Euronet Worldwide Inc.
) reported second-quarter net operating earnings of 44 cents per
share, beating the Zacks Consensus Estimate of 41 cents by 7.3%.
Results also surpassed the year-ago adjusted earnings of 25 cents
Net income of Euronet came in at $18.1 million or 35 cents per
share as against an income of $5.7 million or 11 cents per share
in the prior-year quarter.
During the second quarter of 2013, total revenues of Euronet
Worldwide grossed $341.5 million, up 13% year over year as well
as 13% on a constant currency basis. Total revenue surpassed the
Zacks Consensus Estimate of $337 million. Improvement in all the
three segments contributed to the top line growth during the
Total operating expenses of Euronet for the second quarter
amounted to $313.7 million, increasing 11% year over year,
primarily due to increases in operating costs and salaries and
Adjusted earnings before interest, tax, depreciation and
amortization (EBITDA) of Euronet during the second quarter of
2013 increased 22% year over year to $47.7 million. Adjusted
EBITDA increased 21% year over year on a constant currency
Operating earnings for Euronet were $27.8 million in the
reported quarter, 40% higher than $19.9 million recorded in the
second quarter of 2012. Operating earnings increased 38% over the
prior-year period on a constant currency basis. Total
transactions for Euronet climbed 3% year over year to 587 million
in the second quarter of 2013 from 570 million in the year-ago
quarter, driven by contribution from all segments.
EFT Processing Segment
reported total revenue of $72.2 million, increasing 24% over the
prior-year quarter and 23% on a constant currency basis. Its
operating income surged 46% to $15 million over the second
quarter of 2012 and increased 43% on a constant currency
The improved performance came on the back of substantial
growth in sales of value added products, improved performance
from brown label ATMs in India and ATM network expansion.
Transactions in this segment surged 2% year over year to 296
million due to higher contribution from the segment's operations
in Serbia, Middle East, Pakistan, Romania and Poland.
reported total revenue of $176.6 million, increasing 6% over the
prior-year quarter and 6% on a constant currency basis. Operating
income amounted to $12.4 million in the second quarter, up 23%
year over year and as well as on a constant currency basis.
The improvement came on the back of higher non-mobile product
sales, mainly in Germany, higher prepaid mobile sales in the U.S.
and the acquisition of ezi-pay in New Zealand in Nov 2012. These
improvements were partially offset by poor performance in
Australia and start-up expenses in Russia and Turkey. Operating
expense improvement was also favorably impacted by lower
intangible expense in Spain, Brazil and Germany.
Total transactions during the second quarter of 2013 increased
4% year over year to 282 million.
Money Transfer Segment
's total revenues improved 21% year over year and 20% on a
constant currency basis to $93.4 million in the quarter under
review. Operating income surged 31% year over year and 30% on a
constant currency basis to $8.8 million in the second quarter of
A surge in total transactions contributed to the expansion of
revenue and operating income. Total transactions increased 20%
over the year-ago quarter to 8.9 million in the second quarter of
2013. Growth in transactions came from consistent sales success,
economic recovery in some markets and network expansion.
Corporate and Other Segment
reported total expenses of $8.4 million in the reported quarter,
increasing 16.7% from $7.2 million in the second quarter of 2012.
The increase was attributable to higher long-term stock-based
incentive compensation expenses.
Euronet Worldwide exited the second quarter of 2013 with cash
and cash equivalents of $189.9 million, decreasing from $201.4
million as of Dec 31, 2012.
Total assets of Euronet as of Jun 30, 2013 were $1.49 billion
compared to $1.55 billion as of Dec 31, 2012.
Long-term debt obligation in Euronet's books amounted to
$280.7 million, decreasing from $286.7 million as of Dec 31,
2012. Shareholders equity amounted to $537.7 million at Jun 30,
2013 compared to $526.6 million at 2012-end. Debt to capital
ratio of Euronet as of Jun 30, 2013 was 35.2% representing an
improvement of 80 basis points over 36% at Dec 31, 2012.
With the assumption of a constant foreign currency exchange
rate, Euronet expects the third-quarter 2013 adjusted cash
earnings to be around 54 cents per share.
Performance of Others in the Industry
American Express Co.
), also known as AmEx, reported its second-quarter 2013 operating
earnings per share of $1.27. The result outpaced both the Zacks
Consensus Estimate of $1.21 and the year-ago quarter of $1.15 per
CIT Group Inc.'
) second quarter 2013 earnings of 91 cents per share came in line
with the Zacks Consensus Estimate. Moreover, this is
significantly better than the year-ago loss of 36 cents per
share, which included debt refinancing charges related to the
redemption of high-cost debt.
AMER EXPRESS CO (AXP): Free Stock Analysis
CIT GROUP (CIT): Free Stock Analysis Report
EURONET WORLDWD (EEFT): Free Stock Analysis
SS&C TECHNOLOGS (SSNC): Free Stock Analysis
To read this article on Zacks.com click here.
Euronet currently carries a Zacks Rank #3 (Hold). Among other
companies in the financial sector,
SS&C Technologies Holdings Inc.
) carrying a favorable Zacks Rank #2 (Buy) is scheduled to
release its second quarter results on Aug 1, 2013 after the