Euronet Worldwide, Inc.
Euronet Worldwide, Inc.: SWOT Analysis &
Reference code: BRTC230CP10-Q4
Published: Nov 2010
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Euronet Worldwide, Inc. - SWOT Profile Page 1
Euronet Worldwide, Inc.
Euronet Worldwide, Inc. - Company Overview
Euronet Worldwide, Inc. (Euronet) is a global leading provider of electronic payments solutions. The company is into
providing electronic financial payment and transaction solutions principally to financial institutions, mobile operators,
retailers and individual customers. Euronet also offers automated teller machine (ATM) and point-of-sale (POS) terminals.
In addition, it offers card outsourcing services, card issuing and merchant acquiring services, integrated electronic
financial transactions software, consumer money transfer and bill payment services. The company operates under three
reportable business segments, namely, EFT Processing segment, Prepaid Processing segment and Money Transfer
segment. It has presence in Americas, Middle East, Europe and Asia-Pacific regions. Euronet is headquartered in
Leawood (Kansas), the US.
The company reported revenue of USD 1,032.69 million during the fiscal year ended 2009. The company's revenue grew
at a CAGR of 6.96% during the period 2007-2009 with a year on year decline of 1.24% over fiscal year 2008. During the
fiscal year 2009 its operating margin was 7.14% as against the operating margin of -15.91% in fiscal year 2008. During
the fiscal year 2009 the company registered a net margin of 2.94% as against the net margin of -18.5% in the fiscal year
Euronet Worldwide, Inc. - Key Facts
Euronet Worldwide, Inc., Key Facts
4601 College Boulevard,
Leawood, Kansas (KS), 66211, Ticker Symbol, Stock
Corporate Address: EEFT (NASDAQ)
Telephone + 1 913 3274200 No. of Employees 2,700
Fax + 1 913 3271921 Financial Year End December
URL www.euronetworldwide.com Revenue (in USD Million) 1,032.69
Australia, China, India, Malaysia, New Zealand, Belgium, Bulgaria, Croatia, Czech Republic, France,
Locations Germany, Greece, Hungary, Italy, Poland, Romania, Serbia, Slovakia, Spain, Sweden, Switzerland,
United Kingdom, United States
Source: Annual Report, Company Website, Primary and Secondary Research
Euronet Worldwide, Inc. - SWOT Profile Page 2
Euronet Worldwide, Inc.
Euronet Worldwide, Inc. - Business Description
Euronet Worldwide, Inc. (Euronet) is a US based electronic payment solutions provider, engaged in offering automated
teller machine (ATM) and point-of-sale (POS) and card outsourcing services, card issuing and merchant acquiring
services, integrated electronic financial transaction (EFT) software, network gateways, electronic distribution of top-up
services for prepaid mobile airtime and other prepaid products, electronic consumer money transfer and bill payment
services to financial institutions, mobile operators, retailers and individual customers.
The company has classified its operations under three reportable segments, namely, EFT Processing segment, Prepaid
Processing segment, and Money Transfer segment.
The Electronic Financial Transaction (EFT) Processing segment is engaged in outsourcing and network services to
financial institutions in Central, Eastern and Southern Europe, the Middle East and Asia Pacific as well as some of the
developed countries in Western Europe and North America. As of December 31, 2009, the company operated 9,720
ATMs and 53,000 operational prepaid processing POS terminals across the Europe, Asia-Pacific and the Middle-East.
The respective segment offers a wide range of electronic payment solutions comprising ATM network participation, card
issuing and merchant acquiring services and electronic recharge services for prepaid mobile airtime, and credit and debit
card outsourcing. In addition, it provides a suite of integrated EFT software solutions for electronic payment, card issuing
and transaction delivery systems and merchant acquiring. During the fiscal year 2009, EFT processing segment
generated 19.1% of the company’s total revenues.
The company’s Prepaid Processing segment is involved in the electronic distribution of prepaid mobile airtime and other
prepaid products and collection services for various prepaid products, cards and services. In addition, it operates a
network of 498,000 POS terminals providing electronic processing of prepaid mobile airtime top-up services in the US,
Europe, Africa, Asia Pacific and the Middle-East. The company through its network of more than 237,000 retailer locations
and payer network across 100 countries originates and terminates transactions. This segment’s processing centers are
located in Basildon, the UK; Martinsried, Germany; and Leawood (Kansas), the US. During the fiscal year 2009, Prepaid
Processing segment generated 58.3% of the company’s total revenues.
Money Transfer segment of the company deals in global money transfer and bill payment services. It principally offers
money transfer services through a network of agents and company owned stores in North America, the Caribbean,
Europe and Asia-Pacific, disbursing money transfers through a worldwide payer network. During the fiscal year 2009, this
segment processed USD 5.8 billion in money transfers. It also provided consumer-to-consumer money transfer services
through a network of over 82,200 locations worldwide during the fiscal year 2009. Its processing center for Money transfer
is located in Cerritos, California and it operates call centers in Cerritos, California, El Salvador and Spain. During the fiscal
year 2009, Money Transfer segment generated 22.55% of the company’s total revenues.
The company has five processing centers in Europe, two in Asia and two in the North America. It also has 25 principal
offices in Europe, six in the Asia-Pacific region, seven in the north America, and one in the Middle East.
The company customers include many multinational banks and mobile operators as well as merchants in diverse industry
segments including hypermarkets, convenience stores, lottery and drug store chains, retail fuel and furniture, grocery
chains, consumer electronics and many more. It facilitates the movement of payments around the world and connects its
partners such as financial institutions, retailers and mobile operators with their end-consumers both locally and globally.
The company’s R&D initiatives are focused on expanding its services to its bank customers from ATM and POS
outsourcing to card processing and software services. In the recent past, it expanded its portfolio of prepaid products and
services by adding prepaid gift cards. Euronet invested USD 2 million towards its research and development activities
during the fiscal year 2009.
The company classifies its geographical operations into eight regions, namely, the UK, the US, Australia, Poland, Spain,
Germany, India and Others. During the fiscal year 2009, the company generated 23.68% of total revenues from the US,
19.3% from Australia, 14.7% from the UK, 10.2% from Germany, 7.5% from Poland, 7.3% from Spain, 4.0% from Italy,
3.7% from India, and 9.5% from others.
Recently, the company’s epay division acquired Telecom Net S.A. (operating under the trade name, Ativi), a Brazilian
prepaid distribution company. Euronet’s software division, Euronet USA signed a partnership with IBIS Management, a
leading provider of highly intelligent international payment processing and global electronic banking services to market
and supports one another's product portfolios.
Euronet Worldwide, Inc. - SWOT Profile Page 3
Euronet Worldwide, Inc.
Euronet Worldwide, Inc. - Major Products and Services
Euronet Worldwide, Inc. is a global leader for processing secure electronic financial transactions company. The
company’s key products and services of the company include the following:
Euronet Worldwide, Inc., Major Products and Services
ATM Management System
Chip Card System
Integrated Credit Card System
Integrated Debit Card System
Mobile Banking System
Telephone Banking interactive voice response (IVR) System
Bill Payment Services
Card Management Services
Check Cashing Service
Electronic Recharge Solutions
Foreign Currency Exchange Service
Money Transfer Services