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Dec 31, 2021
Euronet Q4 2021 Earnings Report
Euronet reported mixed results with revenue increase and a net loss, impacted by the Omicron variant and a contract asset impairment.
Key Takeaways
Euronet Worldwide reported a 15% increase in revenues for Q4 2021, reaching $811.5 million. However, the company experienced a net loss of $3.1 million, or $0.06 per share. The results were impacted by the spread of the Omicron variant and a $38.6 million non-cash contract asset impairment in the Money Transfer Segment.
Consolidated revenue increased by 15% to $811.5 million, driven by growth in EFT, epay, and Money Transfer segments.
Operating income decreased by 42% to $29.0 million due to investments in network expansion and higher operating costs.
Net loss attributable to Euronet was ($3.1) million, or ($0.06) diluted loss per share, compared to a net income of $70.2 million in the same period last year.
Adjusted earnings per share increased by 4% to $1.15, up from $1.11 in the prior year.
Revenue by Segment
Forward Guidance
Euronet anticipates its first quarter adjusted EBITDA will be in the range of approximately $75 million to $85 million and expects its full year earnings to fall in a similar range to the earnings of 2019.
Positive Outlook
- Anticipated double-digit growth in epay and money transfer
- Acceleration of historical tourism trends
- Recovery of travel from COVID-19 related restrictions
- REN implementations and new agreements
- Launch of Dandelion real-time cross-border payment network
Challenges Ahead
- Lingering effects from the Omicron variant
- Pressure on EFT transactions
- COVID-19-related disruptions
- Lower-than-expected money transfer transaction volumes on certain contracts
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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