EEFT - Earnings call transcript Q2 2024

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Operator

Greetings, and welcome to the Euronet Worldwide Second Quarter 2024 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. Adam Godderz, General Counsel for Euronet Worldwide. Thank you. Mr. begin. may you Godderz,

Unknown Executive

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

of Before expectations the to on forward-looking performance attention call concern future the this we'll presentation or I or be we management's slide Statements statements Euronet's of call statements. made would on begin, forward-looking second to your like the predictions PowerPoint disclaimer intentions, making its are today. that

Euronet's actual second in factors, a a results presentation. may from the those of of slide vary result these anticipated materially including number on as forward-looking listed our those statements of

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

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

Rick Weller

delivered comments operating these Thanks, Slide income $X.XX. way measures. on line second on Adam. of financial the all $XXX on key And quarter with adjusted Leading X. We We $XXX EPS for EBITDA and all of with will adjusted million P&L -- begin was a record constant quarter revenue I currency of EFT double-digit consolidated growth $XXX million, my delivered million, results of items. adjusted

results basis. constant modest similar increase currency operating and currency For in for constant year, e-pay, quarter delivered were a with to on revenue Transfer X% Money prior the the growth of income a

year, the the up was over up X about adjusted EPS the this year. year. when Our over it's prior first quarterly prior And months of XX% considering XX.X%

we and exceed cash we of range. our range outstanding. the earnings or of track free on producing million an repurchased Moreover, requirements this or opportunity we acquisitions than X% record we've to flow, other You flows, to the are of well because shares cash for can shared track strong you with about up our have guidance lining million producing our for and shares the more larger continued quarter, didn't any meet we pending $XX free $XXX see

timing also to the second earnings by out there XX periods. will of second only the by this Given but the a repurchase the basis was improve also the It -- that repurchases, our year see margins through future of for points quarter X% EPS, prior know consolidated we per expansion out over adjusted marginal we operating the point share expect year. I'll about expanded points and continued half to benefit

the X, Slide present a to of quarter. X. compared summary Slide balance On prior we sheet our

ended generated the in debt more from impact cash the in due operations network of quarter $X.XX billion. second by you ATM largely minor to repurchases The acquisition. offset quarter, cash with and from see, we a unrestricted As stock and than completion the $XX of in billion can of MEPS cash the $X.XX is increase million

income management. of grew to next I'm Our adjusted to expansion business, EFT let's On XX%. results X Adjusted results merchant in new EBITDA possible made strong expense trends and grew into travel effective the XX%. markets Europe, our services performance due together continued The the were from EFT ATM strong in across rationalization estate with improvement But our revenue XX% basis, segments. slide the translations. Slide neutralize constant the currency operating on a FX segment go the now. has we where Slide or for present as-reported grew numbers X,

the Both content business core similar EFT. in margin basis were point revenue to results e-pay XX% of across year The across all expansion nearly measures, operating effective XXX the while distribution cost the e-pay prior contributed metrics. grew and same to management range

unevenness activity timing of couple quarterly last customers' e-pay's been the create can has of As the in the promotional case results. over years,

not last quarter In recur activity did strong had second that XXXX, quarter. we of promotional year's of year second in the this

promotional of which expect in the pipeline nice on with e-pay to coincides of execute quarter the weight year seasonal a activity have the remainder with business. fourth we during that more sales the we However,

So that e-pay upper we Money income on income produce these operating to muted single-digit see income while X%. second could growth grew double-digit will quarter and adjusted believe depending continue quarter, path to results growth. And mid X% the X%. revenue growth declined operating to consumer grew show for demand, Transfer a year-over-year. we Operating EBITDA

confidence in double-digit growth in transaction accelerated Direct-to-consumer digital by was the marketing in in near and highlighting by currency these promotional a XXXX spend X% customers the some of and this The acquire of success transactions, benefit consolidated we increase the growth double-digit strong the to driven campaigns XX%, in long-term million earnings to about choice growth Based and quarter. revenue a full on to campaigns decrease promotional primarily offset intra-U.S. made cross-border of increased constant transactions. during $X.X by year increasing on delivering for and the spend our marketing quarter. growth

million and expanded money investment, transfer similar have promotional operating producing margins $X.X would income Had year. operating the to prior year-over-year we this advertising not made

We the will see similar of continue we marketing XXXX. somewhat producing full year, near the operating second promotion to operating spend half of but to and margin margins level profit year on a have to or expect higher expansion over

With over deliver XX% rest turn growth can the us year-over-year even I'll our are and some X investment of range, earnings Mike. Overall, spend it in XX% rates, the that, range. and growth we ability always growth. you differences of investments we working inclusive digital some and give results for in e-pay deliver pleased double-digit to to some quarters that are to delivered make very we timing money that that to transfer assured future to in growth more to flexibility have confidence beyond These

Michael Brown

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

on earnings, our trend consistency a looking double-digit continue the As of you see, the one earnings can the chart, at annual the we results. green on consolidated little path reflecting dotted of line

the an have opportunity highlight to business all success they reflected that across we think X segments. expanding provide As diversifying I on I have and these the results, delivered,

accepting consolidated prior EFT, result may tied this people summer fluctuations to timing to financial how delivers of during COVID, in in our when diversification largely In segment on the the results. months. to each Fully results the traveled many were its contribution that Europe annual

While the are in revenue the of our ATM from are in in Infintium. markets diversification of important results, to business Europe new acquisitions as from such new the acquiring of travelers Europe transactions our earnings seeing and tourist benefit our annual ATM we POS contributions and and merchant still transactions non related transactions outside

growth our In core has of the remained strong. e-pay, business

core the As over this Rick XX% last period quarter same growing year. our said,

new new continue We market expansion. core to with grow and this business products

the sell found of running promotional software success campaigns by to also customers. core large business in productize outside and and our investments in some for to external it internal have making our of We retailers

our expand payments to Transfer, to in types from promotional flows and from And we consistent and available benefited our Money campaigns have not all managing our of year, free network, expand channels are success top year these customers let have to bottom line customer These continued but promotions. cash alone customers. new our in base, get always expand the quarter-to-quarter, expand to line, to our our

invest us The in continued future opportunity with an to business the growth when growth. drive choose provided to has promotional certain spending in advertising and to

and long-term future added X and growth. Additionally, for ] Ran Alliance pipelines products, we both [ significant have Dan have

theme. you'll As highlights, through see consistent we a go the

in of remains X growth Our advantage key on focus taking each the segments. opportunities of

very delivered that for results now the X growth for of strong we remain double-digit remain the each deliver Having rates knowing first quarters second half will opportunities the confident of across and full that XXXX. I the year the year.

chart illustrates this As the continues. momentum

and #XX, for I'll EFT. updates on each segments, Now start and give Slide usual let's with we'll you our go X of to the as

across The expansion growth possible During into business. by improvements made tourism the in services the of was second new our all quarter, in double-digit EFT delivered Europe, and markets merchant double-digit growth metrics. growth

continue we Finally, XX% to year-over-year expected to Europe you a from because tourism year reported about compared Europe rate increase. increases XXXX recovery representing in in know to last XXXX. compared I year X% this increased XXXX to see an will XXXX, tourism control XX% ask,

in with generally Euro through Our quarter control the results data. line second the were

XX% To of to and acquisition EFT businesses within strategy, organically these success few Each or Malaysia, Euronet through EBITDA EFT the EFT of Merchant last of second compared Services, year the adjusted highlight X in new Merchant quarter the to America. expansion new either case North Philippines years across the our markets was grew the expansion prior areas: into Services.

and launched and Infinitum In and in the last X of and strategic acquisition months, those acquisitions: ATMs the new EFT XX in XXX Malaysia. Belgium has Singapore closed Albania, markets: X ATMs Mexico,

X in for to scheduled and half in the acquisitions, second markets addition more In of EFT the these XXXX works for XXXX. has X launch

expansion revenue existing new in EFT the the Europe. ATMs markets, several into estate expansion Beyond opportunities of for has

second domestic out rolled Malta we first, in include: opportunities Norway the access expansion these Denmark in and of example An direct fees quarter.

and pilot to and we in rollout more the the markets access the Czech We quarter. X to of Republic, Netherlands fourth fees Romania, beginning in launch fees the are access in plan Cyprus,

domestic XX markets of have all, will access fees end XXXX. by In the

the launched Mastercard to over in and we in in one few increased third, interchange Second, launch and last fees few the domestic second year. of Visa X country markets. half to quite quarter, we second years, X access plan international the the in a And

cost banks the increases. XX% interchange years by example, in last come demand into by rates domestic these increased Romania interchange have an in to of over match XXX%, focus increases Netherlands As as their the and sharp couple

each As expect complete trend further of merchant have countries XX,XXX would without this quarters, we the our and mentioning added has expansion. future. discussion not merchants over in we in result, a EFT last be opportunities business more to The X continue a to additional new pipeline for the of services

Alior Alior our agreement XXX Poland, opportunities, agreement receiving deposit expands dispensing Bank for these to capable customers, ATM ATM addition eighth with revenue the leading million with ] [ cash and In of and In recyclers X.X withdrawal bank deposits in Poland Poland. this expanded our Bank we cash. both over and business. returns [ signed an outsourcing ] ATM also in outsourcing we largest is further

have remain and to ATMs. with the continue Further, This, to add this improve access between to to In ATMs coupled we certain outsourcing add our fees on unprofitable addition margins. X,XXX track ability XXXX. in will X,XXX agreement, we removed

has Our strategy remains successful. simple to and be proven

that a launch products, convenience more should we point tourism. and grow We countries, number on growth of the we business dependent more drivers quarter, out new EFT acquisitions, strategic are through the reflect these on continue not of the as to

best platform go that we'll business. let's discuss technology Slide to industry EFT XX, our Ren, and Now the runs in

to execute second continued the strategy we for Ren. During our quarter, go-to-market

market to you and sell new, of into a different we trust our Ren payment run product many those proven a the For own We product. who uses. is may with processing be business

prevent to Remember, in providing or Infintium services Singapore risk market to complement fraud a company and card-not-present e-commerce in the first acquired and leader we Infintium transactions. a quarter, I payment management rent. introduced is authentication

Infintium gateway. a merchants Ren complete cloud-native about already how contributing, acquirers excited we is pairs that this While solution modern a online for require payment product more are offer and with to online

Now Ren wins discuss quarter. the let's market in second

During with the Limited for signed agreement a we a software license ICICI in card Bank, management system India. quarter,

third It Brazil's program largest employee is in you Brazil, agreement ICICI. payment If we customers. the India, know OmniPro, million is the you chosen In benefits know provider card a XX the company signed largest processing serving Alelo, bank with India. of

We Infintium. about continued to acquisitions of continue offering continue like future strategic enhance the development we -- and Ren, product to are and will excited the through

Ren what platform. Let's strength the are this recap Man, the our business? quarter? of our First, EFT drivers What of segment this a is segment.

services compared over XX,XXX business, Second, prior merchant we XX% and added year adjusted merchants. continue grow to the new grew EBITDA which to our of

have countries ATM existing markets. to through adding network we and simply acquisition, new into grow ATMs our continued Third, to expansion

and maintaining access have Lastly, to international domestic ATMs margins to profit while we existing volumes. at optimize expand by started fees our adding revenue transaction

operating of As second EFT, of double-digit all we the XX%. financial growth across remind our we and me metrics you, income conclude discussion growth in achieved let quarter

The opportunities about the tourism be the make to results, hard quarterly recovery EFT quarters. it pipeline excited and in not data coming the

I'll go next to slide. Now the

for on my e-pay, repeat discussed to begin want you Rick earlier. comments I what I As

excluding and e-pay core operating adjusted activity XX% revenue, and income promotional Our from year. EBITDA in customer contributions the prior grew business by

processing, strong for segment of and in the in loop profit activities PREs, a promotional growth branded of in unevenness our and had of put, business our remainder resulted pipeline and year-over-year retail geographic existing We new core is payment debit most markets, which card timing Simply open delivered E-pay prepaid flat content promotions XXXX. channels, including gross the results. digital

results, consider it and it lot Skylight. and predictable update full the beyond the but to leveraging provide X I We I sense believe takes encourage and of I own of generate free that consistent a quick more offerings, assets to to our Conductor continue -- a our market would prefers cash that understand a product think makes you quarter flow. that year. want on

Google be quarter, second an physical on we and Workspace the sold Conductor During retailers. to both across issue the signed agreement online platform to

have we we there. updates a Moreover, future for for opportunities pursuing Skylight are tuned pipeline of stay so

We Myway retail MyWay public Canberra extensive form electronic also ticketing ] signed network light an a locations. [ to to including transport our project of [ at retail used agreement MyWay any our their participating for and Customers buses. provide the The in recharge is for Australia. ] of card rail [ card can ] transport

distribution during Sony branded that through Bina along payment gaming now want launched content agreements ], we [indiscernible] And we content leading the gaming U.K., ALDI. launched PlayStation a and of In the BXB game, largest Turkey, the branded of we launched with one In of In launched supermarket Turkey's quarter. distribution payment we some Belgium, chains, Migros to into website. highlight gift the [ cards. with we

In can lastly, Germany, Xbox is Fan India. we you is we Pay as than e-pay content It with content launched opportunities. PayTM business see, launched platform. more pipeline [indiscernible] with Pass on strong just BXB a in rewards distribution and Game And and distribution And diverse a of a distributor. incentives

future. will these e-pay strong of I into on new take produce continue products time will to remain an confident some to make growth the While results, segment some impact that the

Money Transfer. Transfer, developed have the #XX, businesses. payments largest Now and let's network for world's in talk In we the Slide accident. Money world overnight and move XX. We second Slide strategic on the both consumers most didn't we'll about become player to by

business including sell we the diversified We we products. the our channels through products who we to, have our sell sell consistently which and

understand immigrant what members have and largely drives acquired the business money transfer, it? sell we money the providing money cross-border in acquired When and so how, what American need from buys the who we the business that than been What immigrant successful [ our is To to years, it Ria, business, to who sell more ] understand a we the do you countries. Our we Money segment. Transfer transfer remittance buys Latin U.S.-based us. how Over much from transfer XXXX. the on who who, we payments family in expanding do was

and that fintech XE, through customer [ financial the expanded net high We then businesses. to medium-sized globally network of leveraged network small the acquisition base and to ] we We individuals our worth expanded further through expansion institutions.

transactions, remittance we from still of payments array settlements. payroll to we payment family general simple business a broad payments, to to purchase While payments, cross-border online cross-border worker payments have expanded payments cross-border sell and members, from ranging include

The A or B. question sell of the is money what movement point simple. of from to payment We point

accounts. way money billion network wallet Our of customers by X billion the to bank territories gives accounts access nearly send our countries to correspondent XXX locations, X XXX,XXX and and

do and digital bricks-and-mortar through through XX sell? to send physical and and options banks web We how to we expanded locations our and ago expanded fintechs years XX,XXX apps that Finally, APIs. started channels with

of helping Today, expanding growth [ leveraging we addressable XE find adjacent businesses, our small- medium-sized ] high-income us have a brand consumer our to total market are core we traditional strategy, to and market. penetrate our multi-brand outside by

dandelion positioning brand fintechs payments, the a and close with capabilities, reach. trying our partner are In global as for banks preferred gap our addition, market need and in combined evolving to trends our Payment-as-a-Service who

than prior in me have has we heard by the Xx The been faster about the talk growing X.X% market market. remittance you've World estimated will XXXX. In that quarters, Bank grow how

the outperform market share. to take market continue and We

first the recent by transactions grew by most and quarter the quarter. in XX% in Our X%,

than over do growth market math. That rate. faster can the You is Xx the

often asked answer a I am believe whether can growth continue. My yes. is I that this resounding

many said and market, times, have of a As I've we it. X% huge is this only

geographical by continuing expansion by still and there's both We for usability by remittances in gain. the customers to and continuing receive continuing send marketplace expansion. So network, can with compete use that network market the side investments our defend never of of the more plenty market in had outpace to the continuing enhance share by to continue finally, larger of of on digital competitors for our transaction our and to to to cases our the make

lot about people our A So digital ask channel. of what that.

send Our digital as increasingly creating emerging and methods. to channel has become modernize, increased cases and demand for important payment financial markets digital inclusion continue use to leading expanded receive

their market payments strategic struggled others to modernize capabilities these positioned embrace our enhancements have have to and us infrastructure, trends. While digital

to have our in to customer and a growth accelerated compared countries the grew new XX%. in we'll and to new last weeks. now XX presence XX% adding Our digital coming acquisition transactions We be digital year, market

execution the slide. strategies Our of these market by the included on wins highlighted are

the correspondent more countries, ones the countries. XX business in of signed agreements our Some include XX core quarter, significant new during XX new XX across correspondents

launched to we X% in we is $X them. the launches Remittances with accounts according all XX% real-time Activo Venezuela, the of And industry country. bank received launched Banco remittance more their capabilities Venezuelan bank Venezuela households of which augmenting Observatory. by a deposit partnership These billion, include exceed than and GDP around in to the are and

partnership Al largest launched Nomad, the is International country. in with us in in the U.A.E., one Mula which in the exchange tenth Exchange We We according the connects Company market house Al the to Kuwait, in market Al exchange partnership Nomad. Fardan send remittance world. U.A.E a send world Mula of the launched the the Exchange our with to largest and was houses largest the region. second with According largest

heard China. the in largest the mobile have remittance wallets world, is in WeChat WeChat. A signed the WeChat probably one China market receive of in of world. we largest third agreement and is lot with Lastly, of the an you

As of investments momentum second we our with that head and the are optimism, will into drive XXXX we half growth. strategic future confident

in including money continued which growth. pipeline real-time payments, new our of our scale new and continued use expansion new our cases, in lot a We drive capabilities, have and transfer geographies will of the opportunities investment

connectivity let's the marketplace, to turn Throughout to in banking and Now are the continued talk dandelion slide, quickly. win global we'll we network. technology, second the quarter, next our evolving about and

shifting it And market needs. is

unmatched outpace is network by market RIA just put, of to expand has today just client it in and the existing It competitor. payment for the which including needs, single to Money use product. not to capabilities global meet our XXX% Our us by Simply those our enabled Dandelion any segment, year. for Transfer X base but future. growth this QX since the grew continues is are heart positioned rails, and of Dandelion's HSBC, their of transactions sequentially Dandelion

and In the digital the businesses money from a processes payment service consumers provider, businesses. company, Singapore-based we Korean South and for U.K.-based we serving demand seen also clients a high-growth company LifeNet payments a with [indiscernible] cross-border quarter, have which with strong addition during Wire small transfer our fintech existing agreements Barley, that to signed and leading

pipeline forward in updating a I as as Lithuania, and Europe deals. for second to Payments also import-related look the Arc the a Flash we and provides business-critical payments soon that in OPay, innovative based robust payments we services which launched fintech payments. on supports Australia-based as also SMEs quarter SMEs to XXXX, as in you Moreover, of that those FX well company close I and see

we Money well are our pipeline. to Transfer up opportunities healthy with profitable, positioned our wrap capture growth our is segment, expanding market and To trajectory

Now the quarter. let's wrap up

deliver the one last record-breaking the continue another our to segments. mentioned of growth my I as Going earlier, X can't is excitement our the diversity our And teams strengths about quarter. to of I enough emphasize slide.

individual our the consolidated in continue to we segments, strive for to for growth results the double-digit goal double-digit company. each is growth of deliver While

contributor This quarter, growth. biggest the EFT to was our

of However, for we segments in all grow to have opportunities a future. strong X pipeline the

continue second remainder for fuel has of what half As the beyond. and that growth to what our and to growth XXXX we the turn driven and will XXXX, of

and have growth we the Our for strategy years. proven, is XX that executed last for strategy

business by Malaysia, like execute we to We have expanding merchant market existing investments into like in will access MEP countries we business, expanding and strategic Albania, our and adding the quarter advantage services of with new did investment our in opportunities making businesses growing continue take like in this fees correspondence to all X grow money by and our by deals and digital transactions, closing to of to certain outsourcing segments adding continuing channels. new in pipeline e-pay opportunities digital and our ATM domestic in adding by arrangements physical international content the transfer both

focus as a with and allocation on capital appropriate. good share making acquisition growth, And repurchase

second pipeline I As the I want to we to the my drive our repeat, results. of conclude opportunities with to XXXX of half look a remarks, forward

proven team's management great. delivering opportunities history Our of is these

XX% we remainder We XXXX. in continue expectations affirm to range. for And be of the remain earnings consistent with will and our XXXX, XX% optimistic about the that grow to

you us, course, With we range. be happy beyond of Operator, take [indiscernible] be to that, questions. to please are we'll And know that driving

Operator

comes Andrew Global [Operator with Instructions] Citi from Schmidt Our question first Markets.

Unknown Analyst

Rick, appreciate all the comments.

So see And marketing start competitive to the I money maybe in some structure expense. Good discuss there. on market put there's points broadly changes more that? positive just seeing some U.S. just what Maybe more the off you're the on in gains you been that share environment. transfer. continued to heard you then could the just want I've could with

sounds the if the confirm on the year you comment And that's whether but there. deployed, being retail? of remainder like it then is could where digital, you expectation it If for versus digital

Rick Weller

really Well, got hypercompetitive. seen We the with you've the competitive has understand much the respect difference. of haven't to Always dynamics is been. business industry, to transfer money

You haven't per margins can years. per last of really couple transaction our the see revenues transaction over that or changed

don't know. even of growing So it. haven't the maybe market, about And we we felt the hear faster is really that one though reasons Xx than for I we're competition,

-- of With that the digital. to respect your where there. of spend we much was So Most second I respect do see question change with don't money?

over We've the quarters. acquisition. XX% our that our over been new new prior got marketing was digital see of that realized executives on XX% is We the that last with in results. few working. customer set saw actually You year growth working growth We've our a

be worth would investments. that making thought additional we So

So mostly in digital.

Unknown Analyst

performance I the fluctuations then on quarter? the point the third tourist expectations? maybe if any finer in we if I last early segment, in ATM had EFT to But you And about a in the I'm travel recovery. know came put your trends, the relative how transactions. Perfect. comments wondering year, some could appreciate observations on

Rick Weller

pretty miss year, per we recovery we it misspend this travel We about And and the everything, didn't this that. last much okay? looks think head, came and probably whole I far we'll transactions. So somewhere at it end that's past mirror. travel as thought XX%, question in the so grow year, is would. a day, little the this At where it in rearview bit as whole of like And finally

that's It's got services mean a coming did this from expansion. for, fees? hoping for point there, of -- you think I course, EMS, network been the of about And that network it's our then, more time. as aren't from of effective big I've getting EFT a effective. I chunk rid the forward, business with access that we've making word by business. ATMs So from what hear our long merchant And about

several that's and transaction going when what in the the did access offing. gets me travelers, X We've to up more is you this something means as make much countries country, now Xx before. we a got I euro-to-euro lit country think to in that that is quarter. as we And now multiple countries now on Xx or their for possibilities that within there And the in that get Eurozone fees recipient that country from traveler

Xx it's give of make. That's a same nice boost margin us as much the you making going number same transaction, little the as just because transactions, to you're used in to money

Michael Brown

for been those I've some about Yes, time. talking Absolutely.

those good see come through. it's to So

Unknown Analyst

Mike. comments, the Appreciate

Operator

Davidson. comes with next Our from question D.A. Pete Heckmann

Peter Heckmann

I any the ATM Euronet said be the out this X year. a you footprint. to Poland, of countries far, countries guess roll very fees, the to of a I me going wrong do big it so are some more more on like Correct countries I'm that you have where out allowing where Following to Spain, also those you there. X potentially ATM countries later appear large countries if the in see rolled But footprint don't that has big considering fees. think have access potentially

Michael Brown

bit they are a So little yes, smaller of countries.

Some countries so Malta, them countries really good but and euro et -- and island Cyprus cetera. are But were all of tourist they of like those countries. little --

So we in to bigger countries, a Spain, being is for already great With thing the able and Spain you Spain. to have fees surcharge and add us. access mentioned access fees respect

So that's much. going to not change too

I these should the nice to transaction, think long access coming markets, that time, the money I able nice in make have to can expect a fees later be lot and thing. this a on have locals a countries. Poland. in after but It'd most it's fees year, but for currency in the that's the $X.XX. don't that's cross year, too, to locals buy now, it's would be for it hoping see. But is margin, of may but we'll finally, point but going be you come, get happening see wait to yes, all pure we Pete. And access in we mean for get I

the and banks Europe. X/X also, interchange allowing the utilize to that a the mean, -- sorry, And here of us. big their infrastructure The is ATM them. Internet cost it banks are There -- who not The reality banks of is own increases overhead with them. X/X with interchange big we're or what the really over lot well. are happening the only in will ones that's So as help I'm I own -- ATMs at

their So they're competitors. basically subsidizing

for see banks the interchange So to are why increases. big that we're That's pushing starting well. happen as

Peter Heckmann

exiting some little give a on to the that XX% And color Can think that? -- That's within consolidation follow agent I new competitors were up a there's about just comment had competitor transfer, Okay. money something wanted just you or That's on markets up and great. accounts great. were you I year-over-year. either more

Michael Brown

Okay.

across So last that's that's But up to the out what, always transactions, faster industry X larger We always belly of share. than else, market. quarter. than of this honest, somebody fair happening. their everybody we money spread But and happening. you go kind more be because yes, our get get of know there's we're growing guys their kind kind a saw hypercompetitive It's transfers

Peter Heckmann

it. Got

Okay. queue. I the I'll appreciate get back it. in

Operator

comes with Stephens. from Charles Our next question Nabhan

Charles Nabhan

geographic in from the fleet With kind you acquisition sense of us the what for us of fleet in could give wondering you terms much a in standpoint? was standpoint a is how travel looks in if set or local Europe? this think like much a of the domestic from is versus quarter, about and concentration Malaysia ATMs How I for level how that Asia, just

Michael Brown

a So our more a other ATMs, markets on travelers, locals We're international locals, where those focusing ATMs are too, focused developing Malaysia the we own In the just bag in we you bought course, there we're more just little that. under of but but to of are are mixed deploy bit here. catching markets because on lot The travelers of really a we might ATMs. got say.

both tourists to do locals the So and the international need cash. access

maybe help total here. As as far number, Rick, you can the me

Rick Weller

in or ATM about those of was are whatever. XXX Europe and they're it Malaysia. none And Malaysia, all In in

Michael Brown

ish, we Africa we inside nut as must outside outside mentioned far as of imagine like North have Right all ATMs mentioned something Europe. of versus that. -- across Asia, X,XXX I of of between them, Europe, we Europe

Rick Weller

of to. those see in that South new half see that markets, for Asian American opportunity Europe talking North would a inside African been you we'll first tell a Europe. it's of to focus the that larger would of the the And expect deployed I time that go And the been than we some good concentration outside to about ATMs of kind that markets, continue Yes. the we've year, I We during of progress. and markets, number see of markets

Charles Nabhan

it. appreciate I color. Got that. Helpful

that is commented So upper I easier I the then make believe potentially around as you the to to some the had getting year my income comp e-pay. The first little on heard growth. back that half get wanted I a operating at secondly, follow-up, exiting I wanted in of of 'XX single-digit to revenue And mid- correctly. color equation. guess, a and sure side

from that income we exiting So high should revenue if growth, to a standpoint? how operating we're mid- about at think single-digit

Rick Weller

get say a we the expect programs did of of faster it operating second operating at that execution would here the income we of the some because you growth We're than and our hear the We in up will going the a we our benefit of I rate didn't these promotional little is in the But half to to of Yes. second enjoy leverage year. always that pick that. right, that revenue benefits grow believe quarter. income the see

mid- to single-digit as of will operating -- income range our we I full to that in which for even get for we're then year, means year the of to as anticipate full year, go second the we definition, e-pay the going numbers upper that And stronger said, for growth that we're that to see be year. by through the half the would full

yes, the So expect the that correct, that in for build half I think we should momentum of see you second heard to more year e-pay.

Michael Brown

signed quarter. fourth weighted bit more Rick little I are it's more said, bit up. for a And. A the little these mean promotions as

We know kind happening. will We of implement what's them.

So we of timing know them. the

there'll fourth more in the third So quarter. than quarter be the in

Operator

Peller with Research. comes Wolfe Our Darrin from next question

Unknown Analyst

on Darrin. coming should This yet? Krebs and years? expanded about Greece Merchant and into And expansion I impact sizing the Italy for [indiscernible] think Portugal we across about wanted to is how Spain, talk of Daniel beyond bit and this has Services a the

Michael Brown

Okay.

pitching signed growth quarter are sales Spain forces are in now you saw in you our the stellar -- and in was second that got of growth all there most Portugal, -- Italy. mentioned, that the those the up we now expanding. But Greece. countries we've which product out So X We

platform. successful in a got we've like It's screaming Greece. it's So great

Mediterranean But that the want several use starting And last other keep just we're We'll more over new that growing those. we'll coming countries. quarters quarter see in and of that's because merchants touching similar We there. pretty the per in with quarters, these attract amazing. for just meantime, to merchants the XX,XXX

Unknown Analyst

Understood. Got it.

more do now per So with you of that merchant kind expansion the this of number same expect going. quarter or XX,XXX step to geo up

Michael Brown

our big. one all it's And just find that are what those we'll to Obviously, so into Greece markets, out that most us those And can say than get continue numbers we're in a are. market. only if market, Well, faster the and XX great would help best. just growing going it's do because people, well to market. XX,XXX is million but of we new we're We'll

be get huge nice. to being new would X able So into markets really

Unknown Analyst

Yes. Understood.

Operator

with Our Suchoski Ken Autonomous comes from next question Research.

Kenneth Suchoski

or change fees. quantify operating interchange is Maybe did direct to next and rates. just way revenue there guess something year either income the you to mean, introduce access this I access direct the that allowed from on in year to and higher fees the market any I fees? those upside And

Michael Brown

XX% some Well, give expect on be tried yes, quantification you off perspective we've that. will our XX%. growing mean, good to earnings I hold that we to to

the As confidence a and position about feel good to year. into will the already we've range continue it of year, of well opportunities those that putting shown growth that results continue just kinds give you, at next trend us grown we for very to more This first forward. our outside half in and good us delivering we've

to because for a part it year some means obviously, that getting next In we're Because, month this lining going we year, to X a of only part be cases, that's there. be a going only we're it. year, which it, of small get may those of of up growth only of contributors or getting a

a But to good for that it we'll it off giving is year. to for see path puts sizings confidence So next a hold of double-digit year our us very to position rates in numbers. this reinforces growth and on really suffice similar say growth

to with XX XX consistent years. over done what Again, we've last the

Kenneth Suchoski

place just these role does put surcharging to in happen? to the be and other And markets I to have Or Okay. mean, fees? be add clear, for go you can into that

Rick Weller

web of that. can and It quarters. of happen about rules rules back -- a leaves. been and kind things we've to But talking anywhere kind does card have things of like look, to the now have from this that to you scheme read go tea quarters We several several for regulatory there's of complicated kind if

gone with cost these years As no and increases have banks Mike said, increases in interchange rates.

-- more competitor. the off their non-bank those there's and at just and the aren't And guys competitors competitors that living and ATMs. benefit of more of in deploying They're are some market,

U.K. Link the the seeing when a of of rope end We're took their getting the to environment banks rates the changing. pulled like kind that on this. were seeing the where the so ATMs down and is few ago And years We're even are market. in of out

place they back keep owners in come to said, you additional and keep they've incentives there. must in for ATM some and offered ATMs Now ATMs

more we both how you countries the they'll inertia access when be open tell available this confident in front. and year seen we on front we've kind will next is can't exactly moving interchange the fee of and direction but So feel the many developing really up that our

Kenneth Suchoski

Okay. saw digital an Great. opportunity grow from you just maybe your Money just increased And now? market footprint, mean really digital in then a of in was the what standpoint and XX% Or spend I wanted this think of transactions. I helpful, market? do in digital to doing were why to That's something Was more it is Rick. response competitors marketing the the Transfer, regarding there you

Rick Weller

year. team quite kind anything last over have to the digital been really didn't We've a I Yes, have the of new over improved The marketing competitors. results last year. got with do

expansion should little you end And so marketing. use put day, marketing want results. of to the bring of bringing because we on bit we the enough if less the gasoline saw digital fire not And more results. just At a the they're

happy with what So we've -- but we're seen. --

Michael Brown

stream which feel Well, year had most And to important able and to then in be first is that contribution it. going for our we very the earnings piece. felt invest this about we we be, earnings is saw good we and the those to what secondly, results,

Rick Weller

and on million the side. still Yes, stock X of pick up shares

Operator

Securities. comes from question next Our Mike Grandall Northland with

Unknown Analyst

The to Or more was even for spent the marketing you where of out of call transfer, advertising spend follow-up. globe. any a that? kind money million $X.X Just that regions across

Michael Brown

It's even come and our where the the was kind there, spread our out. with from, from we of U.S., it we bulk of transactions get it but most transactions of

Unknown Analyst

pot it.

Michael Brown

the It we've rate mean an no the That by was have that million run and $X.X spend. this -- you then increase just -- we that an we if And had. doesn't away, over take increase way, of quarter that that was spread.

Unknown Analyst

that Great. Yes, the domestic amount. like a fee when And top hey, you say incremental on of fees, then, Mike, access interchange. is

Michael Brown

Okay.

if get way the interchange. works So can of do a yes, don't you're for DAF, you a term way usually can usually domestic -- it a if in access, these you you technical access And the fee the these is is surcharge. if is work things -- the use do markets, then domestic

up this the $X but interchange or So $X.XX on or Okay? fee. whatever pick $X excess goes you of $X.XX or domestic away,

Unknown Analyst

transaction. I I won't And these XXXX of from on us let's give for, metric of it. there guys say, range any know, $X.XX, per up, the average, kind to don't But comment is kind help Got fee us know $X.XX you on it? a DAFs. you Is going can size

Michael Brown

Okay.

got transactions. to be of got you've because So a mix careful we've

So be called would we euro can EUR X. what we -- necessarily make is fee, it would which international as Well, you've or I DAF which don't a -- got no, Cyprus, goes euro say, and make to card. it's is So EUR an about before issued okay? to Romania in like, say, well, you let's what don't goes that, know, it France Romania interchange let's X. now doesn't have

Unknown Analyst

it. that's all margin. Got And

Michael Brown

we -- you -- you multiply you've currency can't can't transactions But say across mixed all got participation. local -- a the transactions across cross-border have network because it transactions, transactions it's

Rick Weller

arrangements. had We

Michael Brown

these basis of people in to Yes, us network allow transactions acquire to we a our have deals it DAF sell to network Internet transactions gives market, when agreements to a more us these even which markets a actually actually signing participation like participation lot on an these comes banks. wholesale by opportunity

a just whole different of So things. bunch there's

Unknown Analyst

glad bit. a Sure. getting Well, little you're I'm

Michael Brown

But day, it's the at the of a pricing end pressure up.

Rick Weller

say in that just different is Bear the interchange. mind what other -- that is And than that does have we in be. which no thing interchange, to so number this going

business card manage we that's really EUR going set than the take In take at world, it it $X.XX, some us on and can to set we at That's it that X. the have get. We you. our schemes it. just all access decision-making gives more you transaction. the fee have make to flexibility We could simply whatever are EUR of that set the can could price give X it at to We We X.

Michael Brown

us. is for what elasticity You price can to algorithms really some figure do out maximum

Unknown Analyst

you Great. tailwind in color and Well, it'd future glad little guys quarters. got nice bit that more get the to I'm a be

Operator

Yes.

next with Manus comes Our from question Gus [indiscernible] Gala

Unknown Analyst

happening So after XX% plus acquisition, [indiscernible] merchant EBITDA the now margins, It's margin I ATM about to in. commentary the quarters taking incremental decrease back all on of geographic think the X services was kind beyond back margin what's think a the X access structure structural or looking been And of closer over you is talked fleet for to it that going like the then year changing fee just Ren, a than years? going better thought even we like we maybe time? be do the mix potential or

Rick Weller

cost a think back year structure. definitely we XX, had I going say, say call back I years, Going X to, that But in okay. yes, lower say it a let's lot would or I'd 'XX,

very, significant. last few us been As heard talk very cost these you've have about, the over years

my And is definitely, that a couple ago certainly so sense -- compared years of yes. compared to to

results would have of costs X on of probably team with being been I that because we're the would operating to and look these today than seen able come I the management what access more manage the like of EFT be fee some We've effectively realization seeing margin bullish ago opportunities months table. would that. And the to deal in also

service as probably So would merchant said, nicely. the growing has the -- feel Piraeus Mike and businesses I been

on in margin kind and But more on end with That anchor the of fast, is EFT it probably business. that that. helps pretty right it's as growing solidify average of line lower business the

maybe a seen quite probably what feel have strong we about would little I'd yes, more not as now. but bullish in as bit it 'XX. So

Unknown Analyst

Great. that. I appreciate

Michael Brown

and else catch on I the question and top Thank line, problem. you because it's everybody you We'll no But listening. think very Gus, now we've hour. next for a the you your for got shutdown you for Yes, thank much of quarter. thank

Operator

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

You now disconnect. may

Euronet Worldwide (EEFT) 19 Jul 242024 Q2 Earnings call transcript