Euronet CEO Mike Brown was in a positive mood during his call with investors this past week. Despite ongoing lockdown restrictions continuing to hit the company’s European Foreign Travel segment, its Money Transfer segment, which covers both Ria and XE, helped it achieve overall year-on-year revenue growth of almost 12%.
Some of our takeaways:
- The money transfer segment (Ria & XE) saw 17% growth year-on year on a constant currency basis. The company attributes this both to a historical focus on building its physical network, as well as investments in digital growth amid the pandemic.
- Digital channels saw transaction growth of over 125%, driven by more digital partnerships as well as the expansion of riamoneytransfer.com, which grew from availability in 9 countries at the start of 2020, to 22 at the end of Q1 2021.
- Bank deposit transactions for money transfer grew 48% and volume grew 57% year-on-year, benefiting from the shift away from cash in the pandemic.
- Growth was particularly strong in the company’s most profitable corridors, with a 28% increase in US outbound and a 27% increase in international-origin money transfers.
- Overall revenue is expected to grow 30-35% year on year in Q2, with the money transfer segment growing at the same rate.