What changed in this filing

/stocks — the workspaceLOADING

Item 2. Management’s Discussion and Analysis

2024-08-02 compared with 2024-05-06 · 219 added, 209 removed, 280 unchanged (60% of the section changed)

36 unchanged sentences

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 European Union'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 laws and regulations affecting our business, including tax and immigration laws and any laws regulating payments, including Dynamic Currency Conversion (DCC) transactions ;

changes in our relationships with, or in fees charged by, our business partners;

10 unchanged sentences

We operate in the following three segments:

1 ) The EFT Processing 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 49,290 active

ATMs and approximately 713,000 POS

2 ) The 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.

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.

1 ) The EFT Processing 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 54,005 active ATMs and approximately 833,000 POS terminals .

2 ) The 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 808,000 POS terminals that enable electronic processing of

prepaid mobile airtime "top-up" services and other digital media

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

In addition, Ria offers safe and affordable money transfers through a

global network of cash locations and online, serving over 20 million customers

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 operate a network that includes approximately 794,000 POS terminals that enable electronic processing of prepaid mobile airtime "top-up" services and other digital media content.

3 ) The 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, seven in Asia Pacific and two in North America.

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

EFT Processing Segment — Revenues in the EFT Processing Segment, which represented approximately 25% of total consolidated revenues for the three months ended March 31, 2024 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.

EFT Processing Segment — Revenues in the EFT Processing Segment, which represented approximately 31% and 28% of total consolidated revenues for the three and six months ended June 30, 2024 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.

epay Segment — Revenues in the epay

Segment, which represented approximately 30% of

total consolidated revenues for the three months

ended March 31, 2024 are primarily

derived from commissions or processing fees received 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.

The proportion of epay Segment revenues

earned from the distribution of prepaid mobile phone time as compared with

other electronic products has decreased over time, and digital media content

now produces approximately 67% of epay Segment revenues.

Other electronic

content offered by this segment includes digital content such as music, games,

and software, as well as other products including prepaid long distance calling

card plans, prepaid Internet plans, prepaid debit cards, gift cards, vouchers,

transport payments, lottery payments, bill payment, and money transfer.

Money Transfer Segment — Revenues in the Money

Transfer Segment, which represented approximately 45% of

total consolidated revenues for the three months

ended March 31, 2024 ,

respectively, are primarily derived from transaction fees, as well as the

margin earned from purchasing foreign currency at wholesale exchange rates

and selling the foreign currency to customers at retail exchange rates.

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

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.

epay Segment — Revenues in the epay Segment, which represented approximately 26% and 28% of total consolidated revenues for the three and six months ended June 30, 2024 are primarily derived from commissions or processing fees received 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.

The proportion of epay Segment revenues earned from the distribution of prepaid mobile phone time as compared with other electronic products has decreased over time, and digital media content now produces approximately 66% of epay Segment revenues.

Other electronic content offered by this segment includes digital content such as music, games, and software, as well as other products including prepaid long distance calling card plans, prepaid Internet plans, prepaid debit cards, gift cards, vouchers, transport payments, lottery payments, bill payment, and money transfer.

Money Transfer Segment — Revenues in the Money Transfer Segment, which represented approximately 43% and 44% of total consolidated revenues for the three and six months ended June 30, 2024 , respectively, are primarily derived from transaction fees, as well as the margin earned from purchasing foreign currency at wholesale exchange rates and selling the foreign currency to customers at retail exchange rates.

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.

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.

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SEGMENT SUMMARY RESULTS OF OPERATIONS

Revenues and operating income by segment for the three months ended March 31, 2024 and 2023 are summarized in the tables below:

Revenues and operating income by segment for the three and six months ended June 30, 2024 and 2023 are summarized in the tables below:

Revenues for the Three Months Ended

Year-over-Year Change

Revenues for the Six Months Ended

Year-over-Year Change

(dollar amounts in millions)

Increase (Decrease)

EFT Processing

1 unchanged sentence

Corporate services, eliminations and other

Operating Income (Loss) for the Three Months Ended March 31,

Operating Income (Loss) for the Three Months Ended June 30,

Year-over-Year Change

Operating Income (Loss) for the Six Months Ended June 30,

Year-over-Year Change

(dollar amounts in millions )

1 unchanged sentence

Increase (Decrease)

EFT Processing

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Average Translation Rate

Three Months Ended March 31,

Three Months Ended June 30,

Average Translation Rate

Six Months Ended June 30,

Currency (dollars per foreign currency)

Increase (Decrease)

Australian dollar

1 unchanged sentence

Canadian dollar

( 2 (2) ) xxxxXX( 2 xx)

Hungarian forint

1 unchanged sentence

New Zealand dollar

COMPARISON OF OPERATING RESULTS FOR THE THREE MONTHS ENDED MARCH 31 , 2024 AND 2023

COMPARISON OF OPERATING RESULTS FOR THE THREE AND SIX MONTHS ENDED JUNE 30 , 2024 AND 2023

EFT PROCESSING SEGMENT

The following table summarizes the results of operations for our EFT Processing Segment for the three months ended March 31, 2024 and 2023 :

Three Months Ended March 31,

The following table summarizes the results of operations for our EFT Processing Segment for the three and six months ended June 30, 2024 and 2023 :

Three Months Ended June 30,

Year-over-Year Change

Six Months Ended June 30,

Year-over-Year Change

(dollar amounts in millions )

(Decrease) Percent

Increase (Decrease) Amount

Increase (Decrease) Percent

Increase (Decrease) Amount

Increase (Decrease) Percent

Total revenues

7 unchanged sentences

Transactions processed (millions)

Active ATMs as of March 31,

Active ATMs as of June 30,

Average Active ATMs

EFT Processing Segment total revenues were $ 217.2 million for the three months ended March 31, 2024 , an increase of $ 25.0 million or 13 % compared to the same period in 2023 .

The increase in revenues was primarily due to the increase in domestic and international cash withdrawal transactions resulting from the increase in travel bringing more tourists, the increase in low-value point-of-sale transactions in Europe and low-value payment processing transactions in Asia Pacific.

Fluctuations in foreign currency exchange rates increased revenues by approximately $1.3 million for the three months ended March 31, 2024 compared to the same period in 2023 .

EFT Processing Segment total revenues were $ 305.4 million for the three months ended June 30, 2024 , an increase of $ 23.0 million or 8 % compared to the same period in 2023 .

EFT Processing Segment total revenues were $ 522.6 million for the six months ended June 30, 2024 , an increase of $ 48.0 million or 10 % compared to the same period in 2023.

The increase in revenues was primarily due to the increase in POS acquiring transactions, entering new geographic markets, increase in domestic and international cash withdrawal transactions resulting from the increase in travel bringing more tourists, the increase in low-value point-of-sale transactions in Europe and low-value payment processing transactions in Asia Pacific.

Fluctuations in foreign currency exchange rates increased revenues by approximately $4.4 million and $0.5 million for the three and six months ended June 30, 2024 compared to the same periods in 2023 .

Direct operating costs

EFT Processing Segment direct operating costs were $ 131.1 million for the three months ended March 31, 2024 , an increase of $ 12.1 million or 10 % compared to the same period in 2023 .

EFT Processing Segment direct operating costs were $ 152.5 million for the three months ended June 30, 2024 , an increase of $ 10.4 million or 7 % compared to the same period in 2023 .

EFT Processing Segment direct operating costs were $ 283.6 million for the six months ended June 30, 2024 , an increase of $ 22.5 million or 9 % compared to the same period in 2023 .

Direct operating costs primarily consist of site rental fees, cash delivery costs, cash supply costs, maintenance, insurance, telecommunications, payment scheme processing fees, data center operations-related personnel, as well as the processing centers’ facility-related costs and other processing center-related expenses and commissions paid to retail merchants, banks and card processors.

The increase in direct costs was primarily due to the increase in number of ATMs, and an increase in high volume low value cash transactions in Asia Pacific.

Fluctuations in foreign currency exchange rates increased direct operating costs by approximately $1.7 million for the three months ended March 31, 2024 compared to the same period in 2023 .

Gross profit, which is calculated as revenues less direct operating costs, was $ 86.1 million for the three months ended March 31, 2024 , an increase of $ 12.9 million or 18 % compared to $ 73.2 million for the same period in 2023 .

Gross profit as a percentage of revenues (“gross margin”) increased to 39.6% for the three months ended March 31, 2024 , compared to 38.1% for the same period in 2023 .

The increase in gross profit was primarily due to the increase in domestic and international cash withdrawal transactions resulting from the increase in travel bringing more tourists, the increase in low-value point-of-sale transactions in Europe and low-value payment processing transactions in Asia Pacific.

Furthermore, direct costs are increasing due to higher funding costs and higher scheme costs.

Fluctuations in foreign currency exchange rates increased direct operating costs by approximately $1.7 million and $0.1 million for the three and six months ended June 30, 2024 compared to the same periods in 2023 .

Gross profit, which is calculated as revenues less direct operating costs, was $ 152.9 million for the three months ended June 30, 2024 , an increase of $ 12.6 million or 9 % compared to $ 140.3 million for the same period in 2023 .

Gross profit was $ 239.0 million for the six months ended June 30, 2024 , an increase of $ 25.5 million or 12 % compared to $ 213.5 million for the same period in 2023 .

Gross profit as a percentage of revenues (“gross margin”) increased to 50.1% and 45.7% for the three and six months ended June 30, 2024 , compared to 49.7% and 45.0% for the same periods in 2023 .

The increase in gross profit was primarily due to the increase in POS acquiring transactions, entering new geographic markets, increase in domestic and international cash withdrawal transactions resulting from the increase in travel bringing more tourists, the increase in low-value point-of-sale transactions in Europe and low-value payment processing transactions in Asia Pacific.

Salaries and benefits

Salaries and benefits expenses were $ 31.8 million for the three months ended March 31, 2024 , an increase of $ 4.3 million or 16 % c ompared to the same period in 2023 .

The increase is primarily due to an increase in headcount to support the growth of the business and salary increases due to inflationary pressures.

Fluctuations in foreign currency exchange rates in the countries in which we employ our workforce increased salaries by approximately $0.3 million for the three months ended March 31, 2024 As a percentage of revenues, salary expense increased to 14.6 % for the three months ended March 31, 2024 , compared to 14.3 % for the same period in 2023 .

Salaries and benefits expenses were $ 34.4 million for the three months ended June 30, 2024 , an increase of $ 3.6 million or 12 % c ompared to the same period in 2023 .

Salaries and benefits expenses were $ 66.2 million for the six months ended June 30, 2024 , an increase of $ 7.9 million or 14 % compared to the same period in 2023 .

The increase is primarily due to an increase in headcount to support the growth of the business and salary increases due to inflationary and market pressures.

As a percentage of revenues, salary expense increased to 11.3 % and 12.7 % for the three and six months ended June 30, 2024 , compared to 10.9 % and 12.3 % for the same periods in 2023 .

Selling, general and administrative

Selling, general and administrative expenses were $ 9.2 million for the three months ended March 31, 2024 , a decrease of $ 6.9 million or 43 % compared to the same period in 2023 .

The decrease was primarily due to a decrease in professional fees and the refund of a duty fee.

As a percentage of revenues, these expenses decreased to 4.2 % for the three months ended March 31, 2024 , compared to 8.4 % for the same period in 2023 .

Selling, general and administrative expenses were $ 13.5 million for the three months ended June 30, 2024 , a decrease of $ 3.1 million or 19 % compared to the same period in 2023 .

Selling, general and administrative expenses were $ 22.7 million for the six months ended June 30, 2024 , a decrease of $ 10.0 million or 31 % compared to the same period in 2023 .

The decrease was primarily due to a decrease in professional fees and the refund of a duty fee in the first quarter of 2024.

As a percentage of revenues, these expenses decreased to 4.4 % and 4.3 % for the three and six months ended June 30, 2024 , compared to 5.9 % and 6.9 % for the same periods in 2023 .

Depreciation and amortization

Depreciation and amortization expenses were $ 23.6 million for the three months ended March 31, 2024 , an increase of $ 0.9 million or 4 % compared to the same period in 2023 .

As a percentage of revenues, these expenses decreased to 10.9 % for the three months ended March 31, 2024 , compared to 11.8 % for the same period in 2023 .

Depreciation and amortization expenses were $ 25.1 million for the three months ended June 30, 2024 , an increase of $ 1.3 million or 5 % compared to the same period in 2023 .

Depreciation and amortization expenses were $ 48.7 million for the six months ended June 30, 2024 , an increase of $ 2.2 million or 5 % compared to the same period in 2023 .

As a percentage of revenues, these expenses decreased to 8.2 % and 9.3 % for the three and six months ended June 30, 2024 , compared to 8.4 % and 9.8 % for the same periods in 2023 .

Operating income

EFT Processing Segment had operating income of $ 21.5 million for the three months ended March 31, 2024 , an increase of $ 14.6 million or 212 % c ompared to the same period in 2023 .

O perating income as a percentage of revenues (“operating margin”) in creased to 9.9 % for the three months ended March 31, 2024 , compared to 3.6 % for the same period in 2023 .

The in crease in operating income was primarily due to a decrease in professional fees and the refund of a duty fee paid and expensed during 2023.

The following table presents the results of operations for the three months ended March 31, 2024 and 2023 for our epay Segment:

Three Months Ended March 31,

EFT Processing Segment had operating income of $ 79.9 million for the three months ended June 30, 2024 , an increase of $ 10.8 million or 16 % c ompared to the same period in 2023 .

EFT Processing Segment had operating income of $ 101.4 million for the six months ended June 30, 2024 , an increase of $ 25.4 million or 33 % compared to the same period in 2023 .

O perating income as a percentage of revenues (“operating margin”) in creased to 26.2 % and 19.4 % for the three and six months ended June 30, 2024 , compared to 24.5 % and 16.0 % for the same periods in 2023 .

The in crease in operating income (and operating margin) was primarily due to improved business performance compared to 2023 .

The following table presents the results of operations for the three and six months ended June 30, 2024 and 2023 for our epay Segment:

Three Months Ended June 30,

Year-over-Year Change

Six Months Ended June 30,

Year-over-Year Change

(dollar amounts in millions )

Increase (Decrease) Amount

(Decrease) Percent

Increase (Decrease) Percent

Increase (Decrease) Amount

Increase (Decrease) Percent

Total revenues

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Transactions proce ssed (mi llions)

epay Segment total revenues were $ 257.1 million for the three months ended March 31, 2024 , an increase of $ 19.7 million or 8 % compared to the same period in 2023 .

The increase in revenue for the three months ended March 31, 2024 was driven by continued expansion in mobile and digital branded payments .

Fluctuations in foreign currency exchange rates increased revenue by approximately $1.2 million for the three months ended March 31, 2024 , compared to the same period in 2023 .

Revenue per transaction increased to $ 0.27 for the three months ended March 31, 2024 , compared to $ 0.24 for the same period in 2023 .

The increase in revenue per transaction was primarily due to the rise in account activations, coupled with improved margins, reduced costs, and a boost in sales volume, offset by declines in promotional campaigns delivered on behalf of our retail partners that were recognized in the prior year that did not repeat in the first quarter this year.

epay Segment total revenues were $ 260.9 million for the three months ended June 30, 2024 , a decrease of $ 2.9 million or 1 % compared to the same period in 2023 .

epay Segment total revenues were $ 518.0 million for the six months ended June 30, 2024 , an increase of $ 16.8 million or 3 % compared to the same period in 2023 .

The increase in revenue for the six months ended June 30, 2024 was driven by continued expansion in mobile and digital branded payments .

Fluctuations in foreign currency exchange rates increased revenue by approximately $3.8 million for the three months ended June 30, 2024 , compared to the same period in 2023 .

Fluctuations in foreign currency exchange rates did not have a material impact on revenues for the six months ended June 30, 2024, compared to the same period in 2023.

Revenue per transaction decreased to $ 0.24 and $ 0.25 for the three and six months ended June 30, 2024 , compared to $ 0.27 and $ 0.26 for the same periods in 2023 .

The decrease in revenue per transaction was primarily due to the shift in the mix of transactions processed .

Direct operating costs

epay Segment direct operating costs were $ 195.1 million for the three months ended March 31, 2024 , an increase of $ 17.0 million or 10 % compared to the same period in 2023.

epay Segment direct operating costs were $ 198.5 million for the three months ended June 30, 2024 , a decrease of $ 5.7 million or 3 % compared to the same period in 2023 .

epay Segment direct operating costs were $ 393.6 million for the six months ended June 30, 2024 , an increase of $ 11.3 million or 3 % compared to the same period in 2023 .

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.

Foreign currency exchange rates increased direct operating costs by $1.2 million for the three months ended March 31, 2024 compared to the same period in 2023 .

The in crease in direct operating costs was the result of increase in business activity and inflationary pressure.

Gross profit was $ 62.0 million for the three months ended March 31, 2024 , an increase of $ 2.7 million or 5 % compared to $ 59.3 million for the same period in 2023 .

Gross margin decreased to 24.1% for the three months ended March 31, 2024 , compared to 25.0% for the same period in 2023 .

Fluctuations in foreign currency exchange rates increased direct operating costs by approximately $2.8 million for the three months ended June 30, 2024 , compared to the same period in 2023 .

Fluctuations in foreign currency exchange rates did not have a material impact on direct operating costs for the six months ended June 30, 2024, compared to the same period in 2023.

Gross profit was $ 62.4 million for the three months ended June 30, 2024 , an increase of $ 2.8 million or 5 % compared to $ 59.6 million for the same period in 2023 .

Gross profit was $ 124.4 million for the six months ended June 30, 2024 , an increase of $ 5.5 million or 5 % compared to $ 118.9 million for the same period in 2023 .

Gross margin increased to 23.9% and 24.0% for the three and six months ended June 30, 2024 , compared to 22.6% and 23.7% for the same periods in 2023 .

The changes in gross profit and gross margin were primarily due to the shift in the mix of transactions processed .

Salaries and benefits

Salaries and benefits expenses were $ 24.1 million for the three months ended March 31, 2024 , an increase of $ 2.7 million or 13 % compared to the same period in 2023 .

Salaries and benefits expenses were $ 25.1 million for the three months ended June 30, 2024 , an increase of $ 3.1 million or 14 % compared to the same period in 2023 .

Salaries and benefits expenses were $ 49.2 million for the six months ended June 30, 2024 , an increase of $ 5.8 million or 13 % compared to the same period in 2023 .

The fluctuations in salaries and benefits were driven by an increase in headcount to support the growth of the business and salary increases due to inflationary pressures.

As a percentage of revenues, these expenses increased to 9.4 % for the three months ended March 31, 2024 , compared to 9.0 % for the same period in 2023 .

Fluctuations in foreign currency exchange rates in the countries in which we employ our workforce increased salaries by approximately $0.2 million for the three months ended March 31, 2024 as compared to the same period in 2023 .

As a percentage of revenues, these expenses increased to 9.6 % and 9.5 % for the three and six months ended June 30, 2024 , compared to 8.3 % and 8.7 % for the same periods in 2023 .

Selling, general and administrative

Selling, general and administrative expenses were $ 9.6 million for the three months ended March 31, 2024 , an increase of $ 0.8 million or 9 % compared to the same period in 2023 .

As a percentage of revenues, these expenses were 3.7 % for both the three months ended March 31, 2024 , compared to the same period in 2023 .

Selling, general and administrative expenses were $ 9.3 million for the three months ended June 30, 2024 , an increase of $ 0.2 million or 2 % compared to the same period in 2023 .

Selling, general and administrative expenses were $ 18.9 million for the six months ended June 30, 2024 , an increase of $ 1.0 million or 6 % compared to the same period in 2023 .

As a percentage of revenues, these expenses were 3.6 % and 3.6 % for the three and six months ended June 30, 2024 , compared to 3.4 % and 3.6 % for the same periods in 2023 .

Depreciation and amortization

Depreciation and amortization expenses were $ 1.7 million for the three months ended March 31, 2024 , an increase of $ 0.1 million or 6 % compared to the same period in 2023 .

Depreciation and amortization expenses were $ 1.8 million for the three months ended June 30, 2024 , an increase of $ 0.1 million or 6 % compared to the same period in 2023 .

Depreciation and amortization expenses were $ 3.5 million for the six months ended June 30, 2024 an increase of $ 0.2 million or 6 % compared to the same period in 2023.

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 were 0.7 % for both the three months ended March 31, 2024 , and for the same period in 2023 .

As a percentage of revenues, these expenses were 0.7 % for both the three and six months ended June 30, 2024 , respectively, compared to 0.6 % and 0.7 % for the same periods in 2023 .

Operating income

epay Segment operating income was $ 26.6 million for the three months ended March 31, 2024 , a decrease of $ 0.9 million or 3 % compared to the same period in 2023 .

Operating margin decreased to 10.3 % for the three months ended March 31, 2024 , compared to 11.6 % for the same period in 2023 .

Operating income per transaction was $ 0.03 f or both the three m onths ended March 31, 2024 and the same period in 2023 .

Changes in operating income and operating margin for the three months ended March 31, 2024 compared to the same period in 2023 were primarily due to the shift in the mix of transactions processed and a decline in the promotional campaign activity this quarter compared to the same period last year.

epay Segment operating income was $ 26.2 million for the three months ended June 30, 2024 , a decrease of $ 0.6 million or 2 % compared to the same period in 2023 .

epay Segment operating income was $ 52.8 million for the six months ended June 30, 2024 , a decrease of $ 1.5 million or 3 % compared to the same period in 2023 .

Operating margin decreased to 10.0 % and 10.2 % for the three and six months ended June 30, 2024 , compared to 10.2 % and 10.8 % for the same periods in 2023 .

Operating income per transaction was $ 0.02 and $ 0.03 f or the three and six m onths ended June 30, 2024 , respectively compared to $ 0.03 and $ 0.03 for the same periods in 2023 .

Changes in operating income and operating margin for the three and six months ended June 30, 2024 compared to the same periods in 2023 were primarily due to the shift in the mix of transactions processed and a decline in the promotional campaign activity this quarter compared to the same period last year.

MONEY TRANSFER SEGMENT

The following table presents the results of operations for the three months ended March 31, 2024 and 2023 for the Money Transfer Segment:

Three Months Ended March 31,

The following table presents the results of operations for the three and six months ended June 30, 2024 and 2023 for the Money Transfer Segment:

Three Months Ended June 30,

Year-over-Year Change

Six Months Ended June 30,

Year-over-Year Change

(dollar amounts in millions )

Increase (Decrease) Amount

(Decrease) Percent

Increase (Decrease) Percent

Increase (Decrease) Amount

Increase (Decrease)

Total revenues

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Transactions processed (millions)

Money Transfer Segment total revenues were $ 384.6 million for the three months ended March 31, 2024 , an increase of $ 25.2 million or 7 % compared to the same period in 2023 .

Money Transfer Segment total revenues were $ 421.8 million for the three months ended June 30, 2024 , an increase of $ 27.0 million or 7 % compared to the same period in 2023 .

Money Transfer Segment total revenues were $ 806.4 million for the six months ended June 30, 2024 , an increase of $ 52.2 million or 7 % compared to the same period in 2023 .

The increase in revenues was primarily due to an increase in international-originated money transfers, U.S.

1 unchanged sentence

domestic transactions.

Revenues per transaction decreased to $ 9.47 for the three months ended March 31, 2024 , compared to $ 9.57 for the same period in 2023 due to a shift in the mix of transactions processed.

Revenues per transaction decreased to $ 9.52 and $ 9.50 for the three and six months ended June 30, 2024 , compared to $ 9.61 and $ 9.60 for the same periods in 2023 due to a shift in the mix of transactions processed.

Fluctuations in foreign currency exchange rates increased revenues by approximately $3.8 million and $0.1 million for the three and six months ended June 30, 2024 compared to the same periods in 2023 .

Direct operating costs

Money Transfer Segment direct operating costs were $ 209.4 million for the three months ended March 31, 2024 , an increase of 13.1 million or 7 % c ompared to the same period in 2023 .

Money Transfer Segment direct operating costs were $ 231.7 million for the three months ended June 30, 2024 , an increase of $ 18.0 million or 8 % c ompared to the same period in 2023 .

Money Transfer Segment direct operating costs were $ 441.1 million for the six months ended June 30, 2024 , an increase of $ 31.1 million or 8 % compared to the same period in 2023 .

Direct operating costs primarily consist of commissions paid to agents who originate money transfers on our behalf and correspondent agents who disburse funds to the customers’ destination beneficiaries, together with less significant costs, such as bank depository fees.

1 unchanged sentence

outbound money transfer transactions.

Gross profit was $ 175.2 million for the three months ended March 31, 2024 , an increase of $ 12.1 million or 7 % compared to $ 163.1 million for the same period in 2023 .

Gross margin increased to 45.6% for the three months ended March 31, 2024 , compared to 45.4% for the same period in 2023 .

The increase in gross profit and gross margin was primarily due t o increases in international-originated money transfers, U.S.

Fluctuations in foreign currency exchange rates changed direct costs by approximately $1.7 million and ($0.1) million for the three and six months ended June 30, 2024 compared to the same periods in 2023 .

Gross profit was $ 190.1 million for the three months ended June 30, 2024 , an increase of $ 9.0 million or 5 % compared to $ 181.1 million for the same period in 2023 .

Gross profit was $ 365.3 million for the six months ended June 30, 2024 , an increase of $ 21.1 million or 6 % compared to $ 344.2 million for the same period in 2023 .

Gross margin decreased to 45.1% and 45.3% for the three and six months ended June 30, 2024 , compared to 45.9% and 45.6% for the same periods in 2023 .

The increase in gross profit was primarily due t o increases in international-originated money transfers, U.S.

outbound transactions and direct-to-consumer digital transactions.

Salaries and benefits

Salaries and benefits expenses were $ 80.7 million for the three months ended March 31, 2024 , an increase of $ 6.4 million or 9 % compared to the same period in 2023 .

Salaries and benefits expenses were $ 82.7 million for the three months ended June 30, 2024 , an increase of $ 4.2 million or 5 % compared to the same period in 2023 .

Salaries and benefits expenses were $ 163.4 million for the six months ended June 30, 2024 , an increase of $ 10.6 million or 7 % compared to the same period in 2023 .

The increase in salaries and benefits was primarily driven by an increase in headcount to support the growth of the business and salary increases due to inflationary pressures.

As a percentage of revenues, these expenses increased to 21.0 % for the three months ended March 31, 2024 , compared to 20.7 %, for the same period in 2023 .

As a percentage of revenues, these expenses decreased to 19.6 % and 20.3 % for the three and six months ended June 30, 2024 , compared to 19.9 % and 20.3 % for the same periods in 2023 .

Selling, general and administrative

Selling, general and administrative expenses were $ 50.0 million for the three months ended March 31, 2024 , an increase of $ 2.3 million or 5 % compared to the same period in 2023 .

As a percentage of revenues, these expenses decreased to 13.0 % for the three months ended March 31, 2024 , compared to 13.3 % for the same period in 2023 .

Selling, general and administrative expenses were $ 53.4 million for the three months ended June 30, 2024 , an increase of $ 6.1 million or 13 % compared to the same period in 2023 .

Selling, general and administrative expenses were $ 103.4 million for the six months ended June 30, 2024 , an increase of $ 8.4 million or 9 % compared to the same period in 2023 .

As a percentage of revenues, these expenses increased to 12.7 % and 12.8 % for the three and six months ended June 30, 2024 , compared to 12.0 % and 12.6 % for the same periods in 2023 .

Depreciation and amortization

Depreciation and amortization expenses were $ 7.3 million for the three months ended March 31, 2024 , a decrease of $ 1.2 million or 14 % compared to the same period in 2023 .

Depreciation and amortization expenses were $ 6.7 million for the three months ended June 30, 2024 , a decrease of $ 1.4 million or 17 % compared to the same period in 2023 .

Depreciation and amortization expenses were $ 14.0 million for the six months ended June 30, 2024 , a decrease of $ 2.6 million or 16 % compared to the same period in 2023 .

Depreciation and amortization expense primarily represents 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 1.9 % for the three months ended March 31, 2024 , compared to 2.4 % f or the same period in 2023 .

As a percentage of revenues, these expenses decreased to 1.6 % and 1.7 % for the three and six months ended June 30, 2024 , compared to 2.1 % and 2.2 % f or the same periods in 2023 .

Operating income

Money Transfer Segment operating income was $ 37.2 million for the three months ended March 31, 2024 , an increase of $ 4.6 million or 14 % compared to the same period in 2023 .

Operating margin increased to 9.7 % for the three months ended March 31, 2024 , compared to 9.1 % for the same period in 2023 .

Operating income per transaction increased to $ 0.92 , for the three months ended March 31, 2024 , compared to $ 0.87 for the same period in 2023 .

We improved our operating income and operating margin due to effective cost management.

Money Transfer Segment operating income was $ 47.3 million for the three months ended June 30, 2024 , an increase of $ 0.1 million compared to the same period in 2023 .

Money Transfer Segment had operating income of $ 84.5 million for the six months ended June 30, 2024 , an increase of $ 4.7 million or 6 % compared to the same period in 2023 .

Operating margin decreased to 11.2 % and 10.5 % for the three and six months ended June 30, 2024 , compared to 12.0 % and 10.6 % for the same periods in 2023 .

Operating income per transaction decreased to $ 1.07 , and $ 1.00 for the three and six months ended June 30, 2024 , compared to $ 1.15 and $ 1.02 for the same periods in 2023 .

CORPORATE SERVICES

The following table presents the operating expenses for the three months ended March 31, 2024 and 2023 for Corporate Services:

Three Months Ended March 31,

The following table presents the operating expenses for the three and six months ended June 30, 2024 and 2023 for Corporate Services:

Three Months Ended June 30,

Year-over-Year Change

Six Months Ended June 30 ,

Year-over-Year Change

(dollar amounts in millions )

1 unchanged sentence

Increase (Decrease)

Increase (Decrease) Amount

Increase (Decrease) Percent

Salaries and benefits

3 unchanged sentences

Corporate operating expenses

Total Corporate operating expenses were $ 21.3 million for the three months ended March 31, 2024 , a decrease of $ 0.1 million c ompared to the same period in 2023 .

Total Corporate operating expenses were $ 19.1 million and $ 40.4 million for the three and six months ended June 30, 2024 , a decrease of $ 1.4 million or 7 % and $ 1.5 million or 4 % c ompared to the same periods in 2023 .

OTHER EXPENSE, NET

Three Months Ended March 31,

Three Months Ended June 30,

Year-over-Year Change

Six Months Ended June 30,

Year-over-Year Change

(dollar amounts in millions )

Increase (Decrease) Amount

(Decrease) Percent

Increase (Decrease) Percent

Increase (Decrease) Amount

Increase (Decrease) Percent

Interest income

Interest expense

Foreign currency exchange loss, net

Foreign currency exchange income (loss), net

Other gains (losses)

1 unchanged sentence

Interest income

Interest income was $ 5.7 million for the three months ended March 31, 2024 , an increase of $ 3.1 million or 119 % compared to the same period in 2023 .

Interest income was $ 5.9 million for the three months ended June 30, 2024 , an increase of $ 2.4 million or 69 % compared to the same period in 2023 .

Interest income was $ 11.6 million for the six months ended June 30, 2024 , an increase of $ 5.5 million or 90 % compared to the same period in 2023 .

This increase was driven by an increase in interest rates on our interest bearing bank accounts.

Interest expense

Interest expense was $ 14.9 million for the three months ended March 31, 2024 , an increase of $ 4.8 million or 48 % compared to the same period in 2023 .

This increase was driven by an increase in interest rates on our Credit Facility and uncommitted credit facility.

Interest expense was $ 20.1 million for the three months ended June 30, 2024 , an increase of $ 6.1 million or 44 % compared to the same period in 2023 .

Interest expense was $ 35.0 million for the six months ended June 30, 2024 , an increase of $ 10.9 million or 45 % compared to the same period in 2023 .

This increase was driven by an increase in interest rates and outstanding balances on our Credit Facility and uncommitted credit facilities.

Foreign currency exchange loss, net

2 unchanged sentences

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

We recorded net foreign currency exchange losses of $ 12.5 million for the three months ended March 31, 2024 , compared to net foreign currency exchange losses of $ 1.1 million for the same period in 2023 .

We recorded net foreign currency exchange income of $ 1.5 million and loss of ($ 11.0 ) million for the three and six months ended June 30, 2024 , compared to net foreign currency exchange income of $ 6.3 million and $ 5.2 million for the same periods in 2023 .

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

1 unchanged sentence

INCOME TAX EXPENSE

The Company's effective income tax rate was 37.9% for the three months ended March 31, 2024 , compared to 46.5% for the same period ended March 31, 2023 .

The Company's effective income tax rate for the three months ended March 31, 2024 was higher than the applicable statutory income tax rate of 21% as a result of certain foreign earnings being subject to higher local statutory tax rates and the Company’s U.S.

The Company's effective income tax rate was 32.0 % and 33.5 % for the three and six months ended June 30, 2024 , compared to 27.3 % and 31.9 % for the same periods ended June 30, 2023 .

The Company's effective income tax rate for the three and six months ended June 30, 2024 was higher than the applicable statutory income tax rate of 21 % as a result of certain foreign earnings being subject to higher local statutory tax rates and the Company’s U.S.

deferred tax activity.

6 unchanged sentences

EFT - Pakistan

Euronet Infinitium Solutions

NET INCOME (LOSS) ATTRIBUTABLE TO EURONET

Net income attributable to Euronet was $ 26.2 million for the three months ended March 31, 2024 , an increase of $ 6.1 million or 30 % compared to t he same period in 2023 .

The increase in net income was primarily attributable to the $ 69.8 million increase in revenues, largely driven by successful business operations.

The increased revenues led to a $ 27.7 million increase in gross profit.

The increase in gross profit was partially offset by a $ 12.8 million increase in salaries and benefits expense and increase in foreign exchange currency loss of $11.4.

NET INCOME ATTRIBUTABLE TO EURONET

Net income attributable to Euronet was $ 83.1 million for the three months ended June 30, 2024 , a decrease of $ 3.0 million or 3 % compared to t he same period in 2023 .

Net income attributable to Euronet was $ 109.3 million for the six months ended June 30, 2024 , an increase of $ 3.1 million or 3 % compared to t he same period in 2023 .

LIQUIDITY AND CAPITAL RESOURCES

Working capital

As of March 31, 2024 , we had working capital of $ 970.7 million , which is calculated as the difference between total current assets and total current liabilities, compared to working capital of $ 1,462.1 million as of December 31, 2023 .

The decrease in working capital was primarily due to the net effect of the classification of the convertible debt to current liabilities, positive operational results, the Infinitium acquisition completed during the quarter and working capital changes.

Our ratio of current assets to current liabilities was 1.33 and 1.54 at March 31, 2024 and December 31, 2023 , respectively.

As of June 30, 2024 , we had working capital of $ 694.9 million , which is calculated as the difference between total current assets and total current liabilities, compared to working capital of $ 1,462.1 million as of December 31, 2023 .

The decrease in working capital was primarily due to the net effect of the classification of the convertible debt to current liabilities, additional financing for the ATMs, positive operational results, acquisitions, repurchases of shares and working capital changes.

Our ratio of current assets to current liabilities was 1.19 and 1.54 at June 30, 2024 and December 31, 2023 , respectively.

We require substantial working capital to finance operations.

5 unchanged sentences

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

As of March 31, 2024 , we had $ 599.7 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 increased $ 74.5 million from $ 525.2 million as of December 31, 2023 to $ 599.7 million as of March 31, 2024 as a result of the increase in number of active ATMs as of March 31, 2024 compared to December 31, 2023 .

The Company has $ 1,236.2 million of unrestricted cash as of March 31, 2024 compared to $ 1,254.2 million as of December 31, 2023 .

Including the $ 599.7 million of cash in ATMs at March 31, 2024 , we have access to $ 2,214.3 million in available cash, and $ 579.0 million available under the Credit Facility with no significant long-term debt principal payments until March 2025.

The following table identifies cash and cash equivalents provided by/(used in) our operating, investing and financing activities for the three months ended March 31, 2024 and 2023 (in millions):

Three Months Ended March 31,

As of June 30, 2024 , we had $ 795.6 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 increased $ 270.4 million from $ 525.2 million as of December 31, 2023 to $ 795.6 million as of June 30, 2024 as a result of the increase in number of active ATMs as of June 30, 2024 compared to December 31, 2023 .

The Company has $ 1,271.8 million of unrestricted cash as of June 30, 2024 compared to $ 1,254.2 million as of December 31, 2023 .

Including the $ 795.6 million of cash in ATMs at June 30, 2024 , we have access to $ 2,555.2 million in available cash, and $ 802.0 million available under the Credit Facility.

The following table identifies cash and cash equivalents provided by/(used in) our operating, investing and financing activities for the six months ended June 30, 2024 and 2023 (in millions):

Six Months Ended June 30,

Cash and cash equivalents and restricted cash provided by (used in):

5 unchanged sentences

Operating activity cash flow

Cash flows provided by operating activities were $ 30.0 million f or the three months ended March 31, 2024 compared to cash flows provided by operating activities of $ 3.3 million for the same period in 2023 .

The net increase in operating cash flows was primarily due to an increase in net i ncome, the effect of exchange rates on balance sheet positions in foreign currencies and other working capital fluctuations.

Cash flows provided by operating activities were $ 212.2 million f or the six months ended June 30, 2024 compared to cash flows provided by operating activities of $ 220.2 million for the same period in 2023 .

The net decrease in operating cash flows was primarily due to other working capital fluctuations.

Investing activity cash flow

Cash flows used in investing activities were $ 96.8 million for the three months ended March 31, 2024 compared to $ 18.1 million for the same period in 2023 .

The increase in cash used in investing activities is primarily due to the $70.0 million of cash paid for the acquisition of Infinitium.

Additionally, w e used $ 23.8 million for purchases of property and equipment for the three months ended March 31, 2024 compared to $ 18.6 million for the same period in 2023 .

Cash flows used in investing activities were $ 155.2 million for the six months ended June 30, 2024 compared to $ 45.5 million for the same period in 2023 .

The increase in cash used in investing activities is primarily due to the $90.8 million of cash paid for the acquisitions during the first six months of 2024.

Additionally, w e used $ 57.2 million for purchases of property and equipment for the six months ended June 30, 2024 compared to $ 41.9 million for the same period in 2023 .

Financing activity cash flow

Cash flows used by financing activities were $ 81.3 million for the three months ended March 31, 2024 compared to cash flows provided by financing activities of $ 4.4 million for the same period in 2023 .

Our borrowing activities on the Credit Facility for the three months ended March 31, 2024 consisted of net borrowings of $ 82.6 million compared to net borrowings of $ 24.3 million for the same period in 2023 .

The increase in net borrowings on the Credit Facility, during the three months ended March 31, 2024 , i s primarily the result of c ash placed in ATMs reactivated in anticipation of the travel season and cash used to complete the acquisition of Infinitium.

We received proceeds of $ 1.4 million and $ 1.0 million during the three months ended March 31, 2024 and 2023 , respectively, for the issuance of stock in connection with our Stock Incentive Plan.

Cash flows provided by financing activities were $ 304.4 million for the six months ended June 30, 2024 compared to cash flows provided by financing activities of $ 104.4 million for the same period in 2023 .

Our borrowing activities on the Credit Facility for the six months ended June 30, 2024 consisted of net borrowings of $ 140.3 million compared to net borrowings of $ 317.2 million for the same period in 2023 .

The increase in financing activity i s primarily the result of cash used to complete the acquisitions and cash used to repurchase shares.

We received proceeds of $ 3.3 million and $ 2.4 million during the six months ended June 30, 2024 and 2023 , respectively, for the issuance of stock in connection with our Stock Incentive Plan.

Effect of exchange rates on cash, cash equivalents and restricted cash

Fluctuations in f oreign currency exchange rates for the three months ended March 31, 2024 and 2023 had a negative impact of $ 47.2 million and $ 33.9 million, respectively, on cash, cash equivalents, and restricted cash.

The negative impact on cash, cash equivalents, and restricted cash for the three months ended March 31, 2024 and 2023 was due primarily to the negative impact in the exchange rate of the U.S.

Fluctuations in f oreign currency exchange rates for the six months ended June 30, 2024 and 2023 had a negative impact of $ 53.2 million and $ 77.4 million, respectively, on cash, cash equivalents, and restricted cash.

The negative impact on cash, cash equivalents, and restricted cash for the six months ended June 30, 2024 and 2023 was due primarily to the negative impact in the exchange rate of the U.S.

dollar to the euro.

7 unchanged sentences

The applicable margin for borrowings under the credit facility, based on the Company's current credit rating is 1.25 % including the facility fee.

As of March 31, 2024 , we had $ 619.5 million of borrowings and $ 51.5 million of stand-by letters of credit outstanding under the Credit Facility.

As of June 30, 2024 , we had $ 396.6 million of borrowings and $ 51.4 million of stand-by letters of credit outstanding under the Credit Facility.

The remaining $ 802.0 million under the Credit Facility was available for borrowing.

7 unchanged sentences

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

As of March 31, 2024 , we have outstanding € 600.0 million ( $ 646.9 million ) principal amount of the Senior Notes.

As of June 30, 2024 , we have outstanding € 600.0 million ( $ 642.6 million ) principal amount of the Senior Notes.

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

Uncommitted Credit Agreements - On June 26, 2023, the Company entered into an Uncommitted Loan Agreement for $ 150 million, fully drawn and outstanding at March 31, 2024 , 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 March 31, 2024 was 6.31 %.

Uncommitted Credit Agreements - On June 26, 2023, the Company

entered into an Uncommitted Loan Agreement for $150 million, which expired on

June 21, 2024.

This loan was a Prime rate loan, a Bloomberg Short-term

Bank Yield (“BSBY”) rate loan plus 0.95% or bore interest at the rate agreed

to by the Bank and the Company at the time a loan was made.

average interest rate from the loan inception date to June 21, 2024, was

On June 21, 2024, the Company

rolled the $150 million Uncommitted Loan Agreement into a new Uncommitted Loan

Agreement with a $400 million credit limit on or before September 30, 2024, and

a credit limit of $250 million on or after October 1, 2024.

fully drawn and outstanding at June 30, 2024, for the sole purpose of providing

vault cash for ATMs and expires no later than June 20, 2025.

The loan was a Prime Rate Loan, a Daily SOFR Rate Loan plus 1.05% or shall bear interest at

the rate agreed to by the Bank and the Borrower at the time such Loan is

The weighted-average interest rate from loan inception date to June

30, 2024, was 6.37%.

On June 27, 2024, the Company entered into an Uncommitted Loan Agreement for $300 million, fully drawn and outstanding at June 30, 2024, for the sole purpose of providing vault cash for ATMs, that expires no later than November 30, 2024.

The loan is a Prime Rate Loan, a Daily Simple SOFR Rate Loan plus 1.125% or shall bear interest at the rate agreed to by the Bank and the Borrower at the time such Loan is made.

The weighted-average interest rate from the loan inception date to June 30, 2024 was 6.37 %.

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

There was $ 0.2 million outstanding under these other obligation arrangements as of March 31, 2024 .

There was $ 8.9 million outstanding under these other obligation arrangements as of June 30, 2024 .

Other uses of capital

Capital expenditures and needs - Total capital expenditures for the three months ended March 31, 2024 were $ 23.8 million .

Capital expenditures and needs - Total capital expenditures for the six months ended June 30, 2024 were $ 57.2 million .

These capital expenditures were primarily for the purchase and installation of ATMs in key under-penetrated markets, the purchase of POS terminals for the epay and Money Transfer Segments, and office, data center and company store computer equipment and software.

6 unchanged sentences

Therefore, the local currency in each of these markets is the functional currency.

We have seen indications that the current inflationary period will put pressure on our results of operations and our financial position.

We have seen some signs of inflation impacting discretionary spend items, such as gaming products, in our epay business, discretionary travel expenditures in EFT, as well as some pressure on send amounts in money transfer.

T he current inflationary period has put pressure on our results of operations and our financial position, primarily in the form of increased compensation expense.

In addition, we have seen some signs of inflation impacting demand for our products and services by affecting discretionary spend items, such as gaming products, in our epay business, discretionary travel expenditures in EFT, as well as some pressure on send amounts in money transfer.

A s a consequence of this inflationary period, w e expect to see increasing expenses forthcoming.

3 unchanged sentences

Our liability under such indemnification provisions may be subject to time and materiality limitations, monetary caps and other conditions and defenses.

As of March 31, 2024 , there were no material changes from the disclosure in our Annual Report on Form 10-K for the year ended December 31, 2023 .

To date, we are not aware of any significant claims made by the indemnified parties or parties to whom we have provided guarantees on behalf of our subsidiaries and, accordingly, no liabilities have been recorded as of March 31, 2024 .

As of June 30, 2024 , there were no material changes from the disclosure in our Annual Report on Form 10-K for the year ended December 31, 2023 .

See also Note 15 , Commitments, to the unaudited consolidated financial statements included elsewhere in this report.

CONTRACTUAL OBLIGATIONS

As of March 31, 2024 , there have been no material changes outside the ordinary course of business in our future contractual obligations from the amounts reported within our Annual Report on Form 10-K for the year ended December 31, 2023 .

As of June 30, 2024 , there have been no material changes outside the ordinary course of business in our future contractual obligations from the amounts reported within our Annual Report on Form 10-K for the year ended December 31, 2023 .

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-Q

Item 2. Management’s Discussion and Analysis