Cardtronics Same-Store Transactions Up 6 Pct In US

Cardtronics reported fourth-quarter results that topped expectations on the heels of what management noted was continued traction amid its U.S. ATM business, rebounding from the loss of key partner 7-Eleven.

In terms of headline numbers, the company posted a top line of $327.9 million, which was down nearly 10 percent year over year, and which beat estimates by $10 million.  Adjusted earnings per share came in at 47 cents, besting estimates by a dime.

Drilling down into the numbers a bit, the company said that ATM operating revenues were $314 million, which excluded the 7-Eleven impact, and where North America showed four percent organic revenue growth.

During the post-earnings conference call with analysts, management, including CEO Edward West, pointed to same-store withdrawal growth of six percent, which showed a return to growth.  Surcharge-free transactions were up double digits, the company said.  New managed services contracts expanded by over 200 new financial institution ATMs through the quarter, Cardtronics added.

Allpoint, part of the surcharge-free network, added 21 new financial institutions on the quarter, spanning one million new members, said management.  Total Allpoint revenues from financial institutions stood at $228 million.

Breaking down ATM-related results, surcharge fees stood at $137.5 million, interchange revenues at $100 million.

Europe and Africa revenues were down six percent year on year, to $99 million.  The company said that a five percent LINK interchange rate cut hampered results here, but that was partially offset by double digit growth seen in Germany, Spain and South Africa.

Total number of transacting ATMs in North America at the end of 2018 were a bit more than 43,300, down from 47,082 at the end of the previous year.  The total company-owned tally, measured globally, was a bit more than 74,500, and the merchant-owned ATMs tally was 13,740 in the latest company supplemental materials.