Earnings call: Euronet Worldwide reports record-breaking Q2 results

Euronet Worldwide Inc. (NASDAQ:EEFT) delivered a strong second quarter 2024 with record performance across all key metrics. Revenue was $986 million, adjusted operating income was $134 million, adjusted EBITDA was $178 million and adjusted EPS was $2. 25.

Growth was most notable in the EFT segment, which recorded double-digit growth, with EPAY and remittance segments also showing strong growth. Euronet ended the quarter with a strong balance sheet, including $1. 27 billion in unrestricted cash.

Key Takeaways

• Euronet Worldwide delivered record performance in the second quarter 2024.
• The EFT division achieved double-digit growth driven by improving travel and business expansion trends.
• The EPAY segment's core business grew 10%, remaining in line with the prior-year period.
• Remittance revenues increased 8%, driven by cross-border and digital transactions.
• Euronet acquired $114 million in equity, expanding operating margins by 90 basis points.
• Unrestricted cash and debt ended the quarter at $1. 27 billion and $2. 27 billion, respectively.
• New strategic partnerships and the expansion of the Dandelion network contributed to growth.

Company Outlook

• Euronet expects double-digit consolidated growth again in the quarter.
• It plans to make strategic investments and expand into new countries.
• We expect EPAY operating margins to improve in the second half of the year.

Bearish Highlights

• The company faces pricing pressure from Internet banks.
• Two competitors have exited the market, signaling a tough competitive environment.

Bullish Highlights

• Strong growth in the EFT division should continue, supported by a favorable travel market.
• New merchant services and ATM outsourcing deals are expected to drive further expansion.
• Strategic acquisitions and partnerships, such as those with Banco Activo and WeChat, are strengthening the global payments network.

Misses

• No specific financial losses were reported during the earnings call.

Q&A Highlights

• Certain markets could benefit from corridor deals despite lower local fees.
• Курсы валют выросли в Нидерландах и Румынии, что способствовало росту маржи.
• Компания имеет возможность гибко устанавливать внутренние тарифы на доступ, которые могут заменить валютные сборы и повысить маржу.
• Увеличение расходов на цифровой маркетинг привело к положительным результатам, особенно на рынке США.

In the second quarter of the Euro Net Worldwide 2024, the market environment and effective management management have achieved significant growth and strategic expansion, achieving record achievements. The tw o-digit growth in the EFT department supports the company's solid position in the recovery travel market and the success of the commercial service business. The EPAY and remittance sector contributed to the overall performance, and the latter benefited from the growth of crossbords and digital transactions.

Strategic movements of Euronnet, such as i n-house stock buying and expanding operating margins, reflect Euronnet's financial stability and sel f-confidence in the future. Partnerships and new contracts for multiple euronet segments indicate that they are focusing on diversification growth and global payment networks.

Despite competition pressure and the withdrawal of the two major competitors, Euronnet management continues to be optimistic to maintain growth orbit. The fact that the company can set domestic access fees and manage prices flexibly indicates the possibility that the margin structure can be improved in the future.

Overall, the Euronnet Worldwide's second quarter was an advantageous position for continuous success, with a view to strategic investment and market expansion. The company, which focuses on improving business efficiency and the use of growth opportunities, is expected to support continuous financial soundness and shareholder value.

InvestingPro Insights

The Euronnet Worldwide Ink (EEFT) has not only achieved great achievements in the second quarter, but also shows powerful indicators that are interested in investors who are looking for solid financial results and potential value. There is.

According to InvestingPro data, the market capitalization is $ 455 billion, and the healthy PER has been adjusted to 15. 93 in the past 12 months as of the first quarter of 2024, which is a reasonable evaluation from the company's revenue. Suggests. Furthermore, the revenue growth rate during the same period has maintained a strong performance of 9. 64%, indicating a sustainable business expansion.

According to Investing Professional advice, management's confidence is reflected in aggressive stock purchases, which often shows the company's conviction to the cheapest shares and a commitment to reducing value to shareholders. In addition, the company is trading with a lo w-priced PER in the short term, which can be an attractive entry point for investors.

If you are interested in further analysis and additional advice, you can get more information on InvestingPro. For example, there are hints that the company predicts that the company will be in the black this year and that it has been black for the past 12 months. In addition, it is noteworthy that Euronnet has not paid a dividend.

HTTPS: // www for details on the soundness of the Euronnet Worldwide financial financialness and the additional advice of Investing Pro. See INVESTING. COM/PRO/EEFT. In addition, if you use the coupon code "Pronews24", you can find up to 10 % of the annual professional subscription and annual or hal f-year professional + subscription, and you can see more insights and experts. The EEFT has a total of five InvestingPro Tips, providing deeper analysis for investment decisions.

Full transcript - Euronet Worldwide (EEFT) Q2 2024:

Welcome to the Operator Euronnet Worldwide's 2-quarter of 2024 financial statements. Currently, the participants are only listening. The Q & A session is performed after the speaker's presentation. To ask a question in this session, press the phone star one button. Then, an automatic message that informs you that your hand has raised it will flow. To withdraw the question, press Star One Wan again. Today's meeting has been recorded. Today's moderator, Adam Godders, a Euronnet Worldwide law advisor. thank you.

Adam Godders: Thank you. Good morning, everyone. Welcome to the Euronnet's 2-quarter of 2024 financial statement conference. The president and CEO Mike Brown and CFO's Rick Weller are attending today. Before starting a phone call, please note the disclaimers listed in the second slide of the power point to be announced today. The description of the Euro Net or its management's intentions, expectations, or future business predictions in this telephone conference is a description of future prospects. The actual achievements of Euronnet may be greatly different from what is expected in these future outlooks as a result of a specific factor, including what is described in the second slide of the presentation. 。 In addition, the PowerPoint presentation contains a coordinating table of no n-GAAP financial indicators used during calls and the most comparable GAAP financial indicators. Then, take over the call to CFO Rick Weller.

Rick Weller: Thank you Adam. First, let's talk from Slide 5. The sales were $ 986 million, the operating profit after adjustment was $ 134 million, the EBITDA was $ 178 million after the adjustment, and the EPS after adjustment was $ 2. 25. EMH led these achievements, achieving tw o-digit exchange growth rate in all financial indicators. Regarding EPAY, the performance was comparable to the previous year, and for remittances, we achieved a solid increase in sales and a small operating profit on a base except for the effects of foreign exchange fluctuations. After the quarterly adjustment, the EPS increased 11%compared to the same period of the previous year, and in consideration of the first half of this year, it has increased by about 16. 5%compared to the same period of the previous year. You can see that we are going to achieve the business guidance range we have told you, and we are preparing for the opportunity to exceed the range. In addition, this term has continued to create powerful free cash flows, creating more than $ 80 million free cash flows. In addition, due to the lack of larg e-scale acquisitions and other free cash flow, we purchased $ 114 million (about 2 % of the issued shares). Considering the timing of repurchase, the profit generated was only small. < SPAN> Rick Weller: Thank you Adam. First, let's talk from Slide 5. The sales were $ 986 million, the operating profit after adjustment was $ 134 million, the EBITDA was $ 178 million after the adjustment, and the EPS after adjustment was $ 2. 25. EMH led these achievements, achieving tw o-digit exchange growth rate in all financial indicators. Regarding EPAY, the performance was comparable to the previous year, and for remittances, we achieved a solid increase in sales and a small operating profit on a base except for the effects of foreign exchange fluctuations. After the quarterly adjustment, the EPS increased 11%compared to the same period of the previous year, and in consideration of the first half of this year, it has increased by about 16. 5%compared to the same period of the previous year. You can see that we are going to achieve the business guidance range we have told you, and we are preparing for the opportunity to exceed the range. In addition, this term has continued to create powerful free cash flows, creating more than $ 80 million free cash flows. In addition, due to the lack of larg e-scale acquisitions and other free cash flow, we purchased $ 114 million (about 2 % of the issued shares). Considering the timing of repurchase, the profit generated was only small. Rick Weller: Thank you Adam. First, let's talk from Slide 5. The sales were $ 986 million, the operating profit after adjustment was $ 134 million, the EBITDA was $ 178 million after the adjustment, and the EPS after adjustment was $ 2. 25. EMH led these achievements, achieving tw o-digit exchange growth rate in all financial indicators. Regarding EPAY, the performance was comparable to the previous year, and for remittances, we achieved a solid increase in sales and a small operating profit on a base except for the effects of foreign exchange fluctuations. After the quarterly adjustment, the EPS increased 11%compared to the same period of the previous year, and in consideration of the first half of this year, it has increased by about 16. 5%compared to the same period of the previous year. You can see that we are going to achieve the business guidance range we have told you, and we are preparing for the opportunity to exceed the range. In addition, this term has continued to create powerful free cash flows, creating more than $ 80 million free cash flows. In addition, due to the lack of larg e-scale acquisitions and other free cash flow, we purchased $ 114 million (about 2 % of the issued shares). Considering the timing of repurchase, the profit generated was only small.

Expansion into new markets and rationalization of ATM assets, as well as efficient cost management. Both revenue and effective cost management contributed to EFT's margin expansion to a roughly 300% operating base. EPAY's performance was broadly in line with the prior year across all metrics, with the core Epay content contributing business up 10% in the same metric range. As has been the case for the past two years, quarterly performance may vary due to the timing of Epay's client advertising activity. We saw some strong advertising activity in the second quarter of last year (2023), which was not repeated in the second quarter of this year. However, we have a great pipeline of advertising activity that we expect to execute for the remainder of the period, with a focus on the fourth quarter, which coincides with seasonal sales in the Epay business. While these second quarter results are indicative of growth in the current quarter, we continue to believe Epay will deliver mid-to-high single-digit revenue growth, and depending on consumer demand, we may see a path to double-digit operating profit growth for the full year. Capital gains increased 8%, operating income increased 2% and adjusted EBITDA decreased 1%. Fixed revenue increased 8% due to expansion into new markets and rationalization of ATM assets, as well as efficient cost management. Both revenue and effective cost management contributed to EFT margin expansion to an operating base of approximately 300. EPAY performance was broadly in line with the prior year across all metrics, with the core Epay content contribution business increasing 10% across the metric range. As has been the case for the past two years, quarterly performance may vary due to the timing of Epay customer advertising activity. In the second quarter of last year (2023), we saw some strong advertising activity, which was not repeated in the second quarter of this year. However, we have an impressive pipeline of advertising activity that we expect to execute for the remainder of the period, with a focus on the fourth quarter, which coincides with seasonal sales in the Epay business. While these second quarter results are indicative of growth in the quarter, we continue to believe Epay will deliver mid-to-high single-digit revenue growth and, depending on consumer demand, may see a path to double-digit operating profit growth for the full year. Transfer income increased 8%, operating profit increased 2% and adjusted EBITDA decreased 1%. Fixed revenue increased 8% due to expansion into new markets and rationalization of ATM assets, as well as efficient cost management. Both revenue and effective cost management contributed to EFT's margin expansion to an operating base of approximately 300. EPAY's performance was broadly in line with the prior year across all metrics, with core Epay content contributing business up 10% in the metric range. As has been the case for the past two years, quarterly performance may vary due to the timing of Epay's customer advertising activities. We had some strong advertising activity in the second quarter of last year (2023) that was not repeated in the second quarter of this year. However, we have a great pipeline of advertising activity that we expect to execute for the remainder of the period, with a focus on the fourth quarter which coincides with seasonal sales in the Epay business. While these second quarter results are indicative of growth in the quarter, we continue to believe Epay will deliver mid to high single digit revenue growth and, depending on consumer demand, may see a path to double digit operating profit growth for the full year. Capital gains increased 8%, operating profit increased 2% and Adjusted EBITDA decreased 1%. Fixed revenue increased 8%

In addition, we were able to make flexible investments for future digital remittances, which gained confidence to achieve 10 % to 15 % profits every year. Let's move to the microphone. In addition, there is also the flexibility of investing digital growth in future remittances, gaining even more confidence in the ability to achieve 10 % to 15 % of the annual basis. Let's move to the microphone. In addition, by flexibly investing in digital growth in future remittances, you will be more confident in the ability to achieve profit growth within 10 % to 15 % in annual ratio. Let's move to the microphone. < SPAN> In addition, the fact that flexible investment in the future of digital remittances grows, gaining confidence to achieve 10 % to 15 % profits every year. Let's move to the microphone. In addition, there is also the flexibility of investing digital growth in future remittances, gaining even more confidence in the ability to achieve 10 % to 15 % of the annual basis. Let's move to the microphone. In addition, by flexibly investing in digital growth in future remittances, you will be more confident in the ability to achieve profit growth within 10 % to 15 % in annual ratio. Let's move to the microphone. In addition, we were able to make flexible investments for future digital remittances, which gained confidence to achieve 10 % to 15 % profits every year. Let's move to the microphone. In addition, there is also the flexibility of investing digital growth in future remittances, gaining even more confidence in the ability to achieve 10 % to 15 % of the annual basis. Let's move to the microphone. In addition, by flexibly investing in digital growth in future remittances, you will be more confident in the ability to achieve profit growth within 10 % to 15 % in annual ratio. Let's move to the microphone.

Michael Brown: Rick, and everyone, thank you today. First of all, I will comment on the transparency No. 10. As you can see from the green trend line (small dotted line) of the graph, we continue to take tw o-digit profit increase, which reflects the consistency of the annual consolidated business performance. Considering this achievement, I think it is an opportunity to emphasize the success of the achievements by diversifying and expanding businesses for all three segments. We are fully aware that this diversification may vary in delivery of each segment that contributes to the annual consolidated performance. In the EFT before COVID, our achievements were almost linked to the number of travelers to Europe in the summer. Although it is still important for travelers for annual business performance, it is related to tourists in Europe due to the effects of new acquisitions such as POS transactions in new markets other than Europe, POS transactions in the acquisition of member stores, and new acquisitions such as Infinitium. Profit and profits from ATM transactions that do not do are diversified. Rick states that the growth of the core business continues to be strong in EPAY, and this term has increased 10%yea r-o n-year. We have been growing this core business by expanding new products and new markets < Span> Michael Brown: Rick, and everyone today. First of all, I will comment on the transparency No. 10. As you can see from the green trend line (small dotted line) of the graph, we continue to take tw o-digit profit increase, which reflects the consistency of the annual consolidated business performance. Considering this achievement, I think it is an opportunity to emphasize the success of the achievements by diversifying and expanding businesses for all three segments. We are fully aware that this diversification may vary in delivery of each segment that contributes to the annual consolidated performance. In the EFT before COVID, our achievements were almost linked to the number of travelers to Europe in the summer. Although it is still important for travelers for annual business performance, it is related to tourists in Europe due to the effects of new acquisitions such as POS transactions in new markets other than Europe, POS transactions in the acquisition of member stores, and new acquisitions such as Infinitium. Profit and profits from ATM transactions that do not do are diversified. Rick states that the growth of the core business continues to be strong in EPAY, and this term has increased 10%yea r-o n-year. We have been growing this core business by expanding new products and new markets, Michael Brown: Rick, and everyone today. First of all, I will comment on the transparency No. 10. As you can see from the green trend line (small dotted line) of the graph, we continue to take tw o-digit profit increase, which reflects the consistency of the annual consolidated business performance. Considering this achievement, I think it is an opportunity to emphasize the success of the achievements by diversifying and expanding businesses for all three segments. We are fully aware that this diversification may vary in delivery of each segment that contributes to the annual consolidated performance. In the EFT before COVID, our achievements were almost linked to the number of travelers to Europe in the summer. Although it is still important for travelers for annual business performance, it is related to tourists in Europe due to the effects of new acquisitions such as POS transactions in new markets other than Europe, POS transactions in the acquisition of member stores, and new acquisitions such as Infinitium. Profit and profits from ATM transactions that do not do are diversified. Rick states that the growth of the core business continues to be strong in EPAY, and this term has increased 10%yea r-o n-year. We continued to grow this core business by expanding new products and new markets.

I am convinced that in the first two quarters, tw o-digit growth has achieved tw o-digit growth, and the opportunity has been left in the second half, so I can achieve very well in 2024. As this graph shows, the momentum continues. Let's see the slide No. 11 and give the latest information for each three segments. In the second quarter, EFT achieved tw o-digit growth in all indicators. This tw o-digit growth has been realized by improving the tourism industry in Europe, entering the new market, and growing commercial services. Finally, compared to 2023, European tourists continue to increase. According to EUROCONTROL, tourists, which had a recovery rate of about 90 % compared to 2019 in 2023 last year, are expected to increase 5 % yea r-o n-year to 95 % in 2024. Our second quarter performance is generally consistent with the Euro Control data. In order to emphasize the success of our expansion strategy, after adjustment, EBITDA has increased by 60%in four regions: Malchaant Service, EFT Malaysia, EFT Philippines, and EFT North America. All of these businesses have been needed in Euro Net in recent years through organic expansion to the new market and the expansion of the EFT in North America. < SPAN> I am convinced that in the first two quarters of the first quarter, tw o-digit growth has been achieved, and the chance has been left in the second half, so I can achieve very good achievements in the 2024 period. As this graph shows, the momentum continues. Let's see the slide No. 11 and give the latest information for each three segments. In the second quarter, EFT achieved tw o-digit growth in all indicators. This tw o-digit growth has been realized by improving the tourism industry in Europe, entering the new market, and growing commercial services. Finally, compared to 2023, European tourists continue to increase. According to EUROCONTROL, tourists, which had a recovery rate of about 90 % compared to 2019 in 2023 last year, are expected to increase 5 % yea r-o n-year to 95 % in 2024. Our second quarter performance is generally consistent with the Euro Control data. In order to emphasize the success of our expansion strategy, after adjustment, EBITDA has increased by 60%in four regions: Malchaant Service, EFT Malaysia, EFT Philippines, and EFT North America. All of these businesses have been needed in Euro Net in recent years through organic expansion to the new market and the expansion of the EFT in North America. I am convinced that in the first two quarters, tw o-digit growth has achieved tw o-digit growth, and the opportunity has been left in the second half, so I can achieve very well in 2024. As this graph shows, the momentum continues. Let's see the slide No. 11 and give the latest information for each three segments. In the second quarter, EFT achieved tw o-digit growth in all indicators. This tw o-digit growth has been realized by improving the tourism industry in Europe, entering the new market, and growing commercial services. Finally, compared to 2023, European tourists continue to increase. According to EUROCONTROL, tourists, which had a recovery rate of about 90 % compared to 2019 in 2023 last year, are expected to increase 5 % yea r-o n-year to 95 % in 2024. Our second quarter performance is generally consistent with the Euro Control data. In order to emphasize the success of our expansion strategy, after adjustment, EBITDA has increased by 60%in four regions: Malchaant Service, EFT Malaysia, EFT Philippines, and EFT North America. All of these businesses have been needed in Euro Net in recent years through organic expansion to the new market and the expansion of the EFT in North America.

In recent years, Mastercard and Visa (NYSE: V) have increased domestic interchange in several markets. For example, domestic interchange increased by 60% in the Netherlands and 100% in Romania. These interchanges have seen a sharp rise in focus over the past two years due to increased demand from banks to meet rising costs. As a result, this trend is expected to continue in more countries in the future. It is impossible to talk about EMH without mentioning our Merchant Services business. Our Merchant Services business has gained more than 15, 000 new merchants in each of the past three quarters, and there are many opportunities for further expansion. In addition to these revenue opportunities, we are also expanding our outsourcing business. In Poland, we signed an ATM outsourcing agreement with Ariol Bank for 120 ATM recyclers that will accept deposits and distribute cash. Ariol Bank is the eighth largest bank in Poland with more than 1. 3 million customers, and this agreement has further expanded both ATM cash withdrawals and deposit returns in Poland. In addition to this outsourcing contract, we plan to add 3, 000 to 3, 500 ATMs in 2024. In addition, we have removed some unprofitable ATMs. In addition to this

We look forward to seeing how this product is combined with Ren and can provide more complete solutions to online shoppers and Mercuns that require the latest online cloud payment gateway. Let's take a look at Len Market's second quarter performance. In the quarter, we have signed a software license agreement with the ICICI Bank of India. If you know India, you know ICICI. It is the third largest bank in India. In Brazil, we signed a payment processing agreement with Onnipro. The company has been selected as ELO provider, the largest employee welfare card program in Brazil, which provides 12 million customers. We are looking forward to Len's future, and we will strengthen our products through continuous growth and strategic acquisitions such as Infinitium. Let's look back on the EFT section. What a fourth. Who is the leader of this business? First, the strength of this department is the REN platform. Second, the growth of the member store service business has continued, and after adjustment, EBITDA increased by 32%yea r-o n-year, and more than 15. 000 member stores have joined. Third, the ATM network continued to be expanded through the acquisition, entering new countries, and expanding the ATMs in the existing market. Finally, we started to increase revenue by adding new ATMs to existing ATMs. < SPAN> We are looking forward to seeing how this product is combined with REN and can provide more complete solutions to online shoppers and Mercunt who needs the latest online cloud payment gateway. Let's take a look at Len Market's second quarter performance. In the quarter, we have signed a software license agreement with the ICICI Bank of India. If you know India, you know ICICI. It is the third largest bank in India. In Brazil, we signed a payment processing agreement with Onnipro. The company has been selected as ELO provider, the largest employee welfare card program in Brazil, which provides 12 million customers. We are looking forward to Len's future, and we will strengthen our products through continuous growth and strategic acquisitions such as Infinitium. Let's look back on the EFT section. What a fourth. Who is the leader of this business? First, the strength of this department is the REN platform. Second, the member store service business has been growing, and after adjustment, EBITDA increased 32%yea r-o n-year, and more than 15. 000 member stores have joined. Third, the ATM network continued to be expanded through the acquisition, entering new countries, and expanding the ATMs in the existing market. Finally, we started to increase revenue by adding new ATMs to existing ATMs. We look forward to seeing how this product is combined with Ren and can provide more complete solutions to online shoppers and Mercuns that require the latest online cloud payment gateway. Let's take a look at Len Market's second quarter performance. In the quarter, we have signed a software license agreement with the ICICI Bank of India. If you know India, you know ICICI. It is the third largest bank in India. In Brazil, we signed a payment processing agreement with Onnipro. The company has been selected as ELO provider, the largest employee welfare card program in Brazil, which provides 12 million customers. We are looking forward to Len's future, and we will strengthen our products through continuous growth and strategic acquisitions such as Infinitium. Let's look back on the EFT section. What a fourth. Who is the leader of this business? First, the strength of this department is the REN platform. Second, the member store service business has been growing, and after adjustment, EBITDA increased 32%yea r-o n-year, and more than 15. 000 member stores have joined. Third, the ATM network continued to be expanded through the acquisition, entering new countries, and expanding the ATMs in the existing market. Finally, we started to increase revenue by adding new ATMs to existing ATMs.

We believe it makes a lot of sense to continue leveraging our free cash flow generating assets. We understand the market prefers more consistent and predictable performance, but we want you to look beyond the quarter to the full year. I just wanted to provide a quick update on our proprietary products, Conductor and Skylight. In the second quarter, we signed an agreement to sell Google's (NASDAQ: GOOGL) workspace version of the Conductor platform to online and brick-and-mortar retailers. In addition, we are pursuing a number of opportunities for Skylight, so stay tuned for future updates. We also signed an agreement to provide our expanded retail network to Canberra Transport for their MyWay project in Australia. MyWay cards are a type of e-ticket used on public transport such as trams and buses. Customers can reload their MyWay cards at any participating retailer. Now, I'd like to highlight some great campaigns we launched in the quarter. In Belgium, we introduced branded payment content with Aldi. In the UK, we launched B2B distribution of Sony (NYSE: SONY) PlayStation and Meta (NASDAQ: META) Quest gift cards. In Turkey, we launched distribution of branded payment cards in B2B and B2B payments.

What and how: Who buys from our remittance division, what do we sell and how do we sell it? Over the years, we have been successful in expanding who buys from us. At the time of our acquisition of RIA, we were primarily a US-based immigration business, providing cross-border payments to families in Latin American countries. We have expanded this network globally. Through our acquisition of XE, we expanded that customer base to high net worth individuals and small businesses. We then expanded our network further through fintechs and financial institutions. Today, we still sell cross-border payment transactions, but we now cater to a wide range of cross-border payments, from simple remittance payments to family members, to general business payments, employee payments, cross-border payroll payments and e-marketplace payments. We sell money transfers and payments from point A to point B. Our network gives our customers access to remittances to 198 countries and territories through approximately 600, 000 correspondent locations, 4 billion bank accounts and 2 billion wallet accounts. Finally, tell us how we sell. We started with 42. 000 brick-and-mortar stores 17 years ago and expanded to apps and digital delivery options through apps.

So, we still have a fair amount of market share to gain. We can stay ahead of the market by continuing to expand the geography of our network on both the sender and receiver sides, continuing to improve the usability of our network by increasing the number of remittance use cases, continuing to compete for larger customers in a market that our competitors have never had to defend, and ultimately continuing to invest in expanding our digital channel. So what about our digital channel? A lot of people ask. Our digital channel is becoming increasingly important as emerging markets continue to modernize, creating greater financial inclusion and a wider range of use cases that are driving demand for digital methods of delivering and receiving payments. While other companies are trying to modernize their payments infrastructure, our strategic enhancements to our digital capabilities have allowed us to embrace these market trends. Digital transaction growth accelerated to 24% year-over-year, and new customer acquisition increased to 44%. We are currently present in 24 countries and will be adding another market in the coming weeks. The execution of these strategies is evidenced by the market wins highlighted in the slide. Some of the most notable include: During the quarter,

We are convinced that our strategic investment will lead to future growth in the second half of 2024 with momentum and optimism. There are many opportunities for remittance pipelines, such as expansion of scale, continuous investment in new functions, new use cases, new areas, and continuous expansion of rea l-time payments, which is the driving force for growth. Let's move on to the next slide and talk about the Dandelion network. Throughout the second quarter, we continued to win the market. Technology, connectivity, and global banking are evolving rapidly, and market needs are changing. Dandelion's Global Payment Network has a system that can meet not only in the present but also future needs. To put it simply, Dandelion's abilities are unrivaled by competitors. The Dandelion is the core of our remittance sector, which has made RIA and XE products greater than the market growth. Dandelion's existing customer base has been expanding the use of HSBC and Dandelion Rails, and since the first quarter of this year, the number of transactions has increased by 170 % from the previous quarter. In the quarter, in addition to strong demand from existing customers, we signed a contract with Wirebarley, a major Korean Fintech digital remittance company. < SPAN> I am convinced that our strategic investment will lead to future growth in the second half of 2024 with momentum and optimism. There are many opportunities for remittance pipelines, such as expansion of scale, continuous investment in new functions, new use cases, new areas, and continuous expansion of rea l-time payments, which is the driving force for growth. Let's move on to the next slide and talk about the Dandelion network. Throughout the second quarter, we continued to win the market. Technology, connectivity, and global banking are evolving rapidly, and market needs are changing. Dandelion's Global Payment Network has a system that can meet not only in the present but also future needs. To put it simply, Dandelion's abilities are unrivaled by competitors. The Dandelion is the core of our remittance sector, which has made RIA and XE products greater than the market growth. Dandelion's existing customer base has been expanding the use of HSBC and Dandelion Rails, and since the first quarter of this year, the number of transactions has increased by 170 % from the previous quarter. In the quarter, in addition to strong demand from existing customers, we signed a contract with Wirebarley, a major Korean Fintech digital remittance company. We are convinced that our strategic investment will lead to future growth in the second half of 2024 with momentum and optimism. There are many opportunities for remittance pipelines, such as expansion of scale, continuous investment in new functions, new use cases, new areas, and continuous expansion of rea l-time payments, which is the driving force for growth. Let's move on to the next slide and talk about the Dandelion network. Throughout the second quarter, we continued to win the market. Technology, connectivity, and global banking are evolving rapidly, and market needs are changing. Dandelion's Global Payment Network has a system that can meet not only in the present but also future needs. To put it simply, Dandelion's abilities are unrivaled by competitors. The Dandelion is the core of our remittance sector, which has made RIA and XE products greater than the market growth. Dandelion's existing customer base has been expanding the use of HSBC and Dandelion Rails, and since the first quarter of this year, the number of transactions has increased by 170 % from the previous quarter. In the quarter, in addition to strong demand from existing customers, we signed a contract with Wirebarley, a major Korean Fintech digital remittance company.

Our goal is to achieve doubl e-digit growth performance through consolidation. EFT has contributed to growth the most this term, but all three segments have powerful pipelines for future growth. Looking in the latter half of 2024, our growth strategy has been proved for what leads to our growth and what will continue to promote its growth in the latter half of 2024, and we have been proven for the past 30 years. I have executed. Utilizing market opportunities in the future, strategic investment such as MEPS investment in Malaysia, entering new countries like this in Albania this term, and growing and expanding existing businesses that have been conducted in commercial services. I will do so. Adding access fees to specific domestic and overseas transactions, completing pipeline projects in all three segments, adding a new colesting destination to remittance work, continuing to expand the ATM outsourcing agreement, digitally digital. To add EPAY content to both physical channels, and to make appropriate capital allocation focusing on growth, acquisition, and shares i n-house. In addition, we will provide appropriate capital distribution focusing on growth, acquisition, and appropriate shares.

Administrator: [The first question is from Andrew Schmidt of City Global Markets. The line is now open. < SPAN> Our goal is to achieve the doubl e-digit growth performance by consolidation. EFT has contributed to growth the most this term, but all three segments have powerful pipelines for future growth. Looking in the latter half of 2024, our growth strategy has been proved for what leads to our growth and what will continue to promote its growth in the latter half of 2024, and we have been proven for the past 30 years. I have executed. Utilizing market opportunities in the future, strategic investment such as MEPS investment in Malaysia, entering new countries like this in Albania this term, and growing and expanding existing businesses that have been conducted in commercial services. I will do so. Adding access fees to specific domestic and overseas transactions, completing pipeline projects in all three segments, adding a new coless destination to remittance work, continuing to expand the ATM outsourcing agreement, digital To add EPAY content to both physical channels, and to make appropriate capital allocation focusing on growth, acquisition, and shares i n-house. In addition, we will provide appropriate capital distribution focusing on growth, acquisition, and appropriate shares.

Administrator: [The first question is from Andrew Schmidt of City Global Markets. The line is now open. Our goal is to achieve doubl e-digit growth performance through consolidation. EFT has contributed to growth the most this term, but all three segments have powerful pipelines for future growth. Looking in the latter half of 2024, our growth strategy has been proved for what leads to our growth and what will continue to promote its growth in the latter half of 2024, and we have been proven for the past 30 years. I have executed. Utilizing market opportunities in the future, strategic investment such as MEPS investment in Malaysia, entering new countries like this in Albania this term, and growing and expanding existing businesses that have been conducted in commercial services. I will do so. Adding access fees to specific domestic and overseas transactions, completing pipeline projects in all three segments, adding a new colesting destination to remittance work, continuing to expand the ATM outsourcing agreement, digitally digital. To add EPAY content to both physical channels, and to make appropriate capital allocation focusing on growth, acquisition, and shares i n-house. In addition, we will provide appropriate capital distribution focusing on growth, acquisition, and appropriate shares.

Administrator: [The first question is from Andrew Schmidt of City Global Markets. The line is now open.

Andrew Schmidt: Hey, Mike, Rick. Thank you for answering my question. Thank you for many comments. First of all, I would like to ask about fund transfer, but it was good to be able to confirm the continuous equity gain. Please tell us more about the competitive environment. Regarding marketing costs, I would like to comment on where it grows, digital, retail, digital, and the outlook for the remaining period of this year. thank you very much.

Michael Brown: Well, in terms of industry competitiveness, it is necessary to understand that remittance business is an excessive competition. We don't feel that big difference. The sales per transaction and the margin per transaction have not changed for the past few years. One of the reasons may be that we are growing at four times the speed of the market. The second question was, "Where did you spend money?" Most of it was digital. Digital growth rates were 24 % yea r-o n-year, and new customers have increased by 44 %. We realize that marketing is doing well, and in the last few quarters, new executives are working on marketing. As a result, we thought it was worth making additional investment, and mainly invested in digital.

Andrew Schmidt: Thank you, Mike. Also, in the EFT section, I am grateful to the recovery of the trip, but please tell me a little more about the achievements of the ATM for tourists. Last year there was a fluctuation of transactions. That tendency ...

Michael Brown: Yes, last year ...

Andrew Schmidt: -It tends to be in the third quarter. thank you. < SPAN> Andrew Schmidt: Yeah, Mike, Rick. Thank you for answering my question. Thank you for many comments. First of all, I would like to ask about fund transfer, but it was good to be able to confirm the continuous equity gain. Please tell us more about the competitive environment. Regarding marketing costs, I would like to comment on where it grows, digital, retail, digital, and the outlook for the remaining period of this year. thank you very much.

Michael Brown: Well, in terms of industry competitiveness, it is necessary to understand that remittance business is an excessive competition. We don't feel that big difference. The sales per transaction and the margin per transaction have not changed for the past few years. One of the reasons may be that we are growing at four times the speed of the market. The second question was, "Where did you spend money?" Most of it was digital. Digital growth rates were 24 % yea r-o n-year, and new customers have increased by 44 %. We realize that marketing is doing well, and in the last few quarters, new executives are working on marketing. As a result, we thought it was worth making additional investment, and mainly invested in digital.

Andrew Schmidt: Thank you, Mike. Also, in the EFT section, I am grateful to the recovery of the trip, but please tell me a little more about the achievements of the ATM for tourists. Last year there was a fluctuation of transactions. That tendency ...

Michael Brown: Yes, last year ...

Andrew Schmidt: -It tends to be in the third quarter. thank you. Andrew Schmidt: Hey, Mike, Rick. Thank you for answering my question. Thank you for many comments. First of all, I would like to ask about fund transfer, but it was good to be able to confirm the continuous equity gain. Please tell us more about the competitive environment. Regarding marketing costs, I would like to comment on where it grows, digital, retail, digital, and the outlook for the remaining period of this year. thank you very much.

Michael Brown: Well, in terms of industry competitiveness, it is necessary to understand that remittance business is an excessive competition. We don't feel that big difference. The sales per transaction and the margin per transaction have not changed for the past few years. One of the reasons may be that we are growing at four times the speed of the market. The second question was, "Where did you spend money?" Most of it was digital. Digital growth rates were 24 % yea r-o n-year, and new customers have increased by 44 %. We realize that marketing is doing well, and in the last few quarters, new executives are working on marketing. As a result, we thought it was worth making additional investment, and mainly invested in digital.

Andrew Schmidt: Thank you, Mike. Also, in the EFT section, I am grateful to the recovery of the trip, but please tell me a little more about the achievements of the ATM for tourists. Last year there was a fluctuation of transactions. That tendency ...

Michael Brown: Yes, last year ...

Andrew Schmidt: -It tends to be in the third quarter. thank you.

Michael Brown: Yeah, last year, the number of transactions was reduced, but the amount of expenditure per person decreased. I think we have almost achieved such a recovery and other business trips. After all, this trip is ultimately reflected in the back mirror, so to expand the network, make the network more efficient, remove the no n-efficient ATMs, and of course. I think the EFT will lead to large business masses from the EMS and Mercant Service Business. And do you know the word accessory? In other words, it is a lon g-term outlook. In other words, if a traveler in the euro area goes from the euro to a country within the euro area, the country, the recipient, will receive the traveler and its accessory. I think that we have recorded more than three times in three countries this term.

Andrew Schmidt: Of course. Yes, it's something I've been talking about before, so I'm looking forward to what's coming.

Michael Brown: That's it!

Andrew Schmidt: Thank you very much, Mike. Thank you for your comment, Mike. thank you very much.

Operator: Thank you. The next question is from Da Davidson's Pete Heckman. Thank you for your cooperation.

Pete Heckman: Good morning. After the ATM usage fee, you may have said that it may be introduced in other countries, but in the latter half of this year, it may be introduced in three more countries. If you make a mistake, I want you to correct it, but are you considering introducing ATM usage fees in countries where Euro Net, such as Poland and Spain, has left major footprints? < SPAN> Michael Brown: Yes, the transactions did not decrease last year, but the per capita expenditure decreased. I think we have almost achieved such a recovery and other business trips. After all, this trip is ultimately reflected in the back mirror, so to expand the network, make the network more efficient, remove the no n-efficient ATMs, and of course. I think the EFT will lead to large business masses from the EMS and Mercant Service Business. And do you know the word accessory? In other words, it is a lon g-term outlook. In other words, if a traveler in the euro area goes from the euro to a country within the euro area, the country, the recipient, will receive the traveler and its accessory. I think that we have recorded more than three times in three countries this term.

Andrew Schmidt: Of course. Yes, it's something I've been talking about before, so I'm looking forward to what's coming.

Michael Brown: That's it!

Andrew Schmidt: Thank you very much, Mike. Thank you for your comment, Mike. thank you very much.

Operator: Thank you. The next question is from Da Davidson's Pete Heckman. Thank you for your cooperation.

Pete Heckman: Good morning. After the ATM usage fee, you may have said that it may be introduced in other countries, but in the latter half of this year, it may be introduced in three more countries. If you make a mistake, I want you to correct it, but are you considering introducing ATM usage fees in countries where Euro Net, such as Poland and Spain, has left major footprints? Michael Brown: Yeah, last year, the number of transactions was reduced, but the amount of expenditure per person decreased. I think we have almost achieved such a recovery and other business trips. After all, this trip is ultimately reflected in the back mirror, so to expand the network, make the network more efficient, remove the no n-efficient ATMs, and of course. I think the EFT will lead to large business masses from the EMS and Mercant Service Business. And do you know the word accessory? In other words, it is a lon g-term outlook. In other words, if a traveler in the euro area goes from the euro to a country within the euro area, the country, the recipient, will receive the traveler and its accessory. I think that we have recorded more than three times in three countries this term.

Andrew Schmidt: Of course. Yes, it's something I've been talking about before, so I'm looking forward to what's coming.

Michael Brown: That's it!

Andrew Schmidt: Thank you very much, Mike. Thank you for your comment, Mike. thank you very much.

Operator: Thank you. The next question is from Da Davidson's Pete Heckman. Thank you for your cooperation.

Pete Heckman: Good morning. After the ATM usage fee, you may have said that it may be introduced in other countries, but in the latter half of this year, it may be introduced in three more countries. If you make a mistake, I would like you to correct it, but are you considering introducing ATM usage fees even in countries where Euronnets have large footprints, such as Poland and Spain?

Michael Brown: That's right. There are small tourist countries such as Cyprus and Malta, and some Euro countries. There was a story about Spain about the big country. In Spain, there are already additional charge and access fees, so it will not change significantly. The locals may have an access fee, but I think it will be the second half of this year. But the important thing is that it will finally take a long time. Most countries should be able to get access fees. I hope it will be realized in Poland ... I don't think it will be realized this year.

Pete Heckman: OK, OK. Then, a little.

Michael Brown: But it's all ... yes, all are pure margins, Pete. In other words, it's good, and in many markets, you can make money with cros s-curencies, but local people do it for 30 cents, so ... that's ... It will help us.

Pete Heckman: Of course.

Michael Brown: And the exchange rate ... I'm sorry, the price increase is also happening. In other words, we are not the only one who has ATMs in Europe. Banks own ATMs and have many overhead banks here, where Internet Banks can use their ATM infrastructure in on e-third or fifth of their costs. The bank is promoting the increase in exchange rates.

Pete Heckman: I see, that's great. I think there were comments that some competitors have withdrawn from the market or that the integration of competitors is progressing due to fund transfer, but the number of new dealers accounts increased by 35 % yea r-o n-year. I did. Please tell me a little more about it.

Michael Brown: That's right. To be honest, that's always the case. It's a supe r-competitive market. Two major companies grew rapidly in the previous quarter, but there are always someone. Their transactions and remittances are spreading throughout the industry. We are growing faster than anyone else, so we have something more than fair share.

Pete Heckman: I see, I understand. I'll return to the line. thank you. < SPAN> Michael Brown: That's right. There are small tourist countries such as Cyprus and Malta, and some Euro countries. There was a story about Spain about the big country. In Spain, there are already additional charge and access fees, so it will not change significantly. The locals may have an access fee, but I think it will be the second half of this year. But the important thing is that it will finally take a long time. Most countries should be able to get access fees. I hope it will be realized in Poland ... I don't think it will be realized this year.

Pete Heckman: OK, OK. Then, a little.

Michael Brown: But it's all ... yes, all are pure margins, Pete. In other words, it's good, and in many markets, you can make money with cros s-curencies, but local people do it for 30 cents, so ... that's ... It will help us.

Pete Heckman: Of course.

Michael Brown: And the exchange rate ... I'm sorry, the price increase is also happening. In other words, we are not the only one who has ATMs in Europe. Banks own ATMs and have many overhead banks here, where Internet Banks can use their ATM infrastructure in on e-third or fifth of their costs. The bank is promoting the increase in exchange rates.

Pete Heckman: I see, that's great. I think there were comments that some competitors have withdrawn from the market or that the integration of competitors is progressing due to fund transfer, but the number of new dealers accounts increased by 35 % yea r-o n-year. I did. Please tell me a little more about it.

Michael Brown: That's right. To be honest, that's always the case. It's a supe r-competitive market. Two major companies grew rapidly in the previous quarter, but there are always someone. Their transactions and remittances are spreading throughout the industry. We are growing faster than anyone else, so we have something more than fair share.

Pete Heckman: I see, I understand. I'll return to the line. thank you. Michael Brown: That's right. There are small tourist countries such as Cyprus and Malta, and some Euro countries. There was a story about Spain about the big country. In Spain, there are already additional charge and access fees, so it will not change significantly. The locals may have an access fee, but I think it will be the second half of this year. But the important thing is that it will finally take a long time. Most countries should be able to get access fees. I hope it will be realized in Poland ... I don't think it will be realized this year.

Pete Heckman: OK, OK. Then, a little.

Michael Brown: But it's all ... yes, all are pure margins, Pete. In other words, it's good, and in many markets, you can make money with cros s-curencies, but local people do it for 30 cents, so ... that's ... It will help us.

Pete Heckman: Of course.

Michael Brown: And the exchange rate ... I'm sorry, the price increase is also happening. In other words, we are not the only one who has ATMs in Europe. Banks own ATMs and have many overhead banks here, where Internet Banks can use their ATM infrastructure in on e-third of their costs. The bank is promoting the increase in exchange rates.

Pete Heckman: I see, that's great. I think there were comments that some competitors have withdrawn from the market or that the integration of competitors is progressing due to fund transfer, but the number of new dealers accounts increased by 35 % yea r-o n-year. I did. Please tell me a little more about it.

Michael Brown: That's right. To be honest, that's always the case. It's a supe r-competitive market. Two major companies grew rapidly in the previous quarter, but there are always someone. Their transactions and remittances are spreading throughout the industry. We are growing faster than anyone else, so we have something more than fair share.

Pete Heckman: I see, I understand. I'll return to the line. thank you.

HANDLING: Thank you. The next question is from Charles Nabhan with Stevens. I'll open the line now.

CHARLES NABHAN: Good morning. You acquired some ATMs in Malaysia this quarter, and I was wondering what this fleet looks like from a geographic perspective.

MICHAEL BROWN: It's a little bit mixed here. The ATMs that you just bought in Malaysia are for locals, but of course you also have international tourists. In other markets where we're developing our own ATMs, we're more focused on tourists, but we also have a lot of locals. Rick, can you give us some idea of ​​the total numbers?

RICK WELLER: You've got about 800 ATMs in Malaysia. None of them are in Europe or anything.

MICHAEL BROWN: Right. But in terms of outside Europe and within the region, you talked about Asia and North Africa. Are you talking about 3, 000 to 3, 500 ATMs outside of Europe?

Rick Weller: Yes, I would say that the concentration of ATMs that we've seen in the first half of the year is more concentrated outside of Europe than it is within Europe. As I've said before, we're looking at a lot of new markets. We see great opportunity in the Asian market, the North African market, the South American market, and we expect to continue to see that development.

Charles Nabhan: Got it. Thank you. And then I think you commented on Epay, you said that comps are going to be a little easier in the second half and you could potentially be in the mid-to-high single digit operating margin in '24. First, I just wanted to make sure I heard that correctly. And second, I'd like you to give me a little bit of context on the revenue side of this equation. If you're looking at operating margins being in the mid-to-high single digits, how should we think about that on the revenue side?

Rick Weller: Yes, we always say that operating income grows a little faster than sales. However, as you mentioned, we expect the growth of operating income to accelerate in the second half. There is a benefit of the implementation of a promotion program that was not seen in the second quarter, and as I mentioned earlier, the operating profit growth rate from the middle to the middle of the digit throughout the year is expected. Therefore, it is expected that the second half of Epei will increase the momentum.