Euronet Worldwide, Inc. (NASDAQ:EEFT) Q1 2019 Earnings Conference Call Transcript

Apr 30, 2019 • 09:00 am ET

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Euronet Worldwide, Inc. (NASDAQ:EEFT) Q1 2019 Earnings Conference Call Transcript

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Q & A
Operator
Operator

Thank you. (Operator Instructions) And our first question comes from Peter Heckman from D.A. Davidson. Your line is now open.

Analyst
Peter Heckmann

Good morning, everyone. Wanted to see if you could give us some additional color on the seasonality of DCC, specifically with Visa allowing this expansion of DCC services worldwide, how should we think about that $0.60 to $0.65 benefit you had talked about? How should we think about its spread across the second, third, and fourth quarters?

Executive
Rick L. Weller

Yes. Pete, if you look at our overall DCC, and I'll just use some really kind of ballpark kind of grenade numbers here, but let's say roughly 10% and this would be -- this would be before we have the overlay of the incremental Visa into the -- into the picture. So we had about 10% in the first quarter, call it, 20-ish in the second quarter, 45-ish in the third quarter, and then the balance out in the fourth quarter. So the -- so the second and the fourth are, let's call it, largely about the same, although there's a few percentage points difference there, but that kind of gives you a general picture of what it looks like.

So if you kind of leave the 10% out of that math, because the first quarter it wasn't activated and then you sum those other three up, you can kind of see in there that I would tell you that we probably get roughly a quarter of it in the third and the fourth, and half of it in the third.

Analyst
Peter Heckmann

Got it, got it. That's helpful. That's helpful. And then in terms of just ATM cash and noting your comment on drawing out on the revolver, your ATM -- the cash dedicated to your ATMs, would that be significantly more than let's say $700 million, $750 million at the end of the quarter?

Executive
Rick L. Weller

No. At the end of the quarter it was probably closer to about $500 million. And I think as we go into the end of the second quarter, it'll increase rather substantially, probably double that number as we approach the peak season.

Analyst
Peter Heckmann

Got it. Okay. That's what I was looking for. End of second quarter. All right, I'll get back in the queue. Thank you.

Operator
Operator

And our next question comes from Rayna Kumar from Evercore ISI. Your line is now...

Analyst
Rayna Kumar

Good morning, Mike, and Rick.

Executive
Michael J. Brown

Good morning, Rayna.

Executive
Rick L. Weller

Good morning.

Analyst
Rayna Kumar

Can you talk about the potential for ATMs start charging across Europe? Are you seeing any countries moving in that direction?

Executive
Michael J. Brown

As we said before, you really don't know about this until it kind of hits. But we do know that the realities are still there. The reality is that the disruptor banks, these Internet banks continue to access ATMs of the big bricks-and-mortar banks at a significant discount than what it really costs that bank to provide that transaction. So you find the big banks who are already at a competitive disadvantage to the disruptors and has been subsidizing