Euronet Worldwide (EEFT) has reported 13.73 percent fall in profit for the quarter ended Dec. 31, 2016. The company has earned $28.90 million, or $0.54 a share in the quarter, compared with $33.50 million, or $0.61 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $53.70 million, or $0.99 a share compared with $50.90 million or $0.92 a share, a year ago.
Revenue during the quarter grew 10.45 percent to $519.80 million from $470.60 million in the previous year period. Gross margin for the quarter contracted 11 basis points over the previous year period to 38.25 percent. Total expenses were 88.82 percent of quarterly revenues, up from 88.27 percent for the same period last year. That has resulted in a contraction of 55 basis points in operating margin to 11.18 percent.
Operating income for the quarter was $58.10 million, compared with $55.20 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $83.30 million compared with $76.90 million in the prior year period. At the same time, adjusted EBITDA margin contracted 32 basis points in the quarter to 16.03 percent from 16.34 percent in the last year period.
"I am pleased to report double-digit consolidated revenue growth in the fourth quarter with all three segments contributing to the growth," stated Michael J. Brown, Euronet's chairman and chief executive officer. "Money Transfer continued their momentum delivering strong growth across all metrics. epay delivered solid results led by good sales of non-mobile content in its seasonally strongest quarter, and EFT deployed record levels of high-value ATMs in the fourth quarter and delivered strong revenue and transaction growth despite cash limitations in India."
Guidance
The Company currently expects adjusted earnings per share for the first quarter 2017, assuming foreign currency exchange rates remain stable through the end of the quarter, to be approximately $0.73, recognizing increased ATM operating costs in the seasonally lowest quarter of the year together with the impacts of the India cash demonitization subsiding by the end of the first quarter.
Debt increases substantiallyEuronet Worldwide has witnessed an increase in total debt over the last one year. It stood at $604.20 million as on Dec. 31, 2016, up 42.60 percent or $180.50 million from $423.70 million on Dec. 31, 2015. Total debt was 22.33 percent of total assets as on Dec. 31, 2016, compared with 19.32 percent on Dec. 31, 2015. Debt to equity ratio was at 0.67 as on Dec. 31, 2016, up from 0.51 as on Dec. 31, 2015. Interest coverage ratio deteriorated to 7.75 for the quarter from 8.76 for the same period last year. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
