EEFT - Earnings call transcript Q2 2022

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Operator

Greetings, and welcome to the Euronet Worldwide Second Quarter 2022 Earnings Call. It is now my pleasure to introduce your host, Ms. Hope Gregg, Associate General Counsel for Euronet Worldwide. Ms. Gregg, you may begin.

Hope Gregg

you. Thank and quarter quarterly XXXX. everyone, for conference to second the welcome morning, results Euronet's call Good On our and CFO. Chairman call, and this we CEO; Rick have Weller, Mike Brown, our

forward-looking Euronet's the to of from those as its result to slide power management's results duty second Euronet preventions factors listed on point actual making or anticipated by to your in statements to statements person Except need this the such be the as any I these updates. does of the we'll intentions, are Statements be begin, may such disclaimer on expectations materially that and we any attention Before of forward-looking vary a forward-looking future Euronet or undertakes slide to on presentation. intend today. law, of no a forward-looking presentation call our provide required statements of second concern statements. number call may performance made not are update that

PowerPoint GAAP we'll comparable be In addition, the measures non-GAAP most during their presentation the of the to call using financial measures. reconciliation a includes

Now I'll CFO, to over Weller. turn call Rick the our

Rick Weller

begin you you, morning. will Thank joining Slide my X. us comments thank everyone I on this Hope, to and

strong segment continued is revenue all produced $X.XX of in segments, delivered rebound the domestic withdrawal of of the in $XXX recovered. we In include across XXX% the the transactions cash all from driven strong adjusted travel a improvements quarter, These increase from a all as $XXX lifting and metrics. which and million. EPS second second adjusted includes growth the the were of million, operating income We restrictions revenue EFT three of million metrics For $XXX EBITDA of COVID XXXX. $X.XX, globe quarter by international in in

X. Slide please. slide, Next

deliver continue for a allowed the sheet that last will investments been two-plus our to it's case shareholder the us way operate value. business long-term strength the has in to of As years, make the balance and

working and $X.X second $X see, The from to ATM of and the also from which short-term certain requirements. million trends, in as debt in share about cash $XXX capital response capital in partially increase as by increase with in you and needs, cash working in in This increases the can $XX million generated unrestricted ATMs to paid cash more please. the the is largely we borrowings -- of than increase quarter into capital ended 'XX, offset billion. reflected well fund of cash As X, of debt. operations seasonal is is quarter in repurchases cash billion in Slide travel second cash

to discuss attention your each segment the change like significance briefly, of I Before draw currency I'd to year-over-year.

as developed impacts, beginning delivered currency majority EBITDA currency change had adjusted the within not range for XX% unfolded. it that's more the been And a against impact. of noted second grew But may slide, a grown that were second the would currency year-over-year. revenue last exactly quarter the in our basis, if is, the have constant As GAAP XX% press the dollar, the no provided the translation as and quarter. XX%. big that at you have on the second would have first revenue year, that currency U.S. of reported quarter quarter the release the we we on if this Moreover, devaluations of same rate

a and revenue year-over-year of strong EFT the transactions, international driven than operating Epay improvements transactions generate result and transactions. operating I'll FX on digital results comment in growth revenue to of bear items: of declined withdrawal to shifting together the currency lifting fourth the across profit Revenue quarter's increased of mind please. next and last anticipation XXXX our results adjusted transaction year. German more a The the part X cash and mobile slide. significance constant per ATMs recovery. key three of customer was and on the by more international games; revenue revenue part by grew from domestic later income a a impacted early profit the quarter continued and nearly certain transaction reactivated quarter, globe. of year; adjusted the from changes, of and the trends digital BXB quarter branded EBITDA while product in expansion loss the ATMs first So in halting which revenue, basis, Slide Similar by promotional channel. COVID On now, India and of payments, previously restrictions activity improving each gross the and distribution added in year as of in driven of travel was income of improving with also X% were continued the year-over-year all of for strong the respectively. the per X%, We expanded comparison travel digital the growth EBITDA announced X% and government's XXXX the domestic

prior consistent have pro these and XX%, X% perspective, income to items grown For three forma year and basis, would a had operating Epay's on the been gross respectively. profit

As This of results. significant of international income we lower physical suggest our growth see and have amount domestic continued network not U.S. we the adjusted Asia and predominantly growth originated grew revenue in technology East operating in the revenue Operating quarter, cost of and Moreover, contributed XX% investments transactions in growth we this to to discretionarily growth initiated declines European expansion, this outbound activity second to grew and this in while business. the did XX% shifted and that was certain amount more the digital begin Transfer have products in digital of not pressure growth in adjusted amount both included our see half and by in from transfers certain was certain average year. in enter a money XX% was Middle segment's back transactions, higher transfers, which the while started direct-to-consumer the X%, support an in EBITDA Epay, offset significant confirming in product certain on certain that the and to income contributed new the already trends decreases inflation grew the see period. X% began advertising current on XX% suggest and in view used growth increase may Money the promotional just result to third segment transfers pressure of development quarter, Transfer X%. third have inflation to a results. costs quarter, Similar promotional Money may that growth EBITDA campaigns, than in segment's

with rates, globe. in facing particularly the of growth macroeconomic strong headwinds we are the light consolidated are pleased We across the

able business continue proven strong have our We rates. that fundamental growth to be again is we expect and intact to proposition

To I've the focus me go the quarter future. covered to to highlights the out last see turn that on to that X the and happened discussion, the quarter, pointed let FX XX let's months. my Now Slide FX significance rates for of over the start translation what to

pound of we As single our Aussie changed lot, dollar. our the chart mentioned, rates list three end, the -- the the three what in to I to FX illustrate these To the previously that happened and top currencies: to euro, a changes. in this largest of prepared fact, item

note short the invasion last be over lot drift acceleration not three months, Russian over drift But would currencies can not of I'm all unfolded more of sure the there's these the has of the the illustrated term. but three over April, Ukraine early You see A months. make we in the months, and the ahead. last XX in thought

As we have been has seen, resilient has and Russia Ukraine out. pulled not

adverse But going our I'm not to weakened dollars it impacts when on go has values. our as into currencies direct seen countries and currency attempt that border has Russian financials. Ukrainian business with energy had knock-on a supply, grain on factors all for led we've foreign this the Moreover, ag and points reported within the translating effect the to Ukraine, impacts As sanctions. dollar, analyze and out, result, U.S. shows invasion supply, up currency results rates. protracted a on to graph to in U.S. the in which FX

items Now go discussed of Slide XXXX. And rest FX you number the take to that our for through XX. influencing I've rates, several let's I'll expectations

on As I'm Slide we XX now. -- have

I'd expectations with you looked $X $X.XX. of won't that for several our adjusted like significant our way the the on share produce have impact the of expectations, similar expectation we in adjusted our on take our earnings which that earnings share earnings $X.XX That's across in share. working discrete rest On per and XXXX items hit XXXX, in this had especially in $X XXXX, at to to share updated each several to for $X.XX. expectation to we but influenced on of see produced great share. a which I mind, items per significant As for arriving $X.XX cover factors, several for more starting through estimates to a have earnings With adjusted chart, the we've illustrated at against earnings per impacts our points. per code range detail

XXXX our for $XXX the which full First, benefit for approximately EPS of outlook of earnings a October in approximately Since shares benefit repurchases. share. repurchased approximately 'XX, share we million, million announced X year by $X.XX we

us to of the will many updated based X% we by operate. mix many our -- estimate across tax jurisdictions we've business $X.XX decrease X% a jurisdictions a approximately the Second, benefit share. on our About rate

had in on the growth Epay half Fifth, of to Fourth, ATMs but Ukrainian Ukraine transactions. one industry revenue reflects Russian $X.XX to possible the from curtailment imposed the travel on impacts additional countries, closing of both ranging card tempering an for consumer Money our travel to sanctions the to inefficiency of Ukraine schemes, to on X% impacts. business. to is a lighter invasion an of Ukraine, patterns inflationary in second to and in impact has tourism-focused reflected we year Transfer a approximate exiting account business flights hard Russia. for in of Third, border peg consideration Europe, the This card the ATMs impact to

transactions, estimated that we come you As in know, DCC would the our in, the low range. transactions primarily high-value previously XX%

to similar see posted recoveries nice And -- through May, we end of flatten our In recoveries it XXXX robust June, in relationship Then a confidence of towards out. pleased started June, supporting trend. to fact, to were we XXXX nice the reverse to in transactions levels, recovery. see

et capping. in cetera, seeing disruption we're to has Now tourism restaurants, hotels, capacity that witnessing that airports, led --

the We have gone October Sixth, about to since high interest revolver our as Seven, its to pay These have higher for shares. $X.XX borrowings. ultimately well pace rate the And up to business XXXX. raised the quickened the and revolver our the share. $X.XX mid- use as manage for account adjusted a more card of the all has XXs, share. amounts be repurchase We've rates help know, inflation. as to which increased XX, per of Piraeus approximately Fed rates expectations to dramatically in you

We share. expect likely really we approximately This the operations. estimate. borrowings an for a flows peg. of inflation made we to what cash accounts share. One competition additional might Eighth, a It could cost to at bit generate this on versus relax constitutes too free hard one is as but for run light question $X.XX together, but workforce a inflation. greater They be $X.XX

out. Ukraine. But summary, now it rates benefits, repurchase it travel canceled already year this a we FX of to our the appropriate the some some when the interest can outlook give on Finally, slide. lingering more fight a it. understanding knew you share better impacted impacts In $X.XX impacts FX other refreshed affirming the has Fed share. aggressive benefits, to there. of quarter, part, pressure, full The of some we adversely compounded which, get and costs, much most We expectations ninth, our by interest each covered for disruption tax I've the the inflation last EPS of quarter, industry increased here, how by in FX, But approximately see seen get we've and felt some invasion in accelerated you

an that but these higher if FX not changed. If down over interest, other Thank impacting if moving offset mind would or hope you. see have taxes, you outlook FX becomes more lower, disruption, that in of this move such Mike. each I helps all a And boil items, will move lot know didn't of business essentially year parts, reconcile the said change, as with travel are these for our change. interest that, rates travel the disruption leaving real can items, there I'll expectations. differently, necessarily I our faster turn currencies or or issue, estimates to it Please bear you

Michael Brown

you from more today. you, while, thank Thank tends those figured be my tend to conservative, while for Rick, who I for XX. will a a probably comments be of more that Rick start Well, everybody, out little optimistic. bit joining bit have to have been and Slide us you, us a number I following

the in here business valid, everything to how So affecting has while tell all has changed. tell nothing on I'm are you, changed, are while changes three and months, also that results I'll last you his observations the our over economy really, the

changed passengers really they of capping are XXX,XXX hubs of service business. me day all Heathrow canceled of in favorite remainder of Let at repeat conditions. world, who become really summer future London and largely picture our is I to a announced think global industries with our and so week were travel restraints has CEO that the the to airport capacity the due baggage We the travel see room the their flights, hospitality capacity There the chaotic. Heathrow, their then, and that, largest the open seen at site news nothing and one respect for the can have last unacceptable hasn't

perspective, were than in through the For Heathrow of that that day is XXX,XXX XXXX. passengers less per XX%

I what particular understand our you this it's important to business. pause to means help think there to example

our are Let's a far international has currency high-value from largest on the of card component. producer by the not because forget, U.K. cross every transactions travelers ATMs

year from week staffing Frankfurt to the to say call significant has major the impact a heard CEO operational airports describe amongst and Amsterdam, the Europe, and capacity for forecast. their airports remainder stories similar So also Delta's to demand, they're including of not more Paris the have we of on flight been during And issues. British due passengers the travel limiting used last to increase to earnings that our going Further across others. and had

So good, the a seen, great a when and it while only predicted learned to this lot news. this we recovery every sign from year, ago, have three even pointed travel outcome months is that recovery for would have we travel have robust we never maybe

in have seen when the up machines and flights future be that light will the chaos travel We our land, ATM fixed. the

We have withdrawal amounts. seen as well transactions in as average recovery strong increased

underlying validated even still have we better. that are of business fundamentals intact, So the our

sites network is stronger replaced may and underperforming ever. ATM better As you our with remember, than We COVID locations. during them called we

further line have interest Piraeus conflict our America. in And We economic the for with sites, we the have the new results our North a to set business. high-quality Outside year. Merchant of to into product Ukraine, and expected Acquiring travel, new EFT Asia, with added drove eyes and Africa of the inflation currency, the the in other factors, and have changes like into diversified and expanded Latin acquisition extended grow all further we markets rising rates pullback the finally,

digital improve continues in branded channels. to However, for digital continues expand epay and expand to driving continues high Money And in payment physical and and growth distribution to content see digital the channel. rates transaction both its demand strong Transfer network,

is may fundamentals from able very strong and will for technology is about and we of assumptions let's driven underlying XXXX changed, but Dandelion pressure factors changes, the well for has forget Hopefully, there for currency our really and expectations, you our see business our our bit that come of be that It REN stronger. by validated. our new in we not changed offering. in all advancements frustrating doing money beyond. XXXX while nothing XXXX control, So excitement original with a industry-leading made were very, while can to XXXX is short and of external business transfer not and that inflation platform And here a the underlying getting have of our the bit

we right to the that We in made places shareholder long-term the to right and confident are investments continue are deliver have growth.

to on move let's XX highlights. Now the Slide discuss specific segment number and we'll

the see you Here, expand EFT can that to we business. continue

issue more a about program two ATMs the to agreement prepaid subsidized community years. cities Euronet first couple areas cards of and at in travel to access market. that a will where Post Indian three in means Merchant the million. remittances, multi-currency over distribution Thomas end-to-end EbixCash. years and last we as quarter, EbixCash an has prepaid which load India's five independent international know operations domestic the in been prepaid a This launched very next their across give insurance over XXX,XXX the with the ATMs getting next to across financial extended of years The an largest EbixCash across in to closed multi-currency Acquiring platform. have new And launched acquisition cash. experience over we Spain cards the provide India, currently an the we the cards, from quarter multi-currency mile more includes locals. more. ATMs outlets told and EbixCash with Cook four the foreign network I a that travelers million Bank's in ATM end-to-end The exchange, [indiscernible] through the $XXX will of making Piraeus agreement branches cards business. least pleased of access largest Spain, for huge money X about coupled physical the Office annual you of Spanish Spain issuance cash. plans They're to cash, customer have with omnichannel and an emerged for because ago, these of to In of cash you have a powers digital solutions, payment we full with for and exchange, curious, digital access convenient platform we travel rural In EbixCash, online install are difficult time These X,XXX Iceland, network bank addition customers

with new merchants some stores, Transactions we ahead or the line of in the Fridays, During our you of quality Attica this TGI provided that These future. in the and transition acquired, line Greece, confidence like we gone of surprises. expectations. with largest updates has to expectations the the additions and IKEA, has were are in our platform X,XXX department asset including signed amongst approximately have our in just others. no smoothly forward quarter, greater giving to look merchant agreements more in This we with

add ATMs to continue our to portfolio. We more

more quarter, ATMs ATMs, this During so Euronet-owned XXX than to our bringing the year. far total added we X,XXX

we in to XXX off-season. reactivated been added our will due closed We the ATM or in deployment new that we've what together first We deployments. outsourced based mentioned travel given expect facing from relaxed manufacturers issues our issues, now chain and third-party expected also hopefully issues during this with the install we X,XXX with previously we to are delivering range not have forecast the have with next than on installing ATM on that more These the supply were issues slower Further challenged mentioned machines. travel X,XXX related as the X,XXX recovery supply to Accordingly, travel have the to issues issues industry. resource returns quarter, to COVID out supply ATMs we approximately year level. pre-COVID We sorted been and they to machines machines time the the them. deploy chain year

We are restricted. pleased with to become travel the continues as around the less rebound business globe of ATM the

their confident business and the levels improve to are growth that continue as of industry to We our pre-COVID. those reestablishes model believe will in our and operational staffing travel

Our customers. and ready teams our serve are ATMs to these

distribution physical we'll and digital of team distribution leading portfolio to about expand in Slide continues talk channels. both epay and move let's on the its Now The epay. to XX, content

in loss key XXXX. the bottom comparative as Cadooz our lower well promotional I'd did year results that quarter second you include of the results the remind the epay like than line in not expansion, quarter business, customer these show to second a BXB as of activity While in this

deliver products, category, continue to will some unfolds. in that based while certain in earnings. of on signs of we will with year see discussions business continue the particularly growth gaming partners, nice of a epay promotional we second discretionary inflation that to And believe We year promotional the of spending have and our epay our believe see to strong creeping half campaigns into the the as we the our business very on categories started

During quarter, leading branded through mobile through sales epay payment digital digital expand branded added continued the Europe. methods. We to Aircash, a payments wallet distribution in

launched well this first the PhonePe, Microsoft in e-commerce added also on This two two app is distribution products market. In huge largest XXX India. iTunes through through payment the in a of as largest Turkey. we India, platforms, our as mobile of in and leading launch operators growing We Microsoft digital

the payments also several we branded Europe. We the including coming BXB in promotion new that signed distribution agreements expect OPIA, in launch a to through of company quarters,

also and expanded Disney+ channels. geographies with new to relationship our We new

add We Austria BXB able and Germany, to e-commerce Disney+ we agreement will channels. Flipkart, channels be a India, Switzerland, through leading and well an to signed in as company offer as In to digital there. iTunes

Microsoft to All agreement distribute Access Xbox an an for signed with distributor in console we Finally, Xbox Mexico. Amazon GameXpress,

epay continue expand to content, and geographic reach our our channels the We segment. sales our in

anticipate through July, a mentioned. Overall, In the the broad for we've launched nice for gift year. optimistic Unlike which launched more The hardware markets. Card through this The our that increase it make it more. option fact, us America across year earlier was small relatively added new forge is we it has inflationary will will our epay's North incremental Apple's makes markets, across We products card, in self-use we history, success. markets. accessories, in iTunes that help contribution Consistent card XX in we Apple this apps complement gifting. great sales and much the and everything enjoyed a gifting products, offering are will new impact and gift with card tremendous Apple,

the confidence results We some give year pipeline of promotions in and have that that the deliver us still products epay will full for XXXX. strong exciting

XX. number Slide to on move let's Now

territories, our million XXX These X.X which of by year-over-year. year. are wallet locations our again, first and and the complemented to XXX X% XXX,XXX Once than closing accounts this despite of the bank mark, industry-leading remittance X.X nicely physical in in Russia, in Tajikistan payments accounts more countries million increased and quarter network eclipsing across continue locations billion Belarus location network. expand We XX,XXX

deposit more allow for agreements partnership ever-growing quarter, launched countries what our launch bank In we example one-stop with portfolio for through new to transfer Crown XX industry-leading with product Belgium, network And with XX service countries app XX across clients fuels we individual transfer including countries to partners launch launched new in through the correspondents countries, signed XX our changed, and money where During Ria. coming corporate XX airport. in more refund countries, currency their Bank. again, correspondents we ability we've expanded our Money nothing across exchange the on services the changed, of payment expanded in VAT and the is everything that the Brussels growth. our with their locations and nice can that but powered to WalmartXWalmart Walmart of relationship use money our network Transfer, accounts customers we send customers provide reflecting money. our more a This And more will to by shop This is has our further view And a has quarters. to Agents needs.

enjoy customers low digital transfer Ria's price. world-class our money Now Walmart's everyday can service at

On the transactions deposit front, our direct-to-consumer digital transactions account XX%. our increased grew and XX%, digital

bank Ria may of network, has outbound deposit Ria's these that total You international transfers volume. world's XX% now and remember the represent best account

of Money deliver of will investments our despite this ground inflation transactions, of segment expect comments in and lap of our on Our some second quarter business to we the in early growth year, we results, reiterate some made seeing continues I the my Transfer operating signs that last gain first and half the margins technology that pressure this the will year. of as improve and the rates we

with with Dandelion world's payments international on let's service more number on interest network the companies. and fintechs, payments Now is platforms and more real-time move update businesses technology to and to banks, beginning continues be our XX. Slide you Dandelion. I'll garnering largest an And provide money from

and the system goal Our Swift modern real-time alternative. a with replace ancient BXB disrupt to is

billion assets. an agreement their to with they Atlantic representing their continues we financial payment build. in expand to than During make bank-to-bank as their Community pipeline for institutions, more the the Dandelion turn, available institutions U.S. XXX-plus will in product to will Bankers $XXX-plus sales enable offering and the real cross-border quarter, In improve ACBB, known Bank, that customer time. signed to complete financial network XXX our and capability payouts ACBB ACBB power

in conversations banks, than banks. with we're and XX, We local these of and are you and of and the have that the can been technology. interest network more global XX encouraged four tell banks including platform, The by global I XX the and XX are power productive recognizing of their top meaningful regional top Dandelion's discussions.

Europe. slide the success year. to offering sharing you into will hard continuously of network, mobile look in on as half wallets the bank MoneyXX/XX to interest and more I forward way, Dandelion. cash accounts, our countries, locations Dandelion move we with We our this the work at in to our continued second continue add is uptick pipeline while to the I'm By improving service. excited the the about picture And little

Slide XX. REN. on Now let's move to number talk about We'll

we architecture. our quarter, technology the REN value of see you told last digital banks to modern As continue its and

a Limited. issued venture the is digital monetary Asia. between license. Southeast a considered entire quarter, Grab This is Singapore subsidiary joint the will expands switching banking NASDAQ-listed as through venture REN loop GXS, we GXS there of the provider The The and November and agreement. authority preferred Telecommunications payment and Singapore issuer now stack of open Holdings In GXS Euronet signed a processing an XXXX, be joint

a Bank or now, of fastest Euronet and again blockchain for digital that making to leverage Digital to that technologies empower an digital banking the type the It than everyone. Commerce payment Union Neo this virtual FinTech, XX a entire and finance more payment country. buy signed Bank in signed Philippines. it Bank the bank communities, BNC. enables and Union country's with open banks digital processing digital a issuer aims agreement, bank also with one is order digital agreement a million Indonesia, Filipino the is we regulators in the with users, in BNC issuer later make service processing growing will economy. Digital agreement In to stack to the is bank. provide digital assets We Under accessible businesses pay company and

manner. Here, and has providing its issuer we launch a our REN market provide services. been which platform in an decade, to processing has our helped end-to-end processing Euronet programs center payment PCI-DSS digital for Indonesian than deploy will from compliant customers services payment accelerated to payment the more local processing

We often As our significant continue AWS as real-time we payments from designed for in the more increase transactions users our we such EFT transaction. are cloud are get be majority expand through these convenient and are to and banks. questions the interest, with large is all very of cloud capabilities digital that REN high particularly network platform, the and Google, which this to major increase demand. gain these native of in providers, A on more

transactions may the in price, the and these the number by be right While judging we're place. growth transactions, know lower of we

now the to let's for quarter. number go So on up and XX, we'll wrap Slide

macroeconomic I the that As close the all changes I hope really my nothing changed see in comments, you environment. I why has can believe despite

to transactions corresponding increase in to business future. providing rates despite confidence travel despite and can the And flexibility balance underlying make the places whopping products industry, seen than as a that transactions, the our to continues levels. have continues transaction strong to deliver Transfer well stronger model. -- providing within and travel ready initiated growth our continue digital to within new our and has in travel XX% on distribution right industry, its us entering expand and recovery issues double-digit robust in demand expand go continues ATM direct-to-consumer ever U.S. travel Money channel and and exciting the transfer. in pre-COVID to the transfers, produce as We in together Epay is mobile gives We've payment to the digital products growth return growth continue a to as sheet strong digital its a market. stability sure with branded international we to network

than items our the continues in netting a the expectations to on will years. really with the FX changed guidance our XXXX. highlighting impacting will summary we have quickly the over as that, I forget are approximately at institutions. assist? fill of outlook our even can end are XX% the questions. side the expect With better Really, our year prospect Operator, comments changes, We million financial travel not the let's pandemic much. deliver better the not to still you that to for please would year, also take pipeline improving have last pipeline And we we And be deals recovery the range, Rick's I that for of our earnings signed REN happy all strong regarding happen. that like clearly revenue reiterate for Dandelion six with top-tier to next of wouldn't of results as $XXX low if

Operator

from Instructions] Heckmann D.A. Please of the [Operator first Pete you. line question comes from Your Thank ahead. go Davidson.

Peter Heckmann

question. for morning. Thanks my taking Good Hey.

you essentially it's of where larger headwind, On I'm of was have the the country kind think lining across clearly, I FX than I certainly what calculating. a seasonally, one transactions the hear euro you quarters maybe straight second the the or guidance did is And that percentages issues from of I say current change rates the the in for second on percentage little is half essentially second quarter. your based quarter? much spot greater But

Rick Weller

kind going outguess don't rate what's Pete, to it. Yeah, try forward, going we to run current with happen of

for it So that the XXX, of XXX as you're kind euro range seeing today.

Peter Heckmann

Okay.

yes, the of certainly primary days countries are capacity limiting might the do -- airports, about talked U.K., And discouraging there? travel? sense. I terms travel other you find impacted in currently you impacts like in industry be makes like just countries that issues cited guess the So or that's what which I and then that of travel mean, the you and planned what

Michael Brown

forget, in than then flatten a because issues. was also, XX% to do bit transactions with June all problems. all the and then about lucrative problems. watch May for by they're was Well, little got we got out X% of Luton, They're because we country XX% even great. things flights. all U.K. canceling April can (ph). customers travel every And virtually let's did are second, these that. London limiting revenue was Google virtually if of XX% these better customers the three in And flights, and and like half not start just cooking that big I the about were have the at the very XXXX. us, They're a limiting bring first March -- regressed they're of has mean -- in Heathrow So in of And those to they the look in out travelers than had And doing XX% in things. Gatwick less airport airports same quarter, And third quarters, in problems our of you profile we for it. you the the kinds We better. these the what fourth.

tell done and big as we travelers in over many this that QX, prior that So every year you to COVID, see almost where transactions. this twice we've it's can ever QX inflection

the that occur So flight, capping this to year. don't expect with we them

see the going that. next it's we this, full So through that benefit to but of year we to do get work they're be going before

Peter Heckmann

Okay.

Okay. And it. I got just...

Michael Brown

mean, takes March, could people airports a they it's weren't security, couldn't crazy. it -- timing and mean, at worse weren't have people months been I for it It's through just six -- time. until these the them to -- I clear hiring

Rick Weller

Pete, I earlier very ATMs. that comments that is again, the with of on one would correlation activity our good and we made see repeat is, what here Mike

of the in follow could so there. of our airports with reports transaction you kind news Europe And disruption the almost the throughout meter

cash. airplanes So go it understanding ATMs view of out and business will the again the validates that take our people unload, when and is to the

-- certainly we've read our but see by system rather not pent-up it. restores behaviors that you our We we're and the out again it, about the very the consistent with just we these things worked it as kinks would get very the travelers that So and like with it's see confidence seen there of before. that encouraged demand that,

Michael Brown

saw plane part just not that fare of And supply in article average enough thing. there's just another little And the added demand, supply. where was higher and is a We it than XX% 'XX. is

of vacation also a your spot. number bring family that's much because travelers just so limiting to to so more costs it And the

Peter Heckmann

it. appreciate I enough. Fair

Operator

Joel your And of Company. next question of will Riechers come Truist from the line

Your open. line is

Joel Riechers

structure taking rest questions. just for what for then Hi, said, you cross-border surprised Is little a And was source of volume margins kind guys. and was were I was I my could it year? see revenue a but provide given strong, as bit. of to for wondering bit contribution cost trends. like suffer disappoint revenue if the much insight looks renewing bit of like and so locations, locations kind the quarter little a my different? just And was guys your that? per And into on Thanks ATM what last the a is of on question, something Thank or address not existing you I cost or of the ATM for the that to might this you. little the margin new leases entirely do whether can And of that look pressure? like anything there end

Rick Weller

Yeah.

margin that's back The Yes, first of piece is ATMs. the of there. on EFT just the the ramping up those cost

As we back said, nearly things bringing those mean all and in cash few them there's online, we a reactivated, been hadn't that. putting -- restored we're that I but ATMs like

business. of of output kind So an natural the that's a

your question part was... see, the of Let's first

Michael Brown

margin What going do you profile be expect the to -- margin forward?

Rick Weller

will add as of numbers high-value our more improve. I transactions, Yeah. margin the mean to more continue and we

still that achieve this or is 'XX with As the more I've highest we did margin are our year to number are of the transactions. short that people going we XX% because before value in we won't transactions shared be

profit and And XX-plus a an so at kind percent as of those transactions margin. gross come in they contribute --

really as So come those the they transactions enhance margins. in,

we was, a anticipate call what of let's would full as 'XX. not more with a you're year, shared level also added outsourced We've ATMs, through us our year wouldn't So more the we'll that mathematical won't seeing same high on as calculation, be and when go had the what being 'XX own but may produce just level basis much replaced margin comparable profit. we've ATMs, recovery, we they EFT move give year then ATMs. we certainly we but quite that new into make But at our full more margin. nice next as get than us toward that start 'XX as we We've of back less in we and this that. margin give as they about folks talking of it, Because some that our

we've add why continued that's to So ATMs.

a bit up you'll margin, it the profit on of you up also start but the So see then seeing contribute line. more should show that little in show

Operator

next Your the Citi. is of from [Operator question line Instructions] Schmidt of Andrew

open. is line Your

Andrew Schmidt

get Is to on start sorted were the close should in is a Mike mix. mix mix, morning, these Rick. you where a the the Good shouldn't details. we out, Hi. international high-value there of that reason question off transactions want do believe Or to are percentage all to and for with Thanks transaction pretty ATM as to XXXX? Yeah. any where all This transaction were in total be just we helpful. we when issues back XXXX. back think I

to EFT. a part Just your the transaction mix of get curious thoughts lot. in Thanks high-value the on just ATM

Michael Brown

Yeah.

we'll that I that the now with 'XX so... travel have for that's bit minor, see don't we Russian cards No, And right exception single the chaos, had travelers, question. same So data very just but Andrew, minor their anymore. we the fix mean if in little that says every point tiny work a only thanks that the mix we --

Rick Weller

but the would think change in I much, add, it direction. I start positive it And will won't moving it it

As Latin we're said, essentially to should all and markets currencies. And continuing Mike in markets. American the the that we in expand those Asia, bear Northern just African mind are different

the expect than are a Asian will see we for into ATMs African currencies. ATM greater got an if euro-to-euro as go So transactions transactions you're, mix and a users there, currency are be lot of to be that we out going would to going France Northern separate that of of when there markets, taken you've the at those whereas there, because be in example, we cross

back up a get kind that to recovery. it being as seeing full improving mix we of I to lines all So think an

Michael Brown

are also And economies where cash. COVID, the developing for an from a our these percentage be in we put -- traveler and more Egypt, example, with ATMs profitable very of much spend because will higher us to South data as those Asia prior

one. European as our as are found as these sometimes twice much So profitable we as that ATMs

as of each as currency. of markets, we markets island these (ph) new into expand So said, Rick first are all, in these

of has cross-currency more, their spend spend to just to abroad cash. single And every potential got will percentage is second from So be they're for traveler higher us. comes with going a have

that's these and over that our change will So excited expansion why we're how margins time. really about opportunities

Rick Weller

withdrawals, value platform it's just that a low these we've getting lower we called REN it where very they because the EFT of or the just they sales, time high would we transactions time, based lot transaction. well. profit amounts bit, I bottom numbers our and us on on to come of dividing lowering a to transactions our REN we've but so segment because the from all revenue That's of reflects doing platform if the value success kind that by you acceptance in into also we're bear not the of if per lot transactions. through they really you kind will, -- will, ATM payment price we're of got of revenue of And that because drop of the if had have to processing them mind, the these debated just line, skew, real-time math our as come a you're P.S., they're transactions, And

Andrew Schmidt

because travel year? the potential whatever what in consider we for recovery there, you then add would growth going you. to think you we Obviously, connect level helpful. point up That's above and to but it's be have just bit good how a thoughts about days some wanted these year, about at talk to environment", and framework normalized a to year, the on about update overall should go it. that to the how next to should hear can just earnings little to incremental -- beyond to on curious forward. get boost. of off-line have might still and consider and added we "normalized think be early but earnings I I an new Yeah, be just of what means which segment products lot next Got it'd some set But next that EFT a you factors it that. the -- think mix Thank helpful your

Michael Brown

earnings travel. Probably biggest going the to contribution the to be hit our -- year growth next is biggest

through transaction line when straight normalized we and the mean this travel fall pretax I get plus revenue we estate. As that's like more says, XX next that across to same work percent Rick -- just we trends, that get of chaos ATM

going our up will be -- Transfer not largest Money forget, a -- we're contributor end half that's very that's So next with let's to our our epay, single But second year. for good some closing business We're Merchant Bank market share. gain and see Dandelion growing to Acquiring pick up. big getting to Piraeus the continues to closer deals REN closer very We there. nicely. continues

for and year that's whole kind in the So I growth a to like feet. its just industry is got mean, of of addition on low-hanging levers next fruit which lot we've back getting travel

Andrew Schmidt

you, comments. Thank Rick. the it. Appreciate Thank Mike. you, Got

Operator

line next Keefe, Thank question from Bruyette, of come Govil will Woods. & the you. from Vasu our And

Vasundhara Govil

be assumptions my segment taking much June sounded the like this, transactions. continually then question. you rolled you're And XXXX of saw to for recovery Apologies It May full levels worse, and the if of very now I return a can you expecting and EFT of sort in terms it to it July. on high-value over of Thank your worse. revisit you in sort the but missed in

those guide. If you could in that the like making just revisit you're assumptions

Rick Weller

recovery saw expected transactions. we misstated not was that we if and we it, sorry, had I'm in that direction in those recovery No, Yes. but high-value full in the April moving we did see May, a the

early have assumption we Omicron out the levels. past, latter the early in in year, And against will, of been of kind and we May year June led part that then you of following part what of was if would As a seeing our the But we've flatten more part were saw improvement period June. June a mode to still yet full in restrictions. the the for the then that variant, and that reverse continuing in 'XX in of recovery in recognizing the the some more the said

-- we're we've talked as that of our about. a not we've back got XX% So were of we said, just that, in simply we the we in recovery look be seeing a well kind trends adjusted but have expectation current in upper that now, mid yet right progress at thinking 'XX will seeing end more of those what say had to kind our the low number by XX% level, to to line transactions the of And that with of taking the range. high-value rate

math like mid like you there, that to big do your could you about of XX%, delta numbers XX%, but and and difference want or high-XXs a So but not XX% that in X% you a own been you X%. grenade something to put even XXs can assume will would something XX% can like to low tell give be have if some difference,

in take X divide just said, and changes congestion And it, you've by percentage further in X that XX $X.XX the that. so $X.XX. roughly the forward you that well, well, -- travel be see to if XXX a share. got impacted $X.XX X that at our us if to number to take might about about Andrew's on turns other question our you of points, to can Even We'll EPS that looking the about delta between XXXX, X articulation and then equal turns

improvement share per $X.XX level. full on get to $XXX to -- in if in that you on getting $XX we take $X.XX that the you're $X our X You're $X.XX, recovery to turns, the earnings

approaching or But expectations that at were had the and we May, out. level said previously we it was misstated and April in we that June we if full set So just May that. certainly

Vasundhara Govil

approached you sort here? total out many all taking that guidance? on your seems Understood. It you've out. some where things that is you of my of where think called a sort don't least Thanks start at how might sort do you follow-up like the are so factors of I -- you're just guess conservative worse And have fair Is if color. that you you've how guide. the buffer from on you've And for that laid some of out laid drivers of think read do headwinds, get the

Rick Weller

summer. have to a type these is put travel cap upside, going by there, loads acts potential to they're and all out of areas. bit the their little of airlines quicker. Delta I that maybe the through several get think we're fall you nice sales. Dandelion One continued the see flights on may said, the intimidated We that their together as REN we've be in a they But rest

probably a there. going put that's to So of pressure bit little

rolling expectations. Mike I here about Apple -- had that we the -- know our States. a been product, traction United out Our in made that comment But that appropriately considered think we've new in card good we've it very the

see don't a too the So inherently we've little that there. towards try that out one right fairway. on. possibility been think any We it the much. of it's come don't to of that we're a conservatism, kind up middle I us with but got silver down number bias There's helping conservative bullet I of probably undershooting

Michael Brown

-- the that elongated are woes, may believe bit people some a travel There be season of little because year. that they travel this these

upside some well. with as us provide might that So

to see. have just we'll So

Rick Weller

And some that third the last as of from we did to went year see quarter. the fourth we

Michael Brown

the I joining think you close last us. for so for that's it. this can question you, Operator, everybody, of the day, Really appreciate Thank kind down.

Operator

for conference today's This Thank participating. you. concludes you call. Thank all

disconnect. may You now

Euronet Worldwide (EEFT) 30 Jul 222022 Q2 Earnings call transcript