Euronet Worldwide, Inc. (EEFT) has reported a 3.44 percent fall in profit for the quarter ended Mar. 31, 2017. The company has earned $28.10 million, or $0.51 a share in the quarter, compared with $29.10 million, or $0.53 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $40.50 million, or $0.73 a share compared with $37.70 million or $0.69 a share, a year ago. Revenue during the quarter grew 8.11 percent to $473.40 million from $437.90 million in the previous year period. Gross margin for the quarter contracted 63 basis points over the previous year period to 37.35 percent. Total expenses were 91.28 percent of quarterly revenues, up from 90.43 percent for the same period last year. That has resulted in a contraction of 84 basis points in operating margin to 8.72 percent.
Operating income for the quarter was $41.30 million, compared with $41.90 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $67.80 million compared with $64.90 million in the prior year period. At the same time, adjusted EBITDA margin contracted 50 basis points in the quarter to 14.32 percent from 14.82 percent in the last year period.
"I am pleased that we continued to deliver double-digit consolidated constant currency revenue growth in the first quarter," stated Michael J. Brown, Euronet's chairman and chief executive officer. "Due to the seasonal nature of our business, the first quarter is our lowest quarter because we continue to deploy assets that will produce seasonally stronger results in the second and third quarters. The EFT and Money Transfer segment's businesses started the year with strong revenue growth despite the first quarter being our seasonally lowest quarter and we expect improvements from epay as we move through the year. ATM deployments continued at a nice pace, money transfers remain strong at double-digit growth rates and we continue to add more non-mobile content in epay. All-in-all, we're off to a great start for 2017 and well positioned to deliver another year of double-digit consolidated growth."
For the second-quarter Euronet Worldwide, Inc. expects diluted earnings per share to be $1.09 on an adjusted basis.
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