Euronet Worldwide Announces Record Revenues and Continued EBITDA Improvement for Year 2000

February 19, 2000 at 12:00 AM EST
Euronet Worldwide Announces Record Revenues and Continued EBITDA Improvement for Year 2000 February 19, 2001, Leawood, Kansas, USA – Euronet Worldwide (NASDAQ: EEFT), a leading provider of secure electronic financial transaction solutions, announced revenues of $52.7 million for 2000, an increase of 27% over 1999 revenues of $41.5 million. Revenue for the fourth quarter of 2000 was $13.9 million, an increase of 29% over Q4 1999 revenues of $10.8 million.

In addition to strong revenue growth, the Company has shown consistent improvement in its results over the past four quarters. The ATM network produced a positive EBITDA of $1.5 million for the full year 2000 and a positive EBITDA of $1.3 million for the fourth quarter. This is a $7 million swing from the 1999 ATM network EBITDA of negative $5.5 million. Overall EBITDA on a consolidated basis was negative $14.2 million for 2000 and negative $2.7 million for the fourth quarter. This is a $2.4 million improvement over 1999 consolidated EBITDA of negative $16.6 million.

“We are very pleased with this quarter’s results,” said Michael Brown, Euronet’s Chairman and CEO. “Achieving EBITDA positive results for the ATM network for the full year 2000 is a major milestone, confirming the success of our business strategy. This segment of our business provides a solid foundation for growth. Of the $10.4 million in revenue growth we experienced in 2000 for the ATM network, $7 million found its way to our EBITDA line.”

Software revenues also grew from $15 million for 1999 to $15.8 million for 2000. The fourth quarter 2000 revenues for software were 42% higher than the previous year’s fourth quarter with Q4 2000 revenues of $3.7 million compared to Q4 1999 revenues of $2.6 million. Mr. Brown said, “Our software business presented a challenge for us in 2000. We have taken the necessary steps during the past two quarters to bring our costs in line with revenue expectations, and we are confident that the steps we have taken will result in improved EBITDA performance for 2001.”

As of December 31, 2000, Euronet owned and/or operated a total of 2,634 ATMs, compared with 2,283 ATMs at the year-end 1999. Euronet owns and/or operates ATMs in Hungary, Poland, Germany, Croatia, the Czech Republic, France, the U.K., Greece and the U.S.

Euronet Services will host an analyst conference call on Tuesday, February 20, 2001 at 10 a.m. US Eastern Standard time to further discuss these results. The conference call will be broadcast on the Internet, and can be accessed via the Euronet Worldwide Internet site at www. euronetworldwide.com or via Vcall at www.vcall.com.

FOURTH QUARTER HIGHLIGHTS

The following are highlights of business developments at Euronet Worldwide during the fourth quarter:

Aether Systems and Euronet Worldwide announced plans to create and market wireless financial services products featuring any time, any place access, rapid deployment, and personalized alert capabilities in an end-to-end, ASP solution.

ALLTEL and Euronet Worldwide announced they will develop a first-of-its-kind software application that will allow ALLTEL’s wireless Internet customers to access their bank accounts at virtually any bank in the world.

Euronet Worldwide was recognized as second fastest growing technology company by Deloitte & Touche in North America. Euronet received this honor based on its five-year revenue growth of 66,790 percent.

Euronet Worldwide established a transaction record for the year 2000 with a 60% increase over 1999. This growth trend continued during the fourth quarter of 2000, typically Euronet’s strongest transaction period, with an increase of 39% over Q4 1999. This trend is extremely positive considering that the number of Euronet ATMs grew by only 15% during 2000.

Euronet Worldwide completed a major electronic transaction software installation for NovaBank in Greece, a new financial institution that entered the Greek retail banking market with the simultaneous opening of 45 branches on September 21, 2000. Euronet installed its core middleware product as well as modules for debit card system management, ATM network management, and ATM bill-pay.

Centertel selected Euronet Worldwide to provide its ATM Mobile ReCharge service for customers of their pre-paid GSM service in Poland. Euronet ATM ReCharge enables Centertel’s customers to automatically add minutes to their pre-paid mobile phone accounts online at approximately 450 Euronet ATMs in Poland.

VIPnet, the first private GSM mobile service company in Croatia, selected Euronet Worldwide to provide its ATM Mobile ReCharge service allowing its prepaid customers to purchase mobile airtime at approximately 80 Raiffeisenbank Austria (RBA) ATMs operated by Euronet.

About Euronet Worldwide

Euronet Worldwide is a global provider of secure electronic financial transaction solutions. The company provides financial payment middleware, financial network gateways, outsourcing, and consulting services to financial institutions, brokerages, and mobile operators, in turn enabling their customers to access to their personal financial information and perform secure financial transactions -- any time, any place. The company’s proprietary transaction management system powers financial transaction solutions for over 200 clients in 60 countries as well as the company’s processing centers located in the United States, Europe and Asia. Euronet was recently ranked number two on the Deloitte & Touche Technical Fast 500, a ranking of the fastest growing technology companies in North America. The company owns and operates the largest independent ATM network in Europe with corporate headquarters in Leawood, Kansas, USA, and European headquarters in Budapest, Hungary. Visit our web site at www.euronetworldwide.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 Forms 10-Q for the periods ended March 31, 2000, June 30, 2000 and September 30, 2000. Copies of these filings may be obtained by contacting the company or the SEC.

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