Summary

  • As much as 30-40% of Euronet’s profits and EBITDA are generated solely by DCC revenues with ultra high margins. The sell side has largely missed this entirely.
  • During 2017, scathing public criticism erupted from a wide array of journalists, travel advisers and celebrity TV hosts, directly alleging Euronet “fraud”, “rips offs” and “scams” with DCC. Evidence posted in photos, screenshots and videos.
  • Multiple independent investigations then concluded specifically that “DCC should be banned”
  • Following the public scrutiny, a wide range of Euronet insiders began aggressively dumping their shares (and just ahead of a key vote in November 2017 by the EU Parliament)
  • Since then, EU legislation covering DCC has passed multiple key milestones.
  • Final regulations are set to be passed by June 2018
  • Euronet trades on a steep premium to peers because of perceived growth prospects. Any reassessment will see disproportionate downside to the share price