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Euronet Worldwide Reports for Third Quarter 2003

Thursday 30 October 2003 19:36 CET | News

Euronet Worldwide has reported consolidated revenues of $53.1 million for the third quarter 2003. This compares to $17.9 million for the third quarter 2002.

Consolidated operating income for the quarter was $3.7 million, compared to a consolidated operating loss of $0.6 million for the third quarter 2002. EBITDA (earnings before interest, taxes, depreciation and amortization) was $6.8 million for third quarter 2003 compared to $1.9 million for the third quarter 2002. Net income for the third quarter 2003 was $1.4 million, or $0.05 per share. The third quarter 2003 net income included a foreign exchange translation loss and losses from discontinued operations of $0.3 million; excluding these losses, earnings per share would be $0.06, or $1.7 million. Management analyzes historical results adjusted for certain items that are not necessarily ongoing in nature, that are incremental to the baseline of the business or that are non-operational in nature. Generally, these items include gains or losses associated with the sale of business assets or operations, market development costs, foreign exchange translations, discontinued operations and other similar items. Management believes the exclusion of these items provide a better basis for evaluating the underlying business unit performance. The attached schedules provide a full reconciliation of any Non-GAAP Financial Measures. The EFT Processing Segment posted third quarter 2003 revenues of $12.9 million, EBITDA of $4.1 million and operating income of $2.3 million. In the third quarter 2002, the EFT Processing Segment reported revenues of $13.8 million, EBITDA of $3.3 million and operating income of $1.1 million. In the third quarter 2003 the EFT Processing Segment realized a net increase in operating income of $0.8 million on the sale of 272 Category 1 ATMs in Hungary; this sale was coupled with a long-term outsourcing agreement with the purchasing bank. The period-over-period decrease in revenues was attributable to the January 2003 sale of the Segments U.K. ATM network partially offset by growth in the EFT Processing Segment; the increase in operating income resulted from business growth and expense management over the past year, partially offset by the effects of the U.K. ATM network sale. If the U.K. ATM network operations were excluded and the benefits of the related outsourcing agreement were included, the third quarter 2003 revenues and operating income would have increased $2.6 million and $1.4 million, respectively, over the third quarter 2002 revenue and operating income. Operating income in the third quarter 2003 includes expenses of $0.6 million related to the Segments efforts in developing the Asia-Pacific markets, notably India. The EFT Processing Segment processed 31.0 million transactions in the third quarter 2003 compared to 22.3 million transactions for the same period last year. The Segment completed the quarter with 3,254 ATMs owned and/or operated as compared to 2,951 ATMs at the end of the third quarter 2002. Euronet owns and/or operates ATMs in Hungary, Poland, Germany, Croatia, the Czech Republic, the U.K., Greece, Kosovo, Slovakia, Egypt and India. The Prepaid Processing Segment reported third quarter 2003 revenues of $36.5 million, EBITDA of $3.9 million and operating income of $3.0 million. Depreciation and amortization included $0.5 million for amortization of intangible assets assigned for e-pay acquisition related purchase accounting. Included in the Prepaid Processing Segments operating income is approximately $0.2 million related to costs necessary to enter the prepaid transaction processing markets in Poland and the U.S. Excluding these market development costs, the Prepaid Processing Segments EBITDA and operating income from the acquired e-pay would have been $4.1 million and $3.2 million, respectively. Total transactions processed in the third quarter 2003 were 26.3 million. The Prepaid Processing Segment processes electronic prepaid transactions at approximately 75,000 point-of


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Categories: Payments & Commerce | Payments General
Countries: World
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