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| Statement |
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| Growth into recently entered new markets, outsourcing opportunities that we see all over the place, and improving travel trends; hopefully, you will recognize the momentum that produced these record fourth quarter results and more importantly, you can feel as I do that the continuation of this momentum going into 2024 and the optimism that brings to us |
| So we'll improve the profits because of ATM profit management pairing out the lesser performer one, some rate increases, some geographical expansion, some travel recovery, all signs point to improving margins |
| As Mike said earlier, as we go outside of the European markets where we've seen very good response -- very good returns on these ATMs |
| But we consistently produce these very strong double-digit growth numbers |
| We exceeded our guidance by better than expected performance across the business, good expense management, lower than expected tax rates, and improved FX rates against the U.S |
| And I think one of the reasons that we're having a really good success with our digital growth strategy is because of our digital payout |
| Before I jump into each segment, I want to reflect on the strength of our three segments, which produced another record consolidated revenue quarter and strong earnings growth across all three segments |
| EFT revenue grew 9%, while adjusted operating income grew 53%, and adjusted EBITDA grew 21% |
| This strong growth was the result of an increase in international withdrawal transactions, combined with the continued strong performance from our merchants acquiring business, where profits have doubled over the past two years |
| EFT margins improved year-over-year due to an increase in high-value cross-border transactions |
| E-Pay revenue grew 7%, while adjusted operating income and adjusted EBITDA each grew 3% year-over-year |
| That's pretty impressive agent growth |
| Excluding promotional activity, our E-Pay business revenue for the fourth quarter grew 8%, and the operating income and adjusted EBITDA each grew 12% compared to the fourth quarter of 22, highlighting the continued strength of our core E-Pay business |
| We're really excited that where we are |
| Rick Weller Darrin, I would add that if you look at our history, all of our businesses have consistent, very good, strong growth rates, either at or near double-digit growth rates |
| Finally, all segments of our business are driving growth, both revenue and in profits |
| Fourth, e-Pay is becoming a solutions provider delivering double-digit operating income and adjusted EBITDA growth in its core business |
| First, delivering a momentum-driving record fourth quarter result across all financial metrics |
| As I conclude my remarks, I am proud of Euronet's results for the fourth quarter in the full year |
| Adjusted operating income and adjusted EBITDA growth also included effective expense management, producing the best operating margin in the past three years |
| Money transfer margins continued their improvement trends as driven by revenue growth and attentive expense management |
| In conclusion, we are pleased to see growth across all segments, together with generally improving profit margins |
| Our fourth quarter growth trajectory and margin results position us nicely for a robust launch of 2024 |
| For the full year 2023, we delivered record annual consolidated revenue of $3.7 billion, adjusted operating income of $432 million, and adjusted EBITDA of $619 million |
| Initial interactions with prospects in the United States are also very positive |
| However, I think it bears repeating that we are extremely pleased with the full year record revenue and adjusted earnings per share, driven by contributions from all three segments |
| As we reflect on 2023, we are pleased with the resilience of all three segments |
| In EFT, we saw transactions improve in the fourth quarter and even exceed travel trends |
| As part of the geographic expansion of REN into new markets, we have entered into the Americas region and continue to see strong interest in our REN technology from banks and processors in South America as evidenced by the deals that we have announced and signed in the previous quarter |
| We believe REN is well-positioned to allow banks, Fintechs, and governments to keep pace with the ever-changing environment across the world of card-based and now account-based payments |
| Statement |
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| We do see, as I mentioned in previous calls, that just the inflationary pressures that we've seen in the United States and we see abroad have actually brought down the average amount sent per transaction |
| So that's where we've seen the pressure, not necessarily because of competitiveness, but just because the reality is these immigrates who have got mostly blue-collar jobs working hard, gas on their truck costs more than it did a year ago |
| So we were a little bit hesitant to just take out tons of ATMs before we knew how many travellers would really be there and if the sites are still good based upon travel changes and so forth |
| More than a bit of an overreaction, wouldn't you agree? At this time, we believe that our data, together with the research data coming out of Europe, showed that the shift was related to economic pressure on consumer spending in Europe rather than an abrupt shift from cash to cards |
| So it wouldn't even be that big a challenge shift |
| I'd like to remind you that over 80% of our international transactions are from Europeans travelling within Europe, so economic pressure on European customers is very, very relevant |
| And as Mike said, over the period that we've kind of been looking to see the recovery of travel from COVID, we were a little less aggressive on taking out a machine because we didn't really have a good visibility as to what that exact traffic would look like |
| And instead of -- and on average, our spend amount is down, call it, $20 |
| This resulted in less discretionary income when travelling |
| I was just wondering if you could talk about what you're seeing from a competitive standpoint because some of your competitors are being aggressive with promotional activity in the market |
| E-Pay margins came in a bit due to the mix of higher-value promotional transactions in the fourth quarter of last year |
| But with respect to kind of the macro changes, now that we're getting travelled back, I don't think we're going to see cyclicality after that |
| And the fact of the matter is their legacy platforms can't support the kind of solutions that customers are acting |
| We don't see, in general, it's much more competitive than it ever was |
| And then the ATMs themselves are probably -- they have been as high as a 30% margin, a 33% margin there, a little bit lower now because we don't have quite the productivity that we had in 2019 before the travel crisis, but that's coming back |
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