Euronet growth driven by Ria and Xe money transfers in FY 2023

Euronet growth driven by Ria and Xe money transfers in FY 2023

Euronet revenues rose 11% to $958m in Q4 2023, bringing its full year revenues to $3.7bn, a 10% increase. Euronet’s money transfer division – led by Ria and Xe – contributed a record $405.1m during the quarter and $1.6bn over the course of the year, making this segment key to overall growth – though it has formed a smaller share of yearly revenues for the company for the fourth year in a row.

Money transfers are a major contributor to Euronet revenues
Euroney yearly revenues split by segment, 2018-2023

In terms of profitability, Euronet reported a 16% rise in adjusted EBITDA for Q4 to $148m, while for the full year EBITDA rose 9% to $619m. On the money transfer side, adjusted EBITDA rose by 23% to $59m, while for the full year it rose by 15% to $216m. Over the full year, the EBITDA margin for the money transfer segment rose slightly YoY, from 13% to 13.9%.

Key growth drivers for money transfers in Q4 and FY 2023

Looking specifically at Euronet’s money transfer segment, Q4 saw expanded growth once again compared to previous years, as revenues rose by 9% to give the company’s first $400m-plus quarter.

Ria, Xe drive Euronet's first $400m+ quarter for money transfers
Euronet quarterly money transfer division (Ria & Xe) performance, 2018-2023

One of the biggest growth figures was direct-to consumer digital transactions, where Euronet saw 20% growth in Q4 and 26% growth over the course of the year. 

This aligns with continued growth in digital across other key money transfer players seen last year, including for Western Union, Intermex and OFX. Xe also saw a 17% rise in transactions for the quarter and 23% growth over the course of the year, though this has been offset by a decline in intra-US business. 

In terms of other segments, Euronet’s epay segment grew 11% to $317m during the quarter, while EFT Processing grew by 13% to $238m. 

Ria network locations continue to rise
Euronet quarterly money transfer division transactions and network locations

In terms of US-outbound transactions – a major segment for Euronet – this grew by 8% during Q4 and 10% over the course of the year. Beyond the US, international-originated money transfers overall grew 12% in 2023, while transfers initiated in the Middle East and Asia increased by 14%. Europe-originated transactions grew 12% and transfers from countries in the Americas excluding the US grew 10%.

Although transactions and revenues have continued to improve, the company did note that revenue growth had exceeded transaction growth due to a decrease in the average amounts being sent, which it linked to inflationary pressures damaging spending in certain geographies. Euronet also noted that it had increased its number of network locations by 11% to 580,000. 

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