EEFT - Earnings call 2 2023 | Euronet Worldwide, Inc.

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Operator

Greetings, and welcome to the Euronet Worldwide Second Quarter 2023 Earnings Conference Call.

[Operator Instructions]

Please be advised that today's conference is being recorded. It is now my pleasure to introduce your host, Mr. Scott Claassen, General Counsel for Euronet Worldwide. you. Thank Mr. begin. may you Claassen,

Scott Claassen

and right. Thank Euronet's this and to and morning, we CFO. you. Quarter XXXX Good CEO; Chairman Second our On Mike everyone, Weller, Earnings our have welcome Brown, All Rick Conference call, Call.

performance statements begin, predictions Euronet's number be call results your result or future I presentation. that made this making listed statements. statements of are today. the attention anticipated our the of concern actual to second of are its call expectations a the may Statements on slide forward-looking those need management's on Euronet's PowerPoint we to forward-looking Before disclaimer from in presentation of intentions, slide the of that vary as materially factors or we'll these second forward-looking on a

Except required as duty any to does update undertakes not any forward-looking Euronet update. person intend law, no statements to provide and to may these by be

of reliance You should avoid any undue placing on these statements. any forward-looking

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

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

Rick Weller

my Good today. you joining thank morning, I Scott. Slide on to who's will everyone you, Thank and begin comments X. us

record and million. double-digit Adjusted EPS by $X.XX in the and all XXXX. of from quarter, second segments. gain driven produced These EBITDA of income $XXX noncash EPS improvements $X.XX, from second we adjusted the strong million, X the the adjusted operating increase second recorded was quarter For in of a adjusted income, adjusted rates produced in $XXX EFT Excluded a million, a and income growth segment. of EBITDA quarter adjusted XX% revenue results operating $XXX operating of is million $XXX

summary of compared quarter. prior a to Slide sheet balance the our presents X

is largely The more to quarter cash as of cash $XX due XXXX billion in short-term of quarter and cash generated from requirements. well see, $X.X you of billion. second fund can the cash ended increase as than operations debt ATM As with $X.X million we second seasonal in unrestricted in the to borrowings

Slide virtually for basis, translation the the last the quarter. currency rates the second impact in results saw segment's same year-over-year into results we on each FX year. our shows quarter a no quarter more X over When go as-reported constant I'll detail on next slide. for currency of comparing

slide, Next now Slide please. I'm on X.

FX mentioned, just I rates same As the virtually year-over-year. were

reflecting result and margins I into strong The of jump X all The in it's adjusted business. while basis XX% important than segments, on year-over-year income revenue increased and performance expenses points think XXX year-over-year. continued cash and expanded our grew leveraging segment across travel the to withdrawal by I our operating good were each XX% of driven EBITDA improvements and business acquiring transactions recovery respectively. EFT grew Before segment, trend margins focus EFT expanded point POS out our operating XX% the more costs. by

this a leading of growth travel, more recovery later flattening international our the began to trend a We'll consistently international recovered quarters in international part generally travel. in latter discussed of Beginning over prior quarter, the years, the the X transactions the with have our from presentation. see divergence to year-over-year. of we last transaction have detail discuss the we in recovery As international in of

sustained our growth distribution grew and and was XX% of revenue growth gross and India as profit. relatively but transactions transaction prior impact a transactions in respectively. insignificant XX%, combined count mobile and low-value, for India. a a with promotional branded to and operating Revenue activity. expansion by declines Transactions continued while adjusted are strong on large epay digital low-margin digital payments, decreased EBITDA compared XX%, grew channel income due quarter have driven on year such, These impact in to in

initiated EBITDA and in year-over-year. and Margins growth operating XX% offset U.S. in constant remained decline initiated by grew Money was outbound X% Europe in and business. XX% adjusted and income epay with growth of domestic in partially growth and in Middle relatively transactions, the Asia, a XX%, transactions, U.S. transfers revenue XX% XX% in the respectively. largely in transfers result XE growing Transfer XX% XX% growth East in This growth

The growth, at largely include which has principally a the transaction transactions. mix in growth shifts, growth from nicely improvement outpaced XX% rates an transaction transaction. amount per expense growth management, per average Money amounts digital benefited transaction come lower in send strong in in profit quite cost sent transactions X%. XE due approximately margins Transfer These seeing through but in Transaction business, gross direct-to-consumer and to effective by improved revenue segment per growth leverage despite

year. you like Before for give and up third to I guidance wrap insight comments, more our outlook my I'd into full quarter the our

the expect in with of will detail, quarter impacts are rising and full to for funds to leaving margins. and Mike more deliver Transfer tourism improving seeing costs where third with inflation EFT, fewer double-digit spending. continue we discretionary in the In First, Money growth we year consumers elaborate the travel

be result, operating to for Moreover, operating due will prior than continue quarter. trend we to we into constrained this costs. EFT income operating ATM better expect higher inflation-driven more to anticipate the revenue And to together third similar a be but somewhat third year, ATMs as quarter with

head activities as create year's quarter as epay, prior quarters, creating we tough in year, our into strong third third the In we last discussed quarterly this activity, can in results. had promotional quarter. promotional comparison uneven we Finally, a

India. the relaunch And few permission the epay, in authorities government Google first achieve the the failed last ban the games had the Indian banned Free to for remove its Store. resume of of on in today, Fire remains games. Sales as that provided X most update to in In popular pre-ban of an doubled one anticipated granted May, days operations but would the Play we When levels. we Indian of

learned and older buying the content have which game sales fewer games providers of driving to the in release plans order game have money, are we in new titles consumers is that Additionally, spend lower expectations. the less second half to year,

When to impacting are months growth, taking adjusted now while which the X in segment lighter lower we we we but year-over-year into cash to than mid-teens. on approximately mostly withdrawals, we to low inflation customer $X.XX is EPS now deliver would level expected the current our third at And trends, expecting we third quarter a adjusted ago, expect to EFT continue impact the have economic see be per consideration what share. EPS of expect quarter of

the to second the made in seeing focused earnings, which are proud the a pressures we we of double-digit EFT will finding revenue opportunities closing, and we possible In in in the on inflationary overcome highly growth are be quarter, growth XX% segment.

With Mike. that, to it I'll turn over

Michael Brown

on and everybody, will today. us #XX. start Slide thank you, Thank joining I for Rick, you,

If realizing time, record. you've strong include period adjusted a we any operating in have the record been quarter second segments, last including highlight all we opportunity we the that quarter X around the over years. EBITDA from delivered are adjusted results you benefits rates for history. Money Transfer talk for growth revenue, the won't about best of X made growth company's on These how investments I the know EPS. double-digit a adjusted of an pass These And to up and income,

a time outsized our tourist given on XXXX, transactions Since impact XXXX, had we comparing transactions. of COVID have EFT spent our to lot the

ATMs pandemic. of Now are made the X acquiring the investments in the that despite the COVID X,XXX few uncertainty and deployed we merchant spend of effects a countries, Piraeus the have Bank. like about we we business to In from I'd dissipating, added minutes we've new highlighting ATMs, purchased EFT,

while content new Money to and Transfer, our markets and margins introduce at the add and more our increasing profit same expanded overall successfully digital that our In growth we we to In more and epay, location time. continue physical strategy accelerated content more channels. presence

continue We our grow. invest our pipeline REN to to platform, continues sales and in

still strong developed but very growth infancy generating in is which is we Moreover, rates. its Dandelion,

growth constant quarter for and the this in in XXXX XXXX. rates see can quarter the second strong the versus of You the revenue adjusted same success currency EBITDA strategy

Said more a not simply, pony. we one-trick are

which markets the which future. cash expect we new expect and new launched will to products, well revenues solutions, our diversified have streams can allow into now -- we that which We expect grow new so -- have flow to and us entirely continue to

I couldn't insight I'd some be results, but quarter the into guidance. of these prouder quarter give to second also you third lighter-than-expected like

double-digit operating solid expect grow to quarter. very with in further the margin Transfer continue growth third at our First, rates, we Money business to expansion

some results. of third and the This is as to playing difference promotional a the our due in expect between the and causing out expectation. epay, will expectation prior prior revenue included campaign Rick is quarter we Street's tough year to year comparison In the be outlook the mentioned,

of driver lower the largest EFT. guidance in the is However,

in international second we was last For in X compared of flight our the nearly the by saw published lockstep the data the years, transactions with to international our abrupt flight Eurocontrol part an the data. Then sharp quarter, divergence latter Eurocontrol. in and data transaction

that of outside are customers XX% may with Europeans approximately You destinations EU. the remember travel of easy our to access

the on must to basis. increased advance Americans, a data, Canadians, year-over-year that, our we analyzed Europe, and have do others, fly and that ATMs for who cardholders transactions found in probably When Australians plan we like on to

European country. across However, transactions for European down cardholders every are almost

cardholder income on rise which understand behavior, ancillary airfare of evidence tried cash. together by we in have war a the the a We use discretionary change Ukraine, and vacation, components in activities that less are found course, that European the a spend economic of in major cost to for suggests of the the which, to impact and caused range leaves abrupt people hotels, with sharp

to since the variety the year travel of in a cities XX% last sharp range of increases hotels are purchases the the withdrawn These which sites of purchases indicate year, gather for year. sources up cost last people up airfare XX% which last of use over cash according leave trip, that But on Europe Today, are to is from cost key XX% funds fewer in There USA data. a and from for discretionary to ATM. types our in several

less costs, survey expensive the EU, or fees dine purchases, would go said fewer offset these that of at fewer European Commission, people was fewer Travel would clubs. the which from choose survey would the A to responders admission XX% activities co-funded with XX% that restaurants, indicates rising to night by those make XX% to

consistent would trends. changes be with these despite fewer improving modestly transactions of ATM travel All

The ETC for respondents survey the says destinations. XX% also more of affordable that would opt

just Europeans since indicated budget. data opting pattern This to of approximately has example, the discounts advantage Croatia is outside that the versus see of they to an Turkey in of Greece or instead favorable In in have this order other the internal quarter our creating devalued like visit to currency know, places travel, stretch Turkish consistent XX% to study, to destinations also XXXX, XX% would no the increase we example, terms. their by for euro in you during rates. March, like travel travel as take places according plan of responders lira real to And As who the second example, Turkey. in Europe ATMs of where, we with the

the XX% season to these their respondents extent. in trends travel indicator are of they good to so order cost of the that lower in some that impacting transaction to ETC trip, off-peak would a survey travelers to Next, the the opt

has experienced Southern a this Finally, heat Europe wave summer. record

choosing tourists have Italy due dates of massive avoid just to due record have shifted of the evacuated to Greece in conditions travelers patterns thousands many In in their the the and and dry the cooler related days travel to the last tens To heat. heat, fact, wildfires climates are few weather hot or of Mediterranean.

of tourists in not international of show silver out, and with in to behavior, of So our this internal accommodations. lighter change primary are to available airfare for in transactions is cloud the that and seeing the in a we living the driver day-to-day cost therefore does data consumer substantial travel have withdraw consistent the is any The in we as to transactions due in does we've show significant ATM together lining less the data decrease not Accordingly, the increases volumes international money available is that with a their business. kind our pointed believe increases structural change in Europe. cost

And to my I'd comments. earlier back like go to

affords that times are rather through one-trick to but us a and business We not opportunity grow bad. well-diversified pony, a the good

still to range. business allow the the expected pressures X per deliver us we in business, made Over record significant year-over-year absorb low share years, stronger, across the will believe year a growth more last have to which adjusted mid-teens investments we for and economic the and these diverse full with are earnings

position Poland. markets. new their signed participation we deposit network who use merchants and the In continue Slide more for in we ATM agreement XX. as making quarter, an our locals segment-specific provide convenient Let's ATMs. on Slide network. talk expand Morocco, Santander Further, X highlights, can Bank agreements agreement those full EFT. second independent signed a in cash. Poland, X IAD These outsourcing you with X,XXX more a and see can we X with the to and X In our to #XX in highlights, market our go outsourcing with networks, convenient Poland, about starting In in cash new we services we in our expand launched network relaunched these global deposit to Malaysia, in Latvia, ATM now ATM network travelers way leading to

update the our And pleased merchant purchased business of acquiring we grew carrier and added this transaction the for from a POS in extremely business, we On from new acquiring approximately an our been volume airline on have in our and year-over-year Piraeus basis, performance national growth Bank. Aegean network. Included the we largest transactions Airlines, Greece. is merchants XX% increased to X,XXX with

of signed to more Philippines, with cash the cash the agreement Bank secure we Philippines. in our Islands. customers the provides a This In convenient for withdrawal cardless and access Philippine

a outsourcing real-time quarter, able for U.S., agreements service agreements Bank Finally, in Serbia, payment Small and AU to including several Finance Albania, agreement were Montenegro, during we India. the in renew ATM the

the discuss our Slide state slide, let's network the next of Now ATM on #XX.

We machines the portfolio previously Euronet-owned for add closed new ATMs added to in quarter. had ATMs, we XXX added X,XXX continued that machines. reactivated more to our the XXX second Further, and outsourcing We off-season. been we

mentioned record is from in included ATMs the not quarter, XXXX, Santander of had XXXX. a add half but half which in early this to XX,XXX XXXX, The second machines of June earlier, these of we number that XX, Euronet. As in active active for ATMs, remainder we ATMs of outsourced X,XXX expect we and are about the

To in we X,XXX continue end to year will machines the believe by approximately deploy existing we XXXX. and end, the of that for new that markets full

our some we we inflationary seeing a great will Piraeus expand Our we European delivered trends look the had quarter improved, travelers EFT facing segment in market forward performance Despite second good with launches business. continue year. and are develop where transaction and quarter, you our to later the from to POS pressures and new third sharing we ATM network presence, this

let's please. #XX, epay. Slide about Now talk

large metrics, Center, through the a team results our at all on epay year-over-year digital revenues. strategy strong expand Microsoft to which computer across promotional In delivered Xbox included through India, of double-digit launch quarter expanded distribution subscription we we Micro channel with continued retailer Our second financial XXX the growth In renewal Marketplace. our nice Amazon here. e-codes U.S.,

to Verizon. diversification. eSIM eSIM example agreement Further, channels. their diversity we we delivered T-Mobile our with distribution for is highlighted of of products to closed this category cards for expanded ALDI in Germany, BXB channel. strong first issue the a The continued phone launch mobile business activation and In and signed epay AT&T, year, another growing loop by an include U.S., our in continued of half prepaid product the product

#XX nice delivered QX Now financial with with and growth quarter on compared talk double-digit let's we'll XXXX, Transfer. all Money Slide Money margin move record across a expansion. to Transfer very metrics about to

has wallet XXX and locations, network X.X billion bank countries expanded billion accounts approximately territories. XXX,XXX now across to Transfer Money and serving Our accounts impressive an X

to even Flash signed receive XXX,XXX to the able to with we agreement Africa, Ria partnership our send This customers new to opportunity network kiosk has will Flash's Flash. who onboard this in Africa South collaboration, at Through us to be leverage In allow and customers. remittance extensive expand a payments of locations South more will locations. Ria services

the many will available difficult While locations transact. for funds, to be actually it of how send customers Flash is will network these to estimate entire

these our location so not will For include in network. official that to of count, the as not reason, our breadth overstate we

market of DANA the represents wallets our cross-border In total XX% a DANA to to in with and The an of user share. we one signed which accounts people. will wallet country, Mobile largest base Indonesia, bank increase us in agreement and now XXX has which XX% is transfer. enable strong account principal driven million we Wallet, has the growth transaction network our and growth, mobile transferred wallet of bank principal expect

Bank first These our we include expansion step second quarter, population. XX This service International in of this represents countries. Somali correspondents launches in the Ria's country. into launched major Somalia, Additionally, during to the the making a entry XX extending

agreements scheduled strengthened across quarters. by XX signing Moreover, new we have in our with network upcoming countries, XX global correspondents further launches with those the

a the us more is across enables payment ever-growing to and options demonstrate of of providing services financial an development One that commitment to agreements cash significant expansions large strategic country. these offer in significant enhanced now Brazil, base that accessibility to customer a correspondent with worldwide. These our

growth expanding driven bottom-line growth see Money continue channel most across With strong We of channels. year. this most of and remainder deliver areas send transaction our across physical expect our and to execution growth all the across to this a strong margins, areas to continue for performance Transfer the our of we business strong nearly business, in by digital XX% of double-digit

update quick Slide Dandelion. XX, So now and move on let's a to on give we'll little

from enhancement billion mobile is of wallet our in continued possible to coverage, year-over-year which transfer by accounts. our to quarter, existing particularly network, the and money our wallet reaches X.X the our network now partners. partners part payments growth by new XX made expanding growth Dandelion This our leverage transaction During XX% countries

announce are significantly We excited agreements bolster our capabilities. in global digital payment to X presence that real-time

leading Inter diaspora in We agreement in Brazil, and with commerce the which to provides the most Brazilian arm among -- the financial than XX more digital & a of services app customers growing signed an million is Company, super the payments and U.S.

we have and digital is serving Additionally, Nordics. the QX, based customers which Transfer a Sweden, company across in leading that Money joined another was transfer family Dandelion Galaxy, which the and Transfer service money Europe business in

broader payments as real-time even technology we financial partnerships, money this strategic these transfer global seamless solidifies solutions position With believe poised provide our industry. innovative to the an base. a trailblazer in and digital to We are leveraging customer

on go next I'll slide, and give REN our developments. brief the Let's now on please, to update you a

We increasing in our interest are technology. seeing REN

During the non-bank largest quarter, Philippines. with agreement we the one in a signed POS Solutions, the Tangent terminal payment of networks QR-based

Our to technology Tangent entire will Solutions merchant-based their to across allow person network. payments offer POS

Additionally, Banco Pichincha, services. signed banks largest we Ecuador, agreements the processing and Guayaquil issuer with and have Banco to in switching X provide

have we with we you previous Singapore. bank agreement an as about a launched processing in GXS told to deals issuer an update in And Bank, open-loop several digital quarters, leading

have On GXS the this expand agreement bank to agreed heels GXS of to Malaysia. launch, include digital with in we this

Philippine with the our in Bank to implement network We relationship expanded on wallet InstaPay Islands rails the country. RTP also Vybe of mobile the the using top-up that

evidenced which REN that now is $XXX pleased X contribute years. are and in technology realizing million we more the pipeline, customers more benefits further the of next to are over revenue We our expect by our which

some this With close a these comments discussion draw summary to now let's Slide on REN with #XX. comments,

we pressures, diverse growth deliver results with allow second We, those solution despite financial believe inflationary like record comments, will facing I companies, did strong when many deliver a us some portfolio pressures. product began double-digit we I quarter across and said our to but all growth are As metrics. my

more providing make launch. highlights a sheet, generated network revenue products and some quarter that new $XX operations; agreements to were: in maintained new added decisions; one, we our consolidated and by growth cash flexibility double-digit XX% including stability products grew ATM strong markets; to strategic and balance from exciting earnings strategic more markets, resulted expansion; the discussed, delivered are EFT entering number in epay than we As preparing million we signing we

bank with in quarter; during and growth the to and every grew by XX% improving we in POS our continued several Dandelion of business nearly business wallet transactions and second the Transfer solutions year the leveraging signed launched new projects to double-digit transaction acquiring prior the new with REN quarter. digital, Money agreements compared and networks, expand physical, profit margins costs; its aspect while our

to Bottom brag line, here. there a lot about is

We have growing of a long despite various economic history cycles.

we are diverse significant believe adjusted revenue, economic made still deliver the investments more continue record allow XXXX EBITDA absorb beyond. for us business, a and which full pressures have and adjusted and We the will across we to the EPS stronger, to and businesses, year

be I'll questions. assist? would happy that, please to Operator, you With take

Operator

[Operator Instructions]

Our with the Kumar first of question comes line from Rayna UBS.

Rayna Kumar

to a EFT business? being You there? business. Money benefit if us talked impacting And obviously to Is your tell bit headwind Can able that so, little how a it about inflation your Transfer it's quantify you about you benefit? a are

Michael Brown

families, not high benefit. money basically send it's to money benefit. not their a and When it's you sending a less so general, have people the inflation, have the In to then the remitters,

-- down have to and get has you a we've But average FX quarters, amount that be of dislocation that the bit helpful. you. the little that partially over couple kind sent seen and we last of gone mentioned have of We sometimes could

So make on FX is that. the a remember, -- and on profit about we X/X the transaction gross spread of

people if make less, are So sending bit a less. little you

Rayna Kumar

it. Got

your travel below then expectations, line with Okay. it APAC? travel specifically follow-up, a your how can to been you or And with expectations as far? versus has returning just recovery been the so some discuss Has in

Michael Brown

October starts goes When not in right to that season for we're be in it travel answer Their Rayna, March. season for through really APAC, the and well. tourists able visitors, to comes to

getting of tourist there, will certainly but know network aren't we like bunches normal a -- back there, are to So things transactions do have the in getting that we we starting more tourist we October. profitable

in and advantage APAC countercyclical We've do there that network down are. of of that to or is got for that the to our ATM So where it's counter-seasonal anything one. that's of network The we kind Europe. we kind whole wait

Rick Weller

Rayna, was inbound I transactions on very of our for travelers. being were would year the we in just year, months but start the latter the to responsive see the couple which did of part add, their of the earlier that tourism season, early part to

consumers So out from up ATM. what see in take consistent they with cash show the when is we Europe

So that earlier witnessed -- into behavior it's monsoon. up was it and season anticipate the there when literally, this get year, mean, this that now. go start we season the they're we as over we through I travel of pick will in that monsoon

Operator

Our Andrew next with question comes from the Jeffrey Securities. Truist line of

Andrew Jeffrey

where the is summer European This now been that's in second in row disappointing. travel a there's been something

desire So think needs kind way that it is adjusted such X Mike. could of, cost I maybe guess, the structure there is, is a to for tourist what be you, be of the any or revenue transactions? structurally for lower tourist there ATM about questions One to business and

a that And level margin as set segment how travel a we of be this of going know just to to I'm kind two, we also should of could what your -- expand in vibrant don't to last. less a particular Europe, think get is being environment. about -- Because East potentially how European as outside drag? South, long business for and sense trying you

Michael Brown

No, we don't.

that XXXX average even our very, us, reality data more in spots those our forget of is Morocco bright that for Europe, from expansion they're but Europe not ATM the course, in of live the past Asian we're is go, ATMs is profitable and very those One of developing because markets where and Egypt, people in now, and more also profitable let's anyway. in ones, than include would the outside

the rather areas up in pull margins So probably will those ATMs expansion and way actually other around. our than those

our profit, we're transactions. really nice to when made but there's European And with that nice making still we're we respect maybe more many very -- mean, I numbers, profits

then clear I a right. within things happened fast, I it. off and it We know mean, June, we will in of transactions through cliff better don't thought with get inflationary think beginning fell that's that that's We until when was the you're myself. fine. I data a travel including little the with guard, but see it bit caught everything -- tracking to the June, off were were and Europe, one of just when the tracking so started reasons up people So our

that basically that's time, the And holiday and plans, by spending I their think less. because had summer less then they because were just Europeans making were they

thing nice profitable have have we the segment don't very we still is -- very a us. still a it's -- that for So

And so just you to expand to up. We areas want don't to more give into Europe. that of try outside need

Rick Weller

in few some of Nikos, way. a a who initiated ago, weeks -- business that what even And thoughts us, already about for and about answer would that that question piece Andrew, thoughts or you we cost has interest asked Yes. potentially to But on manages to a add our that, that -- yes. short structure. our can know I do different to try as I to is And manage

cetera, night at look effectively. of making But clubs attractions find what go that decisions anticipate will the wallet. the wallets because the their can you business -- short-term things -- taking that still we the cost some more other we their They're going to be a that. we're accommodate behaviors just are to we're want and So rightsize refreshed, to back to consumer if you kind go like would ways to do et to will, of and are people when to to economics, and run nonetheless,

Andrew Jeffrey

year... double-digit And anticipating revenue levers, Money you're quick this just What I growth correctly, Transfer comment if the as follow-up. understood a

Michael Brown

cutting You're Andrew. out,

Andrew Jeffrey

growth half Transfer second revenue drive levers What Money acceleration?

Rick Weller

you second half Transfer a Andrew, but breaking -- I fair up are Money revenue? were think driving bit, you the asked factors what drivers

Andrew Jeffrey

Yes. anticipating. that The acceleration you're

Michael Brown

a is to comes when we spent reality locations, of wallets. we their paid payout. prior over it accounts our I of as countries on do might in But the mean We XX% digital Well, was digital for into I XX% and and because got of saw become world. payout #X accounts we've best we've then mentioned. growth payout to great channels. or payout are we being payout physical and future all -- are And bank -- be rate banked. comes lot #X network locations. the into the digital that's you there think it's the a got these it either now that more We've more all We've those things that know when kind we barely year of time working taken the far the citizens we payouts by

what that Xx Bank And guess, money been I continue going that we one and I an we're growing and that's things now or Xx that. to we're back getting do expansion World give -- it's in. spent our years, tackling. margins faster every part, also initiatives in We've to than business that have of the nice are, best a and margins. blocking coming our basically numbers cost just for transactions to the kind -- we've And constraining of to in So and where of us growth think our cutting we It's And us given edge. just very now we've XX do is are serious lot cost day.

Operator

the line of Schmidt Our Citi. next question with Andrew comes from

Andrew Schmidt

into there, work there's transaction Appreciate that. I but I moving all a the appreciate recovery. that the commentary on understand lot parts went the high-value of

seen go second what but that, right? U.K. X terms travel in ], some of geos you're part the in alluding of So then into first of parts travel customer The obviously we've is for and part recovery [ recovery. is And kind lighter to. behavior -- that volumes terms

to rates, a your not ATMs, come not So little that We'd what say, bit a about seeing and should maybe perspective structural you're things DCC that back? we'll love confidence talk changed. -- opt-in there. these is I see Meaning to bit those get more have traffic fundamentally transactions that just little

Michael Brown

the or X. have month Europe, are there X months Well, month, taken X rates down is just a we inflation happened out We over hit exactly went slightly variables that last that that for in the withdrawal opt-in noticed are One noticed our average ATM row. a as the per amount same.

things your and cash where there airfare left XX% little of XX%, with your cash then about where It hotels. exactly might leaves spending. people that just seems for that. vacation, for Well, spend on fun. the discretionary in, portion us a So to customer if you spend, is the need think is behavior bit -- frugal being do are for And of total your maybe that you is more going just same. that you comes and their clear all They XX%

And that have so hotels travel if your for that airfare and less your to you of discretionary XX%, you and you there when just to leaves XX% spend. in go watch -- x up cost amount budget

seems following well. really that So everything be logic to

costs have little to in that kind So to I up kind budgets life of expand everyday people's up think and our for that the as high of accrue would course a of think their cost flights catch portion discretionary we're they of of the bit see their I going to hotels, a -- us. vacations. with benefit salaries make to and people's And

Andrew Schmidt

there pay-out option has opportunity Got you the changed cost of is increase be it. to has or on endpoints, kind just the question more there. there? business. Ria price, to a to and all? kind scale, get that competitive out you at pay-in on lowest the strategy price maybe Historically, as evolving continue of how then strategy be. pricing Just Ria there's will continues But pricing more very Meaning on there, curious And been

Michael Brown

local let's together you've that in the maybe that names both the we're Those not And world. for big are all account lowest happen names, forget transfers XX% So probably of guys. not heard physical and the money all lowest. digital about, of usually us the little

So country. always how our of the that's price. been kind that go just whole But price-aggressive, be they're to little And going who X be -- we've life. might to guys we've but through decided kind lowest other we've continued XX%, you've got of to

new markets right, higher as allow don't add are revenue bit You there per little can that to And a much in, help competition. because competition that have we as to you price you just is tends average little your that transaction.

I there. have at mean, look, take really there. got to got working people mean, this really, So nothing's I Transfer changed we've business. Money look a business a

Bank XX is every why goal do year, to after a little that, to have fourfold to be guy on For others numbers we And #X. year, we're years, aren't. way the we our in single years the #X world. which went World to we're freaking ago and because by XX And outperformed year three from is growing

pretty to And and so game good got here, think we're going a continue. we've just I

Operator

question of Wolfe from with Peller Darrin next Our comes the line Research.

Darrin Peller

you maybe on of if them? and Maybe level on rest can know a the don't epay Transfer detail, color any there's this with understanding segment expectations growth more the reminder, just quickly, help us us as if give I each of for you can for Money EFT for year. versus

Rick Weller

revenue there as more on think focused look those more here in flattish -- we take to -- a especially to I growth -- because quarter but No, just kind we in expect when third at we out of the terms at year, said we numbers pulled on be transactions the we expect it there, similar. coming of Still what ATM. we more back of be last won't

of rest I third project is in pushing I into data think are as we the consumers So of seeing the into -- we're their what and mean, through the the year, vacations quarter. some the that consumer fourth out

give I bit That there have. will to benefit. the of the a of of that will more us total spend that people in that contraction largely But again probably be think absorb amount little

what third in we changed we've you think third the and is dramatically -- quarter, guidance. So that our our see quarter in

play think that's of I So it the way kind will out.

Michael Brown

at forward. Yes. We're extrapolate to June's them but numbers take hoping a we a number, and that have that's look conservative

being just have. that as we're data can we with So the as honest we

Darrin Peller

different REN, and are different around just point? just the the X more you can a -- Guys, between margin the between segment sense. understand ATM I mix and Piraeus, help categories EFT Makes transaction businesses. mix the -- bit know Piraeus at little this they EFT within

trying we some growing make just grow, than of it understand, we're as better term so And profitability? medium of sure them to each and the for maybe these others, means what

Michael Brown

smarter mix is get segment, those these we we've Services, $XX that had in numbers in Merchant on making I What bottom -- we with do I do that the to not over about now components I'm segment. Piraeus the call an are example, very line -- think know, we sure together, all good that know EBITDA anywhere. that you're to but Euronet don't I million last as did than we you if stuff, numbers, contributions the me going XX Rick's With that the mean, it. got Bank months year, X particular

rest REN then did the about $XX million months, over that business. the -- XX over was ATM in and those

we're we're growing So of It's -- on EFT, quite conservative growing last just is [indiscernible]. nicely our being that's the REN getting were is nicely. and -- kind both year, years but Piraeus quite that ATM those

Rick Weller

is acquisition, pretty on there. to XX%, time mean, of ballpark I you business. margins So and had that and look our profit per I tell the what if call ballpark But value average the of at Piraeus EFT the the the that you at okay? traditional side, of of Darrin, similar is the business, ATM if per net look we in a the in in average gross revenue EFT of the segment. is would are of less about you double-digit business transaction, than go it's the that kind that transaction, our take number kind of in our some back the XX%, disclosures XX%,

of and -- of the again, segment. mix EFT the So stuff in the that's all

would it let's is to of on just rest good. it business. business, profit of profit. in little say, wouldn't gross be profit profit business margin the the So would just it. the mathematical Money business can the in it the basis, to expression it business Transfer basis, margins It And on grow, margin, impact bit as a if faster the that but REN other the a to of gross similar very add margin Dandelion a might our grows continue the of impact than terms

-- existing transaction it won't nearly say infrastructure. XXX%, be but processing through our I it's mean, can I And

And very a very, goes the the to lot margin, Again, a line, be would tend so mathematical can bottom bottom per be it business. to but high very lower would transaction, once a margin good. price enhancing be though, line. kind of it in That to it's margin, very

Operator

from Our line comes next with of Mike question Securities. Northland Grondahl the

Mike Grondahl

how to if revenue had size? One, DCC rough think size the volume you about Two Can would between softness of the quick transactions, the a bifurcate you XX% questions. you that? smaller of transactions that? at XX% volume, and take stab Like in

Rick Weller

X% XX% size. volume and

Mike Grondahl

XX% and okay. X%,

Rick Weller

Yes.

number transaction. As Mike of of -- the just saw we little simply in change the didn't earlier, No said bit a transactions. average decrease size of in it's we opt-in,

Michael Brown

is just numbers lot a pasta. Italy Germans but -- an guys, have down. example, And the it's as -- not to cross-currency to also a it's lot a DCC, just because there's regular DCC all All in go transactions, are of of

Rick Weller

draft is to customers, continuing Europe have coming downward the European grow. whereas said, Mike been customers of as And outside on from

So influence as it again, being see the we there. European

Mike Grondahl

Yes, size we've then us? it. helps randomly the quarter, Got it I up do in it it that million to $XX could secondly, us to would with And activity, modeling. that, help that promotional bit a $XX epay is you bit with promotional a caught. million I and had for little you mean promotional If little past. we -- seen activity? be that good a so Could Just of chalk great.

Rick Weller

on activity business was forma'd $XX epay the the promotional of grew that double still like basis. for even that, say quarter if you ZIP And basis a in than see if that promotional you were million. promotional commission would I revenue gross to incremental a in just basis extra a would I accounted the you code forma pro the is also stuff on would extra largely on mention, And rather stock. out pro the transaction digit

the recording revenue the know, as transaction. largely As the the earn whereas revenue in transaction, our we're value business, in you as percentage we promotion full ticket of epay of a

impact the outsized revenue profit. it more on why that's not has same So a kind impact of but on

Operator

line question comes next Suchoski Autonomous with of Our Ken the from Research.

Kenneth Suchoski

Would I costs opportunities in locations? guess, which just areas can you I ATMs the try shift take out to EBIT I take just how to from? market from want other mean ATMs And, to expenses EFT. remove margins? you about to out those ask that your come those decent would to maintain quickly the or

Michael Brown

Okay.

do. So not there's a you all, first of lot can

better same, realities people places. like some largest when maybe components control. we in the put number of on the we're them all you that ATMs and look and Brink's It's now call Securitas or places. at much based very we thing. on poorer-performing is But don't. to those staying new a getting, that the might those always that from of locations because probably of is under under lot the And labor-intensive rent have were delivery go upon guys. the up That's to a that's have, either cash network have business to to we the the We we pretty You transactions edge better you move can of that pressure the and

ideas popped we've up nice the to got of used QX out, is other so out make a transactions high. take our The way we that the transactions. maybe to take reality for it we just lot can't to We're numbers is difference. looking many some but kinds but have -- thing in QX, margins at in So flattish of margin

expenses. can we a bit the and a better little there's maybe So compared with QX, lot to not do

Kenneth Suchoski

ATM how urgency towards I REN move quickly high guess, DCC to you're that And greater Pacific there the Asia just kind of business, traditional in I markets? maybe Okay. and seeing those a And of guess, you some more new there? just what's recovery your then facing not business I sense maybe is level, that question. I strategic and, a on or guess guess if you're pivot -- that strategic of can thinking front

Michael Brown

that -- hot but Dandelion box. And of they're we pivoting We that like of [ mean new I -- acquiring was have point and even for REN years. are been the these been making. We've kind endeavors and the out ], X

up rates. by cash ATM, had growth fast-growing grow, we've at throwing with very we got them get but -- it. we're impressed to to we everything the we're we've can and big, cow very their a catch those actually with -- So to just really But guys got

mean, the $XX out had gone we in has like business it quarter, EFT isn't the last this income. window. And million I just op

are chunk are you with your the cash-based the $XX they're you've because those very matter higher tax doing in cash lot that, bring that Egypt a but buy in easily. off, these to and out of So we Italy a percentage babies everything threw into was from markets, it But vacation, can as are with out go we can't of as spend big markets, on people we where a to your lunch a new there, not of of effect buy million fast of can manna to -- that. going like These it card, lunch you card, we no what got heaven. or can

Operator

next Our William the question Cris comes from Blair. line with of Kennedy

Cristopher Kennedy

Can trends in more July? you the June give and that saw details a bit on you little

Michael Brown

that I mean, we've is the few meet seen did kind our we've different of said What a forecast. ways. of not number it transactions

the So amount -- trend other slightly out was opt-in exactly only The that and the very different. taken the -- exactly was same. -- basically

just But thing people was are -- is that said, surprising X% less rating. that might people there us out to money. Rick biggest be taking a As the

Rick Weller

at right thing thing weather coincident okay? that look its the month correlation go, before. things inclination saw and those will has what's weather-inspired the also until there and and of this when we when cool saw, first to the you And drop get And of international up short-lived. the and volume, that we was weather the go back another was, literally, happen kind to the it we very that compare ran of think okay, in lower seen withdrawals happening, Europe. was in week and was we we significant And of kind you because and quarter with kind great the we're we flight another this data, be more we kinds look our of June, we've It's other week I and seeing still course, go, now well,

see whatever into could what we and looking some or you filled started that's and What's consumer be the the do out And -- it, with then so your really -- there. And you when things. looking into can driving press research press but of you happening? the start

pulling made last this comment even Ryanair back. -- week, a about You're

In every X from how data you're X-star. they're manage customer it fresh -- that they a might alternative year customer. really looking this or so which okay, a their And hotel when survey, that recent coming budget, talk may Different is do last a seeing year, a they is they This about have things there impacting at so are stay, then stayed recent well, that or at to X-star. be the choices places comments they X-star X-star because there. months,

would remained And also we fairly what is So then. it -- it through came consistent say quite then quickly. it's

any seen not have acceleration. We of kind

we to customer and again, night take So their back like like it places clubs, in have how that things features to go money that. much I does -- pocket

Cristopher Kennedy

mean perspective, is give just, of then has can what from you on that updated And anything type low thoughts kind growth Understood. sustainability Euronet Mike, double term? always grown That's digit just of of you've the target. I a -- mean, done. long longer-term I your over your the

Michael Brown

about focus talking of be revenue. kind still cash our focus the that's our XX%s, and yes, I and -- has -- to been must -- to You profit, always that's We've mid-teens there. low really focus focus. in don't our EPS I get on XX%s

we're now. can I there there. think fact, And in right we get

do So to will we that. continue

Rick Weller

reason had year it's add comments. for look in cash Visa Mike's saw we've drop when significant another, I history, the events in saw if a some or MasterCard would rates -- a our whether when whole India just is we temporarily us we at back set Poland. range that of Look, demonetization, and have to back we

to a of can the are of had that we've kind business? 'XX. that we assets grow years, this in financial to received And that, growth-oriented fortunate grow. our And It's some change find be had culture receiving same one, here continue in a been business. structure we the really pricing today the I've questions is the were the got questions great is that what we to then: Next crisis year, we that 'XX, the We transactions. of German we over we're

dependent got a one upon kind as the world. a just We're economic We're his we've not is not very not got one-trick of pony. cycle. in diversified just just, We've said Second nice we're around product portfolio. operations Mike comments,

have characteristics I in And of growth fundamental a very business all we're aspects our growing to mean business. it.

where exactly come hard next is to So going dollar out. sometimes pencil that that to from, might be

to at our But our expense. through manage have our proven grow we our our revenue ways you diversified look in if out that business year and find year growth expense -- and and we history,

So might momentum we will of we remain confident going. as what little double-digit got growth. a team ago. more few to had that bit work obviously we have We've a that a ahead our we'll I'm than today growth continue confident a keep find us way months leadership that But

Michael Brown

resilient, think culture the I group And it's always but that we're at people here, very look we are management resilient. it second when they they working this we're things. Rick company, growth-oriented, have the It's said, out. and X,XXX, the of what X and you is X,XXX the figure

it you, do will again. we Thank So your for though, comments.

Operator

remarks. for this turn it time, to question-and-answer Mike would back like closing the That to concludes session. At Brown, CEO, I

Michael Brown

want Thank closing my months. being said to for today, and look forward in I've I you everybody remarks, thank on X think call to you. seeing I the

Operator

for you now conclude participation disconnect. does may This conference. your and Thank you in today's program, the

Euronet Worldwide (EEFT) 26 Jul 232023 Q2 Earnings call transcript