis • Operating Inco
Slide 6: Fourth Quarter 2023 Same Quarter Prior Year Comparison
Financial Highlights Fourth Quarter 2023 Same Quarter Prior Year Comparison Adjusted Operating USD (in millions) Revenue Adjusted EBITDA Income Q4 2022 Q4 2023 Q4 2022 Q4 2023 Q4 2022 Q4 2023 EFT Processing $ 210.1 $ 237.9 $ 19.1 $ 28.0 $ 43.4 $ 52.2 % Change 13% 47% 20% epay 285.5 316.7 41.1 43.6 4
Slide 7: Fourth Quarter 2023 Comparison – Constant Currency
Financial Highlights Fourth Quarter 2023 Same Quarter Prior Year Comparison – Constant Currency* Adjusted Operating USD (in millions) Revenue Adjusted EBITDA Income Q4 2022 Q4 2023* Q4 2022 Q4 2023* Q4 2022 Q4 2023* EFT Processing $ 210.1 $ 230.0 $ 19.1 $ 29.3 $ 43.4 $ 52.5 % Change 9% 53% 21% epay
Slide 8: Fourth Quarter 2023 Balance Sheet Overview
Financial Highlights Fourth Quarter 2023 Balance Sheet Overview USD 9/30/2023 12/31/2023 (in millions) Unrestricted Cash $ 1,074.4 $ 1,254.2 ATM Cash 603.5 525.2 Settlement Assets 1,242.3 1,681.5 Total Assets 5,162.9 5,894.4 Total Debt 1,717.3 1,869.6 Total Debt to Trailing Twelve Month Adjusted EBI
Slide 9: Financial Highlights Full Year 2023
Financial Highlights Full Year 2023 Rick L. Weller | EVP & CFO Euronet | www.euronetworldwide.com 9 121322-1
Slide 10: Financial Highlights Full Year 2023
Financial Highlights Full Year 2023 • Revenue – $3,688.0 • Adjusted Operating Income - $432.1 • 10% increase from $3,358.8 million for 2022 • 12% increase from $385.4 million for 2022 • 9% increase on a constant currency basis • 11% increase on a constant currency basis • Operating Income - $432.6 •
Slide 11: Full Year 2023 Prior Year Comparison
Financial Highlights Full Year 2023 Prior Year Comparison Adjusted Operating USD (in millions) Revenue Adjusted EBITDA Income 2022 2023 2022 2023 2022 2023 EFT Processing $ 924.2 $ 1,058.3 $ 184.0 $ 205.8 $ 279.4 $ 300.4 % Change 15% 12% 8% epay 997.9 1,082.4 120.7 126.2 126.9 133.1 % Change 8% 5% 5
Slide 12: Full Year 2023 Prior Year Comparison – Constant Currency
Financial Highlights Full Year 2023 Prior Year Comparison – Constant Currency* Adjusted Operating USD (in millions) Revenue Adjusted EBITDA Income 2022 2023* 2022 2023* 2022 2023* EFT Processing $ 924.2 $ 1,049.0 $ 184.0 $ 203.7 $ 279.4 $ 297.2 % Change 14% 11% 6% epay 997.9 1,071.1 120.7 126.2 126.
Slide 13: Full Year 2023 Balance Sheet Overview
Financial Highlights Full Year 2023 Balance Sheet Overview USD 12/31/2022 12/31/2023 (in millions) Unrestricted Cash $ 1,131.2 $ 1,254.2 ATM Cash 515.6 525.2 Settlement Assets 1,442.7 1,681.5 Total Assets 5,403.6 5,894.4 Total Debt 1,613.5 1,869.6 Total Debt to Trailing Twelve Month Adjusted EBITDA
Slide 14: Business Update
Business Update Michael J. Brown| Chairman & CEO Euronet | www.euronetworldwide.com 14 121322-1
Slide 15: Consistent Growth Through Diversity
Consistent Growth Through Diversity 2023 EBITDA by Segment* Fourth Quarter Highlights • A record consolidated fourth quarter across all financial metrics • Adjusted EPS of $1.88, a 35% Money increase over the prior year fourth Transfer EFT ATMs quarter 33% 34% • Cash isn’t going away • Economic tren
Slide 16: International Cards Used vs. EUROCONTROL and Wage Growth
International Cards Used vs. EUROCONTROL and Wage Growth Euronet | www.euronetworldwide.com 16
Slide 17: EFT Business Segment
Business Segment EFT New Markets Entered • Launched new ATM IADs in Mexico and Belgium Signed: • Network participation agreements (NPA) for cash withdrawals and deposits with Raiffeisen Bank Romania • ATM managed services agreement with GoTyme Bank in Philippines • Cardless cash withdrawal services
Slide 18: EFT Business Segment: ATM Rollforward
Business Segment EFT • Active ATM Rollforward Active ATM Rollforward Sequential ATMs at Beginning of Quarter 51,496 Traditional High Value ATM Changes Independently Deployed ATMs (891) Outsourcing ATMs 230 Low-Margin India ATMs 41 Seasonally Re-activated / (De-activated) ATMs (3,573) ATMs at Decembe
Slide 19: Business Segment Highlights
Business Segment Highlights • Signed: • Distribution agreement for Google Play in Vietnam • Agreement with NEC to provide prepaid transport in retail channels for Canberra, the capital of Australia • Issuing agreement for closed loop gift card to be sold in physical and digital channels for Orell Fu
Slide 20: Money Transfer Business Segment
Business Segment Money Transfer • Network Growth: • Our network reaches: • 198 countries and territories • 4.1 billion bank accounts and 2 billion wallet accounts • 580,000 total locations, a 11% increase vs. 4Q 2022 • Correspondent Expansion: • Launched 29 correspondents in 25 countries • We added
Slide 21: Solution
Solution • Increased sales pipeline momentum: • 11 contracts signed in 2023, 9 of which were signed in Q3-Q4 2023 • 3 new partners launched; 5 expected to launch in Q1 2024 • Signed: • Commonwealth Bank of Australia: largest bank in Australia. • PingPong: a leading global fintech platform and paymen
Slide 22: Solution
Solution • Launched: • Issuer processing services for Airtel Payments Bank in India • Issuer processing services for Grab`s Digital Bank in Malaysia (2nd market after Singapore) • Launch of P2M real time payment services on the wallets and banking apps of Bank of Philippine Islands • Signed: • Provi
Slide 23: Summary
Summary • Cash isn’t going away • EFT international transactions were in sync with travel data in fourth quarter • Adjusted EPS of $1.88, a 35% increase over the prior year • Ren and Dandelion signed new agreements during the quarter • epay continues to expand mobile and digital branded payments wit
Slide 24: Supplemental Data
Supplemental Data Euronet | www.euronetworldwide.com 24 121322-1
Slide 25: Reconciliation of Net Income to Operating Income and Adjusted EBITDA – Q4 2023
Reconciliation of Net Income to Operating Income (Expense), Adjusted Operating Income (Expense) and Adjusted EBITDA (unaudited in millions) Three months ended December 31, 2023 EFT Money Corporate Processing epay Transfer Services Consolidated Net income $ 69.5 Add: Income tax expense 28.4 Add: Tota
Slide 26: Reconciliation of Net Income to Operating Income and Adjusted EBITDA – Q4 2022
Reconciliation of Net Income to Operating Income (Expense) and Adjusted EBITDA (unaudited in millions) Three months ended December 31, 2022 EFT Money Corporate Processing epay Transfer Services Consolidated Net income $ 67.8 Add: Income tax expense 10.0 Add: Total other expense, net 1.3 Operating (l
Slide 27: Reconciliation of Net Income to Operating Income and Adjusted EBITDA – FY 2023
Reconciliation of Net Income to Operating Income (Expense), Adjusted Operating Income (Expense) and Adjusted EBITDA (unaudited in millions) Twelve months ended December 31, 2023 EFT Money Corporate Processing epay Transfer Services Consolidated Net income $ 279.5 Add: Income tax expense 120.9 Add: T
Slide 28: Reconciliation of Net Income to Operating Income and Adjusted EBITDA – FY 2022
Reconciliation of Net Income to Operating Income (Expense) and Adjusted EBITDA (unaudited in millions) Twelve months ended December 31, 2022 EFT Money Corporate Processing epay Transfer Services Consolidated Net income $ 230.7 Add: Income tax expense 91.9 Add: Total other expense, net 62.8 Operating
Slide 29: Constant Currency Reconciliation by Segment – Q4 2023
Reconciliation of Revenue, Adj Operating income and Adj EBITDA to Constant Currency Amounts by Segment (unaudited in millions) Three months ended ended December 31, 2023 EFT Money Corporate Processing epay Transfer Services Consolidated Revenue $ 237.9 $ 316.7 $ 405.1 $ (2.0) $ 957.7 Add: Estimated
Slide 30: Constant Currency Reconciliation by Segment – FY 2023
Reconciliation of Revenue, Adj Operating income and Adj EBITDA to Constant Currency Amounts by Segment (unaudited in millions) Twelve months ended ended December 31, 2023 EFT Money Processing epay Transfer Corporate Consolidated Revenue $ 1,058.3 $ 1,082.4 $ 1,555.2 $ (7.9) $ 3,688.0 Add: Estimated
Slide 31: Reconciliation of Adjusted Earnings per Share
Reconciliation of Adjusted Earnings per Share (unaudited in millions, except share and per share data) Year Ended Three Months Ended December 31, 2023 December 31, 2023 2023 2022 2023 2022 Net income attributable to Euronet Worldwide, Inc. $ 279.7 $ 231.0 $ 69.3 $ 67.7 Foreign currency exchange (gai