What changed in this filing

/stocks — the workspaceLOADING

Item 7. Management’s Discussion and Analysis

2024-02-22 compared with 2023-02-22 · 132 added, 156 removed, 397 unchanged (42% of the section changed)

1 unchanged sentence

The following discussion and analysis s hould be read in conjunction with the consolidated financial statements and accompanying notes included elsewhere in this Annual Report on Form 10-K.

This section of this Form 10-K generally discusses 2022 and 2021 items and year-to-year comparisons between 2022 and 2021.

Discussions of 2021 items and year-to-year comparisons between 2021 and 2020 that are not included in this Form 10-K can be found in "Management's Discussion and Analysis of Financial Condition and Results of Operations" in Part II, Item 7 of our Annual Report on Form 10-K for the fiscal year ended December 31, 2021.

This section of the Form 10-K generally discusses 2023 items and year-to-year comparisons between 2023 and 2022 .

Company Overview, Geographic Locations and Principal Products and Services

3 unchanged sentences

We operate in the following three segments:

1) The EFT Processing Segment, which processes transactions for a network of 45,009 ATMs and approximately 613,000 POS terminals across Europe, the Middle East, Africa, Asia Pacific, and the United States.

We provide comprehensive electronic payment solutions consisting of ATM cash withdrawal and deposit services, ATM network participation, outsourced ATM and POS management solutions, credit, debit and prepaid card outsourcing, DCC, and other value added services.

Through this segment, we also offer a suite of integrated electronic financial transaction software solutions for electronic payment and transaction delivery systems.

2) The epay Segment, which provides distribution, processing and collection services for prepaid mobile airtime and other electronic content.

We operate a network of approximately 816,000 POS terminals providing electronic processing of prepaid mobile airtime top-up services and other electronic content in Europe, the Middle East, Asia Pacific, the United States and South America.

We also provide vouchers and physical gift fulfillment services in Europe.

3 ) The Money Transfer Segment, which provides global consumer-to-consumer money transfer services, primarily under the brand names Ria, IME, AFEX, and xe and global account-to-account money transfer services under the brand name xe.

We offer services under the brand names Ria and IME through a network of sending agents, Company-owned stores (primarily in North America, Europe and Malaysia) and our websites (riamoneytransfer.com and online.imeremit.com), disbursing money transfers through a worldwide correspondent network that includes approximately 522,000 locations.

xe is a provider of foreign currency exchange information and of fers money transfer services on its currency data websit es (xe.com and x-rates.com).

In addition to money transfers, we also offer customers bill payment services (primarily in the U.S.), payment alternatives such as money orders and prepaid debit cards, comprehensive check cashing services for a wide variety of issued checks, along with competitive foreign currency exchange services and prepaid mobile top-up.

Through our xe brand, we offer cash management solutions and foreign currency risk management services to small-to-medium-sized businesses.

1 ) Our Electronic Funds Transfer (EFT) segment meets the needs of financial institutions and consumers through Euronet-owned and outsourced ATMs and POS terminals combined with value added and transaction processing services.

We deploy and operate our own ATMs, providing ATM services for financial institutions and providing electronic payment processing solutions.

EFT offers a suite of integrated electronic financial transaction software solutions for electronic payment and transaction delivery systems.

Transactions processed span a network of 47,303 ATMs, as of December 31, 2023, and approximately 656,000 POS terminals.

2 ) Our epay segment provides retail payment solutions and delivers innovative connections between the digital content of the world’s leading brands and consumers.

epay has one of the largest retail networks across Europe and Asia for the distribution of physical and digital third-party content, including branded payments, mobile, and alternative payments, partnering with 1,000+ of the world’s leading brands.

In addition, through our own products, we have leveraged our technology to solve business challenges, delivering scalable solutions to drive efficiency and effectiveness.

Our comprehensive range of consumer products simplifies transactions and provides financial convenience across a wide range of branded payments.

epay operates in 60+ countries.

We operate a network that includes approximately 821,000 POS terminals that enable electronic processing of prepaid mobile airtime "top-up" services and other digital media content.

3 ) Our Money Transfer segment provides global money transfers and currency exchange information in retail stores, apps, and websites through Ria Money Transfer, Xe and the Dandelion cross-border real-time payments network.

Euronet’s Money Transfer segment offers real-time, cross-border payments to consumers and businesses across 198 countries and territories, enabling banks, fintechs and big tech platforms to integrate an international payments solution into their own platforms.

Ria Money Transfer offers real-time international money transfers with a special focus on emerging markets.

In addition, Ria offers safe and affordable money transfers through a global network of cash locations and online, serving over 20 million customers annually.

Xe offers web and app-based currency information and industry-leading consumer and business cross-border money transfer services.

Customers can send money, buy property overseas, and execute other international payments via the Xe website or app.

Dandelion offers consumer and business transaction processing and fulfillment with alternative payout channels like bank accounts, cash pick-up and mobile wallets.

Dandelion powers cross-border payments for Xe and Ria, as well as third party banks, fintechs, and big tech platforms.

We have six processing centers in Europe, five in Asia Pacific and two in North America.

We have 36 principal offices in Europe, 14 in Asia Pacific, 10 in North America, three in the Middle East, two in South America and one in Africa.

We have 35 principal offices in Europe, 14 in Asia Pacific, 10 in North America, three in the Middle East, two in South America and three in Africa.

Our executive offices are located in Leawood, Kansas, USA.

With approximately 75% of ou r revenues denominated in currencies other than the U.S.

With approximately 76% of our revenues denominated in currencies other than the U.S.

dollar, any significant changes in foreign currency exchange rates will likely have a significant impact on our results of operations (for a further discussion, see Item 1 A - Risk Factors and Item 7 A - Quantitative and Qualitative Disclosures About Market Risk).

1 unchanged sentence

Euronet earns revenues and income primarily from ATM management fees, transaction fees, commissions, and foreign currency exchange margin.

Each operating segment's sources of revenues are described below.

Each operating segment's sources of revenue are described below.

EFT Processing Segment — Revenues in the EFT Pro cessing Segment, which represented approximately 29% of total consolidated revenues for the year ended December 31, 2023 , are derived from fees charged for transactions made by cardholders on our proprietary network of ATMs, fixed management fees and transaction fees we charge to customers for operating ATMs and processing debit and credit cards under outsourcing and cross-border acquiring agreements, foreign currency exchange margin on DCC transactions, domestic and international surcharge, foreign currency dispensing and other value added services such as advertising, prepaid telecommunication recharges, bill payment, and money transfers provided over ATMs.

Revenues in this segment are also derived from cardless payment, banknote recycling, tax refund services, license fees, professional services and maintenance fees for proprietary applicati on software and sales of related hardware.

Revenues in this segment are also derived from cardless payments, banknote recycling, tax refund services, license fees, professional services and maintenance fees for proprietary applicati on software and sales of related hardware.

epay Segment — Revenues in the epay Segment, which represented approximately 29% of total consolidated revenues for the year ended December 31, 2023 , are primarily derived from commissions or processing fees rec eived from mobile phone operators for the processing and distribution of prepaid mobile airtime and commissions earned from the distribution of other electronic content, vouchers, and physical gifts.

3 unchanged sentences

We have a sending agent network in place comprised of agents, customer service representatives, Company-owned stores, primarily in North America, Europe and Malaysia, Ria, and xe branded websites, along with a worldwide network of correspondent agents, consisting primarily of financial institutions in the transfer destination countries.

Under the brand "Dandelion", Ria offers payment processing services to third party partners.

The Dandelion cross-border payments platform provides financial institutions, fintechs such as digital wallets and banks, and enterprise software companies access to Euronet's money transfer network through an API connection.

Sending and correspondent agents each earn fees for cash collection and distribution services, which are recognized as direct operating costs at the time of sale.

The Company offers a money transfer product called Walmart-2-Walmart Money Transfer Service which allows customers to transfer money to and from Walmart stores in the U.S.

Our Ria business executes the transfers with Walmart serving as both the sending agent and payout correspondent.

Ria earns a lower margin from these transactions than its traditional money transfers;

however, the arrangement has added a significant number of transactions to Ria's business.

The agreement with Walmart establishes Ria as the only party through which Walmart will sell U.S.

domestic money transfers branded with Walmart marks.

The agreement is effective until April 2026.

Thereafter, it will automatically renew for subsequent one year terms unless either party provides notice to the contrary.

The agreement imposes certain obligations on each party, the most significant being service level requirements by Ria and money transfer compliance requirements by Walmart.

Any violation of these requirements by Ria could result in an obligation to indemnify Walmart or termination of the contract by Walmart.

However, the agreement allows the parties to resolve disputes by mutual agreement without termination of the agreement.

Corporate Services, Eliminations and Other — In addition to operating in our principal operating segments described above, our "Corporate Services, Eliminations and Other" category includes non-operating activity, certain inter-segment eliminations and the cost of providing corporate and other administrative services to the operating segments, including most share-based compensation expense.

These services are not directly identifiable with our reportable operating segments.

6 unchanged sentences

Operational challenges in the EFT Processing Segment include obtaining and maintaining the required licenses and sponsorship agreements in markets in which we operate and navigating frequently changing rules imposed by international card organizations, such as Visa ® and Mastercard ® , that govern ATM interchange fees, direct access fees and other restrictions.

Our profitability is dependent on the laws and regulations that govern DCC transactions, specifically in the E.U., as well as the laws and regulations of each country that we operate in that may impact the volume of cross-border and cross-currency transactions .

Our profitability is dependent on the laws and regulations that govern DCC transactions, specifically in the E.U., increasing expansion of prepaid forex cards, as well as the laws and regulations of each country that we operate in that may impact the volume of cross-border and cross-currency transactions .

The timing and amount of revenues in the EFT Processing Segment is uncertain and unpredictable due to inherent limitations in managing our estate of ATMs, which is dependent on contracts that cover large numbers of ATMs, which are complicated by legal and regulatory considerations of local countries, as well as our customers' decisions whether to outsource ATMs.

13 unchanged sentences

Inadequate technology and resources would impair our ability to maintain current processing technology and efficiencies, as well as deliver new and innovative services to compete in the marketplace.

The outbreak of the COVID- 19 (coronavirus) pandemic has resulted in varying degrees of border and business closures, travel restrictions and other social distancing orders in most of the countries where we operate during 2021 and part of 2022.

These types of orders were first put into effect in the first half of 2020.

As the number and rate of new cases has fluctuated in various locations around the global, the closures, restrictions and other social distancing orders have been modified, rescinded and/or re-imposed.

During 2022, we experienced a significant recovery from the previous business closures and travel restrictions that were in place in many of our markets during 2020 and 2021.

However, the travel industry has not yet fully recovered as the airlines and airports have not returned their staffing levels to pre-COVID levels, which has limited the level of recovery.

The EFT Segment has experienced declines in certain transaction volumes due to these restrictions, especially high-margin cross-border transactions.

The epay Segment has experienced the impacts of consumer movement restrictions in certain markets, while other markets have been positively impacted where we have a higher mix of digital distribution or a higher concentration of retailers that are deemed essential and have remained open during the pandemic.

The Money Transf er Segment has experienced the impacts by the pandemic-related restrictions in certain markets that limit customers' ability to access our network of Company-owned stores and agents.

In response to the COVID- 19 pandemic driven impacts, we implemented several key measures to offset the impact across the business, including re-negotiating certain third party contracts, reducing travel and decreasing capital expenditures.

Segment Revenues and Operating Income For The Years Ended December 31, 2023 a nd 2022

Operating Income (Expense)

(in thousands)

(in millions)

EFT Processing

2 unchanged sentences

Our annual consolidated revenues increased by 9.8% for 2023 compared to 2022 .

The increase in revenues for 2022 was primarily due to the easing of COVID-19 related travel restrictions in 2022 compared to 2021, which led to an increase in demand for DCC, domestic and international surcharge and other value added services in our EFT Processing Segment as well as growth in the number of money transfers processed by the core Ria business and the number of transactions processed by our epay subsidiaries.

The increase in revenues for 2023 was primarily due to the increases in transaction volumes across all three segments.

Our annual consolidated operating income increased by 12.2% for 2023 compared to 2022 .

The increase in operating income for 2022 was primarily due to the increases in transaction volume across all three segments.

The increase in operating income for 2023 was primarily due to the increases in transaction volumes across all three segments.

Net income attributable to Euronet for 2023 was $ 279.7 million , or $ 5.50 per diluted share compared to a net income attributable to Euronet for 2022 of $ 231.0 million, or $ 4.41 per diluted share.

5 unchanged sentences

dollar and positively impacted by a weaker U.S.

Considering the results by country and the associated functional currency, our 2022 consolidated operating income was approximately (12%) lower due to changes in foreign currency exchange rates when compared to 2021 .

Considering the results by country and the associated functional currency, our 2023 consolidated operating income was approximately 0.2 % higher due to changes in foreign currency exchange rates when compared to 2022 .

If significant, in our discussion we will refer to the impact of fluctuations in foreign currency exchange rates in our comparison of operating segment results.

14 unchanged sentences

Year-over-Year Change

(dollar amounts in thousands)

(dollar amounts in millions)

Increase (Decrease) Amount

7 unchanged sentences

Total operating expenses

Operating income / (loss)

Operating income

Transactions processed (millions)

1 unchanged sentence

Average active ATMs

_________________

not meaningful

EFT Processing Segment total revenues were $ 1,058.3 million for the year ended December 31, 2023 , an increase of $ 134.1 million or 14.5 % compared to the same period in 2022 .

In 2021, we began increasing our estate of active ATMs as certain countries began easing COVID-19 restrictions;

however, remaining cross-border travel patterns prevented our volume of DCC and surcharge transactions from returning to pre-COVID-19 levels.

During 2022 we saw further easing of COVID-19 restrictions.

Revenues increased for the year ended December 31 , 2022 compared to the same period in 2021 as cross-border travel and corresponding DCC and surcharge revenues increased.

Also, the acquisition of Merchant Acquiring Business of Piraeus Bank in 2022 added $88.8 million of revenues.

Foreign currency movements decreased revenues by approximately ( $110.9) million for the year ended December 31, 2022 , compared to the same period in 2021 .

Revenues increased for the year ended December 31 ,2023 compared to the same period in 2022 due to an increase in average active ATMs, an increase in our most profitable international transactions driven by cross-border recovery levels, corresponding DCC and surcharge revenues and continued expansion to new markets.

Foreign currency movements increased revenues by approximately $ 9.3 million for the year ended December 31, 2023 , compared to the same period in 2022 .

Revenue per transaction was $ 0.12 for the year ended December 31 , 2023, compared to $ 0.14 for the same period in 2022 .

The decrease in revenue per transaction was driven by an increase in high volume low value transactions initiated through digital wallets.

Average monthly revenues per ATM increased to $ 1,797 for the year ended December 31, 2023 compared to $ 1,633 for the same period in 2022.

Revenues per transaction was $0.14 for both years ended December 31, 2022 and 2021.

Direct operating costs

2 unchanged sentences

For the year ended December 31 , 2023, the increase in direct operating costs was primarily due to the increase in transaction volumes, and costs associated with modifying our estate of ATMs .

Foreign currency movements offset direct operating costs increases by approximately ($54.8) million for the year ended December 31, 2022 compared to the same period in 2021 .

Foreign currency movements increased direct operating costs by approximately $ 7.9 million for the year ended December 31, 2023 compared to the same period in 2022.

Gross profit, which is calculated as revenues less direct operating costs, was $ 486.2 million for the year ended December 31 , 2023, an increase of $ 37.8 million or 8.4 % compared to $ 448.4 million for the same period in 2022 .

Gross profit as a percentage of revenues (“gross margin”) increased to 48.5% for the year ended December 31, 2022, compared to 40.1% for the same period in 2021.

For the year ended December 31, 2022, the increase in gross profit and gross margin was primarily driven by the increase in higher-margin cross-border transactions and overall increase in transaction volumes.

Gross profit as a percentage of revenues (“gross margin”) de creased to 45.9 % for the year ended December 31, 2023, compared to 48.5 % for the same period in 2022.

For the year ended December 31, 2023, the increase in gross profit was primarily driven by the revenue increase from additional transaction volumes into new geographies.

Salaries and benefits

Salaries and benefits expenses were $112.0 million for the year ended December 31, 2022 , an in crease of $13.4 million or 14% c ompared to the same period in 2021 .

The increase in salaries and benefits for the year ended December 31, 2022 compared to the same period in 2021 was primarily driven by an increase in salaries and bonus expense offset by ( $14.0) million de crease from foreign currency movements in the countries where we employ our workforce.

Salaries and benefits expenses were $ 126.5 million for the year ended December 31, 2023 , an in crease of $ 14.6 million or 13.0 % compared to the same period in 2022.

The increase in salaries and benefits for the year ended December 31, 2023 compared to the same period in 2022 was primarily driven by an increased headcount and an increase in pay rate and bonuses.

As a percentage of revenues, these expenses decreased to 12.0 % for the year ended December 31, 2023, compared to 12.1 % for the same period in 2022.

1 unchanged sentence

Selling, general and administrative expenses were $ 58.8 million for the year ended December 31, 2023 , an increase of $ 1.7 million or 3.0 % compared to the same period in 2022 .

The increase in these expenses is primarily driven by a $16.8 million increase in professional fees, travel & meals, advertising and other expenses offset by ($7.6) million decrease from foreign currency movements.

As a percentage of revenues, these expenses decreased to 5.6 % for the year ended December 31 , 2023, compared to 6.2 % for the same period in 2022 .

Depreciation and amortization

Depreciation and amortization expenses were $95.5 million for the year ended December 31, 2022 , an increase of $4.5 million or 5% compared to the same period in 2021 .

Foreign currency movements offset these increases by ($10.1) million for the year ended December 31, 2022, compared to the same period in 2021, with the remainder of the increase driven by the acquisition of additional ATMs and software assets.

Depreciation and amortization expenses were $ 94.6 million for the year ended December 31, 2023 , a decrease of $ 0.8 million or 0.8 % compared to the same period in 2022 .

As a percentage of revenues, these expenses decreased to 8.9 % for the year ended December 31, 2023 , compared to 10.3 % for the same period in 2023.

Operating income (loss)

EFT Processing Segment had operating income of $183.9 million for the year ended December 31, 2022, compared to operating losses of $0.5 million in 2021, an increase of $184.4 million compared to the same period in 2021 .

O perating income (loss) as a percentage of revenues (“operating margin”) increased to 19.9 % for the year ended December 31 , 2022, compared to (0.1%) for the same period in 2021 .

Operating income (loss) per transaction was $0.03 for the year ended December 31 , 2022, compared to ($0.00) for the same period in 2021 .

For the year ended December 31 , 2022, the increase in operating income and increase in operating margin was primarily driven by further easing of COVID-19 restrictions.

Operating income

EFT Processing Segment had operating income of $ 206.3 million for the year ended December 31, 2023 , compared to operating income of $ 184.0 million in 2022, an increase of $ 22.3 million compared to the same period in 2022 .

O perating income as a percentage of revenues (“operating margin”) decreased to 19.5 % for the year ended December 31 , 2023, compared to 19.9 % for the same period in 2022 .

Operating income per transaction was $ 0.02 for the year ended December 31 , 2023, compared to $ 0.03 for the same period in 2022 .

For the year ended December 31 , 2023, the increase in operating income and decrease in operating margin was primarily driven by the increase in the number of transactions processed in a region where we generally earn lower revenues per transaction.

The following table summarizes the results of operations for our epay Segment for the years ended December 31, 2023 and 2022 :

1 unchanged sentence

Year-over-Year Change

(dollar amounts in thousands)

(dollar amounts in millions)

Increase Amount

9 unchanged sentences

Transactions processed (billions)

epay Segment total revenues were $998.0 million for the year ended December 31, 2022, a decrease of ($13.5) million or (1%) compared to the same period in 2021.

Foreign currency movements de creased revenues by approximately ( $95.3) million for the year ended December 31, 2022, compared to the same period in 2021 .

The decrease in revenues due to foreign currency movements was offset by an increase in revenues of $81.8 million due to increase in transaction volumes in all markets where we operate.

Revenues per transaction decreased to $0.03 for the year ended December 31, 2022, compared to $0.04 for the same period in 2021 .

The decrease in revenues per transaction was primarily driven by the increase in the number of mobile transactions processed in a region where we generally earn lower revenues per transaction.

epay Segment total revenues were $ 1,082.4 million for the year ended December 31, 2023 , an increase of $ 84.5 million or 8.5 % compared to the same period in 2022.

Foreign currency movements in creased revenues by approximately $ 11.4 million for the year ended December 31, 2023 , compared to the same period in 2022 .

The increase in revenues was driven by continued expansion of digital media and mobile sales.

Revenues per transaction increased to $ 0.29 for the year ended December 31, 2023 , compared to $ 0.26 for the same period in 2022 .

The increase in revenues per transaction was primarily driven by a decrease in the number of low-margin mobile transactions processed in a region where we generally earn lower revenues per transaction.

Direct operating costs

epay Segment direct operating costs were $753.1 million for the year ended December 31, 2022 , a decrease of ( $7.7) million or (1 %) compared to the same period in 2021 .

epay Segment direct operating costs were $ 819.1 million for the year ended December 31, 2023 , an increase of $ 65.9 million or 8.7 % compared to the same period in 2022 .

Direct operating costs primarily consist of the commissions paid to retail merchants for the distribution and sale of prepaid mobile airtime and other prepaid products, expenses incurred to operate POS terminals and the cost of vouchers sold and physical gifts fulfilled.

The decrease in direct operating costs was primarily due to foreign currency movements of approximately ($69.8) million offset by the increase in cost for transaction volumes of low-value mobile top-up transactions and an increase in retailer commissions.

Gross profit was $244.9 million for the year ended December 31, 2022, a decrease of ($5.7) million or (2%) compared to $250.6 million for the same period in 2021 .

The increase in direct operating costs was primarily due to an increase in cost for transaction volumes of low-value mobile top-up transactions and an increase in retailer commissions.

Foreign currency movements increased these expenses by $ 9.9 million for the year ended December 31, 2023, compared to the same period in 2022 .

Gross profit was $ 263.3 million for the year ended December 31, 2023 , an increase of $ 18.6 million or 7.6 % compared to $ 244.7 million for the same period in 2022 .

Gross margin decreased to 24.3 % for the year ended December 31, 2023, compared to 24.5 % for the same period in 2022 .

The decrease in gross profit and gross margin was primarily driven by foreign currency movements.

Salaries and benefits

Salaries and benefits expenses were $ 91.1 million for the year ended December 31, 2023 , an increase of $ 9.3 million or 11.4 % compared to the same period in 2022 .

The increase in salaries and benefits was primarily driven by an increase in headcount to support the growth of the business and an increase in bonus expense.

Foreign currency movements in the countries where we employ our workforce offset these increases by ( $7.7) million for the year ended December 31, 2022, compared to the same period in 2021.

The increase in salaries and benefits was primarily driven by an increase in headcount to support the growth of the business and an increase in bonus expenses.

As a percentage of revenues, these expenses increased to 8.4 % for the year ended December 31, 2023, compared to 8.2 % for the year ended December 31, 2022.

Selling, general and administrative

Selling, general and administrative expenses were $36.0 million for the year ended December 31, 2022, a decrease of ( $3.6) million or (9%) compared to the same period in 2021 .

Foreign currency movements decreased these expenses by ($3.5) million for the year ended December 31, 2022, compared to the same period in 2021 .

As a percentage of revenues, these expenses decreased to 3.6% for the year ended December 31, 2022, compared to 3.9 % for the same period in 2021.

Selling, general and administrative expenses were $ 39.1 million for the year ended December 31, 2023 , an increase of $ 3.1 million or 8.6 % compared to the same period in 2022 .

As a percentage of revenues, these expenses were 3.6 % for the year ended December 31, 2023, and 2022, respectively.

Depreciation and amortization

Depreciation and amortization expenses were $6.2 million for the year ended December 31, 2022, a decrease of ( $2.3) million or (27%) compared to the same period in 2021 .

Depreciation and amortization expenses were $ 6.9 million for the year ended December 31, 2023 , an increase of $ 0.7 million or 11.3 % compared to the same period in 2022 .

Depreciation and amortization expense primarily represents depreciation of POS terminals we install in retail stores and amortization of acquired intangible assets.

As a percentage of revenues, these expenses decreased to 0.6% for the year ended December 31, 2022 , compared to 0.8 % for the same period in 2021 .

As a percentage of revenues, these expenses were 0.6 % for the year ended December 31, 2023 , and 2022, respectively.

Operating income

epay Segment operating income was $121.0 million for the year ended December 31, 2022 , a decrease of ( $2.1) million or (2%) c ompared to the same period in 2021 .

epay Segment operating income was $ 126.2 million for the year ended December 31, 2023 , an increase of $ 5.5 million or 4.6 % c ompared to the same period in 2022 .

Operating margin decreased to 11.7 % for the year ended December 31, 2023 , compared to 12.1 % for the same period in 2022 .

Operating income per transaction was $0.03 for the year ended December 31, 2022, compared to $0.04 for the same period 2021.

The decrease in operating income was due to foreign currency movements and the decrease in operating margin was primarily due to an increase in the number of low-margin digital transactions.

Operating income per transaction was $ 0.03 for the year ended December 31, 2023, and 2022, respectively.

The increase in operating income was primarily driven by the increase in transactions.

Money Transfer Segment

2 unchanged sentences

Year-over-Year Change

(dollar amounts in thousands)

(dollar amounts in millions)

Increase (Decrease) Amount

3 unchanged sentences

Direct operating costs

Acquired contract cost impairment

Salaries and benefits

5 unchanged sentences

Money Transfer Segment total revenues were $ 1,555.2 million for the year ended December 31, 2023 , an increase of $ 110.7 million or 7.7 % compared to the same period in 2022.

The increase in revenues was primarily due to 13% growth in US -outbound transactions, 13% growth in international-originated money transfers - which included 13% growth in transfers initiated largely in Europe and 14% growth in transfers initiated in the Middle-East and Asia and 25% growth in xe transactions, partially offset by a 17% decline in the intra -US bu siness.

The increase in revenues was primarily due to 9.6 % growth in US -outbound transactions, 12.1 % growth in international-originated money transfers - which included 9.9 % growth from Americas outside the US, 12.0 % growth in transfers initiated largely in Europe and 14.3 % growth in transfers initiated in the Middle East and Asia, and 15.5 % growth in xe transactions, partially offset by a 15.5 % decline in the intra-US business.

These transaction growth rates include 25.6 % growth in direct-to-consumer digital transactions.

Revenues per transaction decreased to $ 9.62 for the year ended December 31, 2023, compared to $ 9.77 for the same period in 2022 .

Foreign currency movements decreased revenues by approximately ( $86.1) million for the year ended December 31, 2022, compared to the same period in 2021 .

Foreign currency movements increased revenues by approximately $ 8.7 million for the year compared to the same period in 2022 .

Direct operating costs

3 unchanged sentences

outbound and international-originated money transfer transactions and corresponding increase in agent commissions.

Foreign currency movements decreased direct operating costs by approximately ($42.9) million for the year ended December 31, 2022, compared to the same period in 2021 .

Acquired contract cost impairment

During the fourth quarter of 2021, we identified certain contract assets that had a carrying balance greater than the estimated remaining cash flows in the contracts and recorded a corresponding $38.6 million non-cash impairment of costs to fulfill a contract.

The impairment charge is the result of lower-than-expected customer transaction volumes related to these specific contracts, stemming primarily from COVID-19 related disruptions.

Foreign currency movements increased direct operating costs by approximately $ 4.9 million for the year ended December 31, 2023, compared to the same period in 2022 .

Gross profit was $ 715.7 million for the year ended December 31, 2023 , an increase of $ 68.1 million or 10.5 % compared to $ 647.6 million for the same period in 2022 .

Gross margin in creased to 46.0 % for the year ended December 31, 2023 , compared to 44.8 % for the same period in 2022 .

The increase in gross profit was primarily attributable to the increase in transaction volume for the year ended December 31, 2022.

The increase in gross profit was primarily attributable to the increase in transaction volume and relative decrease of agent commissions for the year ended December 31, 2023.

Salaries and benefits

Salaries and benefits expenses were $277.0 million for the year ended December 31, 2022, an increase of $21.2 million or 8% c ompared to the same period in 2021 .

Salaries and benefits expenses were $ 310.5 million for the year ended December 31, 2023 , an increase of $ 33.5 million or 12.1 % compared to the same period in 2022.

The increase in salaries and benefits was primarily driven by an increase in headcount to support the growth of the business.

Foreign currency movements in the countries where we employ our workforce de creased these expenses by ( $15.1) million for the year ended December 31, 2022, compared to the same period in 2021.

As a percentage of revenues, these expenses increased to 20.0 % for the year ended December 31, 2023 , compared to 19.2 % for the same period in 2022.

1 unchanged sentence

Selling, general and administrative expenses were $ 188.8 million for the year ended December 31, 2023 , an increase of $ 6.6 million or 3.6 % compared to the same period in 2022.

The increase in these expenses was primarily driven by an increase in marketing expenses, professional fees and travel related expenses.

Foreign currency movements decreased these expenses by ($8.9) million for the year ended December 31, 2022, compared to the same period in 2021 .

As a percentage of revenues, these expenses increased to 12.6% for the year ended December 31, 2022, compared to 11.3% for the same period in 2021.

The increase in these expenses was primarily driven by an increase in professional fees, product hardware, software, and travel-related expenses.

As a percentage of revenues, these expenses decreased to 12.1 % for the year ended December 31, 2023 , compared to 12.6 % for the same period in 2022.

Depreciation and amortization

Depreciation and amortization expenses were $ 31.0 million for the year ended December 31, 2023 , a decrease of ( $ 2.9 ) million or ( 8.6 %) compared to the same period in 2022 .

Depreciation and amortization primarily represents amortization of acquired intangible assets and depreciation of money transfer terminals, computers and software, leasehold improvements and office equipment.

Depreciation and amortization primarily represent amortization of acquired intangible assets and depreciation of money transfer terminals, computers and software, leasehold improvements, and office equipment.

As a percentage of revenues, these expenses decreased to 2.0 % for the year ended December 31, 2023 , compared to 2.3 % for the same period in 2022 .

3 unchanged sentences

Operating income per transaction increased to $ 1.15 for the year ended December 31, 2023, compared to $ 1.04 for the same period in 2022 .

The increase in operating income, operating margin and operating income per transaction for the year ended December 31, 2022 compared to the same period in 2021 was primarily driven by the increase in transaction volume, specifically the higher margin transactions for US outbound and international-originated money transfers, and the impairment of the contract assets in 2021, partially offset by the increase in agent commissions, and an increase in headcount to support the growth of the business.

The increase in operating income, operating margin, and operating income per transaction for the year ended December 31, 2023 compared to the same period in 2022 was primarily driven by the increase in transaction volume, specifically the higher margin transactions for US outbound and international-originated money transfers, partially offset by the increase in agent commissions, and an increase in headcount to support the growth of the business.

Corporate Services

2 unchanged sentences

Year-over-Year Change

(dollar amounts in thousands)

(dollar amounts in millions)

Increase (Decrease) Amount

6 unchanged sentences

Total Corporate operating expenses were $ 85.3 million for the year ended December 31, 2023 , an increase of $ 11.6 million or 15.7 %, compared to the same period in 2022 .

The increase was primarily due to a $7.6 million increase in share based compensation and a $4.8 million increase in bonuses as a result of improved performance for the year ended December 31, 2022, compared to the same period in 2021.

The increase was primarily due to an increase in share-based compensation and bonuses as a result of improved performance for the year ended December 31, 2023 , compared to the same period in 2022.

Other Expense, Net

1 unchanged sentence

Year-over-Year Change

(dollar amounts in thousands)

(dollar amounts in millions)

Increase (Decrease) Amount

2 unchanged sentences

Interest expense

Foreign currency exchange loss, net

( 17,309 ) 159

Foreign currency exchange gain / (loss), net

Other gains, net

Other expense, net

$ ( 14,403 ) 30

Interest income and interest expense increased in 2023 compared to 2022 due to an increase in the variable interest rates.

Foreign currency exchange loss, net

Foreign currency exchange activity includes gains and losses on certain foreign currency exchange derivative contracts and the impact of remeasurement of assets and liabilities denominated in foreign currencies.

Foreign currency exchange activity includes gains and losses on certain foreign currency exchange derivative contracts and the impact of re-measurement of assets and liabilities denominated in foreign currencies.

Assets and liabilities denominated in currencies other than the local currency of each of our subsidiaries give rise to foreign currency exchange gains and losses.

Foreign currency exchange gains and losses that result from re-measurement of these assets and liabilities are recorded in net income.

The majority of our foreign currency exchange gains or losses are due to the remeasurement of intercompany loans which are not considered a long-term investment in nature and are in a currency other than the functional currency of one of the parties to the loan.

The majority of our foreign currency exchange gains or losses are due to the re-measurement of intercompany loans which are not considered a long-term investment in nature and are in a currency other than the functional currency of one of the parties to the loan.

For example, we make intercompany loans based in euros from our corporate division, which is composed of U.S.

4 unchanged sentences

dollar weakens, our corporate entities will record foreign currency exchange gains.

We recorded a net foreign currency exchange loss of $28.2 million for the year ended December 31, 2022, compared to a net foreign currency exchange loss of $10.9 million for the same period in 2021.

These realized and unrealized foreign currency exchange losses reflect the fluctuation in the value of the U.S.

We recorded a net foreign currency exchange gain of $ 8.0 million for the year ended December 31, 2023 , compared to a net foreign currency exchange loss of $ 28.2 million for the same period in 2022.

These realized and unrealized foreign currency exchange gains and losses reflect the fluctuation in the value of the U.S.

dollar against the currencies of the countries in which we operated during the respective periods.

2 unchanged sentences

Year Ended December 31,

(dollar amounts in thousands)

Income before income taxes

(dollar amounts in millions)

Income before in come t axes

Income tax expense

1 unchanged sentence

Income before income taxes

Acquired contract cost impairment

Other gains, net

Foreign currency exchange (loss) gain, net

Foreign currency exchange gain (loss), net

Income before income taxes, as adjusted

Income tax expense

Income tax benefit attributable to foreign currency exchange loss, net

Income tax attributable to foreign currency exchange gain (loss), net

Income tax expense, as adjusted

2 unchanged sentences

Our effective income tax rates were 30.2 % and 28.5 % for the years ended December 31, 2023 and 2022, respectively.

The effective income tax rates were significantly influenced by the impact of acquired contract cost impairment, and foreign currency exchange gains (losses).

Excluding foreign currency exchange gains (losses), and acquired contract cost impairment items from pre-tax income, as well as the related tax effects for these items, our adjusted effective income tax rates were 22.7% and 36.1% for the years ended December 31, 2022 and 2021, respectively.

The effective income tax rates were significantly influenced by the impact of foreign currency exchange gains (losses).

Excluding foreign currency exchange gains (losses) as well as the related tax effects for these items, our adjusted effective income tax rates were 32.0 % and 22.7 % for the years ended December 31, 2023 and 2022, respectively.

The effective income tax rate, as adjusted, for 2023 was higher than the applicable statutory income tax rate of 21 % primarily because of the projected utilization of U.S.

tax benefits, and certain foreign earnings being subject to higher local statutory tax rates.

The effective income tax rate, as adjusted, for 2022 was higher than the applicable statutory income tax rate of 21 % as a result of the non-recognition of tax benefits from losses in certain foreign countries where we have a limited history of profitable earnings and certain foreign earnings being subject to higher local statutory tax rates.

1 unchanged sentence

tax benefits.

The effective income tax rate, as adjusted, for 2021 was higher than the applicable statutory income tax rate of 21% primarily because of an increase in the valuation allowance related to the projected utilization of U.S.

tax benefits, the non-recognition of tax benefits from losses in certain foreign countries where we have a limited history of profitable earnings and certain foreign earnings being subject to higher local statutory tax rates.

We determine income tax expense based upon enacted tax laws applicable in each of the taxing jurisdictions where we conduct business.

9 unchanged sentences

At this time, it is not possible to estimate the range of change due to the uncertainty of potential outcomes.

Net (Income) Loss Attributable To Noncontrolling Interests

Noncontrolling interests represent the elimination of net income or loss attributable to the minority shareholders' portion of the following consolidated subsidiaries that are not wholly owned:

Net (Income) Loss Attributable To Non-controlling Interests

Non-controlling interests represent the elimination of net income or loss attributable to the minority shareholders' portion of the following consolidated subsidiaries that are not wholly owned:

Percent Owned

6 unchanged sentences

Net income attributable to Euronet was $ 279.7 million for the year ended December 31, 2023 , an increase of $ 48.7 million compared to net income in the same period in 2022 .

For the year ended December 31, 2022, the increase in net income was primarily attributable to the $245.4 million increase in gross profit driven by an increase in transaction volumes across all three segments, an $ 38.6 million decrease in contract asset impairment, partially offset by an $49.4 million increase in salaries and benefits, a $26.8 million increase in income tax expense, a $33.2 million increase in selling, general and administrative expenses, and a $46.1 million increase in foreign currency exchange losses .

For the year ended December 31, 2023 , the increase in net income was primarily attributable to the $ 124.6 million increase in gross profit driven by an increase in transaction volumes across all three segments and the $ 36.2 million increase in foreign currencies, partially offset by an $ 68.7 million increase in salaries and benefits, and a $ 29.0 million increase in income tax expense.

Translation Adjustment

6 unchanged sentences

dollars, differences between current and historical exchange rates generate this translation adjustment.

We recorded a net loss on translation adjustments of $78.4 million for 2022 and a net loss of $78.5 million for 2021 .

In 2021 and 2022 , the U.S.

We recorded a net gain on translation adjustments of $ 47.9 million for 2023 and a net loss of $ 78.3 million for 2022 .

In 2023 , the U.S.

dollar weakened compared to key foreign currencies, resulting in translation gains which were recorded in comprehensive (loss) income.

In 2022 , the U.S.

dollar strengthened compared to key foreign currencies, resulting in translation losses which were recorded in comprehensive (loss) income.

2 unchanged sentences

As of December 31, 2023 , we had working capital of $ 1,462.1 million, which is calculated as the difference between total current assets and total current liabilities, compared to working capital of $ 1,372.7 million as of December 31, 2022.

The decrease in working capital was due to several changes in working capital line items, mainly due to 2022 ending in the weekend, which impacts funding needs for our agents.

The increase in working capital was due to several changes in working capital line items, mainly due to 2023 ending in the weekend, which impacts funding needs for our money transfer agents.

Our ratio of current assets to current liabilities was 1.54 and 1.58 at December 31, 2023 and December 31, 2022 , respectively.

6 unchanged sentences

However, in certain countries, we fund the cash required to operate our ATM network from borrowings under the revolving credit facilities and cash flows from operations .

As of December 31, 2022 , we had approximately $515.6 million of our own cash in use or designated for use in our ATM network, which is recorded in ATM cash on Euronet's Consolidated Balance Sheet.

ATM cash decreased $27.8 million from $543.4 million as of December 31, 2021 to $515.6 million as of December 31, 2022.

As of December 31, 2023 , we had approximately $ 525.2 million of our own cash in use or designated for use in our ATM network, which is recorded in ATM cash on Euronet's Consolidated Balance Sheets.

ATM cash increased $ 9.6 million from $ 515.6 million as of December 31, 2022 to $ 525.2 million as of December 31, 2023.

The Company has $ 1,254.2 million of unrestricted cash as of December 31, 2023 compared to $ 1,131.2 million as of December 31, 2022 .

The decrease in unrestricted cash was primarily due to the $175.0 million of shares repurchased under the stock repurchase programs, the acquisition of the Piraeus Bank Merchant Acquiring business of Piraeus Bank for $343.0 millio n (see Note 6 , Acquisitions, to our Consolidated Financial Statements for additional information) and $109.1 million of capital expenditures, partially offset by the $750.4 million of cash provided by operating activities and an increase in borrowings of $171.4 million .

Including the $515.6 million of cash in ATMs at December 31, 2022, the Company has access to $1,990.9 million in available cash, and $740.6 million available under the Credit Facility with no significant long-term debt principal payments until March 2025.

The Company has access to $ 2,106.8 million in available cash, and $ 661.2 million available under the Credit Facility with no significant long-term debt principal payments until March 2025.

We had cash, cash equivalents and restricted cash of $ 2,247.0 million as of December 31, 2023 , of which $1,728.6 million was held outside of the U.S.

2 unchanged sentences

could have negative tax consequences.

The following table identifies cash and cash equivalents provided by/(used in) our operating, investing and financing activities for the years ended December 31, 2022 and 2021 (in thousands):

The following table identifies cash and cash equivalents provided by/(used in) our operating, investing and financing activities for the years ended December 31, 2023 and 2022 (in millions):

Year Ended December 31,

4 unchanged sentences

Effect of foreign currency exchange rate changes on cash and cash equivalents and restricted cash

(Decrease) in cash and cash equivalents and restricted cash

Increase/(Decrease) in cash and cash equivalents and restricted cash

Operating cash flow

Cash flows provided by operating activities were $ 643.1 million f or the year ended December 31, 2023 compared to $ 748.3 million for the same period in 2022 .

The increase in operating cash flows was primarily due to the increase in net income and fluctuations in working capital mainly associated with the timing of the settlement processes with content providers in the epay Segment, with correspondents in the Money Transfer Segment, and with card organizations and banks in the EFT Processing Segment.

The de crease in operating cash flows was primarily due to the decrease mainly associated with the timing of the settlement processes with content providers in the epay Segment, with correspondents in the Money Transfer Segment, and with card organizations and banks in the EFT Processing Segment offset by an increase in net income .

Investing activity cash flow

Cash flows used in investing activities were $ 157.6 million for the year ended December 31, 2023 compared to $ 453.8 million for the same period in 2022 .

We used $109.1 million for purchases of property and equipment for the year ended December 31, 2022 compared to $92.2 million for the same period in 2021 and $343.0 million for the acquisition of Piraeus Bank Merchant Acquiring business of Piraeus Bank.

There were no acquisitions in 2021.

We used $ 94.4 million for purchases of property and equipment for the year ended December 31, 2023 compared to $ 104.3 million for the same period in 2022.

We used $60.0 million for the issuance of Convertible Notes Receivable.

There were no material acquisitions in 2023.

In 2022, we used $ 343.0 million for the acquisition of Piraeus Bank Merchant Acquiring business of Piraeus Bank.

Financing activity cash flow

Cash flows used in financing activities were $ 143.2 million for the year ended December 31, 2023 compared to $ 1.2 million for the same period in 2022 .

The decrease in cash used in financing activities was primarily the result of the $171.4 million net borrowings on debt obligations for the year ended December 31, 2022 compared to $13.0 million for the same period in 2021 .

The increase in cash used in financing activities was primarily the result of the $ 532.2 million net borrowings on debt obligations for the year ended December 31, 2023 compared to $ 171.4 million for the same period in 2022 .

We repurchased $ 378.4 million of common stock during the year ended December 31, 2023 compared to repurchases of $ 175.0 million for the same period in 2022 .

12 unchanged sentences

Borrowing capacity under the Credit Facility as of December 31, 2023 was $ 661.2 million.

Uncommitted Line of Credit - On June 24, 2022, the Company entered into an Uncommitted Loan Agreement for $150 million, for the sole purpose of providing vault cash for ATMs, that expires no later than June 23, 2023.

The loan was fully repaid and there was no balance at December 31, 2022.

The loan was either a Prime rate loan, a Bloomberg Short-term Bank Yield rate loan or bears interest at the rate agreed to by the bank and the Company at the time such loan is made.

Uncommitted Line of Credit - On June 26, 2023, the Company entered into an Uncommitted Loan Agreement for $ 150 million, fully drawn and outstanding at December 31, 2023, for the sole purpose of providing vault cash for ATMs, that expires no later than June 21, 2024.

The loan is a Prime rate loan, Bloomberg Short-term Bank Yield ("BSBY") rate loan plus 0.95 % or bears interest at the rate agreed to by the Bank and the Company at the time such loan is made.

The weighted-average interest rate from the loan inception date to December 31, 2023 was 6.29 %.

5 unchanged sentences

In connection with the issuance of the Convertible Notes, we recorded $ 12.8 million in debt issuance costs, which are being amortized through March 1, 2025.

Senior Notes - On May 22, 2019, the Company completed the sale of €600 million ($669.9 million) aggregate principal amount of Senior Notes that mature on May 2026 (the "Senior Notes").

Senior Notes - On May 22, 2019, we completed the sale of € 600 million ($ 669.9 million) aggregate principal amount of Senior Notes that mature in May 2026 (the "Senior Notes").

The Senior Notes accrue interest at a rate of 1.375 % per year, payable annually in arrears commencing May 22, 2020, until maturity or earlier redemption.

As of December 31, 2022, the Company has outstanding €600 million ($642.1 million) principal amount of the Senior Notes.

As of December 31, 2023, we have outstanding € 600 million ($ 662.2 million) principal amount of the Senior Notes.

In addition, the Company may redeem some or all of these notes on or after February 22, 2026 at their principal amount plus any accrued and unpaid interest.

As of December 31, 2022, the Company had $4.1 million of unamortized debt issuance costs related to the Senior Notes.

As of December 31, 2023, we had $ 2.9 million of unamortized debt issuance costs related to the Senior Notes.

Other debt obligations — Certain of our subsidiaries have available credit lines and overdraft facilities to generally supplement short-term working capital requirements, when necessary.

4 unchanged sentences

Total capital expenditures for 2024 are currently estimated to be approximately $90 million to $100 million.

Contractual lease obligations — The Company has entered into contractually binding operating and finance lease commitments to operate the business.

Contractual lease obligations — We have entered into contractually binding operating and finance lease commitments to operate the business.

Operating lease expenses were $ 50.1 million and $ 51.0 million for the years ended December 31, 2023 and 2022 , respectively.

5 unchanged sentences

Share repurchase plan

On December 8, 2021, the Company put a repurchase program in place to repurchase up to $300 million in value, but not more than 5.0 million shares of common stock through December 8, 2023.

For the year ended December 31, 2022, t he Company repurchased 1.6 million shares under the repurchase program at a weighted average purchase price of $106.71 for a total value of $175.0 million .

On December 8, 2021, we put a repurchase program in place to repurchase up to $ 300 million in value, but not more than 5.0 million shares of common stock through December 8, 2023.

For the year ended December 31, 2023 , t he Company repurchased 1,400,229 shares under the repurchase program at a weighted average purchase price of $ 89.31 for a total value of $ 125.0 million .

On September 13, 2022, we put a repurchase program in place to repurchase up to $ 350 million in value, but not more than 7.0 million shares of common stock through September 13, 2024.

For the year ended December 31, 2023, we repurchased 2,936,667 shares under the repurchase program at a weighted average purchase price of $ 86.27 for a total value of $ 253.4 million.

On September 13, 2023, the Company put a repurchase program in place to repurchase up to $350 million in value, but not more than 7.0 million shares of common stock through September 13, 2025.

For the year ended December 31, 2023, t he Company did not repurchase shares under this plan.

Repurchases under the programs may take place in the open market or in privately negotiated transactions, including derivative transactions, and may be made under a Rule 10 b 5 - 1 plan.

The Inflation Reduction Act (IRA) was signed into law in August 2022.

Among other things, it imposes a 1% excise tax on net share repurchases.

Inflation and functional currencies

20 unchanged sentences

We have significant tax loss carryforwards, and other temporary differences, which are recorded as deferred tax assets and liabilities.

Deferred tax assets realizable in future periods are recorded net of a valuation allowance based on an assessment of each entity's, or group of entities', ability to generate sufficient taxable income within an appropriate period, in a specific tax jurisdiction.

Deferred tax assets realizable in future periods are recorded net of a valuation allowance based on an assessment of each entity, or group of entities', ability to generate sufficient taxable income within an appropriate period, in a specific tax jurisdiction.

In assessing the recognition of deferred tax assets, we consider whether it is more likely than not that some portion or all of the deferred tax assets will be realized.

31 unchanged sentences

The evaluation is performed at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities.

Recoverability of these assets is measured by a comparison of the carrying amounts to the future undiscounted cash flows the assets are expected to generate.

The recoverability of these assets is measured by a comparison of the carrying amounts to the future undiscounted cash flows the assets are expected to generate.

If such review indicates that the carrying amount of intangible assets is not recoverable, the carrying amount of such assets is reduced to its fair value.

22 unchanged sentences

the expected effects of changes in laws or accounting standards;

the impact of the COVID-19 pandemic, including its variants on our results of operations and financial position;

the impact of the pandemics, including its variants on our results of operations and financial position;

technological advances;

2 unchanged sentences

Investors are cautioned that any forward-looking statements are not guarantees of future performance and involve risks and uncertainties.

Actual results may materially differ from those in the forward-looking statements as a result of various factors, including, but not limited to, conditions in world financial markets and general economic conditions, including impacts from the COVID-19 pandemic;

the war in Ukraine and the related economic sanctions;

our ability to successfully integrate the operations of Piraeus Merchant Services;

the effects in Europe of the U.K.'s departure from the E.U.

and economic conditions in specific countries and regions;

the war in Ukraine and the Middle East and the related economic sanctions;

our ability to successfully integrate any acquired operations economic conditions in specific countries and regions;

technological developments affecting the market for our products and services;

5 unchanged sentences

changes in fees payable for transactions performed for cards bearing international logos or over switching networks such as card transactions on ATMs;

our ability to comply with increasingly stringent regulatory requirements, including anti-money laundering, anti-terrorism, anti-bribery, sanctions, consumer privacy and data protection and the European Union's General Data Protection Regulation and Second Revised Payment Service Directive requirements;

our ability to comply with increasingly stringent regulatory requirements, including anti-money laundering, anti-terrorism, anti-bribery, sanctions, consumer and data protection and privacy and the EU's General Data Protection Regulation and Second Revised Payment Service Directive requirements;

changes in laws and regulations affecting our business, including tax and immigration laws and any laws regulating payments, including DCC transactions, changes in our relationships with, or in fees charged by, our business partners;

5 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 7. Management’s Discussion and Analysis