EURONET WORLDWIDE INC

Previous wording

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 spana network of 54,005 active ATMs and approximately 833,000 POS terminals.

Current wording

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 spana network of 54,020 active ATMs and approximately 949,000 POS terminals.

Previous wording

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

Current wording

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 hasone 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 766,000 POS terminals that enable electronic processing of prepaid mobile airtime "top-up" services and other digital media content.

Previous wording

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.

Current wording

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 205 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.

Previous wording

We have six processing centers in Europe, seven in Asia Pacific andtwo 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. Our executive offices are located in Leawood, Kansas, USA. With approximately 74% of ourrevenues 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 in our Annual Report on Form 10-K for the year ended December 31, 2023).

Current wording

We have six processing centers in Europe, five in Asia Pacific andtwo in North America. 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 75.3% of ourrevenues 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 in our Annual Report on Form 10-K for the year ended December 31, 2023).

Previous wording

EFT Processing Segment — Revenues in the EFT Processing Segment, which represented approximately 31% and 28% of total consolidated revenues for thethree 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 application software and sales of related hardware.

Current wording

EFT Processing Segment — Revenues in the EFT Processing Segment, which represented approximately 34% and 31% of total consolidated revenues for thethree and nine months ended September 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 application software and sales of related hardware.

Previous wording

epay Segment —Revenues in the epay Segment, which represented approximately 26% and 28% of total consolidated revenues for thethree 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.

Current wording

epay Segment —Revenues in the epay Segment, which represented approximately 26% and 27% of total consolidated revenues for thethree and nine months ended September 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.

Previous wording

Money Transfer Segment —Revenues in the Money Transfer Segment, which represented approximately 43% and 44% of total consolidated revenues for thethree 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.

Current wording

Money Transfer Segment —Revenues in the Money Transfer Segment, which represented approximately 40% and 42% of total consolidated revenues for thethree and nine months ended September 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.

Previous wording

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

Current wording

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

Previous wording

COMPARISON OF OPERATING RESULTS FOR THETHREE AND SIXMONTHS ENDED JUNE 30, 2024 AND 2023

Current wording

COMPARISON OF OPERATING RESULTS FOR THETHREE AND NINE MONTHS ENDED SEPTEMBER 30, 2024 AND 2023

Previous wording

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:

Current wording

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

Previous wording

EFT Processing Segment total revenues were$305.4 million for thethree months ended June 30, 2024, anincrease of$23.0 million or 8%compared to the same period in 2023. EFT Processing Segment total revenues were $522.6 million for thesix months ended June 30, 2024, anincrease of $48.0 million or 10% compared to the same period in 2023. Theincrease 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 thethree and six months ended June 30, 2024 compared to the same periods in 2023.

Current wording

EFT Processing Segment total revenues were$373.0 million for thethree months ended September 30, 2024, anincrease of$27.2 million or 8%compared to the same period in 2023. EFT Processing Segment total revenues were $895.6 million for thenine months ended September 30, 2024, anincrease of $75.2 million or 9% compared to the same period in 2023. Theincrease in revenues was primarily due to the increase in POS acquiring transactions, expanding our own ATM network to new geographic markets, increase in domestic cash withdrawal transactions, international surcharge fees optimization, 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 $2.0 million and $0.5 million for thethree and nine months ended September 30, 2024 compared to the same periods in 2023.

Previous wording

EFT Processing Segment direct operating costs were$152.5 million for thethree months ended June 30, 2024, anincrease of$10.4 million or 7% compared to the same period in 2023. EFT Processing Segment direct operating costs were$283.6 million for thesix months ended June 30, 2024, anincrease 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.

Current wording

EFT Processing Segment direct operating costs were$174.3 million for thethree months ended September 30, 2024, anincrease of$8.6 million or 5% compared to the same period in 2023. EFT Processing Segment direct operating costs were$457.9 million for thenine months ended September 30, 2024, anincrease of$31.1 million or 7% 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.

Previous wording

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. 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 thethree and six months ended June 30, 2024 compared to the same periods in 2023.

Current wording

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. Furthermore, direct costs are increasing due to higher funding costs following the trend of interest rates and higher scheme costs. Fluctuations in foreign currency exchange rates increased direct operating costs by approximately $1.4 million and $0.2 million for thethree and nine months ended September 30, 2024 compared to the same periods in 2023.

Previous wording

Gross profit, which is calculated as revenues less direct operating costs, was $152.9 million for thethree months ended June 30, 2024, anincrease of $12.6 million or 9% compared to $140.3 million for the same period in 2023. Gross profit was $239.0 million for thesix months ended June 30, 2024, anincrease 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 andsix 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 theincrease 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.

Current wording

Gross profit, which is calculated as revenues less direct operating costs, was $198.7 million for thethree months ended September 30, 2024, anincrease of $18.6 million or 10% compared to $180.1 million for the same period in 2023. Gross profit was $437.7 million for thenine months ended September 30, 2024, anincrease of $44.1 million or 11% compared to $393.6 million for the same period in 2023. Gross profit as a percentage of revenues (“gross margin”) increased to 53.3% and 48.9% for the three andnine months ended September 30, 2024, compared to 52.1% and 48.0% for the same periods in 2023. The increase in gross profit was primarily due to theincrease in POS acquiring transactions, expanding 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.

Previous wording

Salaries and benefits expenses were $34.4 million for thethree months ended June 30, 2024, anincrease of$3.6 million or 12% compared to the same period in 2023. Salaries and benefits expenses were $66.2 million for thesix months ended June 30, 2024, anincrease 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 thethree and six months ended June 30, 2024, compared to 10.9% and 12.3%forthe same periods in 2023.

Current wording

Salaries and benefits expenses were $41.3 million for thethree months ended September 30, 2024, anincrease of$6.1 million or 17% compared to the same period in 2023. Salaries and benefits expenses were $107.5 million for thenine months ended September 30, 2024, anincrease of $14.0 million or 15% 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 11.1% and 12.0%for thethree and nine months ended September 30, 2024, compared to 10.2% and 11.4%forthe same periods in 2023.

Previous wording

Selling, general and administrative expenses were $13.5 million for the three months ended June 30, 2024, adecrease of $3.1 million or 19% compared to the same period in 2023. Selling, general and administrative expenses were $22.7 million for thesix months ended June 30, 2024, adecrease 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 thethree and six months ended June 30, 2024, compared to 5.9% and 6.9%for the same periods in 2023.

Current wording

Selling, general and administrative expenses were $15.3 million for the three months ended September 30, 2024, adecrease of $0.9 million or 6% compared to the same period in 2023. Selling, general and administrative expenses were $38.0 million for thenine months ended September 30, 2024, adecrease of $10.9 million or 22% 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 4.1% and 4.2%for thethree and nine months ended September 30, 2024, compared to 4.7% and 6.0%for the same periods in 2023.

Previous wording

EFT Processing Segment had operating incomeof$79.9 million for thethree months ended June 30, 2024, anincrease of $10.8 million or 16% compared to the same period in 2023. EFT Processing Segment had operating income of $101.4 million for thesix months ended June 30, 2024, anincrease of $25.4 million or 33% compared to the same period in 2023. Operating income as a percentage of revenues (“operating margin”) increased to 26.2% and 19.4%for thethree and six months ended June 30, 2024, compared to 24.5% and 16.0%for the same periods in 2023. The increasein operating income (and operating margin) was primarily due to improved business performance compared to 2023.

Current wording

EFT Processing Segment had operating incomeof$117.3 million for thethree months ended September 30, 2024, anincrease of $12.5 million or 12% compared to the same period in 2023. EFT Processing Segment had operating income of $218.7 million for thenine months ended September 30, 2024, anincrease of $37.9 million or 21% compared to the same period in 2023. Operating income as a percentage of revenues (“operating margin”) increased to 31.4% and 24.4%for thethree and nine months ended September 30, 2024, compared to 30.3% and 22.0%for the same periods in 2023. The increasein operating income (and operating margin) was primarily due to improved business performance compared to 2023 and expense management.

Previous wording

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

Current wording

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

Previous wording

epay Segment total revenues were$260.9 million for thethree months ended June 30, 2024, adecrease of$2.9 million or 1%compared to the same period in 2023. epay Segment total revenues were $518.0 million for thesix months ended June 30, 2024, anincrease of $16.8 million or 3% compared to the same period in 2023. The increase in revenue for thesix 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 millionfor the three months ended June 30, 2024, compared to the same period in 2023. Fluctuations inforeign 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.

Current wording

epay Segment total revenues were$290.3 million for thethree months ended September 30, 2024, anincrease of$25.8 million or 10%compared to the same period in 2023. epay Segment total revenues were $808.3 million for thenine months ended September 30, 2024, anincrease of $42.6 million or 6% compared to the same period in 2023. The increase in revenue for thenine months ended September 30, 2024 was driven by continued expansion in mobile and digital branded payments. Fluctuations inforeign currency exchange rates increased revenue by approximately $0.1 and $0.2 million for the three and nine months ended September 30, 2024, compared to the same period in 2023.

Previous wording

Revenue per transaction decreased to$0.24 and $0.25 for thethree 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.

Current wording

Revenue per transaction decreased to$0.26 and $0.25 for thethree and nine months ended September 30, 2024, compared to$0.29 and $0.27 for the same periods in 2023. The decrease in revenue per transaction was primarily due to the shift in the mix of transactions processed.

Previous wording

epay Segment direct operating costs were$198.5 million for thethree months ended June 30, 2024, adecrease of $5.7 million or 3% compared to the same period in 2023. epay Segment direct operating costs were $393.6 million for thesix months ended June 30, 2024, anincrease 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. Fluctuations in foreign currency exchange rates increased direct operating costs by approximately $2.8 millionfor the three months ended June 30, 2024, compared to the same period in 2023. Fluctuations inforeign 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.

Current wording

epay Segment direct operating costs were$223.5 million for thethree months ended September 30, 2024, anincrease of $22.2 million or 11% compared to the same period in 2023. epay Segment direct operating costs were $617.1 million for thenine months ended September 30, 2024, anincrease of $33.5 million or 6% 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. Fluctuations inforeign currency exchange rates increased direct operating costs by $0.2 million and $0.2 million for the three andnine months ended September 30, 2024, compared to the same period in 2023.

Previous wording

Gross profit was$62.4 million for thethree months ended June 30, 2024, anincrease of $2.8 million or 5% compared to $59.6 million for the same period in 2023. Gross profit was $124.4 million for thesix months ended June 30, 2024, anincrease 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 thethree 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.

Current wording

Gross profit was$66.8 million for thethree months ended September 30, 2024, anincrease of $3.6 million or 6% compared to $63.2 million for the same period in 2023. Gross profit was $191.2 million for thenine months ended September 30, 2024, anincrease of $9.1 million or 5% compared to $182.1 million for the same period in 2023. Gross margin decreased to 23.0% and 23.7% for thethree and nine months ended September 30, 2024, compared to 23.9% and 23.8% 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.

Previous wording

Salaries and benefits expenses were$25.1 million for thethree months ended June 30, 2024, anincrease of$3.1 million or 14% compared to the same period in 2023. Salaries and benefits expenses were $49.2 million for thesix months ended June 30, 2024, anincrease 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 9.6% and 9.5%for thethree and six months ended June 30, 2024, compared to 8.3% and 8.7%for the same periods in 2023.

Current wording

Salaries and benefits expenses were$26.2 million for thethree months ended September 30, 2024, anincrease of$2.8 million or 12% compared to the same period in 2023. Salaries and benefits expenses were $75.4 million for thenine months ended September 30, 2024, anincrease of $8.6 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 9.0% and 9.3%for thethree and nine months ended September 30, 2024, compared to 8.8% and 8.7%for the same periods in 2023.

Previous wording

Depreciation and amortization expenses were$1.8 million for thethree months ended June 30, 2024, anincrease of $0.1 million or 6%compared to the same period in 2023. Depreciation and amortization expenses were $3.5 million for thesix 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 thethree and six months ended June 30, 2024, respectively, compared to 0.6% and 0.7% for the same periods in 2023.

Current wording

Depreciation and amortization expenses were$1.9 million for thethree months ended September 30, 2024, anincrease of $0.1 million or 6%compared to the same period in 2023. Depreciation and amortization expenses were $5.4 million for thenine months ended September 30, 2024 an increase of $0.3 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 thethree and nine months ended September 30, 2024, respectively, with no change compared to the same periods in 2023.

Previous wording

epay Segment operating income was $26.2 million for thethree months ended June 30, 2024, adecrease of $0.6 million or 2% compared to the same period in 2023. epay Segment operating income was $52.8 million for thesix months ended June 30, 2024, adecrease of $1.5 million or 3% compared to the same period in 2023. Operating margin decreased to 10.0% and 10.2% for thethree 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 for thethree and six months ended June 30, 2024, respectively compared to $0.03 and $0.03 for the same periods in 2023. Changesin operating income and operating margin for thethree and six months ended June 30, 2024 compared to the same periods in 2023 were primarily due tothe shift in the mix of transactions processed and a decline in the promotional campaign activity this quarter compared to the same period last year.

Current wording

epay Segment operating income was $29.1 million for thethree months ended September 30, 2024, anincrease of $0.8 million or 3% compared to the same period in 2023. epay Segment operating income was $81.9 million for thenine months ended September 30, 2024, adecrease of $0.7 million or 1% compared to the same period in 2023. Operating margin decreased to 10.0% and 10.1% for thethree and nine months ended September 30, 2024, compared to 10.7% and 10.8% for the same periods in 2023. Operating income per transaction was$0.03 for both thethree and nine months ended September 30, 2024, unchanged fromthe same periods in 2023. Changesin operating income and operating margin for thethree and nine months ended September 30, 2024 compared to the same periods in 2023 were primarily due tothe shift in the mix of transactions processed and a decline in the promotional campaign activity in 2024 compared to 2023.

Previous wording

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

Current wording

The following table presents the results of operations for thethree and nine months ended September 30, 2024 and 2023 for the Money Transfer Segment:

Previous wording

Money Transfer Segment total revenues were $421.8 million for thethree months ended June 30, 2024, anincrease of$27.0 million or 7%compared to the same period in 2023. Money Transfer Segment total revenues were $806.4 million for thesix months ended June 30, 2024, anincrease 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. outbound transactions, and direct-to-consumer digital transactions, partially offset by a decrease in U.S. domestic transactions. Revenues per transaction decreased to $9.52 and $9.50 for thethree 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.

Current wording

Money Transfer Segment total revenues were $438.2 million for thethree months ended September 30, 2024, anincrease of$42.3 million or 11%compared to the same period in 2023. Money Transfer Segment total revenues were $1,244.6 million for thenine months ended September 30, 2024, anincrease of $94.5 million or 8% compared to the same period in 2023. The increase in revenues was primarily due to an increase in international-originated money transfers, U.S. outbound transactions, and direct-to-consumer digital transactions, partially offset by a decrease in U.S. domestic transactions. Revenues per transaction decreased to $9.72 and $9.57 for thethree and nine months ended September 30, 2024, compared to $9.75 and $9.65 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 $2.4 million and $0.1 million for thethree andnine months ended September 30, 2024 compared to the same periods in 2023.

Previous wording

Money Transfer Segment direct operating costs were$231.7 million for thethree months ended June 30, 2024, anincrease of $18.0 million or 8% compared to the same period in 2023. Money Transfer Segment direct operating costs were $441.1 million for thesix months ended June 30, 2024, anincrease 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. The increase in direct operating costs was primarily due to the increase in the number ofinternational-originated and U.S. outbound money transfer transactions. 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.

Current wording

Money Transfer Segment direct operating costs were$238.4 million for thethree months ended September 30, 2024, anincrease of $26.5 million or 13% compared to the same period in 2023. Money Transfer Segment direct operating costs were $679.5 million for thenine months ended September 30, 2024, anincrease of $57.6 million or 9% 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. The increase in direct operating costs was primarily due to the increase in the number ofinternational-originated and U.S. outbound money transfer transactions. Fluctuations in foreign currency exchange rates increased direct costs by approximately $1.3 million and $0.1 million for thethree and nine months ended September 30, 2024 compared to the same periods in 2023.

Previous wording

Gross profit was $190.1 million for thethree months ended June 30, 2024, anincrease of $9.0 million or 5% compared to $181.1 million for the same period in 2023. Gross profit was $365.3 million for thesix months ended June 30, 2024, anincrease 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 thethree 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 to increases in international-originated money transfers, U.S. outbound transactions and direct-to-consumer digital transactions.

Current wording

Gross profit was $199.8 million for thethree months ended September 30, 2024, anincrease of $15.8 million or 9% compared to $184.0 million for the same period in 2023. Gross profit was $565.1 million for thenine months ended September 30, 2024, anincrease of $36.9 million or 7% compared to $528.2 million for the same period in 2023. Gross margin decreased to 45.6% and 45.4% for thethree and nine months ended September 30, 2024, compared to 46.5% and 45.9% for the same periods in 2023. The increase in gross profit was primarily due to increases in international-originated money transfers, U.S. outbound transactions and direct-to-consumer digital transactions.

Previous wording

Salaries and benefits expenses were $82.7 million for thethree months ended June 30, 2024, anincrease of $4.2 million or 5% compared tothe same period in 2023. Salaries and benefits expenses were $163.4 million for thesix months ended June 30, 2024, anincrease 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 decreased to 19.6% and 20.3%for thethree and six months ended June 30, 2024, compared to 19.9% and 20.3%for the same periods in 2023.

Current wording

Salaries and benefits expenses were $84.9 million for thethree months ended September 30, 2024, anincrease of $7.3 million or 9% compared tothe same period in 2023. Salaries and benefits expenses were $248.3 million for thenine months ended September 30, 2024, anincrease of $17.9 million or 8% 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 decreased to 19.4%for the three months ended September 30, 2024, compared to 19.6%for the same period in 2023 and were 20.0% for the nine months ended September 30, 2024 and 2023.

Previous wording

Depreciation and amortization expenses were $6.7 million for thethree months ended June 30, 2024, adecrease of$1.4 million or 17%compared to the same period in 2023. Depreciation and amortization expenses were $14.0 million for thesix months ended June 30, 2024, adecrease 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 1.6% and 1.7%for thethree and six months ended June 30, 2024, compared to 2.1% and 2.2% for the same periods in 2023.

Current wording

Depreciation and amortization expenses were $6.0 million for thethree months ended September 30, 2024, adecrease of$1.0 million or 14%compared to the same period in 2023. Depreciation and amortization expenses were $20.0 million for thenine months ended September 30, 2024, adecrease of $3.6 million or 15% 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 1.4% and 1.6%for thethree and nine months ended September 30, 2024, compared to 1.8% and 2.1% for the same periods in 2023.

Previous wording

Money Transfer Segment operating income was $47.3 million for thethree months ended June 30, 2024, anincrease of$0.1 million compared to the same period in 2023. Money Transfer Segment had operating incomeof $84.5 million for thesix months ended June 30, 2024, anincrease of $4.7 million or 6%compared to the same period in 2023. Operating margin decreased to 11.2% and 10.5% for thethree 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 thethree and six months ended June 30, 2024, compared to $1.15 and $1.02 for the same periods in 2023.

Current wording

Money Transfer Segment operating income was $58.1 million for thethree months ended September 30, 2024, anincrease of$4.4 million compared to the same period in 2023. Money Transfer Segment had operating incomeof $142.6 million for thenine months ended September 30, 2024, anincrease of $9.1 million or 7%compared to the same period in 2023. Operating margin decreased to 13.3% and 11.5% for thethree and nine months ended September 30, 2024, compared to 13.6% and 11.6% for the same periods in 2023. Operating income per transaction decreased to$1.29, and $1.10 for thethree and nine months ended September 30, 2024, compared to $1.32 and $1.12 for the same periods in 2023.

Previous wording

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

Current wording

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

Previous wording

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

Current wording

Total Corporate operating expenses were $22.3 million and $62.7 million for thethree and nine months ended September 30, 2024, anincrease of $2.5 million or 13% and $1.0 million or 2% compared to the same periods in 2023.

Previous wording

Interest income was $5.9 million for the three months ended June 30, 2024, anincrease of $2.4 million or 69% compared to the same period in 2023. Interest income was $11.6 million for thesix months ended June 30, 2024, anincrease 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.

Current wording

Interest income was $6.5 million for the three months ended September 30, 2024, anincrease of $2.5 million or 63% compared to the same period in 2023. Interest income was $18.1 million for thenine months ended September 30, 2024, anincrease of $8.0 million or 79% compared to the same period in 2023. This increase was driven by an increase in interest rates on our interest bearing bank accounts.

Previous wording

Interest expense was $20.1 million for the three months ended June 30, 2024, anincrease of $6.1 million or 44% compared to the same period in 2023. Interest expense was $35.0 million for thesix months ended June 30, 2024, anincrease 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.

Current wording

Interest expense was $24.2 million for the three months ended September 30, 2024, anincrease of $9.2 million or 61% compared to the same period in 2023. Interest expense was $59.2 million for thenine months ended September 30, 2024, anincrease of $20.1 million or 51% 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.

Previous wording

We recorded net foreign currency exchange income of$1.5 million and loss of ($11.0) millionfor thethree 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. dollar against the currencies of the countries in which we operated during the respective period.

Current wording

We recorded net foreign currency exchange income of$27.4 million and $16.4 millionfor thethree and nine months ended September 30, 2024, compared to net foreign currency exchange loss of $8.8 million and $3.6 million for the same periods in 2023. 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 period.

Previous wording

The Company's effective income tax rate was 32.0% and 33.5% for thethree 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 thethree 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.

Current wording

The Company's effective income tax rate was 27.3% and 30.0% for thethree andnine months ended September 30, 2024, compared to 29.2% and 30.6% for the same periods ended September 30, 2023. The Company's effective income tax rate for thethree andnine months ended September 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.

Previous wording

Net income attributable to Euronet was$83.1 million for thethree months ended June 30, 2024, adecrease of $3.0 million or 3% compared to the same period in 2023. Net income attributable to Euronet was$109.3 million for thesix months ended June 30, 2024, anincrease of $3.1 million or 3% compared to the same period in 2023.

Current wording

Net income attributable to Euronet was$151.5 million for thethree months ended September 30, 2024, anincrease of $47.3 million or 45% compared to the same period in 2023. Net income attributable to Euronet was$260.8 million for thenine months ended September 30, 2024, anincrease of $50.4 million or 24% compared to the same period in 2023.

Previous wording

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. Thedecrease 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.

Current wording

As of September 30, 2024, we had working capital of$914.6 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. Thedecrease 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, operational results, acquisitions, repurchases of shares and working capital changes. Our ratio of current assets to current liabilities was 1.26 and 1.54 at September 30, 2024 and December 31, 2023, respectively.