Release Date: February 13, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: Could you talk a little bit about what gave you confidence in raising your initial EPS outlook for 2025? And if you can help us understand what are the drivers by segment that your 12% to 16% EPS growth implies? A: We hit the high end of our 10% to 15% range last year, and we have momentum in all three business segments. Our digital segment is growing significantly, and we have strong backlogs across all segments. It's not one thing in particular; it's a combination of factors like EFT's merchant services growth, epay's partnerships with big brands, and Money Transfer's digital transaction growth.
Q: How should we be thinking about the growth in Money Transfer, especially with more digital transactions and expansion into new geographies? A: As we enter new geographies, we often find higher margins due to less competition. Our single platform and technology allow us to efficiently expand into new markets. We have a strong asset base with extensive payout touchpoints, which is a significant advantage.
Q: Can you provide more detail on the success of Dandelion and any new bank partners or channel partners? A: We have several large customers in process, with HSBC being a notable partner. Every month has been a record for them, and they use our rails for less expensive and faster settlements. We are also working with CBA, the largest bank in Australia, and expect more banks to join as they see the competitive advantage.
Q: Regarding the surcharge and interchange increases in countries over 2024, what was the contribution to operating income, and what do you expect for 2025? A: We won't dissect it too much, but throughout 2024, several countries opened up for interchange fee increases or direct access fees. This will give us a bump in 2025 as we have a full year of these changes. The market is a combination of these increases and ATM deployments in profitable markets.
Q: Can you discuss the impact of the tax provision related to the repurchase of convertible bonds on your first-quarter results? A: The tax provision will result in a charge of approximately $0.20 to $0.25 per share in the first quarter. This has been considered in our full-year guidance, which still reflects strong underlying operating performance.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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