Euronet's expansion in FY 2023 primarily attributed to the rise in money transfers through Ria and Xe services
In a recent financial report, global payments solutions provider Euronet revealed a significant 16% rise in adjusted EBITDA for Q4 2023, reaching $148 million. This growth was primarily driven by increased revenues across its payments processing and transaction services, including money transfer.
For the full year, Euronet's adjusted EBITDA rose by 9% to $619 million. The company's money transfer division contributed $405.1 million in Q4 2023, marking a 23% increase in adjusted EBITDA for the quarter, reaching $59 million. This division, a core pillar in revenue generation and profit contribution, helped enhance overall profitability, supporting the company's earnings gains and strong margins.
The strong revenue growth was reflected in Euronet's full-year 2024 revenue, which reached $3.99 billion, an 8.18% increase year-over-year. Earnings also improved, with a 9.40% increase to $306 million in 2024. The EBITDA margin for the money transfer segment rose slightly YoY, from 13% to 13.9% for the full year.
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It's worth noting that while specific segment profitability details for Q4 2023 are not disclosed, the overall financial results imply a positive contribution from the money transfer segment to Euronet’s earnings growth. The money transfer division accounted for a smaller share of Euronet's yearly revenues for the fourth year in a row.
In summary, Euronet’s growth in Q4 2023 and full-year 2023 was driven primarily by increased revenues across its payments processing and transaction services, including money transfer. Its money transfer division, a substantial contributor to revenue, helped enhance overall profitability, supporting the company's earnings gains and strong margins. Access to Euronet's industry-leading resources on cross-border payments can be gained through creating a new account.
Investing in Euronet, a global payments solutions provider, could be an opportunity for businesses seeking high returns, given its significant 16% rise in adjusted EBITDA for Q4 2023 and a 9% increase for the full year, primarily due to increased revenues from its money transfer division. Additionally, staying updated on the latest trends and developments in cross-border payments through Euronet's free industry-leading resources could aid in informed investing decisions.
