Euronet Worldwide Inc. (EEFT, Financial) filed Quarterly Report for the period ended 2009-03-31.
Euronet Services Inc. is an industry leader in providing secure electronic financial transaction solutions. The company offers financial payment middleware financial network gateways outsourcing and consulting services to financial institutions and mobile operators. (Press Release) Euronet Worldwide Inc. has a market cap of $777.3 million; its shares were traded at around $15.42 with a P/E ratio of 12.3 and P/S ratio of 0.8. Euronet Worldwide Inc. had an annual average earning growth of 23.7% over the past 5 years.
For the contracts that expired during the fourth quarter 2008 and first quarter 2009, excluding the substantial termination fees described above, we estimate that the impact to 2009 will be a reduction in revenues of approximately $15 million to $16 million, resulting in reduced operating income of approximately $3 million to $4 million. We cannot be sure we will have sufficient revenues from new contracts to offset potential revenue reductions from expired or restructured agreements.
Gross profit, which is calculated as revenues less direct operating costs, increased to $27.3 million for the first quarter 2009 from $26.5 million for the first quarter 2008. This increase is mainly attributable to the contract termination fee revenues discussed above, partly offset by the impact of the strengthening U.S. dollar. Gross profit as a percentage of revenues (gross margin) was 59% for the first quarter 2009 compared to 55% for the first quarter 2008 mainly as a result of the non-recurring contract termination fees discussed above, partly offset by increased contributions of our subsidiaries in India and China, which have historically earned a lower gross margin than our other operations.
The increase in operating income was primarily due to the substantial contract termination revenues described above, partly offset by the impact of the strengthening U.S. dollar. Operating income as a percentage of revenues for the first quarter 2009 was 26%, compared to 21% for the first quarter 2008, and operating income per transaction was $0.07 for the first quarter 2009, compared to $0.06 per transaction for the first quarter 2008.
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Euronet Services Inc. is an industry leader in providing secure electronic financial transaction solutions. The company offers financial payment middleware financial network gateways outsourcing and consulting services to financial institutions and mobile operators. (Press Release) Euronet Worldwide Inc. has a market cap of $777.3 million; its shares were traded at around $15.42 with a P/E ratio of 12.3 and P/S ratio of 0.8. Euronet Worldwide Inc. had an annual average earning growth of 23.7% over the past 5 years.
Highlight of Business Operations:
Average monthly revenue per ATM was $1,639 for the first quarter 2009, compared to $1,366 for the first quarter 2008 and revenue per transaction was $0.29 for both the first quarter 2009 and 2008. The increase in revenue per ATM is generally the result of the non-recurring contract termination fees discussed above and the expiration of an ATM services contract in the U.K. at the end of the first quarter 2008. The U.K. contract involved processing services only, with very little associated costs and, therefore, had lower-than-average revenue per ATM. As of March 31, 2008, we were providing processing services for approximately 2,400 ATMs under this contract prior to its expiration. Partly offsetting the improvement in average revenue per ATM is the addition of ATMs in India and China, where revenues per ATM have been historically lower than Central and Eastern Europe (due to lower labor costs).For the contracts that expired during the fourth quarter 2008 and first quarter 2009, excluding the substantial termination fees described above, we estimate that the impact to 2009 will be a reduction in revenues of approximately $15 million to $16 million, resulting in reduced operating income of approximately $3 million to $4 million. We cannot be sure we will have sufficient revenues from new contracts to offset potential revenue reductions from expired or restructured agreements.
Gross profit, which is calculated as revenues less direct operating costs, increased to $27.3 million for the first quarter 2009 from $26.5 million for the first quarter 2008. This increase is mainly attributable to the contract termination fee revenues discussed above, partly offset by the impact of the strengthening U.S. dollar. Gross profit as a percentage of revenues (gross margin) was 59% for the first quarter 2009 compared to 55% for the first quarter 2008 mainly as a result of the non-recurring contract termination fees discussed above, partly offset by increased contributions of our subsidiaries in India and China, which have historically earned a lower gross margin than our other operations.
The increase in operating income was primarily due to the substantial contract termination revenues described above, partly offset by the impact of the strengthening U.S. dollar. Operating income as a percentage of revenues for the first quarter 2009 was 26%, compared to 21% for the first quarter 2008, and operating income per transaction was $0.07 for the first quarter 2009, compared to $0.06 per transaction for the first quarter 2008.
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