EURONET WORLDWIDE, INC. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (form 10-Q)


The terms “Euronet,” the “Company,” “we” and “us” as used herein refer to
Euronet Worldwide, Inc. and its subsidiaries.

           CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS
This report contains statements that constitute forward-looking statements
within the meaning of section 27A of the Securities Act of 1933 and section 21E
of the Securities Exchange Act of 1934 ("Exchange Act"). Generally, the words
"believe," "expect," "anticipate," "intend," "estimate," "will" and similar
expressions identify forward-looking statements. However, the absence of these
words or similar expressions does not mean the statement is not forward-looking.
All statements other than statements of historical facts included in this
document are forward-looking statements, including, but not limited to,
statements regarding the following:

º our business plans and financing plans and requirements;

º trends affecting our business plans and financing plans and requirements;

º trends affecting our business;

º the adequacy of capital to meet our capital requirements and expansion

     plans;
   º the assumptions underlying our business plans;
   º our ability to repay indebtedness;
   º our estimated capital expenditures;
   º the potential outcome of loss contingencies;
   º our expectations regarding the closing of any pending acquisitions;
   º business strategy;
   º government regulatory action;
   º the expected effects of changes in laws or accounting standards;
   º technological advances; and
   º projected costs and revenues.

Although we believe that the expectations reflected in these forward-looking
statements are reasonable, we can give no assurance that these expectations will
prove to be correct.

Investors are cautioned that any forward-looking statements are not guarantees
of future performance and involve risks and uncertainties. Actual results may
materially differ from those in the forward-looking statements as a result of
various factors, including, but not limited to, conditions in world financial
markets and general economic conditions, including impacts from the COVID-19
pandemic; the war in the Ukraine and related economic sanctions; our ability to
successfully integrate the operations of Piraeus Merchant Services; inflation;
economic conditions in specific countries and regions; technological
developments affecting the market for our products and services; our ability to
successfully introduce new products and services; foreign currency exchange rate
fluctuations; the effects of any breach of our computer systems or those of our
customers or vendors, including our financial processing networks or those of
other third parties; interruptions in any of our systems or those of our vendors
or other third parties; our ability to renew existing contracts at profitable
rates; changes in fees payable for transactions performed for cards bearing
international logos or over switching networks such as card transactions on
ATMs; our ability to comply with increasingly stringent regulatory requirements,
including anti-money laundering, anti-terrorism, anti-bribery, sanctions,
consumer and data protection and privacy and the European Union's General Data
Protection Regulation, and Second Revised Payment Service Directive
requirements; changes in laws and regulations affecting our business, including
tax and immigration laws and any laws regulating payments, including DCC
transactions, changes in our relationships with, or in fees charged by, our
business partners; competition; the outcome of claims and other loss
contingencies affecting Euronet; the cost of borrowing (including fluctuations
in interest rates), availability of credit and terms of and compliance with debt
covenants; and renewal of sources of funding as they expire and the availability
of replacement funding and those factors referred to above and as set forth and
more fully described in Part I, Item 1A - Risk Factors of our Annual Report on
Form 10-K for the year ended December 31, 2021. Our Annual Report on Form 10-K
is available on the SEC's EDGAR website at www.sec.gov, and copies may also be
obtained by contacting the Company. Any forward-looking statements made in this
Form 10-Q speak only as of the date of this report. Except as required by law,
we do not intend, and do not undertake any obligation, to update any
forward-looking statements to reflect future events or circumstances after the
date of such statements.
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                                    OVERVIEW

COMPANY OVERVIEW, GEOGRAPHIC LOCATIONS AND PRINCIPAL PRODUCTS AND SERVICES

Euronet is a leading electronic payments provider. We offer payment and
transaction processing and distribution solutions to financial institutions,
retailers, service providers and individual consumers. Our primary product
offerings include comprehensive ATM, POS, card outsourcing, card issuing and
merchant acquiring services, software solutions, electronic distribution of
prepaid mobile airtime, managed services and other electronic payment products,
foreign currency exchange services and global money transfer services. We
operate in the following three segments:


1) The EFT Processing Segment processes transactions for a network of
50,178 ATMs and approximately 569,000 POS terminals across Europe, the Middle
East, Africa, Asia Pacific, and the United States. We provide 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, DCC, and other value
added services. Through this segment, we also offer a suite of integrated
electronic financial transaction software solutions for electronic payment and
transaction delivery systems.

2) The epay Segment, which provides distribution, processing and collection
services for prepaid mobile airtime and other electronic content. We operate a
network of approximately 762,000 POS terminals providing electronic processing
of prepaid mobile airtime top-up services and other electronic content in
Europe, the Middle East, Asia Pacific, the United States and South America. We
also provide vouchers and physical gift fulfillment services in Europe.

3) The Money Transfer Segment, which 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. We
offer services under the brand names Ria and IME through a network of sending
agents, Company-owned stores (primarily in North America, Europe and Malaysia)
and our websites (riamoneytransfer.com and online.imeremit.com), disbursing
money transfers through a worldwide correspondent network that includes
approximately 504,000 locations. xe is a provider of foreign currency exchange
information and offers money transfer services on its currency data websites
(xe.com and x-rates.com). In addition to money transfers, we also offer
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. Through our xe brand, we
offer cash management solutions and foreign currency risk management services to
small-to-medium-sized businesses.

We have six processing centers in Europe, five in Asia Pacific and two 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 73% of
our revenues 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 1A - Risk Factors in our Annual Report on Form 10-K for the year ended
December 31, 2021).

SOURCES OF REVENUES AND CASH FLOW

Euronet earns revenues and income primarily from ATM management fees,
transaction fees, commissions and foreign currency exchange margin. Each
operating segment’s sources of revenues are described below.

EFT Processing Segment - Revenues in the EFT Processing Segment, which
represented approximately 30% and 25% of total consolidated revenues for the
three and six months ended June 30, 2022, respectively, 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.

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epay Segment - Revenues in the epay Segment, which represented approximately 27%
and 30% of total consolidated revenues for the three and six months ended June
30, 2022, respectively, are primarily derived from commissions earned from the
distribution of electronic content, vouchers, and physical gifts and commissions
or processing fees received from mobile phone operators for the processing and
distribution of prepaid mobile airtime. Branded payments, which includes the
distribution of digital media content, were 62% and 64% of epay Segment revenues
for the three and six months ended June 30, 2022. Branded payments include
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.
Money Transfer Segment - Revenues in the Money Transfer Segment, which
represented approximately 44% and 45% of total consolidated revenues for the
three and six months ended June 30, 2022, 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, and Ria, and xe branded websites, along with a worldwide
network of correspondent agents, consisting primarily of financial institutions
in the transfer destination countries. 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.



We offer a money transfer product called Walmart-2-Walmart Money Transfer
Service which allows customers to transfer money to and from Walmart stores in
the U.S. Our Ria business executes the transfers with Walmart serving as both
the sending agent and payout correspondent. Ria earns a lower margin from these
transactions than its traditional money transfers; however, the arrangement has
added a significant number of transactions to Ria's business. The agreement with
Walmart establishes Ria as the only party through which Walmart will sell U.S.
domestic money transfers branded with Walmart marks. The agreement is effective
until April 2026. Thereafter, it will automatically renew for subsequent
one-year terms unless either party provides notice to the contrary. The
agreement imposes certain obligations on each party, the most significant being
service level requirements by Ria and money transfer compliance requirements by
Walmart. Any violation of these requirements by Ria could result in an
obligation to indemnify Walmart or termination of the contract by Walmart.
However, the agreement allows the parties to resolve disputes by mutual
agreement without termination of the agreement.

Corporate Services, Eliminations and Other - In addition to operating in our
principal operating segments described above, our "Corporate Services,
Eliminations and Other" category includes non-operating activity, certain
inter-segment eliminations and the cost of providing corporate and other
administrative services to the operating segments, including most share-based
compensation expense. These services are not directly identifiable with our
reportable operating segments.

Opportunities and Challenges

The global product markets in which we operate are large and fragmented, which
poses both opportunities and challenges for our technology to disrupt new and
existing competition. As an organization, our focus is on increasing our market
presence through both physical (ATMs, POS terminals, company stores and agent
correspondents) and digital assets and providing new and improved products and
services for customers through all of our channels, which may in turn drive an
increase in the number of transactions on our networks. Each of these
opportunities also presents us with challenges, including differentiating our
portfolio of products and services in highly competitive markets, the successful
development and implementation of our software products and access to financing
for expansion.

1) The EFT Processing Segment opportunities include physical expansion into
target markets, developing value added products or services, increasing high
value DCC and surcharge transactions and efficiently leveraging our portfolio of
software solutions. Our opportunities are dependent on renewing and expanding
our card acceptance, ATM and POS management and outsourcing, cash supply and
other commercial agreements with customers and financial institutions.
Operational challenges in the EFT Processing Segment include obtaining and
maintaining the required licenses and sponsorship agreements in markets in which
we operate and navigating frequently changing rules imposed by international
card organizations, such as Visa® and Mastercard®, that govern ATM interchange
fees, direct access fees and other restrictions. Our profitability is dependent
on the laws and regulations that govern DCC transactions, specifically in the
E.U., as well as the laws and  regulations of each country in which we operate.
These laws and regulations may impact our cross-border and cross-currency
transactions. The timing and amount of revenues in the EFT Processing Segment is
uncertain and unpredictable due to inherent limitations in managing our estate
of ATMs. Our ATM estate is dependent on contracts that cover large numbers of
ATMs, and management is complicated by legal and regulatory considerations of
local countries, as well as customers decisions whether to outsource ATMs or
manage them internally.
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2) The epay Segment opportunities include renewing existing and negotiating new
agreements in target markets in which we operate, primarily with digital content
providers, mobile operators, financial institutions and retailers. The overall
growth rate in the digital media content and prepaid mobile phone markets,
shifts between prepaid and postpaid services, and our market share in those
respective markets will have a significant impact on our ability to maintain and
grow the epay Segment revenues. There is significant competition in these
markets that may impact our ability to grow organically and increase the margin
we earn and the margin that we pay to retailers. The profitability of the epay
Segment is dependent on our ability to adapt to new technologies that may
compete with POS distribution of digital content and prepaid mobile airtime, as
well as our ability to leverage cross-selling opportunities with our EFT and
Money Transfer Segments. The epay Segment opportunities may be impacted by
government-imposed restrictions on retailers and/or content providers with whom
we partner in countries in which we have a presence, and corresponding licensure
requirements mandated upon such parties to legally operate in such countries.
3) The Money Transfer Segment opportunities include expanding our portfolio of
products and services to new and existing customers around the globe, which in
turn may lead to an increase in transaction volumes. The opportunities to expand
are contingent on our ability to effectively leverage our network of bank
accounts for digital money transfer delivery, maintaining our physical agent
network, cross selling opportunities with our EFT and epay segments and our
penetration into high growth money transfer corridors. The challenges inherit in
these opportunities include maintaining compliance with all regulatory
requirements, maintaining all required licenses, ensuring the recoverability of
funds advanced to agents and the continued reliance on the technologies required
to operate our business. The volume of transactions processed on our network is
impacted by shifts in our customer base, which can change rapidly with worker
migration patterns and changes in unbanked populations across the globe. Foreign
regulations that impact cross-border migration patterns and the money transfer
markets can significantly impact our ability to grow the number of transactions
on our network.

For all segments, our continued expansion may involve additional acquisitions
that could divert our resources and management time and require integration of
new assets with our existing networks and services. Our ability to effectively
manage our growth has required us to expand our operating systems and employee
base, particularly at the management level, which has added incremental
operating costs. An inability to continue to effectively manage expansion could
have a material adverse effect on our business, growth, financial condition or
results of operations. Inadequate technology and resources would impair our
ability to maintain current processing technology and efficiencies, as well as
deliver new and innovative services to compete in the marketplace.

COVID-19

The outbreak of the COVID-19 (coronavirus) pandemic has resulted in varying
degrees of border and business closures, travel restrictions and other social
distancing orders in most of the countries where we operate during the six
months ended June 30, 2022 and 2021. As the number and rate of new cases has
fluctuated in various locations around the globe, the closures, restrictions and
other social distancing orders have been modified, rescinded and/or re-imposed.
Although vaccines for COVID-19 are widely available, a significant portion of
the population remains unvaccinated and long term effectiveness of the vaccines,
especially against new variants, is still unknown. The EFT Segment has
experienced declines in certain transaction volumes due to these restrictions,
especially high-margin cross-border transactions. The epay Segment has
experienced the impacts of consumer movement restrictions in certain markets,
while other markets have been positively impacted where we have a higher mix of
digital distribution or a higher concentration of retailers that are deemed
essential and have remained open during the pandemic. The Money Transfer Segment
continues to be impacted by the pandemic-related restrictions in certain
markets that limit customers' ability to access our network of company-owned
stores and agents as well as certain restrictions that may impact immigrant
laborers.

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SEGMENT SUMMARY RESULTS OF OPERATIONS

Revenues and operating income by segment for the three and six months ended June
30, 2022
and 2021 are summarized in the tables below:

                                         Revenues for the Three Months                                               Revenues for the Six Months
                                                Ended June 30,                     Year-over-Year Change                   Ended June 30,                    Year-over-Year Change
                                                                                                      Increase                                                                  Increase
                                                                            Increase(Decrease)       (Decrease)                                        Increase(Decrease)      (Decrease)
(dollar amounts in thousands)               2022               2021               Amount              Percent           2022             2021                Amount             Percent
EFT Processing                         $   249,030         $   113,482     $          135,548            119 %     $    394,601      $   200,558        $        194,043            97 %
epay                                       227,706             243,918                (16,212 )          (7) %          463,544          486,221                 (22,677 )         (5) %
Money Transfer                             368,459             359,308                  9,151              3 %          707,425          684,208                  23,217             3 %
   Total                                   845,195             716,708                128,487             18 %        1,565,570        1,370,987                 194,583            14 %
Corporate services, eliminations and
other                                       (1,886 )            (2,022 )                  136            (7) %           (3,794 )         (3,631 )                  (163 )           4 %
Total                                  $   843,309         $   714,686     $          128,623             18 %     $  1,561,776      $ 1,367,356     $           194,420            14 %



                                    Operating Income (Loss) for the Three                                              Operating Income (Loss) for
                                            Months Ended June 30,                   Year-over-Year Change             the Six Months Ended June 30,           Year-over-Year Change
                                                                                                       Increase                                                                Increase
                                                                             Increase(Decrease)       (Decrease)                                       Increase(Decrease)     (Decrease)
(dollar amounts in thousands)             2022                  2021               Amount              Percent            2022             2021              Amount             Percent
EFT Processing                      $     54,830           $    (25,336 )   $           80,166             316 %    $     48,363        $ (65,432 )   $          113,795           174 %
epay                                      24,386                 27,235                 (2,849 )          (10) %          50,591           56,392                 (5,801 )        (10) %
Money Transfer                            40,512                 44,082                 (3,570 )           (8) %          73,977           79,485                 (5,508 )         (7) %
Total                                    119,728                 45,981                 73,747             160 %         172,931           70,445                102,486           145 %
Corporate services, eliminations
and other                                (18,651 )              (15,860 )               (2,791 )            18 %         (35,151 )        (29,875 )               (5,276 )          18 %
Total                               $    101,077           $     30,121     $           70,956             236 %    $    137,780        $  40,570     $           97,210           240 %


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Impact of changes in foreign currency exchange rates

Our revenues and local expenses are recorded in the functional currencies of our
operating entities, and then are translated into U.S. dollars for reporting
purposes; therefore, amounts we earn outside the U.S. are negatively impacted by
a stronger U.S. dollar and positively impacted by a weaker U.S. dollar. If
significant, in our discussion we will refer to the impact of fluctuations in
foreign currency exchange rates in our comparison of operating segment results.

To provide further perspective on the impact of foreign currency exchange rates,
the following table shows the changes in values relative to the U.S. dollar of
the currencies of the countries in which we have our most significant
operations:
                               Average Translation Rate
                               Three Months Ended June                  Average Translation Rate
                                         30,                           Six Months Ended June 30,
Currency (dollars per                                     Decrease                                   Decrease
foreign currency)                 2022          2021       Percent         2022            2021       Percent
Australian dollar              $  0.7151     $ 0.7695         (7) %   $      0.7194     $ 0.7710         (7) %
British pounds sterling        $  1.2574     $ 1.3971        (10) %   $      1.2994     $ 1.3880         (6) %
Canadian dollar                $  0.7837     $ 0.8141         (4) %   $      0.7866     $ 0.8020         (2) %
euro                           $  1.0656     $ 1.2045        (12) %   $      1.0939     $ 1.2049         (9) %
Hungarian forint               $  0.0028     $ 0.0034        (18) %   $      0.0029     $ 0.0034        (15) %
Indian rupee                   $  0.0130     $ 0.0136         (4) %   $      0.0131     $ 0.0136         (4) %
Malaysian ringgit              $  0.2302     $ 0.2424         (5) %   $      0.2344     $ 0.2443         (4) %
New Zealand dollar             $  0.6510     $ 0.7146         (9) %   $      0.6636     $ 0.7167         (7) %
Polish zloty                   $  0.2296     $ 0.2662        (14) %   $      0.2364     $ 0.2659        (11) %


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COMPARISON OF OPERATING RESULTS FOR THE SIX MONTHS ENDED JUNE 30, 2022 AND 2021
EFT PROCESSING SEGMENT

The following table summarizes the results of operations for our EFT Processing
Segment for the three and six months ended June 30, 2022 and 2021:

                             Three Months Ended                                            Six Months Ended
                                  June 30,                Year-over-Year Change                June 30,                Year-over-Year Change
                                                        Increase         Increase                                      Increase        Increase
(dollar amounts in                                     (Decrease)       (Decrease)                                    (Decrease)      (Decrease)
thousands)                   2022          2021          Amount          Percent          2022          2021            Amount         Percent
Total revenues            $ 249,030     $ 113,482     $   135,548          119 %       $ 394,601     $ 200,558     $      194,043             97 %
Operating expenses:
Direct operating costs      123,758        82,681          41,077           50 %         217,095       152,293             64,802             43 %
Salaries and benefits        27,693        24,098           3,595           15 %          52,937        47,669              5,268             11 %
Selling, general and
administrative               17,004         9,799           7,205           74 %          28,118        21,761              6,357             29 %
Depreciation and
amortization                 25,745        22,240           3,505           16 %          48,088        44,267              3,821              9 %
Total operating
expenses                    194,200       138,818          55,382           40 %         346,238       265,990             80,248             30 %
Operating income          $  54,830     $ (25,336 )   $    80,166          316 %       $  48,363     $ (65,432 )   $      113,795            174 %
Transactions processed
(millions)                    1,573           988             585           59 %           2,902         1,913                989             52 %
Active ATMs as of June
30,                          50,178        43,559           6,619           15 %          50,178        43,559              6,619             15 %
Average Active ATMs          48,938        40,521           8,417           21 %          46,166        38,573              7,593             20 %



Revenues

EFT Processing Segment total revenues were $249.0 million for the three months
ended June 30, 2022, an increase of $135.5 million or 119% compared to the same
period in 2021. EFT Processing Segment total revenues were $394.6 million for
the six months ended June 30, 2022, an increase of $194.0 million or 97%. The
increase in revenues was primarily due to the increase in domestic and
international cash withdrawal transactions resulting from the reduction of
travel restrictions across Europe, the increase in low-value point-of-sale
transactions in Europe and low-value payment processing transactions in Asia
Pacific. Foreign currency movements decreased revenues by approximately $28.5
million and $37.0 million for the three and six months ended June 30, 2022,
respectively, compared to the same period in 2021.

Average monthly revenues per ATM increased to $1,696 for the three months
ended June 30, 2022 compared to $934 for the same period in 2021. Average
monthly revenues per ATM increased to $1,425 for the six months ended June 30,
2022 compared to $867 for the same period in 2021. Revenues per transaction
increased to $0.16 for the three months ended June 30, 2022 compared
to $0.11 for the same period in 2021. Revenues per transaction increased
to $0.14 for the six months ended June 30, 2022 compared to $0.10 for the same
period in 2021. The increases in average monthly revenues per ATM and revenues
per transaction were primarily due to the increase in domestic and international
cash withdrawal transactions resulting from the reduction in travel restrictions
across Europe, partially offset by the increase in volume of low-value
point-of-sale transactions in Europe and low-value payment processing
transactions in Asia Pacific.

Direct operating costs

EFT Processing Segment direct operating costs were $123.8 million for
the three months ended June 30, 2022, an increase of $41.1 million or
50% compared to the same period in 2021. EFT Processing Segment direct operating
costs were $217.1 million for the six months ended June 30, 2022, an increase
of $64.8 million or 43% compared to the same period in 2021. 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.
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The increase in direct operating costs was primarily due to the increase in the
number of ATMs under management as there were fewer deactivated ATMs during the
six months ended June 30, 2022 compared to the same period in 2021 resulting in
an increase in ATM site rental fees and cash delivery costs. Foreign currency
movements decreased direct operating costs by approximately $13.9 million and
$19.5 million for the three and six months ended June 30, 2022 ,
respectively, compared to the same periods in 2021.
Gross profit

Gross profit, which is calculated as revenues less direct operating costs,
was $125.3 million for the three months ended June 30, 2022, an increase of
$94.5 million or 307% compared to $30.8 million for the same period in 2021.
Gross profit, was $177.5 million for the six months ended June 30, 2022, an
increase of $129.2 million or 267% compared to $48.3 million for the same period
in 2021. Gross profit as a percentage of revenues ("gross margin") increased to
50.3% and 45.0% for the three and six months ended June 30, 2022, respectively,
compared to 27.1% and 24.1% for the same periods in 2021. The increase in gross
profit and gross margin were primarily due to the incremental volume of
transactions that were processed on our network relative to the fixed costs
incurred, and the higher proportion of high value and high margin DCC
transactions due to reduction of travel restrictions.

Salaries and benefits

Salaries and benefits expenses were $27.7 million for the three months ended
June 30, 2022, an increase of $3.6 million or 15% compared to the same period
in 2021. Salaries and benefits expenses were $52.9 million for the six months
ended June 30, 2022, an increase of $5.3 million or 11% compared to the same
period in 2021. The increase is primarily due to an increase in headcount to
support the growth of the business. Foreign currency movements in the countries
in which we employ our workforce reduced these expenses by $3.5 million and $5.0
million for the three and six months ended June 30, 2022, respectively, compared
to the same period in 2021. As a percentage of revenues, these expenses
decreased to 11.1% and 13.4% for the three and six months ended June 30, 2022,
respectively, compared to 21.2% and 23.8% for the same periods in 2021.

Selling, general and administrative

Selling, general and administrative expenses were $17.0 million for
the three months ended June 30, 2022, an increase of $7.2 million or 74%
compared to the same period in 2021. Selling, general and administrative
expenses were $28.1 million for the six months ended June 30, 2022, an increase
of $6.4 million or 29% compared to the same period in 2021. As a percentage of
revenues, these expenses decreased to 6.8% and 7.1% for the three and six months
ended June 30, 2022, respectively, compared to 8.6% and 10.9% for the same
periods in 2021.

Depreciation and amortization

Depreciation and amortization expenses were $25.7 million for the three months
ended June 30, 2022, an increase of $3.5 million or 16% compared to the same
period in 2021. Depreciation and amortization expenses were $48.1 million for
the six months ended June 30, 2022, an increase of $3.8 million or 9% compared
to the same period in 2021. As a percentage of revenues, these expenses
decreased to 10.3% and 12.2% for the three and six months ended June 30, 2022,
respectively, compared to 19.6% and 22.1% for the same periods in 2021.

Operating income

EFT Processing Segment had operating income of $54.8 million for the three
months ended June 30, 2022, an increase of $80.2 million or 316% compared to the
same period in 2021. EFT Processing Segment had operating income of $48.4
million for the six months ended June 30, 2022, an increase of  $113.8 million
or 174% compared to the same period in 2021. Operating income as a percentage of
revenues ("operating margin") increased to 22.0% and 12.3% for the three and six
months ended June 30, 2022, respectively, compared to (22.3%) and (32.6%) for
the same periods in 2021, respectively. Operating income per transaction was
less than $0.04 and $0.02 for the three and six months ended June 30, 2022,
compared to operating losses of ($0.03) for the same periods in 2021. The
increase in operating income, improved operating margin and increase in
operating income per transaction were primarily due to increased volumes
processed on our network, and associated revenues, compared to the same periods
in 2021.
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EPAY SEGMENT
The following table presents the results of operations for the three and
six months ended June 30, 2022 and 2021 for our epay Segment:

                                 Three Months Ended                                                Six Months Ended
                                      June 30,                  Year-over-Year Change                  June 30,                 Year-over-Year Change
                                                                                 Increase                                     Increase         Increase
(dollar amounts in                                            Increase          (Decrease)                                   (Decrease)       (Decrease)
thousands)                       2022          2021       (Decrease) Amount
      Percent         2022          2021           Amount           Percent
Total revenues               $  227,706     $ 243,918     $    (16,212 )    

(7) % $ 463,544 $ 486,221 $ (22,677 ) (5) %
Operating expenses:
Direct operating costs 173,655 184,989 (11,334 )

(6) % 351,975 367,622 (15,647 ) (4) %
Salaries and benefits

            19,772        19,775               (3 )              - %         39,949        39,144              805             2 %
Selling, general and
administrative                    8,277         9,772           (1,495 )           (15) %         17,717        18,792           (1,075 )         (6) %
Depreciation and
amortization                      1,616         2,147             (531 )           (25) %          3,312         4,271             (959 )        (22) %

Total operating expenses 203,320 216,683 (13,363 )

(6) % 412,953 429,829 (16,876 ) (4) %
Operating income

             $   24,386     $  27,235     $     (2,849 )           (10) %      $  50,591     $  56,392     $     (5,801 )        (10) %
Transactions processed
(millions)                        1,116           788              328               42 %          1,980         1,455              525            36 %


Revenues

epay Segment total revenues were $227.7 million for the three months ended June
30, 2022, a decrease of ($16.2) million or (7%) compared to the same period
in 2021. epay Segment total revenues were $463.5 million for the six months
ended June 30, 2022, a decrease of ($22.7) million or (5%) compared to the same
period in 2021. Foreign currency movements decreased revenue by
approximately $20.5 million and $33.7 million for the three and six months ended
June 30, 2022, respectively, compared to the same periods in 2021.
Revenues per transaction decreased to $0.20 and $0.23 for the three and six
months ended June 30, 2022, respectively, compared to $0.31 and $0.33 for the
same periods in 2021. The decrease in revenues per transaction was primarily due
to the increase in the number of transactions processed in a region where we
generally earn lower revenues per transaction.

Direct operating costs

epay Segment direct operating costs were $173.7 million for the three months
ended June 30, 2022, a decrease of ($11.3) million or (6%) compared to the same
period in 2021. epay Segment direct operating costs were $352.0 million for
the six months ended June 30, 2022, a decrease of ($15.6) million or
(4%) compared to the same period in 2021. 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. The decrease in direct operating costs was primarily due to
the $15.1 million and $24.6 million decrease caused by foreign currency
movements for the three and six months ended June 30, 2022,
respectively, compared to the same periods in 2021.

Gross profit

Gross profit was $54.1 million for the three months ended June 30, 2022, a
decrease of ($4.9 million) or (8.3%) compared to $58.9 million for the
same period in 2021. Gross profit was $111.6 million for the six months
ended June 30, 2022, a decrease of ($7.0 million) or (5.9%) compared to $118.6
million for the same period in 2021.  Gross margin decreased to 23.7% and 24.1%
for the three and six months ended June 30, 2022, respectively, compared to
24.2% and 24.4% for the same periods in 2021. The decrease in gross profit and
gross margin is primarily due to decrease in revenues associated with the shift
in mix of transactions processed.

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Salaries and benefits

Salaries and benefits expenses were $19.8 million for the three months
ended June 30, 2022, no change compared to the same period in 2021. Salaries and
benefits expenses were $39.9 million for the six months ended June 30, 2022, an
increase of $0.8 million or 2% compared to the same period in 2021. The increase
in salaries and benefits was driven by an increase in headcount to support the
growth of the business, partially offset by a $1.8 million and $2.9 million
decrease from foreign currency movements for the three and six months ended June
30, 2022, respectively, compared to the same periods in 2021. As a percentage of
revenues, these expenses increased to 8.7% and 8.6% for the three and six months
ended June 30, 2022, respectively, compared to 8.1% for both of the same
periods in 2021.

Selling, general and administrative

Selling, general and administrative expenses were $8.3 million for the three
months ended June 30, 2022, a decrease of ($1.5 million) or (15%) compared to
the same period in 2021. Selling, general and administrative expenses were $17.7
million for the six months ended June 30, 2022, a decrease of ($1.1 million) or
(6%) compared to the same period in 2021.As a percentage of revenues, these
expenses increased to 3.6% and 3.8% for the three and six months ended June 30,
2022, respectively, compared to 4.0% and 3.9% for the same period in 2021.
Depreciation and amortization

Depreciation and amortization expenses were $1.6 million for the three months
ended June 30, 2022, a decrease of ($0.5 million) or (25%) compared to the same
period in 2021. Depreciation and amortization expenses were $3.3 million for
the six months ended June 30, 2022, a decrease of ($1.0 million) or
(22%) compared to the same period in 2021. 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 decreased to 0.7% for both the three and six months ended June
30, 2022, respectively, compared to 0.9% for the same periods in 2021.

Operating income

epay Segment operating income was $24.4 million for the three months ended June
30, 2022, a decrease of ($2.8 million) or (10%) compared to the same period
in 2021. epay Segment operating income was $50.6 million for the six months
ended June 30, 2022, a decrease of ($5.8 million) or (10%) compared to the same
period in 2021. Operating margin decreased to 10.7%  and 10.9% for the three and
six months ended June 30, 2022, respectively, compared to 11.2% and 11.6% for
the same periods in 2021. Operating income per transaction decreased to $0.02
and $0.03 for the three and six months ended June 30, 2022, respectively
compared to $0.03 and $0.04 for same period in 2021. The decreases in operating
income, operating margin and operating income per transaction for the three
months ended June 30, 2022 compared to the same period in 2021 were primarily
due to the shift in mix of transactions processed.

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MONEY TRANSFER SEGMENT

The following table presents the results of operations for the three and
six months ended June 30, 2022 and 2021 for the Money Transfer Segment:

                                     Three Months Ended June 30,            Year-over-Year Change            Six Months Ended June 30,               Year-over-Year Change
                                                                                             Increase                                                                   Increase
                                                                          Increase          (Decrease)                                           Increase              (Decrease)
(dollar amounts in thousands)            2022             2021       (Decrease) Amount       Percent             2022            2021       (Decrease) Amount           Percent
Total revenues                      $      368,459     $ 359,308        $    9,151        $          3 %   $      707,425     $ 684,208     $      23,217          $        3 %
Operating expenses:
Direct operating costs                     205,063       205,164              (101 )               (0) %          393,460       389,042             4,418                   1 %
Salaries and benefits                       67,977        62,710             5,267                   8 %          135,202       123,250            11,952                  10 %
Selling, general and administrative         46,361        38,326             8,035                  21 %           87,398        74,442            12,956                  17 %
Depreciation and amortization                8,546         9,026              (480 )               (5) %           17,388        17,989              (601 )               (3) %
Total operating expenses                   327,947       315,226            12,721                   4 %          633,448       604,723            28,725                   5 %
Operating income                    $       40,512     $  44,082        $  

(3,570 ) $ (8) % $ 73,977 $ 79,485 $ (5,508 ) $ (7) %
Transactions processed (millions)

             37.3          34.2               3.1                   9 %             70.7          65.3               5.4                   8 %


Revenues

Money Transfer Segment total revenues were $368.5 million for the three months
ended June 30, 2022, an increase of $9.2 million or 3% compared to the same
period in 2021. Money Transfer Segment total revenues were $707.4 million for
the six months ended June 30, 2022, an increase of $23.2 million or 3% compared
to the same period in 2021. The increase in revenues was primarily due to the
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
$9.88 and $10.00 for the three and six months ended June 30, 2022, respectively,
compared to $10.51 and $10.48 for the same periods in 2021 due to a shift in the
mix of transactions processed. Foreign currency movements decreased revenues by
approximately $22.5 million and $34.4 million for the three and six months
ended June 30, 2022, respectively, compared to the same periods in 2021.

Direct operating costs

Money Transfer Segment direct operating costs were $205.1 million for the three
months ended June 30, 2022, were essentially flat compared to the same period
in 2021. Money Transfer Segment direct operating costs were $393.5 million for
the six months ended June 30, 2022, an increase of $4.4 million or 1% compared
to the same period in 2021. 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 of international-originated and U.S. outbound money transfer
transactions, partially offset by foreign currency movements that decreased
direct operating costs by approximately $11.4 million and $17.3 million for the
three and six months ended June 30, 2022, respectively, compared to the same
periods in 2021.
Gross profit

Gross profit was $163.4 million for the three months ended June 30, 2022, an
increase of $9.3 million or 6.0% compared to $154.1 million for the same period
in 2021. Gross profit was $314.0 million for the six months ended June 30, 2022,
an increase of $18.8 million or 6.4% compared to $295.2 million for the same
period in 2021. Gross margin increased to 44.3% and 44.4% for the three and six
months ended June 30, 2022, respectively, compared to 42.9% and 43.1% for the
same periods in 2021. The increase in gross profit and gross margin was
primarily due to increases in international-originated money transfers, U.S.
outbound money transfers and direct-to-consumer digital transactions.
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Salaries and benefits

Salaries and benefits expenses were $68.0 million for the three months ended
June 30, 2022, an increase of $5.3 million or 8% compared to the same period
in 2021. Salaries and benefits expenses were $135.2 million for the six months
ended June 30, 2022, an increase of $12.0 million or 10% compared to the same
period in 2021. The increase in salaries and benefits was primarily driven by an
increase in headcount to support the growth of the business. As a percentage of
revenues, these expenses increased to 18.4% and 19.1% for the three and
six months ended June 30, 2022, respectively, compared to 17.5% and 18.4% for
the same periods in 2021.

Selling, general and administrative

Selling, general and administrative expenses were $46.4 million for the three
months ended June 30, 2022, an increase of $8.0 million or 21% compared to the
same period in 2021. Selling, general and administrative expenses were $87.4
million for the six months ended June 30, 2022, an increase of $13.0 million or
17% compared to the same period in 2021. The increase was primarily due to an
increase in marketing expenses and travel related expenses. As a percentage of
revenues, these expenses increased to 12.6% and 12.4% for the three and
six months ended June 30, 2022, respectively, compared to 10.7% and 10.9% for
the same periods in 2021.

Depreciation and amortization

Depreciation and amortization expenses were $8.5 million for the three months
ended June 30, 2022, a decrease of ($0.5 million) or (5%) compared to the same
period in 2021. Depreciation and amortization expenses were $17.4 million for
the six months ended June 30, 2022, a decrease of
($0.6 million) or (3%) compared to the same period in 2021. Depreciation and
amortization 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 2.3% and 2.5% for the three and six months ended June 30, 2022,
respectively, compared to 2.5% and 2.6% for the same periods in 2021.

Operating income

Money Transfer Segment operating income was $40.5 million for the three months
ended June 30, 2022, a decrease of ($3.6 million) or (8%) compared to the same
period in 2021. Money Transfer Segment operating income was $74.0 million for
the six months ended June 30, 2022, a decrease of ($5.5
million) or (7%) compared to the same period in 2021. Operating margin decreased
to 11.0% and 10.5% for the three and six months ended June 30,
2022, respectively, compared to 12.3% and 11.6% for the same periods
in 2021. The decreases in operating income and operating margin were primarily
driven by the increase in salaries and selling, general and administrative
expenses incurred. Operating income per transaction decreased to $1.09 and
$1.05 for the three and six months ended June 30, 2022, respectively, compared
to $1.29 and $1.22 for the same periods in 2021 due to a shift in the mix of
transactions processed.
CORPORATE SERVICES
The following table presents the operating expenses for the three and six months
ended June 30, 2022 and 2021 for Corporate Services:

                                  Three-Month Ended                                      Six Months Ended June
                                      June 30,              Year-over-Year Change                 30,                  Year-over-Year Change
                                                           Increase            Increase                             Increase           Increase
                                                          (Decrease)          (Decrease)                           (Decrease)         (Decrease)

(dollar amounts in thousands) 2022 2021 Amount

    Percent      2022       2021         Amount             Percent
Salaries and benefits           $   15,866   $ 14,488     $      1,378             10 %    $ 29,985   $ 26,676     $      3,309            12 %
Selling, general and
administrative                       2,607      1,226            1,381            113 %       4,872      2,906            1,966            68 %
Depreciation and amortization          106        146              (40 )         (27) %         215        293              (78 )        (27) %
Total operating expenses        $   18,579   $ 15,860     $      2,719             17 %    $ 35,072   $ 29,875     $      5,197            17 %



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Corporate operating expenses

Total Corporate operating expenses were $18.6 million and $35.1 million for the
three and six months ended June 30, 2022, respectively, an increase of $2.7
million or 17% and $5.2 million or 17% compared to the same periods in 2021. The
increase is primarily due to an increase in short-term compensation expense of
$2.2 million and $2.3 million for the three and six months ended June 30, 2022,
respectively, compared to the same periods in 2021.

OTHER EXPENSE, NET
                                   Three Month Ended June 30,           Year-over-Year Change            Six Month Ended June 30,           Year-over-Year Change
                                                                      Increase          Increase                                         Increase          Increase
                                                                     (Decrease)        (Decrease)                                       (Decrease)        (Decrease)
(dollar amounts in thousands)        2022              2021            Amount           Percent           2022             2021           Amount           Percent
Interest income                 $           245    $         204     $          41          20 %      $         390    $         386    $          4           1 %
Interest expense                         (8,862 )         (9,457 )             595           6 %            (14,996 )        (18,646 )         3,650          20 %
Foreign currency exchange
gain (loss), net                        (14,698 )            116           (14,814 )  (12,771) %            (20,160 )         (3,916 )       (16,244 )       415 %
Other gains (losses)                          -                -                 -       (100) %                192               31             161         519 %
Other expense, net              $       (23,315 )  $      (9,137 ) $       (14,178 )       155 %      $     (34,574  )  $    (22,145 )    $ (12,429)          56   %



Interest expense

Interest expense was $8.9 million for the three months ended June 30, 2022, a
decrease of ($0.6 million) or (6%) compared to the same period in 2021. Interest
expense was $15.0 million for the six months ended June 30, 2022, a decrease of
($3.7 million) or (20%) compared to the same period in 2021. The decrease in
interest expense relates to the $7.9 million accretion expense incurred for the
six months ended June 30, 2021, which was eliminated for the six months ended
June 30, 2022 as a result of the adoption of ASU 2020-06, partially offset by
increased interest rates and borrowings on the revolving Credit Facility for the
six months ended June 30, 2022 compared to the same period in 2021. See Footnote
2, Recently Issued and Adopted Accounting Pronouncements, for more information
on the impact of this adoption.

Foreign currency exchange loss, net

Foreign currency exchange activity includes gains and losses on certain foreign
currency exchange derivative contracts and the impact of remeasurement of assets
and liabilities denominated in foreign currencies. Assets and liabilities
denominated in currencies other than the local currency of each of our
subsidiaries give rise to foreign currency exchange gains and losses. Foreign
currency exchange gains and losses that result from remeasurement of these
assets and liabilities are recorded in net income. The majority of our foreign
currency exchange gains or losses are due to the remeasurement of intercompany
loans which are not considered a long-term investment in nature and are in a
currency other than the functional currency of one of the parties to the loan.
For example, we make intercompany loans based in euros from our corporate
division, which is composed of U.S. dollar functional currency entities, to
certain European entities that use the euro as the functional currency. As the
U.S. dollar strengthens against the euro, foreign currency exchange losses are
recognized by our corporate entities because the number of euros to be received
in settlement of the loans decreases in U.S. dollar terms. Conversely, in this
example, in periods where the U.S. dollar weakens, our corporate entities will
record foreign currency exchange gains.

We recorded net foreign currency exchange losses of $14.7 million and $20.2
million for the three and six months ended June 30, 2022, respectively, compared
to a net foreign currency exchange gain of $0.1 million and loss of $3.9 million
for the same periods in 2021, respectively. 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 periods.

INCOME TAX EXPENSE

Our effective income tax rate was 26.7% and 36.7% for the three and six months
ended June 30, 2022, respectively, compared to 58.9% and 99.9% for the same
periods ended June 30, 2021, respectively. Our effective income tax rate for
the three and six months ended June 30, 2022 was higher than the applicable
statutory income tax rate of 21% as a result of certain foreign earnings being
subject to higher statutory tax rates. Our effective income tax rate for the
three and six months ended June 30, 2021 was higher than the applicable
statutory income tax rate of 21% as a result of certain foreign earnings being
subject to higher local tax rates, the non-recognition of tax benefits from
losses in certain foreign countries where we have a limited history of
profitable earnings and as a result of an increase in the valuation allowance in
certain jurisdictions relating to the reversal of tax benefits recognized in the
first quarter of 2021 for continuing net operating losses.
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NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS

Noncontrolling interests represent the elimination of net income or loss
attributable to the minority shareholders' portion of the following consolidated
subsidiaries that are not wholly owned:
Subsidiary                     Percent Owned    Segment - Country
Movilcarga                          95%           epay - Spain
Euronet China                       85%            EFT - China
Euronet Pakistan                    70%             EFT - Pakistan
Euronet Infinitium Solutions        65%            EFT - India


NET INCOME (LOSS) ATTRIBUTABLE TO EURONET

Net income attributable to Euronet was $57.2 million for the three months ended
June 30, 2022, an increase of $48.6 million or 563% compared to the same period
in 2021. The increase in net income was primarily attributable to the $128.6
million increase in revenues, largely driven by the increases within the EFT
Segment as tourism and cross-border travel increased during the second quarter
of 2022 compared to the second quarter of 2021. The increased revenues led to a
$98.8 million increase in gross profit, with $94.5 million of this increase
within the EFT Segment. The increase in gross profit was partially offset by
$10.2 million increase in salaries and benefits expense, an $8.4 million
increase in income tax expense and a $14.7 million increase in selling, general
and administrative expense.

Net income attributable to Euronet was $65.5 million for the six months ended
June 30, 2022, an increase of $65.5 million, compared to the net loss of ($0.03
million) in the same period in 2021. The increase in net income was primarily
attributable to the $194.4 million increase in revenues, largely driven by the
increases within the EFT Segment as tourism and cross-border travel increased
during the second quarter of 2022 compared to the second quarter of 2021. The
increased revenues led to a $140.9 million increase in gross profit, with $129.2
million of this increase within the EFT Segment. The increase in gross profit
was partially offset by an $21.3 million increase in salaries and benefits
expense, a $19.5 million increase in income tax expense and a $20.2 million
increase in selling, general and administrative expense.

LIQUIDITY AND CAPITAL RESOURCES

Working capital

As of June 30, 2022, we had working capital of $1,179.8 million, which is
calculated as the difference between total current assets and total current
liabilities, compared to working capital of $1,455.8 million as of December 31,
2021. The decrease in working capital was primarily due to the $330.0 million
acquisition of PBMA and the $175.0 million of share repurchases, partially
offset by a $213.7 million increase in borrowing on the Credit Facility as of
June 30, 2022 compared to December 31, 2021. Our ratio of current assets to
current liabilities was 1.51 and 1.79 at June 30, 2022 and December 31, 2021,
respectively.

We require substantial working capital to finance operations. The Money Transfer
Segment funds the payout of the majority of our consumer-to-consumer money
transfer services before receiving the benefit of amounts collected from
customers by agents. Working capital needs increase due to weekends and banking
holidays. As a result, we may report more or less working capital for the Money
Transfer Segment based solely upon the day on which the reporting period ends.
The epay Segment produces positive working capital, some of which is restricted
in connection with the administration of its customer collection and vendor
remittance activities. In our EFT Processing Segment, we obtain a significant
portion of the cash required to operate our ATMs through various cash supply
arrangements, the amount of which is not recorded on Euronet's Consolidated
Balance Sheets. However, in certain countries, we fund the cash required to
operate our ATM network from borrowings under our revolving credit facilities,
uncommitted credit agreements and cash flows from operations. As of June 30,
2022, we had $890.8 million of our own cash in use or designated for use in our
ATM network, which is recorded in ATM cash on Euronet's Consolidated Balance
Sheet. ATM cash increased $347.4 million from $543.4 million as of December 31,
2021 to $890.8 million as of June 30, 2022 as a result of the increase in number
of active ATMs as of June 30, 2022 compared to December 31, 2021.The Company has
$1,014.9 million of unrestricted cash as of June 30, 2022 compared to $1,260.5
million as of December 31, 2021. The decrease in unrestricted cash was primarily
due to the $346.2 million acquisition of PBMA, the $101.0 million allocated from
unrestricted cash to ATM cash and the $175.0 million of share repurchases during
the six months ended June 30, 2022, partially offset by the $213.7 million
increase in borrowings on the Credit Facility. Including the $890.8 million of
cash in ATMs at June 30, 2022, we have access to $1,905.7 million in available
cash, and $479.1 million available under the Credit Facility with no significant
long-term debt principal payments until October 2023.
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The following table identifies cash and cash equivalents provided by/(used in)
our operating, investing and financing activities for the six months ended June
30, 2022 and 2021 (in thousands):
                                                                Six Months Ended June 30,
Liquidity                                                         2022      

2021

Cash and cash equivalents and restricted cash provided by
(used in):
Operating activities                                         $    180,659       $  173,307
Investing activities                                             (386,966 )        (48,332 )
Financing activities                                              491,242  

(248,553 )
Effect of foreign currency exchange rate changes on cash and
cash equivalents and restricted cash

                             (195,239 )        (43,278 )
Increase (decrease) in cash and cash equivalents and
restricted cash                                              $     89,696       $ (166,856 )


Operating activity cash flow

Cash flows provided by operating activities were $180.7 million for the three
months ended June 30, 2022 compared to cash flows used in operating activities
of $173.3 million for the same period in 2021. The increase in operating cash
flows was primarily due to the $65.3 million increase in net income, partially
offset by fluctuations in working capital mainly associated with the timing of
the settlement processes with content providers in the epay Segment, with
correspondents in the Money Transfer Segment, and with card organizations and
banks in the EFT Processing Segment.

Investing activity cash flow

Cash flows used in investing activities were $387.0 million for the six months
ended June 30, 2022 compared to $48.3 million for the same period in 2021. The
increase in cash used in investing activities is primarily due to the $331.0
million of cash paid at the closing of PBMA in March 2022. Additionally, we
used $53.1 million for purchases of property and equipment for the six months
ended June 30, 2022 compared to $45.1 million for the same period in 2021. The
increase in purchases of property and equipment is primarily due to the prior
period expenditures being reduced by the COVID-19 related impacts to the EFT
segment. Cash used for software development and other investing activities
totaled $3.8 million and $3.3 million for the six months ended June 30, 2022 and
2021, respectively.

Financing activity cash flow

Cash flows provided by financing activities were $491.2 million for the
six months ended June 30, 2022 compared to cash flows used in financing
activities of $248.6 million for the same period in 2021. Our borrowing
activities on the Credit Facility for the six months ended June 30,
2022 consisted of net borrowings of $663.7million compared to net repayments of
$249.6 million for the same period in 2021. The increase in net borrowings on
the Credit Facility, during the six months ended June 30, 2022, is primarily the
result of treasury management relating to settlement requirements across
currencies as well as increased funding requirements for acquisitions and share
repurchases. We repurchased $175.3 million of common stock during the six months
ended June 30, 2022 compared to repurchases of $0.9 million during the same
period of 2021. We received proceeds of $3.7 million and $5.3 million during the
six months ended June 30, 2022 and 2021, respectively, for the issuance of stock
in connection with our Stock Incentive Plan.
Effect of exchange rates on cash, cash equivalents and restricted cash

Foreign currency exchange rates for the six months ended June 30, 2022 and 2021
had a negative impact of $195.2 million and $43.3 million, respectively, on
cash, cash equivalents, and restricted cash. The negative impact on cash, cash
equivalents, and restricted cash for the six months ended June 30, 2022 was due
primarily to the negative impact in the exchange rate of the U.S. dollar to the
Euro.
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Other sources of capital

Credit Facility - On October 17, 2018, we entered into a $1.0 billion unsecured
credit agreement (the "Credit Facility") that expires on October 17, 2023. The
Credit Facility allows for borrowings in Australian dollars, British pounds
sterling, Canadian dollars, Czech koruna, Danish krone, euro, Hungarian forints,
Japanese yen, New Zealand dollars, Norwegian krone, Polish zlotys, Swedish
krona, Swiss francs, and U.S. dollars. The Credit Facility contains a $200
million sublimit for the issuance of letters of credit, a $50 million sublimit
for U.S. Dollar swingline loans, and a $90 million sublimit for certain foreign
currencies swingline loans.As of June 30, 2022, fees and interest on borrowings
are based upon our corporate credit rating (as defined in the credit agreement)
and are based, in the case of letter of credit fees, on a margin, and in the
case of interest, on a margin over the London InterBank Offered Rate ("LIBOR")
or a margin over the base rate, as selected by us, with the applicable margin
ranging from 1.125% to 2.0% (or 0.175% to 1.0% for base rate loans).

As of June 30, 2022, we had $497.1 million of borrowings and $53.8 million of
stand-by letters of credit outstanding under the Credit Facility. The
remaining $449.1 million under the Credit Facility was available for borrowing.

Convertible debt - On March 18, 2019, we completed the sale of $525.0 million in
principal amount of Convertible Senior Notes due 2049 ("Convertible Notes"). The
Convertible Notes were issued pursuant to an indenture, dated as of March 18,
2019 (the "Indenture"), by and between us and U.S. Bank National Association, as
trustee. The Convertible Notes have an interest rate of 0.75% per annum payable
semi-annually in March and September, and are convertible into shares of Euronet
common stock at a conversion price of approximately $188.73 per share if certain
conditions are met (relating to the closing prices of Euronet common stock
exceeding certain thresholds for specified periods). Holders of the Convertible
Notes have the option to require us to repurchase for cash all or part of their
Convertible Notes on each of March 15, 2025, 2029, 2034, 2039 and 2044 at a
repurchase price equal to 100% of the principal amount of the Convertible Notes
to be repurchased, plus accrued and unpaid interest to, but excluding, the
relevant repurchase date. In connection with the issuance of the Convertible
Notes, we recorded $12.8 million in debt issuance costs, which are being
amortized through March 1, 2025.

Senior Notes - On May 22, 2019, we completed the sale of €600 million ($669.9
million) aggregate principal amount of Senior Notes that expire on May 2026 (the
"Senior Notes"). The Senior Notes accrue interest at a rate of 1.375% per year,
payable annually in arrears on May 22 of each year, until maturity or earlier
redemption. As of June 30, 2022, we have outstanding €600 million ($628.9
million) principal amount of the Senior Notes. In addition, we may redeem some
or all of these notes on or after February 22, 2026 at their principal amount
plus any accrued and unpaid interest.
Uncommitted Loans - On May 25, 2022 and June 24, 2022, we entered into two
separate uncommitted credit agreements for $300 million and $150 million,
respectively, that expire no later than November 30, 2022 and June 23, 2023,
respectively. Both credit agreements are fully drawn and outstanding at June 30,
2022. The credit agreements were entered into for the sole purpose of providing
vault cash for ATMs. Each loan entered into under the $300 million agreement
accrues interest at the rate per annum equal to the secured overnight financing
rate ("SOFR") plus 1.00%. Each loan entered into under the $150 million
agreement is a Prime rate loan, a Bloomberg Short-term Bank Yield ("BSBY") rate
loan or bears interest at the rate agreed to by the lender and the Company at
the time such loan is made.
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Other debt obligations - Certain of our subsidiaries have available credit lines
and overdraft facilities to generally supplement short-term working capital
requirements, when necessary. There were $0.4 million and
$0.9 million outstanding under these other obligation arrangements as of June
30, 2022 and December 31, 2021, respectively.

Other uses of capital

Capital expenditures and needs - Total capital expenditures for the six months
ended June 30, 2022 were $53.1 million. These capital expenditures were
primarily for the purchase and installation of ATMs in key under-penetrated
markets, the purchase of POS terminals for the epay and Money Transfer Segments,
and office, data center and company store computer equipment and software. Total
capital expenditures for 2022 are currently estimated to range from
approximately $115 million to $120 million. At current and projected cash flow
levels, we anticipate that cash generated from operations, together with cash on
hand and amounts available under our Credit Facility and other existing and
potential future financing will be sufficient to meet our debt, leasing, and
capital expenditure obligations. If our capital resources are not sufficient to
meet these obligations, we will seek to refinance our debt and/or issue
additional equity under terms acceptable to us. However, we can offer no
assurances that we will be able to obtain favorable terms for the refinancing of
any of our debt or other obligations or for the issuance of additional equity.

Inflation and functional currencies

Historically, the countries in which we operate have experienced low and stable
inflation. Therefore, the local currency in each of these markets is the
functional currency. We have seen indications that the current inflationary
period will put pressure on our results of operations and our financial
position. We have seen some signs of inflation impacting discretionary spend
items, such as gaming products, in our epay business as well as some pressure on
send amounts in money transfer.  As a consequence of this inflationary period,
we expect to see increasing expenses forthcoming. We continually review
inflation and the functional currency in each of the countries where we operate.

OFF BALANCE SHEET ARRANGEMENTS

On occasion, we grant guarantees of the obligations of our subsidiaries and we
sometimes enter into agreements with unaffiliated third parties that contain
indemnification provisions, the terms of which may vary depending on the
negotiated terms of each respective agreement. Our liability under such
indemnification provisions may be subject to time and materiality limitations,
monetary caps and other conditions and defenses. As of June 30, 2022, there were
no material changes from the disclosure in our Annual Report on Form 10-K for
the year ended December 31, 2021. To date, we are not aware of any significant
claims made by the indemnified parties or parties to whom we have provided
guarantees on behalf of our subsidiaries and, accordingly, no liabilities have
been recorded as of June 30, 2022. See also Note 14, Commitments, to the
unaudited consolidated financial statements included elsewhere in this report.

CONTRACTUAL OBLIGATIONS

As of June 30, 2022, there have been no material changes outside the ordinary
course of business in our future contractual obligations from the amounts
reported within our Annual Report on Form 10-K for the year ended December 31,
2021.

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