Euronet Reports Strong Q3 Despite Currency Fluctuations
Euronet Worldwide, a global leader in money transfer services, has reported a strong third quarter despite currency fluctuations. The company's revenue grew 14% year-over-year (YoY) to $931.3 million, driven by its money transfer segment. However, the strong US dollar led to foreign exchange (FX) declines of 10-20% in key markets, impacting overall revenue growth.
Euronet's money transfer segment delivered robust growth, with revenue, operating income, and adjusted EBITDA increasing by 3%, 8%, and 5% respectively. This was fuelled by double-digit transaction growth in both US and international-initiated transfers, and a staggering 40% growth in direct-to-consumer digital transfers. The company competes effectively by offering competitive pricing strategies tailored to different regional markets, attracting and retaining customers.
The segment expanded its network locations by over 22,000, but it also closed around 20,000 locations in Russia, Belarus, and Tajikistan due to geopolitical reasons. US-outbound transactions grew 14%, international-originated money transfers grew 12%, and XE transactions grew 21%. However, the US domestic business declined 13%.
Euronet's Dandelion platform, a digital account-to-account money transfer service, achieved 44% YoY revenue growth and is actively exploring partnerships with national and regional switches.
Euronet expects full year growth in the 'mid to upper teens' for 2022, reflecting the company's strong performance in the money transfer segment. Despite FX headwinds, Euronet's competitive pricing strategies and digital growth initiatives continue to drive its revenue and transaction volumes. The company's expansion of network locations and partnerships, coupled with its robust digital growth, position it well for future growth.
