EEFT - Earnings call transcript Q1 2024

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Operator

Greetings and welcome to the Euronet Worldwide First Quarter 2024 Earnings Call. [Operator Instructions]. Please be advised that today's conference is being recorded.

It is now my pleasure to introduce your host, Mr. for Counsel General Claassen, Euronet Worldwide. Scott you. Thank Mr. you begin. Claassen, may

Scott Claassen

and Euronet's First you. Good XXXX to everyone, morning, Call. Thank Quarter welcome Earnings Conference

call Mike have and CFO. today, Chairman the CEO; our Rick Brown, and Weller, On our we

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

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

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

Rick Weller

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

For but new in over international growth investments of transactions, delivered earnings segments, contribution services to the in of and adjusted $XX prior from that with first revenue of across record income $XX million, metrics. strategic the $XXX (sic) X strong results the a particularly double-digit were $XXX by due quarter, our These of possible contributions the all from increase [ of the EEFT year. an operating ], million segment we markets million quarter million, business a made growth adjusted first EBITDA delivered each merchant

on in adjusted deliver of business increase able that products, the a are EPS earnings to change business and quarterly new more X able the deliver $X.XX. We all existing following over results, revenue due this expectations, continued pleased consensus quarter segments. and continued guidance. in the the we EPS were industry-leading very our are delivered in analyst $X.XX, we a Moreover, which expectations our focus adding both year our to first that XX% adjusted to investments pleased exceeded record-breaking adjusted growth markets, to quarter annual expanding for technology strong across were from prior of We EPS and first

fee someone per And that taxes, recovery per $X would million share $X.XX the the all before came year. approximately favorable share out duty from or the matters, tax like $X.XX resolution realized last I was says $X.X approximately earnings from benefit paid point million approximately of to from a or of and

with the the result to from provided of favorable pro strengthens guidance the more consensus consensus to share and the of $X.XX first forma benefits share, per margins. Needless of represents quarter last wind per pro XX% part annual adjusted pro posting growth compared the $X.XX of forma year. XX% the year like to these this for This forma stronger year start Bloomberg's first the share your starting range EPS Nothing confidence over was in EPS per revenue approximately Excluding strong EPS our XXXX. we to exceeded of growth estimates. $X.XX $X.XX a back. adjusted adjusted at XX% the $X.XX nicely The say,

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

EBITDA. at to the generation the operations, was relatively relatively can quarter placed the net small of about see, from cash acquisition in remains Infinitium And overall, use demand. increase the a with seasonal cash leverage which ended ATMs of the combined our and the more cash for of result net meet you As in Xx we conservative debt debt,

Slide slide, Turning X. the next to

to of net Slide present a X basis, produce let's go comparative On on FX about basis. currency on a basis. year-over-year. our translation Our didn't talk results a results and as-reported our lot results -- But we constant an differences

the Slide a revenue on start income role XXXX quarter. and pleased Merchant we to Starting markets. with in year, grew EFT in double-digit growth by when cash business and the adjusted operating last with to played into notable X new further domestic prior good Services our rise was results. year. grew are This on XXX% momentum XX% withdrawal strong fueled XX%, from EBITDA now. segment, segments earnings transactions, Building grew the international adjusted All both in I'm expansion and consolidated growth compared and our revenue

and driven expanded revenue in by its nicely growth sectors with profit margins of first both ATMs X% transaction, continued and the media consistent and expand per revenue quarters. fourth Operating to loss-making in due Epay in with by mobile growth push at together and management its the new digital deinstallation cost continued markets. currency effective complemented growth, revenue constant to

investments see promote EBITDA in end, growth down products effect come investing and solutions income to and product the and growth is had new X% develop X%. for future. to we where can sustainable to that by the adjusted To in supplement business and The have team epay a earnings and on about resources geographical epay operating expansion tempering core

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further operating XX bps the quarter to team earnings the improved revenue strengthen addition over and for the expectation confidence in its results to by through meet approximately year last our summary, management. In we cost growth, and In growth XXXX. effective good XX% beat further scale have margins Money Transfer XX% first these

You quarter, first a your strong to why say, range. increase not with XX% XX% might

the as community the said, we confident our Remember, was to we be delivering getting that yet As long-term XXX investment want found valuation S&P in previously the earnings half twice growth. the we earnings. Euronet,

we aiming earnings growth want long-range be excess range, growth consistently performance. in for to our expectations, will consistency you of of historical We the to the confidence have similar but in our

we're XX% our that it want expecting to delivery growth confident to turn means in our retaining XX%, of It to long-term be earnings I'll said, by we growth. Mike. So range of you deceleration. mean over doesn't that it With

Michael Brown

everyone, you, today. on #XX. us my Thank for you, joining Slide I'll Rick, comments and begin thank

I business. the quarter, wanted Before to discuss about I of talk state our the

trends see slide annual EBITDA X and our to left, I than XX-year our you double-digit much earnings reflect from the past over As the growth the growth struggled the rate. past Both us. compounded COVID is XX- revenue behind years. and at can you adjusted years, not different COVID through

trailing COVID. more directional past XX-year future. And our year, and note but to year-over-year with to to and to trends our our red future? in confidence earnings and there X the I with can't Let's prior confident leave We XX% on of The lines growing XX% the the it years lot the trend these results. our shared in speak a the our growth. to And be such our of Also the consistency more XX- you what the expectations of years help the year, looks the about trends strong the for with I about directly per a movement the chart. focus portions results. similar of X like believe start

on by innovative our Dandelion and platform, technology growth network. our focused are world-leading powered We Ren payments best-in-class development cross-border product supporting

merchant markets, services our busy and this are digital you expanding strategy And business, working. offerings entering network. into growing We see, our new can our as is expanding

the continued we very grow, about good. are Business As is to future. have excited we

delivered dig by of adjusted compared XX% first that across last metrics, quarter a excited EPS all into financial $X.XX, highlighted to So record those first let's quarter consolidated results. I'm year. we $X.XX a increase

the items on delivered analyze how continue focus long, and powered continuing technologies EFT a to no doing As our the greatest trust. continuing Dandelion our epay into our What the in internally the without with Dandelion we number that year-over-year. network. Ren grow our grow which and Money Network products Skylight new of solutions one model to that number start segment, expanding quarter We do grow or turn time. platform long which our with include one, products, Rick and Conductor by the geographic following Number utilizing deliver a a been best-in-class and four, benefited matter the by them. we great Three, our network, we our in first managing proven developed to you our our had by a our some technology platform we've Ren reach, record to products and two, to identifying year. How five, segment Transfer strategic nonrecurring acquisitions segment. Number mentioned, by And it, costs. for a results, but customers assets,

highlights. we as first the see of quarter examples will several through go You these

for on trends we see earnings to XXXX, impact of segment. that status I move Slide business. as the into go market on further EFT Slide the encouraging the you the Let's XX, and #XX, conditions outlook update our will I towards

of throughout we will this fact temper this credit wage XXXX, inflation and summer of to but by a this as we the forward. out see a a per in of reduced graph inflation card growth so for data was easing Europe Europe. What are it tourist summer saw of you to points all know might bit, The bite spend holiday enthusiasm none to the what that You acquirers in us remember XXXX's bring, travel. exactly year us pointing the just the debit taking projected was and can is spend surprise north. our the is, have and

grow, outlook easing in growth we in this You inflation, we several while for spring travel in with see and to summer more predicting wages decline, positive anticipate pockets, international travel with optimistic and and inflation travelers' reports an seen holiday can season. growth coupled in the of have travel continue has continued money travel that to trend wage travel spend. Along

with compared expect Europe's the confirm thanks record share to summer count quarter expecting a of recently some market they in the most a and, travel. the to and record X.X% with the second airport, summer United around holiday revenue, outlook for and its updated airlines spring up world demand that passenger year, Heathrow, fact, Delta prior ever. first reported key busiest me busiest indicators and quarter you Let the for passengers published. season,

summary, levels. In fully to estimates point travel to XXXX is season. higher during pointing and to according easing pre-pandemic wage key in with World inflation, X% the to now XXXX an continued expected recover levels indicators summer initial the of increase Finally, the international or growth holiday Tourism growth to tourism Organization, in above anticipated

ago. optimistic, All look but direction. months execution diverse the feel behavior an we're increase XX% that overshoot. let's not fourth opportunities. good, Finally, XX% and survey now significant our cautiously or in points travel data the update the with We're in we the surveyed this about few to you increase would during survey the XXXX, and to we of on shared an encouraged. budgets great said and their quarter start year, leveraging focused Europeans With same maintain our a consumer call, from in good they We're

discuss highlights. #XX, factors on growth segment. Slide you we'll I'd EFT behind quarterly the this move highlights highlight our the and let's of the to to we driving So talk Slide XX, EFT, in before to like about

foremost, operating Merchant more business. business the this than have of acquisition grow. March and Services Since the our income of First in continued of and to growth continued XXXX, doubled we the

previous of has remainder our for we ATM Additionally, with the improvement the improved in as quarter, margins, expect see discussed to year. optimization in resulted margin initiative, and it the

our countries expansion growth. contributed new to into ongoing Lastly, our

made in paying We Investments well around XXXX. success have during the are off markets last pandemic globe. years realized several the over the in new very few we and

acquisition. business to as We examples few Services key a the strategic results. of what the quarterly discussed contributed Now the Merchant

example So the let prior great XXXX? you, capitalize tell opportunities. me EBITDA our Well, growth team did it nearly of on quarter to how compared to first a grew management perform how and year quarter, strategic XX% this first continues the in is

markets new Europe new of over last adding are ATMs few the We years. in outside

until would in the COVID saw these in believe the opened impressive XXXX, last late of results and is largest We Philippines forever. Philippines. didn't we Our hit. We very COVID that

we numbers So our estate weak grew ATM through with travel even XXXX.

is to Now has there, is travel XXXX. in XXX% a that another investment XXXX quarter that paying quarter This compared of grew seen XXXX. recovery of off example EBITDA the strategic our significant first first a

we years. away Philippines, have from in X other last been ATMs. X the that there countries the outside opened tourist-focused Beyond Europe have of the Getting

exciting quarter, During with Bank This the in agreements. additional was X.X the also network to Poland. is in Poland deposit new Pekao Romania, our Raiffeisen from enables Poland, cash network, signed launched Poland's second largest this with flexibility a launched for a some cash deposit agreement bank's quarter, In with Pekao network. Taking million we agreement and the for and we merchants cash bank customers. Bank active in Bank participation successful customers alike. at providing our agreement deposits consumers page secured

with solutions. by experienced with Services aided of XX,XXX stipulations, certain government and with XX,XXX softPOS growth terminals merchants In contracts Merchant merchants POS Greece, our signing business, the significant with another

SoftOne provide acquiring agreement excited Additionally, we partnership in with solutions the Greece. to Technologies merchant to are integrated announce

of progress new the its leading XXX,XXX to X,XXX margins new combined ATMs will customer it that and on we're contributed Southeastern year. and we with to businesses, relocating strategically largest from Moreover, existing this our platform. network ATM one quarter, the we track our and merchant companies SoftOne, maximum and X,XXX value first software products increase. Where expansion improved acquiring our between extracting and XXXX. to integrate year? business are expect effort Europe, through remain with in deploy base ATMs We in This we will continue expect in brands Euronet's locations. making the in The exceeds to

expansion our presence about I'm the strengthening of year strategy, the excited holds existing global including for in This rest our us. and quarter markets, reaffirms what

our like it's technology the now most beginning call the even technology first platform system We us developed is real-time originally allow gave of with And as world. expand our was to Towards Much a platform built the own product, expand sale AWS, a business is did independent, was to Euronet's platform. their credit today's lot we allow to separate with now sold services did micro presentation, and database our just success for Amazon ATM I and versatile platform have AWS, and rapidly. of built own to Ren, Ren architected. to for like independent now to Amazon drive around platform, productized POS financial what ATM which the switching segment we worldwide, modern that faster. that our

our move on slide So for an payments with the Ren that, on platform. let's next update to

#XX. Slide

payment the proven a quarter, for into During the sell that different we go-to-market market. continued our cases trust we first to many strategy run product We product. execute Ren. businesses and Ren our a with to processing use is

in a such transactions. Holdings in quarter. Infinitum services Singapore card-not-present product technology fraud providing in Our in future fintechs changes complement customers that challenges. the is leader e-commerce providing authentication a payment them and management first Infinitum as Secure is market product to acquired prevent bank and X-D we banks, or risk central Ren with the infrastructures, adaptable to offering, and To include

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We customers integration the expanded these are products excited capabilities prospects. and technical working on our and are for about of the

market discuss quarter. let's our during first wins the Now

preference quarter, you, win, digital stacks legacy state-owned customer Indonesia. America. on been technology. they which go-to-market is deal in with with legacy from went over modern the we digital banks to In our BRI, live quarter. and a And previous Ren focused the As a Raya, in quarter, launched Africa payment of with digital are signed a and first another these With unencumbered bank like added the new are their Asia, Bank scratch, subsidiary South up applications. payment their we mentioned remind technology in this in relationships and bank strategy first Accordingly, largest setting is Asia. We X has the bank

Solfin and to businesses use program a and manager launched Rica, management. cases that expense Costa we issues like First, cards corporates in payroll for

our in credit for program launched card sponsor issuer. customer first union as a Ecuador both we debit and Second, card

and We the enhance of acquisitions us fintechs the to and Ren, are possibly Ren changes development modernize and successful marketplace. continue payment through allows like about will the continued we and adapt banks excited in future to help offering to Infinitium. product the

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we Second, XX% nearly grow compared our Services business by to year. continue prior Merchant to

expanded optimize our have we lastly, And ATMs our margins. to into ATM our we Third, improves continue countries. which network, new

EFT, As of let discussions achieved record me quarter we we first our remind conclude you, results.

see to the for While the hard like we must and together what data. with looks travel get positive these about wait excited results the summer, tourism it's not

the our activity quarter. Now epay let's for discuss segment

Next mobile beginnings prepaid scratch our been distribution epay always a slide, early from has processing digital cards airtime payments diversification pioneer the From mobile converting changing to to landscape. third-party a please. branded our rapidly of prepaid in pins to content,

us possible around epay to world. us a in changes platform. markets remain platform made partners nimble and more the Our environment, deliver meaningful their new built and technology This in ways in to success is to payments the allows product help modern thereby on allowing unique our is because existing

markets. geographic This quarter, expansion our into exciting you continued new X see can

in revenue underserved. we where believe XX% Vietnam launched significantly is the a of top phones it in into gaming we people, million First, of Android-based market. XXX Southeast nearly ranks composed Asia, With and Vietnam, Google Play country X credits the

Most gaming Japan distribution is third Japan, physical through the into largest retail. distribution world. currently in the expanded in also done Google market We Play our

partner technology company identified credits squarely merchants leverage quarter, headquartered signed markets million base. deliver have closed-loop across a the financial will Play U.K. We processing we significant X.X epay's solutions offers and an this electronically. Also large global over the Conductor to quarter. payment XX in in These in to worldwide. SumUp, us Asian SumUp developments X merchant to that first their digital Google provide issuing a platform with establish to markets agreement

these Hediye Kart, our agreements done state-of-the-art provides in scalable productized consumer we how of same we because Additionally, more our card won platforms. that proprietary Both we X-step technology Ren launched network gift our Skylight. platform, were to across Similar choice retail flexible epay's of and with epay's the Turkey. compliance solution, have

This leveraged impacted launched and finally, traditional Banknote issue Skylight a in distribution involves credit. often this resolve stored and we network that Paytm know, operate as its exchange quarter, modernizes into Exchange, cumbersome money services international World transactions California. with and investigation India regulatory provider only businesses. And the its for help you of ability fashion, Google process of regulatory monitoring onboard full-service Paytm Epay in a a of value ran for Paytm financial to in Skylight Play licenses, many customers business new of wallet. thereby based currency connections the infrastructure interruption. Epay's customer minimizing its to timely issue

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and core in more promote solutions diverse to and opportunities business is existing just you opportunities distribution see, while As develop for a business. is growth future. epay that the new It new a our than we will and supplement providing dynamic offering several and continued products continue into markets, content growth with can

the in results ability make growth remain markets segment from future. time products to the existing the epay new into our new investments the that cutting I and introduce overall to continue edge on to help take will While produce results, strong and impact solutions into confident can some an

Transfer let's and on Slide we'll to Money for Now a XX, talk bit. move about

billion discussion our importance With Transfer I a As Money locations billion Transfer, accounts I money. segment. network wallet Dandelion over and access world receive accounts on to the physical the to X.X as to emphasize cross-border begin over in bank send and money, growth the my move XXX,XXX the want network in most Money Dandelion to of key of X is or strategic driver

perspective. multichannel let put our remittance about largest $XXX But as market position Despite X%. billion our remains the share modest, only the for me the opportunity Money transfer in business company, Transfer money second in our

growth We compose market that in have historically of billion $XXX only markets the originates. XX% by about licenses that outpaced where but Xx, with about send

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continues growth which customer refining our accelerate experience. countries, XX while in live offering to digital thriving a have We its

into receiving migration from segment use market already Money whether positioned of the whether digital these Transfer lead to cards or is benefit cases other our for money, bank in for going for market to dynamics. wallets or or and sending, evolves, actually whether to population as well we So shifts, accounts, terms believe

some about for quarter. our talk of wins marketplace the let's Now

XX we correspondents signed launched countries correspondent quarter, new countries. XX and XX the agreements XX new in across During

execute In Bangladesh, of launched XX recognized integrating win user team base partnership daily million customers. Our and them provider. revolutionized registered cashless mobile plan. the fastest-growing Bangladeshis many transactions, we've into continues with solid financial of world's the as Nagad with service lives Nagad to share Wallet exciting market our a has an

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direct-to-consumer grow to a Our quarter. is business, overall XX% of share expanding nicely, continues digital and channel this reaching XX% becoming our larger

segment's momentum the optimistic in and As we adjusted for Transfer Money and with than with about ever past, in XXXX trend the operating accumulate reinforced Ria in done growth Transfer I and our since income potential market EBITDA. Money to double-digit concluded consistent results our of the first been as more our continue market a share to XXXX. excitement that's am of quarter optimism, outpace we've growth acquisition rate

slide, we'll our let's network. turn Dandelion the next discuss to Now and

our is told the Dandelion different we payments a the globally. segment, offer network being the consumers compelling service we payment Transfer offer By Ria and a businesses value as the core in Money received through core can is and payments Under propositions and the capabilities Xe. we platforms As model. real-time financial providers in also with market. well our you, connecting very brand, This is along cross-border offer and proposition with known of fintechs, network, immediately single which at value Dandelion API, tech that Payment-as-a-Service to a is institutions, via banks, Dandelion,

family different customer remittance partners, sending we than Dandelion segments our our Through consumer. traditional reached

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companies one money In world launched we an of more with of Sendwave/WorldRemit, the agreement a XX digital million addition, largest than the customers. transfer in with base customer

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our you I see. see Transfer hopefully, will segment, up Money wrap To what

growth well positioned very surrounded by equipped We go to are after. and and opportunities to continue

So on finally, #XX. go to let's Slide

up management compared our quarter, enough a As the record team EPS Euronet of the $X.XX, the this adjusted $XX.X over over year. XX% over of first over $XXX XX% of prior prior EBITDA year, the can't XX% Operating first my about year, No X% And growth prior growth quarter I Revenue record. our Euronet. to record. I the million, of you record for year, the was deliver. for prior And to another recap, year million, another to matter how million excitement remarks, emphasize my quarter. and a conclude team the results, growth first income delivered $XXX analyze adjusted prior continues

record quarter. another the where for is first this You see going,

focusing delivered how recap we to we grow. these continue today. results, We we discussed will let's delivered have Now that how our results on strengths and these by

Philippines, markets, We few. acquisitions strategic Ren. just We're the like like strategy to a those will into Morocco, strengthens go-to-market continue Mexico, for our name making going growing new that Infinitium expand to strategic markets

and first We will which optimize expand businesses, the in delivered Merchant Dandelion profit margins. our XX% first and to X product quarter. compared grow and we're businesses our network and Then epay to global offerings billion Skylight X going going we're prior accounts nearly ATM like grow existing to and develop year of growth our our estate over EBITDA best-in-class like continue to to Services wallets. improve Conductor We're bank going to billion

conclude thing. the And what As from want and major quarter. from the a to travel Europe the to is seems Travel the the repeat, my say summer positive as outlook The Organization; we to year. predicted spring in these all the World exceed I the referenced, just notably have prior travel resources season and same remarks, airlines, airports outlook I

We have the year. and maintained continue from optimistic quarter, the fourth about be we of the remainder the to momentum

and For we driving XXXX, business our better -- take bet Operator, we to results. range, our to that, to but in see please can this expect be With XX% are growth we'll we the produce to rate happy even XX% will you assist. earnings questions. firm you

Operator

today I first The from Global question Instructions] [Operator Schmidt Andrew coming is of Markets. have Citi

Unknown Analyst

on This Schmidt. for is Andrew [indiscernible] David

basis? Regarding pressures offsets are Where impacting go-forward on specifically? segment, the the other And epay you a you mentioned inflation inflationary the see did there margin.

Rick Weller

Yes.

that epay where of With we the its globe, know kind European the we've it business. more say the inflation, of has you more saw obviously around seen would may of markets I in

think concentrated standpoint, more in we've it brought of earth about impacted bit the following corner a been by inflation our that's So part was by world. from don't COVID. I the But impacts little again, that the not seen a of

I of didn't part second quite your But follow. the question,

ask can again. you that So maybe

Unknown Analyst

Are ways watermark go-forward improve these impacts on here? there margin low the offset of inflationary kind -- to any to basis a the

Rick Weller

own products And other that things we I we have gives and of some margins have we in easily Yes. come mentioned expansion. better out to in as most here, little our into for expansion couple mean and that ability that a pointed a us what is, than the proprietary here, as we distribute product geographical of product on customers.

where scale has we're some that's So then into will which scale, contribute going growth back that would it. ability see I get enhanced to earnings that have and on that expansion, to additional some to geographical and that the margin mode, product

Unknown Analyst

is to And optimize then how runway EFT, more much Understood. the within there network?

Michael Brown

trying in we're EFT, lower-performing them calling to our put and with Listen, locations. always better ATMs

that kind markets, of new into do And we that then you every benefit that, new then ATMs of day. as as get combination a get also you we So well. add

certainly. some, is there So

Operator

Our next from Capital Northland Markets. question Mike is of Grondahl coming

Mike Grondahl

were had surcharge effect do Two on total and And think quick you or quantify that? or quarter? XQ? in what the in then the Can update And you secondly, ATMs questions. monetize redeployed that XQ what interchange? Any

Michael Brown

was X quarters, There about right? X,XXX across those all Yes, together.

go But I you you'll up. So a go them. losing see you're think but ATM an down, minute, taking revenue it out that's the your for money, see numbers quantify if if don't to exact profits you'll also your have about

been of quarters. over that's the what's So last X kind happening

Mike Grondahl

Got with it. interchange are seeing I or surcharge what don't you know, Then guys across?

Michael Brown

yet. asked where Oh, action can as to a looks regulators say in yes, from lot There like a talk you but will it now. be is question. going we of today various markets, year happened nothing But what we all has not that on, is in it sits the

pop. So regulators you know going -- but when just are to these don't

conservative guidance and be up the added to go at say to interchanges surcharges over point. next year we're -- not both and see you're assured, this But just going work our that just rest or into going we'll X. we So

Rick Weller

has and if times here you've comment it, that think many, you've inflation about on business, heard talked and just other our And how you of couple many to. that about made we've companies a impacted a

world, the out in same. up in get And going interchange thing. to same you're there with are acquiring the even That goes All the banks ATM the as remains exact unlike get challenged transaction, you a percentage where world increase. inflation the not the of an of

have banks there's rising the cost. cover by very And not costs. the that studies these produced interchange And that the so been show does been challenged

saying, in seeing market where like activity service more the more a the simply can't provide this we banks the are you're to it. losses and continuing on So and take

more direction. more reasonably and see momentum -- from moving going. in our certain that, So see benefit some We'll but and discussion we'll I'm

Michael Brown

Yes, in we've just different over the years, countries. about last seen X different X examples

So we'll get more.

Mike Grondahl

will increases high. be be would those That margin The pretty great. on

So?

Michael Brown

Yes. on the margin the mean XXX%. is I almost increase

So yes, it's big.

Operator

next William question Cris be of our will coming And Blair. Kennedy from

Cristopher Kennedy

on the talk you opportunity outside update these Philippines. great tourist-focused Can a your just of Europe? in gave to You ATMs ATMs about expand

Michael Brown

into. certainly couple little targeting Asia. every that the X With that's X, a of places and luck, south a holy we're everybody the We're still in There's little course, almost targeting for Mexico was won't us. add go up that's trying of lit high our We're in might Africa. beginning And to but year, in focus border. X, of just last country That's -- several more say mean, virtually I We've more just grail, Southeast of south this I a item tourist places United is country, our countries. States. our quarter, first which North we that more

would So have of in We XX,XXX Europe. huge imagine at our estate you I look of tourist-focused a thousand couple ATMs it's outside of -- that Europe. only

outside to equal next X years, the XX could numbers the Europe Europe. of Over

So to see we'll what happens. just have

But regulate a that EU the the say every the Europe, countries. we're law don't that to reason when to And world. a Services them is that all we through jump EU into rest had expand into by one of can't allowed remember, going was -- we I we your in passed single Payment expansion have just Directive, instantly regulator the the of the just

So get own to as Bank nonbank got us We've a to and et pain. ATM individually. to to we've approach got It's cetera. allow Central the country an the every

but do countries, X we've it that just X, So to some takes now many hope we in more. done and time, in it

Cristopher Kennedy

opportunities the Can institutions? the And outside of Ren. financial of follow-up kind of to has with about business on then U.S. been work a just U.S. Great. the just you talk Most

Michael Brown

opportunities. is signed until not Well, it's some a now. there But discussions delivered. We're and deal are a with deal them in of several right

one. now outside it's we But but is So starting of Ren Ren of it, U.S. we're certainly the success took and -- get U.S. until we're it bleed going the outside announcing the the a while, not success into after to

Rick Weller

And our technology. grappling the I their been very what to large with these with, that are would quality have historical we've they by respect told the is very us encouraged that and technology challenges add of banks outdated to about that legacy old,

encouraged like signed wait -- got announce, we've we'll So very to until said, so the gotten something reception we'll we're Mike by that far. but we've

Michael Brown

mean, and legacy ago, modern a transactions codes deal and to years banks so for architected that challenge they're banking challenges, things like I QR XX payment to XX are legacy. with forth. Those the Yes. wallets and it very account-based all makes stacks

So is great. the need

Operator

is And Gus coming of Company. Gala from the next question Monness, Crespi, & Hardt

Unknown Analyst

incremental Could one. little be the just XX% I you -- help unpack my bit quarter follow-up. that yes, have in first drivers a will a EBITDA EFT -- this of margin that me big

Michael Brown

Well, okay.

we things X and before. better the It's nonperforming it's also rationalizing -- transactions, it's mentioned So ATMs.

think to $X,XXX. up number, a it you about If call every run ATM this us it a second, it, cost for amount just x We'll make month.

margin So that you But that XX% need breakeven. enough to $X,XXX cover get every to after it. to before has you transaction transactions attached

So point. of then and all you're the quantity that's kind you get your Once cover what seeing. up the fall your nut network, you and of that line, starts that's bottom to the to

so transactions it. -- so optimization then are And ATMs plus not And that's getting rid that of more the it's of profitable. it's

Unknown Analyst

here evolution ending opportunity digital talk to Money is receive? I my expansion from And you a about a further Does margin one digital -- for little Transfer. Great. of segment? next I makes the of color. on more sense? just drive is Could bit mean, continuing in remittances the the appreciate profitability digital that

Michael Brown

Yes.

that's Okay. When interesting say receive. -- X it's the there's so to parts it. an and you digital, Well, send

of up to into maybe call $X.XX it, pay bank allow $X.XX. up into money, do customer transaction. where or to wallet account, to their If that branch walks us when bank somebody to a to So pick I doors a into account a pay it us costs only and in its walk for do from that bank the out $X, or cash that something out we gets, the like

are higher, higher the so or the though even tend XX% of that that's percentage our be is. on the growing to side, transactions number the out like digitally. Then grows, just paid transactions are flip XX% that margins as growing So whatever

send good. transaction. agent, costs -- that's physically It's digitally of the fee has is, acquired into more part because margins this have more transactions to So And acquired a to slightly pay the of the customer's other a countries. better just I It than the don't piece side. transaction

Operator

is of question next Nabhan Stephens. Charles from And our coming

Charles Nabhan

I at all? deceleration cross-border? some you on the hoping the know within time. wanted start to seeing I'm weak or could and I of any side, intra-U.S. give the strength And are been the I wondering, Money slowdown with a But has business you was flip for decline in color geographies are that a driving little some segment, specifically what around us Transfer in

Michael Brown

that to answer last In question, absolutely.

now is be decline it used XX%, Our roughly roughly XX%. to when

piece. slower, a but declining smaller So it's also there's

specific called into bring pop where could out was U.S. to Walmart was a So their could the business location, remember what this -- Walmart was U.S. and people cash Walmart It Walmart. to in it location. another

other money, Walmart can Walmart advent the business. Venmo bite with methodologies Cash has to with Walmart cash-to-cash a what -- the that things that's send like and these do and to So of App all digital out taken of really

So to continued that's go it's why down.

cash-to-cash this The and of business is is international a smaller thus, total. our business our up, thing piece nice all becomes and smaller

Rick Weller

COVID People and was stores form going in that of the you like didn't customer in movement were alternative service stuff to that. There when at was buildings. from closings And the period have accelerated an counters. remember people really restricted

unique by -- a absolute had set lower amount it circumstances said, rate Mike of which declining decline tapering But as to of it's was. kind is the off is against it So than it. the of and obviously

Charles Nabhan

where on you the anything And geographically? strengths on it. say Got piece, -- cross-border you're the seeing could

Michael Brown

Yes. That's now. strong have pretty virtually in our We right a bad consistent been and pretty geographies. all don't geography

Charles Nabhan

Is could the And some you understand your as you of within we as have would a of should products have history would well alluded to, next in anything think the initiatives like evolution KPIs what's had of from timing you product look strong have about to think you And contribution I place epay how as of you to a segment. -- like? that the the repositioning epay follow-up, I next what's and what Clearly, epay. specific map in there of initiatives And or Mike. say I into about drill wanted some business? it. within road place that on that within Got

Michael Brown

segment. Kevin have the Caponecchi, we of our CEO Well, Okay. epay

be last let I'll but So the a shot give for question, I'll let answer. this the Kevin

Kevin Caponecchi

Yes.

to It's product. by whole not referred over where product or Google several the third-party that's Play always years, a a So content, to historically, last It's mobile top epay transformation we've another through distributed we up went Mike mix. owned whether the product Rick continued our as that's change and what the of a And whether brand. credit. we've

mentioned, take as Rick Looking higher branded, our forward, those a different margin. more on products products, that introduce is form that are goal And to have epay factors.

Those The We the call, both for referenced platform the in retail Conductor call. looking second brand solutions both partners in and solutions. Skylight earnings our our thing partners. at we earnings and are we're introduced is more introducing

think margins. a were will we higher there forward, to and that will be owned from epay looking solutions So driving are mix products a we -- that by have third-party shift content

Michael Brown

everybody. right. forward to All Thanks, We'll talking about to in you XX Thank look days. you.

Operator

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

You may disconnect.

Euronet Worldwide (EEFT) 1 May 242024 Q1 Earnings call transcript