Euronet's Money Transfer Segment Soars in Q3 2022 Despite FX Headwinds
Euronet Worldwide, a global leader in money transfer services, has reported a robust performance in its Money Transfer segment. The segment saw double-digit transaction growth and a 3% increase in revenue, operating income, and adjusted EBITDA in Q3 2022. The company's Dandelion platform achieved a notable 44% year-over-year (YoY) revenue growth and is exploring strategic partnerships with national and regional switches.
Euronet's Money Transfer segment witnessed significant growth in various aspects. The segment saw double-digit transaction growth in both US and international-initiated transfers, with a 40% growth in direct-to-consumer digital transfers. Notably, US-outbound transactions grew by 14%, international-originated money transfers by 12%, and XE transactions by 21%. However, the strong US dollar led to foreign exchange (FX) declines of 10-20% in key markets, impacting overall revenues and money transfer growth.
Despite the FX headwinds, the segment's network expanded by over 22,000 locations. However, it also closed around 20,000 locations in Russia, Belarus, and Tajikistan, likely due to geopolitical factors. Euronet's Q3 2022 revenues rose by 14% YoY to $931.3 million, reflecting the segment's resilience and growth.
Euronet expects full-year growth in the 'mid to upper teens' for 2022, indicating a strong performance despite the FX challenges. The company's competitive fees and convenient access to ATM and payment services globally have likely contributed to this growth. The Dandelion platform's 44% YoY revenue growth and potential partnerships with national and regional switches further bolster Euronet's position in the money transfer market.
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