Euronet Records First Billion-Dollar Quarter of the Year 23, Credited to Ria and Xe
In a significant development, Euronet, a global financial technology solutions provider, reported an 8% revenue growth in Q3 for its Money Transfer division, which includes Ria and Xe. This growth was primarily driven by disciplined cost management, strength in digital channels, and an increase in digital transactions.
The Money Transfer division's operating income grew by 33% year-over-year, thanks to the surge in digital transactions, which grew by 29% year-over-year. Ria, which serves over 20 million customers annually, and Xe’s currency exchange services, further boosted transaction volumes and revenue.
The digital channel strength was a key factor, with digital transactions spiking significantly, improving efficiency and convenience for customers. The expansion of the platform footprint, achieved through important deals such as one with a top-three U.S. bank, also enhanced market reach and future growth opportunities.
The ongoing digital transformation and acquisition strategy, including the recent CoreCard acquisition, expanded digital payments capabilities, indirectly supporting the Money Transfer division's growth.
The adjusted EBITDA margin for the Money Transfer segment rose by 24% to $60.7m, although it was slightly lower than last year's Q3. Euronet's company-wide adjusted EBITDA grew nominally to $212.5m. Money transfers still account for 39% of Euronet's total revenue, with revenues for the company rising by 8% to $1bn in Q3.
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In other news, Euronet reported a billion-dollar quarter in Q3 23. The account is intended for personal use to access research and analysis on cross-border payments.
[1] Source: Euronet's Q3 2023 Earnings Release
- The growth of Euronet's Money Transfer division, driven by factors like digital channel strength and increased digital transactions, showcases the correlation between effective business strategies and finance success.
- Euronet's acquisition strategy, including the recent CoreCard acquisition, has indirectly supported the expansion of digital payments capabilities within the Money Transfer division, contributing to the division's growing revenue.
