Euronet Worldwide (EEFT) Q2 2024 earnings summary

Executive summary

• Achieved record Q2 2024 results with revenue of $986.2M (up 5% YoY), adjusted operating income of $134.3M (up 12% constant currency), adjusted EBITDA of $178.2M (up 10% constant currency), and adjusted EPS of $2.25 (up 11% YoY), driven by strong EFT and Money Transfer growth, network expansion, and digital initiatives.

• Completed strategic acquisitions, including MEPS ATM network in Malaysia and Infinitium Group, expanding non-bank ATM presence and payments authentication services.

• Expanded into new markets, launched ATMs in Albania, Belgium, and Mexico, and grew digital and branded payment solutions across all segments.

• Benefited from improved economic and travel trends, supporting revenue and margin growth.

• Repurchased 1 million shares for $114M in Q2, representing about 2% of shares outstanding, expected to improve future EPS by 2%.

Financial highlights

• Q2 2024 revenue: $986.2M (+5% YoY); adjusted operating income: $134.3M (+12% constant currency); adjusted EBITDA: $178.2M (+10% constant currency); adjusted EPS: $2.25 (+11% YoY).

• Net income for Q2: $83.1M; diluted EPS: $1.73.

• Consolidated operating margin expanded by over 90 basis points YoY.

• Cash and cash equivalents: $1,271.8M; ATM cash: $795.6M; total liquidity: $2,067.4M as of June 30, 2024.

• Total indebtedness: $2,270.2M as of June 30, 2024; availability under revolving credit facilities: ~$802.0M.

Outlook and guidance

• Management expects full-year adjusted EPS growth of 10%-15%, consistent with long-term growth rates, with potential to exceed guidance.

• Epay expected to deliver mid to upper single-digit operating income growth for the year, with more momentum in Q4.

• Continued margin expansion anticipated in the second half of 2024.

• Outlook excludes potential impacts from future changes in FX rates, interest rates, or unforeseen factors.