Euronet Services Inc., operator of the only independent automatic teller machine (ATM) network in Central Europe, announced today that it recorded third quarter revenues of $1,577,000. This compares with revenues of $378,000 for the third quarter of 1996 and $1,061,000 for the second quarter of 1997. Revenues for the third quarter increased 49% over the second quarter.
Consistent with its business plan, Euronet reported that its net loss for the third quarter was $1,521,000, or $0.09 per share. Euronet’s loss was $907,000, or $0.07 per share, for the third quarter of 1996. The increased loss results from expenses associated with the continued aggressive expansion of operations in existing and new markets.
Euronet also announced that cash withdrawal and other transactions by cardholders over its ATM network in Hungary, Poland and Germany reached 560,106 in September and 647,675 in October. These figures compare with 548,350 transactions in August. The transaction figures reported for September and October include, for the first time, a significant level of transactions acquired under Euronet’s outsourcing contract with Budapest Bank. Euronet is now “driving” 45 Budapest Bank ATMs under that contract, which includes a fixed monthly fee per ATMs and a correspondingly lower transaction fee than the Company’s other contracts with banks .
The number of ATMs in Euronet’s independent network (exclusive of Budapest Bank ATMs) has increased to 503 at September 30, 1997 and 534 at October 31, 1997, up from 375 as at of June 30, 1997 and 405 at July 31, 1997.Euronet’s last public report of network size on June, 30 1997
Established in 1994, Euronet operates the only independent, non- bank owned ATM network in Central Europe. Through agreements and relationships with local banks, international card issuers and ATM networks such as American Express, VISA, Plus, MasterCard, Europay and Cirrus, Euronet’s ATMs are able to process ATM transactions for holders of credit and debit cards issued by or bearing the logos of such banks and card issuing organizations. In addition, Euronet offers outsourced ATM management services to local banks that own proprietary ATMs.
This press release contains forward-looking information within the meaning of Section 27A of the Securities Act of 1933 and Section 21 E of the Securities Exchange Act and is subject to the safe harbor created by those sections. Euronet assumes no obligation to update the information contained in this press release. Euronet’s operating results can be adversely affected by a number of factors, including (i) the management of growth, (ii) changes in laws and regulations affecting Euronet’s business in the countries in which it operates, (iii) cancellation or re-negotiation of contracts on which the company is dependent, (iv) competition, and (v) the level of card growth in emerging markets, any of which could cause actual results to vary materially from current results or Euronet’s anticipated future results. Additional explanation of these risks, and other risks, are set forth from time to time in Euronet’s periodic reports filed with the U.S. Securities and Exchange Commission, including, but not limited to, Euronet’s registration Statement on Form S-1 and the prospectus dated March 6, 1997.
EURONET SERVICES INC .
CONSOLIDATED INCOME STATEMENT
(In thousands, except per share data)
Three Months Ended Nine Months Ended
September 30 September 30
1997 1996 1997 1996
Revenue 1,577 378 3,433 638
ATM operating costs (1,393) (410) (3,046) (941)
Other operating costs (2,010) (840) (5,034) (2,365)
Operating loss (1,826) (872) (4,647) (2,668)
Other income (expenses) 305 (29) 555 (106)
Loss before income taxes (1,521) (901) (4,092) (2,774)
Deferred income tax benefit – (6) 129 219
Net loss (1,521) (907) (3,963) (2,555)
Loss per common and common
outstanding primary (0.09) (0.07) (0.24) (0.18)
Average common and common
outstanding primary 17,222,997 13,838,078 16,626,719 13,838,078