Euronet Worldwide (NasdaqEEFT), a leading provider of secure electronic
financial transaction solutions, announced revenues of $14.82 million for the
first quarter of 2001, an increase of 24% over first-quarter 2000 revenues of
Euronet’s first-quarter revenues also represent an increase of 7%, or $0.96
million, over fourth-quarter 2000 revenues of $13.86 million.
EBITDA improved by 67%, from negative $4.47 million in the first quarter 2000
to negative $1.47 million for the first quarter 2001. The Company also showed
improvement in its operating results. The operating loss was reduced from
million in the first quarter 2000 to $3.65 million in the first quarter 2001.
The Company’s net loss was $0.99 million for first quarter 2001 compared with
$11.29 million for the same period last year.
Euronet’s revenues, EBITDA and operating results exceeded all published
analysts’ expectations for the first quarter 2001.
“We are pleased to report strong financial results for the first quarter,”
Michael J. Brown, Euronet’s Chairman and CEO. “We are firmly committed to
becoming EBITDA positive for the second quarter.”
The Network Services Division posted a strong performance with first-quarter
revenues of $10.85 million, up 31% over revenues of $8.26 million for the same
period of 2000. This represents a 7% increase over fourth-quarter 2000
of $10.14 million and is the 24th consecutive quarter of revenue growth for
The Software Division revenues increased by 8% compared to the first
2000, to $3.98 million in first quarter 2001, up from $3.68 million in first
quarter 2000. This division’s revenues also increased 7% compared to
fourth-quarter 2000 revenues of $3.72 million. The Company expects to see a
continued improvement in operating costs during second quarter 2001 due to the
restructuring efforts undertaken in fourth quarter 2000 and first quarter
“We believe that the accelerating and recurring revenues of our ATM network,
our wireless banking and mobile recharge solutions will contribute to further
improvements in our EBITDA and operating results,” said Brown. “We are also
pleased with the performance of our software division this past quarter. We
believe the demand for our transaction software solutions combined with cost
reduction actions we have taken over the past several months will provide
improved and continued positive EBITDA. This division is an integral part of
our strategy for developing our secure electronic transaction payment
The Company’s ATM, POS, debit card, switching and transaction management
software (ITM) continues to be the preferred EFT solution for the IBM AS/400
platform worldwide. Implementation of Euronet’s integrated software solutions
during the past several months have included
— Arab / African International Bank-Egypt, ITM, ATM driving
— Arab Bank-Egypt, Wireless Banking
— Banco de Oro-Philippines, ITM, Internet Banking and Telephone
— Bank International Mozambique, Integrated Credit Card System
— Bank of Maldives, POS, IMS, TB, Telephone Banking
— Bank of Seylan, Visa Electron Issuing & Acquiring, Internet
— Century Bank-Zimbabwe, complete ITM solutions
— Egyptian Gulf Bank-Egypt, Internet Banking
— Maduro and Curiel Bank-Curacao, ATM ReCharge
— National Bank of Kuwait-Lebanon, Wireless Banking
— Old National BankCorp-USA, Debit Card Processing
The number of ATMs owned or operated by Euronet Worldwide increased by 12%
first quarter 2000 from 2,383 ATMs to 2,661 ATMs at the end of this quarter.
Quarterly transactions on the network increased by 35%, from 11.0 million in
first quarter 2000 to 14.9 million in first quarter 2001. Euronet owns and/or
operates ATMs in Hungary, Poland, Germany, Croatia, the Czech Republic,
the Middle East, the U.K., Greece and the U.S.
2001 FIRST-QUARTER HIGHLIGHTS
The following are highlights of business developments at Euronet Worldwide
during the first quarter
— Euronet Worldwide and Sila Communications signed a strategic alliance
whereby Sila Communications will market and deliver Euronet Worldwide’s suite
of wireless banking solutions to its customer base across Europe and Asia.
Targeting financial institutions such as banks, brokerage firms and credit
unions, Sila Communications will offer Euronet’s Account Access and Event
Messaging as a wireless ASP solution (Application Service Provider) in Europe
and throughout Asia / Pacific.
— Euronet Worldwide and Gemplus, the world’s number one provider of smart
card-based solutions, announced the signature of a strategic alliance whereby
Gemplus will market and deliver Euronet Worldwide’s expanding suite of
payment solutions to GSM mobile operators around the world.
— Euronet Worldwide and National Telecommunications Company (NTC), a
technology-based holding company in Egypt and the Middle East, announced today
the forming of Cashnet, a branded Electronic Fund Transfer (EFT) network.
Cashnet is a joint venture between Euronet, NTC and Quantum Fund, a member of
the George Soros group of funds.
— Euronet was selected to provide ATMs and other value-added ATM services for
Alldays convenience store locations in the United Kingdom. Euronet is the
independent ATM operator selected by Alldays and will provide Alldays with ATM
site identification, installation, monitoring, dispatch, maintenance,
telecommunications, cash delivery, authorization and customer support.
headquartered in Eastleigh, England, is considered one of the most dynamic
convenience store groups in the UK.
— Euronet Worldwide was selected to provide its mobile phone recharge
by Polkomtel S.A. which operates its consumer brand as Plus GSM. Plus
can now purchase prepaid mobile phone vouchers at approximately 420 Euronet
ATMs in Poland. Plus GSM is the second-largest mobile phone operator in Poland
with more than 2.5 million customers, 34% being prepaid, and has the largest
base of corporate customers. With this agreement, Euronet now provides this
service to all three GSM mobile operators in Poland.
— Euronet Worldwide was selected by retailer Saks Incorporated to provide
outsource services for automatic teller machines (ATMs) via Euronet
DASH Network. Euronet is deploying ATMs for five Saks’ Department Store Group
divisions with locations in Alabama, Mississippi, Wisconsin, Michigan,
Minnesota, Illinois, Iowa, Louisiana and Tennessee.
— Euronet Worldwide and Greek mobile operator Stet Hellas Telecommunications
S.A. signed an agreement to jointly offer mobile banking solutions to
institutions in Greece. Targeting financial institutions such as banks, credit
unions, brokerages and mutual fund companies, Stet Hellas and Euronet will
offer Short Message System (SMS)- and Wireless Access Protocol (WAP)-based
account access and event messaging services.
— Euronet Worldwide was selected to provide its wireless banking solution for
the National Bank of Kuwait (NBK) allowing the banks’ customers access to
personal financial information. NBK-L, an affiliate of one of the largest
in the Middle East, the National Bank of Kuwait, is the first bank in Lebanon
to offer this new wireless banking system, which has been deployed in
conjunction with GSM operator, Libancell.
— Euronet Worldwide announced it installed its Integrated Debit Card System
(IDCS) for Fortis Bank SA in Poland. The bank will employ Euronet’s IDCS to
issue and manage Visa Electron debit cards for its customers. This technology
allows the bank to issue charge and debit cards enabling the authorization of
on-line transactions. The new debit card product will be targeted to both
individual and institutional customers and is one of the most comprehensive in
the Polish market.
— Euronet Worldwide announced it was selected to operate Bank Austria
Creditanstalt’s ATM network in the Czech Republic. This agreement provides
complete outsourcing services including ATM installation, monitoring,
maintenance, telecommunications, cash delivery, authorization, and customer
support. Additionally, Bank Austria Creditanstalt will be one of the first
banks to offer the sale of pre-paid GSM airtime through ATMs in the Czech
About Euronet Worldwide
Euronet Worldwide 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. These solutions enable their
customers to access personal financial information and perform secure
transactions — any time, any place. The company has processing centers
in the United States, Europe and Asia, including owning and operating the
largest independent ATM network in Europe. Euronet was recently ranked number
two on the Deloitte & Touche Technical Fast 500, a ranking of the
fastest-growing technology companies in North America. With corporate
headquarters in Leawood, Kansas, USA, and European headquarters in Budapest,
Hungary, Euronet serves more than 200 clients in 60 countries. 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
to, Euronet’s Forms 10-Q for the periods ended March 31, 2000, June 30, 2000,
and September 30, 2000, and its Form 10-K for the period ended December 31,
2000. Copies of these filings may be obtained by contacting the company or the