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Sep 30, 2020
Euronet Q3 2020 Earnings Report
Euronet's financial results exceeded expectations due to double-digit earnings growth in epay and Money Transfer, combined with better-than-anticipated results in EFT.
Key Takeaways
Euronet Worldwide reported a decrease in revenues and operating income for Q3 2020 compared to the same period in 2019, but exceeded adjusted EBITDA expectations due to double-digit earnings growth in the epay and Money Transfer segments and resilience in EFT.
Revenues decreased by 16% to $664.4 million compared to $787.0 million in Q3 2019.
Operating income decreased by 66% to $66.1 million.
Net income attributable to Euronet was $40.2 million, or $0.76 diluted earnings per share, compared to $137.6 million, or $2.46 diluted earnings per share in Q3 2019.
Adjusted earnings per share was $1.12, a 61% decrease from $2.84 in Q3 2019.
Euronet
Euronet
Euronet Revenue by Segment
Revenue by Segment
EFT Processing Revenue
CapyFin.comepay Revenue
CapyFin.comMoney Transfer Revenue
CapyFin.com Forward Guidance
The Company anticipates its fourth quarter adjusted EBITDA will be in the range of approximately $70 million to $80 million.
Positive Outlook
- Improving trends in Money Transfer
- Improving trends in epay
- Continued cost reductions
- Careful expense management actions
- Strong financial position
Challenges Ahead
- COVID-19 pandemic
- Government-imposed lock-down restrictions
- Second wave of the COVID-19 pandemic increased across Europe
- EFT transactions will likely remain depressed through the rest of the year
- Uncertainty in global COVID-19 management mandates
Revenue & Expenses
Visualization of income flow from segment revenue to net income