Euronet Services Announces Second Quarter Results
Euronet Services Announces Second Quarter Results
Euronet Services Announces Second Quarter Results LEAWOOD, Kansas, USA – July 31, 2000 – Euronet Services Inc. (Nasdaq: EEFT) recorded revenues of $12.9 million for the second quarter of 2000, an increase of 21% over second quarter 1999 revenues of $10.7 million. Euronet’s second quarter revenues also represent an increase of 8%, or $1 million, over first quarter 2000 revenues of $11.9 million.
The ATM Network Services Division posted a strong performance with revenues for the quarter of $8.9 million, up 51% over revenues of $5.9 million in the same period of 1999. The operating loss for the division was cut sharply to $1.6 million in Q2 2000 from $4 million in Q2 1999 and $2.8 million in Q1 2000. The EBITDA result for this division also improved significantly to positive $400,000 from negative $2.3 million in Q2 1999 and negative $800,000 in Q1 2000.
The Software Division continued its strong rebound from the Y2K slowdown. Software revenues increased by 8% over the first quarter of 2000, to $4.0 million in Q2 2000. This increase comes on top of a 40% increase in software revenues between the last quarter of 1999 and the first quarter of 2000. The software sales backlog has also increased to $3.4 million at June 30, 2000, from $2.7 million at March 31, 2000.
"We are very pleased with the ATM Network Services Division’s performance in improving both the operating loss and EBITDA by $1.2 million in just one quarter." said Michael Brown, Euronet’s Chairman and CEO. "We are also pleased with our software contract sales which reached a record level in the second quarter. As these contracts were signed late in the quarter we have not been able to recognize the revenue in Q2; however, future quarters will benefit from recognized revenue as the software is implemented. We also believe our new e-commerce and m-commerce products, such as the recently released wireless banking software, should provide further opportunities for sales growth."
The Company has shown continued improvement in its operating results. The operating loss for this quarter was $6.3 million, reduced from $7 million in Q2 1999 and $7.2 million in Q1 2000. EBITDA improved by 23%, from a loss of $4.7 million in Q2 1999 to a loss of $3.6 million for Q2 2000, and by 20% over Q1 2000’s negative EBITDA of $4.5 million. The Company’s net loss was $10.5 million for Q2 2000 as compared to $11.3 million for Q1 2000 and $6.9 million for Q2 1999.
The number of ATMs owned or operated by Euronet Services increased by 53% over the past year, from 1,644 ATMs at June 30, 1999 to 2,518 ATMs at the end of this quarter. Quarterly transactions on the network increased by 87%, from 6.9 million in Q2 1999 to 12.9 million in Q2 2000. As the growth in transactions outpaces the growth in ATM numbers, the average transaction level per ATM is increasing.
Euronet Services will host an analyst conference call on Tuesday, August 1st at 10 a.m. US Eastern time to further discuss these results. The conference call will be broadcast on the Internet, and can be accessed at www.vcall.com.
Euronet Services Inc. is a global leader in the rapidly evolving arena of electronic financial transactions and wireless connectivity for banks and retailers. The Company’s Arksys Software Division offers a suite of integrated retail banking products that include ATM management, POS and merchant systems, credit and debit card systems, wireless banking, internet banking, and telephone banking. Euronet also operates the largest independent ATM network in Europe and the Dash network in the US, and provides ATM management outsourcing services. Through Euronet’s two financial data centers in Europe and the US, the Company offers an advanced infrastructure for financial transaction processing services and connectivity to global, regional, and national electronic payment networks. Additional information is available at the Company’s web site, www.euronetservices.com.
Any statements contained in this news release which concern the Company's or management's intentions, expectations, or are predictions of future performance, are forward-looking statements. Euronet's actual results may vary materially from those anticipated in such forward-looking statements as a result of a number of factors, including: technological developments affecting the market for the Company’s products and services; foreign exchange fluctuations; and changes in laws and regulations affecting the Company's business. These risks and other risks are described in the Company's periodic filings with the Securities and Exchange Commission, including but not limited to Euronet's Form 10-K for the period ended December 31, 1999 and Form 10-Q for the period ended March 31, 2000. Copies of these filings may be obtained by contacting the Company or the SEC.
The ATM Network Services Division posted a strong performance with revenues for the quarter of $8.9 million, up 51% over revenues of $5.9 million in the same period of 1999. The operating loss for the division was cut sharply to $1.6 million in Q2 2000 from $4 million in Q2 1999 and $2.8 million in Q1 2000. The EBITDA result for this division also improved significantly to positive $400,000 from negative $2.3 million in Q2 1999 and negative $800,000 in Q1 2000.
The Software Division continued its strong rebound from the Y2K slowdown. Software revenues increased by 8% over the first quarter of 2000, to $4.0 million in Q2 2000. This increase comes on top of a 40% increase in software revenues between the last quarter of 1999 and the first quarter of 2000. The software sales backlog has also increased to $3.4 million at June 30, 2000, from $2.7 million at March 31, 2000.
"We are very pleased with the ATM Network Services Division’s performance in improving both the operating loss and EBITDA by $1.2 million in just one quarter." said Michael Brown, Euronet’s Chairman and CEO. "We are also pleased with our software contract sales which reached a record level in the second quarter. As these contracts were signed late in the quarter we have not been able to recognize the revenue in Q2; however, future quarters will benefit from recognized revenue as the software is implemented. We also believe our new e-commerce and m-commerce products, such as the recently released wireless banking software, should provide further opportunities for sales growth."
The Company has shown continued improvement in its operating results. The operating loss for this quarter was $6.3 million, reduced from $7 million in Q2 1999 and $7.2 million in Q1 2000. EBITDA improved by 23%, from a loss of $4.7 million in Q2 1999 to a loss of $3.6 million for Q2 2000, and by 20% over Q1 2000’s negative EBITDA of $4.5 million. The Company’s net loss was $10.5 million for Q2 2000 as compared to $11.3 million for Q1 2000 and $6.9 million for Q2 1999.
The number of ATMs owned or operated by Euronet Services increased by 53% over the past year, from 1,644 ATMs at June 30, 1999 to 2,518 ATMs at the end of this quarter. Quarterly transactions on the network increased by 87%, from 6.9 million in Q2 1999 to 12.9 million in Q2 2000. As the growth in transactions outpaces the growth in ATM numbers, the average transaction level per ATM is increasing.
Euronet Services will host an analyst conference call on Tuesday, August 1st at 10 a.m. US Eastern time to further discuss these results. The conference call will be broadcast on the Internet, and can be accessed at www.vcall.com.
Euronet Services Inc. is a global leader in the rapidly evolving arena of electronic financial transactions and wireless connectivity for banks and retailers. The Company’s Arksys Software Division offers a suite of integrated retail banking products that include ATM management, POS and merchant systems, credit and debit card systems, wireless banking, internet banking, and telephone banking. Euronet also operates the largest independent ATM network in Europe and the Dash network in the US, and provides ATM management outsourcing services. Through Euronet’s two financial data centers in Europe and the US, the Company offers an advanced infrastructure for financial transaction processing services and connectivity to global, regional, and national electronic payment networks. Additional information is available at the Company’s web site, www.euronetservices.com.
Any statements contained in this news release which concern the Company's or management's intentions, expectations, or are predictions of future performance, are forward-looking statements. Euronet's actual results may vary materially from those anticipated in such forward-looking statements as a result of a number of factors, including: technological developments affecting the market for the Company’s products and services; foreign exchange fluctuations; and changes in laws and regulations affecting the Company's business. These risks and other risks are described in the Company's periodic filings with the Securities and Exchange Commission, including but not limited to Euronet's Form 10-K for the period ended December 31, 1999 and Form 10-Q for the period ended March 31, 2000. Copies of these filings may be obtained by contacting the Company or the SEC.