EURONET WORLDWIDE, INC. Q1 FY2025 earnings call

• Mike Brown started by highlighting double digit constant currency growth in operating income and adjusted EBITDA, with all segments contributing to record earnings. He discussed the company's two revenue pillars: payment/transaction processing and cross-border/foreign exchange. - Rick Weller detailed the first quarter results, noting record revenue, operating income, and EBITDA. He emphasized pro forma adjusted EPS grew 18% year-over-year, driven by expansion in new and existing markets, product additions, and technology investments across segments. - Discussion of EFT's expansion in markets like the Philippines, Albania, etc., and merchant services growth. Epay's growth in payment business, digital channel sales, and promotional activity. Money Transfer's digital distribution, new agreements, and integration with Visa Direct.

For the first quarter, Euronet achieved revenue of $916 million, adjusted operating income of $75 million, and adjusted EBITDA of $119 million. The Money Transfer segment had double digit transaction growth, with digital transactions up 31% compared to the prior year first quarter and double digit cross-border transaction growth, contributing strongly to earnings. EFT delivered double digit growth across metrics, fueled by expansion of core services to banks and FinTechs, growth in new markets, and good expense management. Epay grew revenue 8%, with adjusted operating income and EBITDA growing 5% excluding a one-time $4.5 million tax matter payment, and 22% and 20% respectively when excluding that payment. Money transfer revenue, operating income, and adjusted EBITDA grew 10%, 23%, and 17% respectively, driven by double digit cross-border transactions and 31% growth in direct-to-consumer digital transactions.

• Reaffirmed expectation to produce between 12% and 16% earnings for the year 2025. - Strong first quarter results and diversified global business support this guidance. - Focus on continuing global expansion, investing in technology, and leveraging diversified segments for growth.

• Macroeconomic factors such as immigration, tariffs, and trade war could impact, but no significant adverse impact seen on Q1 results. - Regulatory environment, though Euronet has a pristine compliance record and operates with diligent compliance practices.

Q: Pete Heckmann from D.A. Davidson asked about Dandelion integration with Visa and Prosegur joint venture rollout.

A: Mike Brown said Dandelion had 33% transaction growth, and Prosegur joint venture will have aggressive rollouts in partner countries.

Q: Mike Grondahl from Northland inquired about Europe ATM trends and FX impact on guidance.

A: Mike Brown said Europe ATM trends were tracking as planned, and Rick Weller noted FX rates are assumed flat, with mix of currencies and 25% of revenue from US.

Q: Chris Kennedy of William Blair asked about consumers' willingness to pay ATM surcharges in Europe and merchant services expansion.

A: Mike Brown and Rick Weller explained consumers are accustomed to fees, and merchant services are expanding into Portugal, Spain, Italy with value proposition.

Q: Gus Gala from MCH asked about Ria digital shift and LATM opportunity.

A: Mike Brown discussed Ria's digital growth and LATM opportunity in cross currency transactions in Latin America.

Q: Rayna Kumar from Oppenheimer asked about US tourists in Europe and ATM additions.

A: Mike Brown said US tourists are a portion of European ATM users, and ATM additions are consistent with prior years.

Q: Daniel Krebs of Wolfe Research followed up on merchant services sales cycle.

A: Mike Brown said material contributions from new geographies would be late this year/early next year.

Q: Zachary Gunn of FT Partners asked about new geographies and regulatory environment.

A: Mike Brown and Rick Weller said no new geographies in Q1, and Euronet has a pristine compliance record with no significant adverse regulatory impacts seen.