Sign in
EW

EURONET WORLDWIDE, INC. (EEFT)·Q4 2024 Earnings Summary

Executive Summary

  • Q4 2024 delivered record adjusted EPS of $2.08, up 10% YoY, with consolidated revenue of $1.047B and adjusted EBITDA of $165.8M; management stated adjusted EPS exceeded consensus ($2.02–$2.06) despite FX headwinds of ~$0.03–$0.04 in the quarter .
  • Segment strength was broad-based: EFT posted double‑digit growth across all metrics; Money Transfer grew revenue 9% with 33% growth in direct‑to‑consumer digital transactions; epay revenue rose 8% with double‑digit transaction growth .
  • 2025 guidance raised: adjusted EPS growth targeted at 12–16% vs. prior 10–15%; Q1 will include a one‑time $0.20–$0.25/share tax charge related to convert repurchase, pushing FY tax rate to the upper‑20s, fully reflected in guidance .
  • Balance sheet and liquidity improved: revolver expanded to $1.90B in December; year‑end availability ~$1.335B, debt reduced QoQ via repayment; $50M buybacks in Q4 and ~$65M free cash flow generated in the quarter .
  • Near‑term catalysts include fee increases and new direct access fees across markets, ATM-as-a-Service wins (Baltics), and Dandelion partnerships (e.g., Al Hilal Bank, Ant International), supporting durable double‑digit growth into 2025 .

What Went Well and What Went Wrong

What Went Well

  • “We delivered record adjusted EPS of $2.08…as well as double‑digit growth in operating income and adjusted EBITDA” (Michael J. Brown, CEO) .
  • EFT: “Operating income grew 35% and adjusted EBITDA grew 19%…driven by extension of the travel season, merchant services, new markets, and fee increases” (CFO commentary) .
  • Money Transfer: “Results…were not short of exceptional…digital transactions grew 33% and digital payout grew 31%, representing 54% of total volumes,” with new partners including Al Hilal Bank and Ant International (CEO) .

What Went Wrong

  • GAAP diluted EPS fell to $0.98 from $1.43 YoY due to FX losses and higher interest/taxes; management noted FX reduced adjusted EPS by ~$0.03–$0.04 in Q4 .
  • Intra‑U.S. Money Transfer declined 14%, partially offsetting strength in U.S‑outbound (+14%) and international‑originated (+11%) transactions .
  • Q1 2025 will be “front‑loaded” by a $0.20–$0.25/share state tax tied to convertible repurchase, pushing the full‑year effective tax rate to the upper‑20s (guidance includes this) .

Financial Results

Consolidated performance by quarter

MetricQ2 2024Q3 2024Q4 2024
Revenue ($USD Millions)$986.2 $1,099.3 $1,047.3
Operating Income ($USD Millions)$134.3 $182.2 $122.7
Adjusted EBITDA ($USD Millions)$178.2 $225.7 $165.8
Diluted EPS ($USD)$1.73 $3.21 $0.98
Adjusted EPS ($USD)$2.25 $3.03 $2.08

Margins versus prior periods and estimates

Note: Margins below are computed from reported figures.

MetricQ2 2024Q3 2024Q4 2024
EBIT Margin (%)13.6% (134.3/986.2) 16.6% (182.2/1,099.3) 11.7% (122.7/1,047.3)
Adjusted EBITDA Margin (%)18.1% (178.2/986.2) 20.5% (225.7/1,099.3) 15.8% (165.8/1,047.3)
Net Income Margin (%)8.4% (83.2/986.2) 13.8% (151.6/1,099.3) 4.3% (45.3/1,047.3)

Estimates comparison (Q4 2024):

  • Adjusted EPS actual: $2.08; consensus: $2.02–$2.06 per management commentary . S&P Global consensus data was unavailable due to API limit; values could not be independently retrieved from S&P Global.

Segment Breakdown (Q4 2024)

SegmentRevenue ($USD Millions)Operating Income ($USD Millions)Adjusted EBITDA ($USD Millions)Transactions (Millions)Key Network KPIs
EFT Processing$265.6 $37.3 $61.7 3,203 Installed ATMs: 55,248; Active ATMs: 49,945
epay$342.2 $48.0 $49.9 1,185 POS terminals ~777,000; Retailer locations ~362,000
Money Transfer$441.9 $58.4 $64.4 46.9 Network locations ~607,000

KPIs and Balance Sheet (Q4 2024)

KPIQ4 2024
Unrestricted Cash & Cash Equivalents$1,278.8M
Total Indebtedness$1,949.8M
Revolver Availability~$1,335M
Share Repurchases in Q4$50M
Free Cash Flow (management indication)~$65M in Q4
ATM Cash$643.8M

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Adjusted EPS Growth (YoY)FY 202510–15% (Q3 commentary) 12–16% (Q4 press/call) Raised
One-time Tax ChargeQ1 2025N/A$0.20–$0.25 per share; pushes FY effective tax rate to upper‑20s; included in guidance New item
EFT Segment outlookFY 2025Strong double‑digit growth trajectory Expect strong double‑digit profit growth; more markets for access fees in 2025 Affirmed/expanded
Liquidity (Revolver)Ongoing$1.25B facility Increased to $1.90B; maturity extended to 2029 Improved

Earnings Call Themes & Trends

TopicPrevious Mentions (Q2 2024, Q3 2024)Current Period (Q4 2024)Trend
Digital growth (Money Transfer)D2C digital +24% (Q2); +30% (Q3) Digital transactions +33%; digital payout +31%; 54% of volumes Strengthening
Interchange & Access Fees (EFT)Margin lift from removing loss‑making ATMs and travel recovery (Q2); fee/margin benefits (Q3) Rate increases and new domestic/international direct access fees across several markets; more in 2025 Supportive tailwind
ATM-as-a-Service / Regulatory support for cashEmerging in Europe (ongoing) Expanded offering to Baltics; governments mandating cash access via banks Expanding
Travel/Tourism tailwind (EFT)Travel recovery supporting transactions (Q2/Q3) Extended European travel season shifted revenue from Q3 to Q4 Persistent
Dandelion cross‑border networkContinued expansion; strong pipeline (Q3) New partners: Al Hilal Bank (UAE), GuavaPay, OrbitRemit, Panda Remit; partnership with Ant International Accelerating
Cash‑to‑digital plateau (macro)n/aBCG research: cash‑to‑card conversion plateauing; extends ATM business life while digital grows Structural shift acknowledged

Management Commentary

  • “We delivered above the high end of the adjusted earnings per share guidance…operating income of over $500M with a 16% growth rate year‑over‑year” (CEO) .
  • “Our adjusted EPS…exceeded consensus…$2.02 to $2.06” (CFO) .
  • “We expect another strong year in 2025 with a 12% to 16% earnings growth” (CEO) .
  • “EFT…expansion of fees…introduction of domestic and international access fees…add several more markets in 2025” (CEO) .
  • “Dandelion…largest real‑time cross‑border payments network…unlocking opportunities in a $15T industry” (CEO) .

Q&A Highlights

  • Confidence behind 2025 EPS growth: momentum across all segments (merchant services +300% profits over 3 years; digital growing >30%; ATM‑as‑a‑Service mandates) .
  • Money Transfer margins/geos: new geographies often have higher margins due to limited competition; Euronet leverages a single platform and scalable operations to sustain profitability .
  • Q1 EPS modeling: adding $0.20–$0.25 tax to underlying estimate aligns with management’s math; guidance already includes this impact .
  • Dandelion ramp: HSBC volumes hit records each month; onboarding of CBA (Australia) expected to spur competitive adoption .
  • Interchange/DAF increases: multiple countries opened to increases and direct access fees through 2024; tone shifting pro‑cash access, benefiting ATM economics .

Estimates Context

  • S&P Global consensus data was unavailable due to API limits, so we could not independently retrieve Q4 2024 estimates via S&P Global.
  • Management stated adjusted EPS of $2.08 beat consensus ($2.02–$2.06); no revenue consensus provided in company materials .

Key Takeaways for Investors

  • Broad‑based strength and durable growth: all three segments delivered double‑digit operating improvements, supporting a raised 2025 adjusted EPS growth range of 12–16% .
  • Structural tailwinds: fee/access‑fee increases and regulatory support for cash are extending ATM unit economics while digital money transfer and cross‑border rails (Dandelion) accelerate .
  • Near‑term modeling: incorporate Q1’s $0.20–$0.25/share tax and a FY effective tax rate in the upper‑20s; underlying operating momentum remains intact per management .
  • Liquidity optionality: enlarged $1.90B revolver and strong cash provide flexibility around the March convert put and ongoing buybacks; expect proactive capital decisions .
  • Digital mix: 54% digital payout in Money Transfer and >30% digital transaction growth underscore mix shift and margin accretion over time .
  • Merchant acquiring and ATM‑as‑a‑Service: continued expansion (e.g., Baltics ATM outsourcing) positions EFT for sustained margin and profit growth .
  • Watch catalysts: additional markets enabling direct access fees, new Dandelion bank launches, and seasonal travel patterns that can shift EFT revenue between Q3/Q4 .