Short answer
Euronet Worldwide Inc (EEFT) filed its fiscal 2016 10-K annual report with the SEC on Mar 1, 2017. It reported revenue of $2.0B and net income of $174M.
- Top risk flagged: EU-U.S. data transfers: European Court of Justice invalidated Safe Harbor, potentially disrupting Euronet’s EU money-transfer services
FY2016 key financial metrics · XBRL
- Revenue
- $2.0B
- Net income
- $174M
- Operating margin
- 12.8%
- EPS (diluted)
- $3.23
- ROE
- 19.4%
- Operating cash flow
- $368M
Source: XBRL data from the Euronet Worldwide Inc (EEFT) FY2016 10-K on SEC EDGAR. USD.
Euronet Worldwide Inc FY2016 10-K analysis
AI summary of each section, grounded in the filing text
Business Overview
- Electronic payments platform across EFT processing, prepaid distribution and global money transfers
- New 2016 acquisition: YourCash, expanding primarily merchant-filled ATM operations across the U.K., Netherlands, Belgium and Ireland
- Strategic shift: reduced reliance on declining mobile top-up through gift cards, prepaid debit cards, transport payments and digital content
- ATM network expanded to 33,973 from 21,360, driven by India, Europe and YourCash acquisition
- Money Transfer transactions reached 82.3 million, while processed volume totaled $33.3 billion in 2016
Management Discussion & Analysis
- Revenue $1.96B, up 11% YoY, driven by Money Transfer and EFT Processing growth
- Operating income $249.8M, up from $204.8M; effective tax rate 25.2% vs 30.2%
- Best segment Money Transfer: revenue $801.9M, operating income $101.5M, margin 12.7% vs 11.5%
- Worst segment epay: revenue $694.0M, down 2%; operating margin 9.8% vs 9.4%
- Operating cash flow $368.2M; capex $93.2M, share repurchases $75.6M, 2017 capex guidance $90M to $100M, risks include currency and competition
Risk Factors
- EU-U.S. data transfers: European Court of Justice invalidated Safe Harbor, potentially disrupting Euronet’s EU money-transfer services
- U.S.-Mexico remittance corridor: proposed NAFTA renegotiation, tariffs or remittance restrictions threatening the largest corridor
- India demonetization: cash shortages cut fourth-quarter 2016 revenue across more than 12,000 ATMs and remittance payouts
- Processing-center outages: Budapest, Beijing, Mumbai and Karachi centers create concentrated transaction-processing vulnerability
- Western Union and MoneyGram: greater resources and emerging digital currencies threaten pricing, customers and traditional money-transfer volumes
- Debt burden: $561.7 million long-term debt versus $2,712.9 million total assets, with variable-rate exposure
- Founder dependency: co-founder Michael J. Brown’s retention considered important to continued success
Generated from the filing text; verify against the original. How to read a 10-K
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