Euronet Worldwide Reports Second Quarter 2016 Financial Results

LEAWOOD, Kan., July 25, 2016 (GLOBE NEWSWIRE) -- Euronet Worldwide, Inc. ("Euronet" or the "Company") (NASDAQ:EEFT), a leading electronic payments provider, reports second quarter 2016 financial results.

Euronet reports the following consolidated results for the second quarter 2016 compared with the same period of 2015:

• Revenues of $476.9 million, a 12% increase from $425.1 million (13% increase on a constant currency⁽¹⁾ basis).
• Operating income of $59.3 million, a 26% increase from $47.2 million (25% increase on a constant currency basis).
• Adjusted EBITDA⁽²⁾ of $82.9 million, a 23% increase from $67.2 million (23% increase on a constant currency basis).
• Net income attributable to Euronet of $55.7 million or $1.04 diluted earnings per share, compared with net income of $26.8 million or $0.50 diluted earnings per share.
• Adjusted cash earnings per share⁽³⁾ of $0.97, a 24% increase from $0.78.
• Transactions of 793 million, an 8% increase from 734 million.

See the reconciliation of non-GAAP items in the attached financial schedules.

The second quarter 2016 results included a $19.4 million non-operating gain from the sale of Euronet's shares of Visa Europe to Visa, Inc.  The gain is included in other income and represents $0.29 per share of the $1.04 diluted earnings per share.  The per share effect of this gain is, however, not included in the adjusted cash earnings per share.

"Our second quarter results exceeded our expectations, delivering 24% growth in adjusted cash EPS," stated Michael J. Brown, Euronet's Chairman and Chief Executive Officer.  "Our 14th consecutive quarter of double-digit cash EPS growth resulted from continued strength in our EFT and Money Transfer segments.  EFT continued to benefit from ATM network expansion, while Money Transfer delivered another quarter of double-digit organic growth, including Walmart-2-Walmart, as well as from the June 2015 acquisition of IME and a stronger than normal trade pattern in the HiFX business as a result of currency volatility stemming from the UK's June 2016 vote to exit the European Union. epay results were generally consistent with the prior year as a result of continued growth in non-mobile sales which largely offset certain mobile declines."

The Company operates certain of its businesses in the UK where on June 24, 2016, the UK voted in a referendum to exit the EU. The Company generates approximately seven percent of its revenues and approximately two percent of its operating income from the UK and operates a significant amount of its business under payment services licenses granted by the Financial Conduct Authority (FCA) in the UK. To proceed with the exit, the UK will need to submit a formal exit request and from the date of that submission will have two years to negotiate a separation agreement with the EU. Given that approximately seven percent of the Company's revenues are dependent on the UK economy, the Company believes it will not be materially adversely impacted by potential future deterioration in the UK economy. As it relates to its payment services licenses, the Company currently has similar licenses in other EU countries that can be utilized if necessary. In summary, the Company believes there will be minimal longer term impact to its business as a result of the UK vote to exit the EU and, in the short term, has benefited and may continue to benefit from greater volatility in the currency exchange rates of the British Pound.

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