Euronet revenues rise, money transfer growth slows

Euronet revenues rise, money transfer growth slows

Euronet’s Q3 2022 results saw revenues rise 14% YoY to $931.3m. However, its money transfers segment, which includes Ria and XE, saw just 3% growth, compared to e-pay (4%) and electronic funds transfer (41%).

Euronet sees slowed money transfer growth in Q3 2022
Euronet money transfer performance 2016-2022

Here are the main highlights from Euronet’s Q3 2022 results:

  • Money transfer revenue, operating income and adjusted EBITDA grew 3%, 8% and 5% respectively. However, the money transfer segment continued to produce double-digit transaction growth on US and international-initiated transfers, as well as 40% growth in direct-to-consumer digital transfers.
  • Third quarter money transfers growth was buoyed by 14% growth in US-outbound transactions, 12% growth in international-originated money transfers and 21% growth in XE transactions, although this was partially offset by a 13% decline in the US domestic business.
  • However, the continuing strength of the US dollar became an increasing headwind in the quarter, with FX declines of 10-20% in key markets. As a result, on a constant currency basis the company saw overall revenues increase 27%, while money transfers grew 11%. Some of the most significant drops happened at the end of the quarter, suggesting this will continue into Q4.
  • The company’s money transfer segment increased its network locations by more than 22,000. However, it also closed approximately 20,000 locations in Russia, Belarus and Tajikistan during Q1 2022 when the company suspended its service to Russia. The closure of these locations had a nominal impact on revenue and operating profits.   
  • Euronet also gave an update on Dandelion, its platform offering which was also its core focus at Money20/20. During Q3, the company achieved 44% YoY revenue growth and is now exploring Dandelion partnerships with national/regional switches.
  • Despite ongoing FX challenges, Euronet expects full year growth in the “mid to upper teens” for 2022.

How does Euronet compete on pricing?

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