Euronet Worldwide ((EEFT)) has held its Q4 earnings call. Read on for the main highlights of the call.
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Euronet Worldwide’s recent earnings call exuded confidence in its robust financial performance for both the fourth quarter and the full year 2024. The company reported substantial growth across its business segments, alongside strategic market expansions. Despite facing challenges such as currency fluctuations and an impending tax charge, Euronet’s solid growth trajectory and strong market positioning suggest a favorable outlook for the future.
Record Fourth Quarter Financial Metrics
Euronet Worldwide achieved impressive financial metrics in the fourth quarter, with revenue reaching $1 billion. The company reported an operating income of $123 million and an adjusted EBITDA of $166 million. The EFT segment led the charge with double-digit constant currency growth, while Money Transfer and ePay segments also delivered strong growth figures.
Strong Full Year 2024 Performance
For the full year 2024, Euronet reported consolidated revenue of $4 billion, with an adjusted operating income of $500 million and an adjusted EBITDA nearing $700 million. The company’s adjusted earnings per share (EPS) saw a year-over-year growth of 15%, reflecting its strong financial health.
EFT Segment Growth
The EFT segment experienced significant growth, with revenue increasing by 13%, operating income by 35%, and adjusted EBITDA by 19%. This was driven by expansion in merchant services, new market entries, and effective cost management strategies.
Digital and Money Transfer Growth
Euronet’s digital transactions grew by 33%, and digital payout expanded by 31%, accounting for 54% of the total volume. The Money Transfer segment outpaced market growth, highlighted by a 14% increase in US outbound transactions.
Expansion and Strategic Partnerships
Euronet expanded its footprint into new markets including Mexico, the Philippines, and Thailand. Strategic partnerships with prominent players such as Ant Financial and Al Hilal Bank were established, aiming to bolster its market presence.
Impact of Currency Fluctuations
Currency fluctuations had a slight negative impact on Euronet’s adjusted EPS, reducing it by three to four cents in the fourth quarter.
Tax Charge in Q1 2025
The company anticipates a tax charge of $0.20 to $0.25 per share in Q1 2025 due to state income tax expenses associated with the repurchase of convertible bonds.
Intra-US Business Decline
A 14% decline in intra-US business was reported, which partially offset other transaction growth rates, indicating some challenges in the domestic market.
Guidance for 2025
Euronet Worldwide provided optimistic guidance for 2025, projecting adjusted EPS growth between 12% and 16%, despite the anticipated first-quarter tax charge. The company plans to leverage its strategic initiatives, such as REN technology and the Dandelion network, to continue driving growth. With a strong balance sheet and a $1.9 billion credit facility, Euronet aims to maintain its leadership in the global payments market.
In conclusion, Euronet Worldwide’s earnings call highlighted a period of significant growth and strategic expansion, with a positive outlook despite some challenges. The company’s robust financial performance and future projections make it a noteworthy player in the financial markets.
