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SEGMENT INFORMATION
 9 Months Ended
Sep. 30, 2023
SEGMENT INFORMATION  
SEGMENT INFORMATION
(12) SEGMENT INFORMATION

Our reportable operating segments have been determined in accordance with ASC Topic 280, Segment Reporting ("ASC 280"). The Company currently operates in the following three reportable operating segments: 


1) Through the EFT Processing Segment, the Company processes transactions for a network of ATMs and POS terminals across Europe, the Middle East, Africa, Asia Pacific and the United States. Euronet provides comprehensive electronic payment solutions consisting of ATM cash withdrawal and deposit services, ATM network participation, outsourced ATM and POS management solutions, credit, debit and prepaid card outsourcing, dynamic currency conversion, domestic and international surcharges and other value added services. Through this segment, the Company also offers a suite of integrated electronic financial transaction software solutions for electronic payment and transaction delivery systems.

 

2) Through the epay Segment, Euronet provides distribution, processing and collection services for electronic payment products, and prepaid mobile airtime through a network of POS terminals in Europe, the Middle East, Asia Pacific, South America and North America.  The epay Segment also provides vouchers and physical gift fulfillment services in Europe.

 

3) Through the Money Transfer Segment, Euronet provides global consumer-to-consumer money transfer services, primarily under the brand names Ria, IME, AFEX, and xe, and global account-to-account money transfer services under the brand name xe. The Company offers services under the brand names Ria and IME through a network of sending agents, Company-owned stores, Company-owned websites, and mobile applications, disbursing money transfers through a worldwide correspondent network. xe is a provider of foreign currency exchange information and offers money transfer services on its currency data websites. The Company also offers customers bill payment services (primarily in the U.S.), payment alternatives such as money orders and prepaid debit cards, comprehensive check cashing services for a wide variety of issued checks, along with competitive foreign currency exchange services and prepaid mobile top-up. Furthermore, xe provides cash management solutions and foreign currency risk management services to small-to-medium sized businesses.

 

In addition, the Company accounts for non-operating activity, share-based compensation expense, certain intersegment eliminations and the costs of providing corporate and other administrative services in the administrative division, "Corporate Services, Eliminations and Other." These services are not directly identifiable with the Company’s reportable operating segments. 

 
The following tables present the Company's reportable segment results for the three months and nine months ended September 30, 2023 and 2022:
 
 
 
For the Three Months Ended September 30, 2023
(in millions)
 
EFT
Processing
 
epay
 
Money
Transfer
 
Corporate Services,
Eliminations
and Other
 
Consolidated
Total revenues
 
$
345.8
 
$
264.5
 
$
395.9
 
$
(2.2
 )
 
$
1,004.0
Operating expenses:
 
 
 
 
 
 
 
 
 
 
Direct operating costs, exclusive of depreciation
 
165.7
 
201.3
 
211.9
 
(2.2
 )
 
576.7
Salaries and benefits
 
35.2
 
23.4
 
77.6
 
17.4
 
153.6
Selling, general and administrative
 
16.2
 
9.7
 
45.7
 
2.3
 
73.9
Depreciation and amortization
 
23.9
 
1.8
 
7.0
 
0.1
 
32.8
Total operating expenses
 
241.0
 
236.2
 
342.2
 
17.6
 
837.0
Operating income (loss) 
 
$
104.8
 
$
28.3
 
$
53.7
 
$
(19.8
 )
 
$
167.0

 

 
For the Three Months Ended September 30, 2022
(in millions)
 
EFT
Processing
 
epay
 
Money
Transfer
 
Corporate Services,
Eliminations
and Other
 
Consolidated
Total revenues
 
$
319.5
 
$
248.9
 
$
364.9
 
$
(2.0
)
 
$
931.3
Operating expenses:
 
 
 
 
 
 
 
 
 
 
Direct operating costs, exclusive of depreciation
 
137.8
 
190.1
 
200.1
 
(2.0
)
 
526.0
Salaries and benefits
 
30.0
 
19.8
 
69.6
 
15.0
 
134.4
Selling, general and administrative
 
12.2
 
8.5
 
46.3
 
2.6
 
69.6
Depreciation and amortization
 
23.1
 
1.4
 
8.2
 
0.1
 
32.8
Total operating expenses
 
203.1
 
219.8
 
324.2
 
15.7
 
762.8
Operating income (loss)
 
$
116.4
 
$
29.1
 
$
40.7
 
$
(17.7
)
 
$
168.5
 
 
 
For the Nine Months Ended September 30, 2023
(in millions)
 
EFT
Processing
 
epay
 
Money
Transfer
 
Corporate Services,
Eliminations
and Other
 
Consolidated
Total revenues
 
$
820.4
 
$
765.7
 
$
1,150.1
 
$
(5.9
 )
 
$
2,730.3
Operating expenses:
 
 
 
 
 
 
 
 
 
 
Direct operating costs, exclusive of depreciation
 
426.8
 
583.6
 
621.9
 
(5.9
 )
 
1,626.4
Salaries and benefits
 
93.5
 
66.8
 
230.4
 
54.2
 
444.9
Selling, general and administrative
 
48.9
 
27.6
 
140.7
 
7.2
 
224.4
Depreciation and amortization
 
70.4
 
5.1
 
23.6
 
0.3
 
99.4
Total operating expenses
 
639.6
 
683.1
 
1,016.6
 
55.8
 
2,395.1
Operating income (loss) 
 
$
180.8
 
$
82.6
 
$
133.5
 
$
(61.7
 )
 
$
335.2

 

 
 
For the Nine Months Ended September 30, 2022
(in millions)
 
EFT
Processing
 
epay
 
Money
Transfer
 
Corporate Services,
Eliminations
and Other
 
Consolidated
Total revenues
 
$
714.1
 
$
712.4
 
$
1,072.4
 
$
(5.8
 )
 
$
2,493.1
Operating expenses:
 
 
 
 
 
 
 
 
 
 
Direct operating costs, exclusive of depreciation
 
354.9
 
542.1
 
593.6
 
(5.7
 )
 
1,484.9
Salaries and benefits
 
82.9
 
59.8
 
204.9
 
44.9
 
392.5
Selling, general and administrative
 
40.3
 
26.2
 
133.6
 
7.5
 
207.6
Depreciation and amortization
 
71.1
 
4.7
 
25.7
 
0.3
 
101.8
Total operating expenses
 
549.2
 
632.8
 
957.8
 
47.0
 
2,186.8
Operating income (loss) 
 
$
164.9
 
$
79.6
 
$
114.6
 
$
(52.8
 )
 
$
306.3

 

The following table presents the Company's total assets by reportable segment:
 
Total Assets as of
(in millions)
September 30, 2023
 
December 31, 2022
EFT Processing
$
2,296.9
 
$
2,150.7
epay
825.5
 
1,173.3
Money Transfer
1,714.4
 
1,795.8
Corporate Services, Eliminations and Other
326.1
 
283.8
Total  
$
5,162.9
 
$
5,403.6

 

The following table presents the Company's revenues disaggregated by segment and region. Sales and usage-based taxes are excluded from revenues. The Company believes disaggregation by segment and region best depicts how the nature, amount, timing, and uncertainty of revenue and cash flows are affected by economic factors. The disaggregation of revenues by segment and region is based on management's assessment of segment performance together with allocation of financial resources, both capital and operating support costs, on a segment and regional level. Both segments and regions benefit from synergies achieved through concentration of operations and are influenced by macro-economic, regulatory and political factors in the respective segment and region.  

 
 
Revenues for the Three Months Ended September 30, 2023
Revenues for the Nine Months Ended September 30, 2023
(in millions)
 
EFT
Processing
 
epay
 
Money
Transfer
 
Total
EFT
Processing
epay
Money
Transfer
Total
Europe
 
$
285.7
 
$
171.6
 
$
165.1
 
$
622.4
$
644.2
$
498.9
$
480.5
$
1,623.6
North America
 
18.6
 
45.2
 
187.4
 
251.2
53.9
125.6
539.8
719.3
Asia Pacific
 
39.4
 
33.9
 
27.2
 
100.5
116.7
101.1
81.7
299.5
Other
 
2.1
 
13.8
 
16.2
 
32.1
5.6
40.1
48.1
93.8
Eliminations
 
—
 
—
 
—
 
(2.2
 )
—
—
—
(5.9
 )
Total
 
$
345.8
 
$
264.5
 
$
395.9
 
$
1,004.0
$
820.4
$
765.7
$
1,150.1
$
2,730.3

 

 
 
Revenues for the Three Months Ended September 30, 2022
Revenues for the Nine Months Ended September 30, 2022
(in millions)
 
EFT
Processing
 
epay
 
Money
Transfer
 
Total
EFT
Processing
epay
Money
Transfer
Total
Europe
 
$
267.0
 
$
167.0
 
$
144.0
 
$
578.0
$
563.5
$
457.7
$
432.7
$
1,453.9
North America
 
17.2
 
32.9
 
180.8
 
230.9
51.0
98.5
519.2
668.7
Asia Pacific
 
34.1
 
36.9
 
27.0
 
98.0
96.8
118.6
80.7
296.1
Other
 
1.2
 
12.1
 
13.1
 
26.4
2.8
37.6
39.8
80.2
Eliminations
 
—
 
—
 
—
 
(2.0
 )
—
—
—
(5.8
 )
Total
 
$
319.5
 
$
248.9
 
$
364.9
 
$
931.3
$
714.1
$
712.4
$
1,072.4
$
2,493.1