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Mar 31, 2020
Euronet Q1 2020 Earnings Report
Euronet's financial performance was impacted by the COVID-19 pandemic, with revenue slightly increasing but operating income and net income significantly decreasing compared to the same period last year.
Key Takeaways
Euronet Worldwide reported a slight increase in revenue but a significant decrease in operating and net income for Q1 2020 due to the COVID-19 pandemic. The company focused on employee safety, customer service, and fiscal responsibility. Despite challenges, Euronet maintained a strong cash position and implemented cost-saving measures.
Revenues increased by 1% to $583.9 million, impacted by COVID-19.
Operating income decreased by 44% to $31.6 million due to fewer European ATM transactions and SG&A investments.
Net income attributable to Euronet decreased to $1.9 million, with diluted earnings per share at $0.04.
The company is implementing cost-saving measures and focusing on long-term growth despite the pandemic's impact.
Revenue by Segment
Forward Guidance
The Company expects that in the second quarter its Adjusted EBITDA will be nearly break-even and after capital expenditures, interest and taxes, the business will consume approximately $25 million of its cash, which is readily available from the Company's cash balances.
Positive Outlook
- Leading-edge technology platforms
- Diverse product portfolio
- Global geographic presence
- Implemented cost saving measures
- Very strong balance sheet with plenty of liquidity
Challenges Ahead
- Adjusted EBITDA will be nearly break-even
- The business will consume approximately $25 million of its cash
- Transaction declines in EFT segment's ATM business ranging from minimal declines to as much as 95%
- Decreases in the brick-and-mortar channels have been about 35%
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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