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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.
Euronet
Euronet
Euronet Revenue by Segment
Revenue by Segment
EFT Processing Revenue
CapyFin.comepay Revenue
CapyFin.comMoney Transfer Revenue
CapyFin.com 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
- First quarter is historically the lightest travel quarter of the year
Revenue & Expenses
Visualization of income flow from segment revenue to net income