Operator: Thank you. One moment for our next question. Our next question comes from the line of Darrin Peller from Wolfe Research.
Darrin Peller: Hey guys. Thanks for taking my question. Look, it’s obviously good to see the progress on EFT. I guess, Mike, when we think about the business in EFT and what the behaviors that we’re seeing are today, would you expect that if we got back to that 92%, 93% of 2019 levels by the end of 2023, that your profitability levels of EFT should be the same or more than they were assuming it was 92% in 2019? In other words, like-for-like, has anything changed to push that profitability up in that segment beyond just what travel activity is? I imagine that in some factors, but yes, Mike, I just want €“ then if you get to add on to that, the comments you made over rate potential and pricing potential. It was good to hear. I’m curious if you can give us a little bit more specifics on that?
Mike Brown: So, I think the reality is if we only get 92% or 93% of the tourists that we did in 2019, we’re not going to arrive at 2019’s total revenue. However, we do have some opportunities and a lot of it comes down to mix. So, as we spin up some of these new markets in North Africa, in Asia, as we do things our experience is that those ATMs are quite a bit more profitable on a per unit basis than our European ones, even though our European ones are quite good. So, if we can get a little bit of a travel recovery in Asia, that would be great. If we’re able €“ we have some supply chain issues of getting ATMs to expand into North Africa. As that abates, that will help us quite a bit as well. And let’s not forget, every one €“ we were planning on a lot of ATM rollout last year in and around the countries of Central and Eastern Europe, all the ones that now surround Ukraine, in fact, we are planning on almost 500 growth in Ukraine last year.
And then, of course, the war happened. Those markets are all cross currency markets. They all have their own currencies. They’re great contributors. And so, that’s kind of €“ we obviously are going to do as much expansion there because last year, they only recovered in the 50% to 55%, where the rest of the market in general was in that . So, I think it’s €“ we’ve got some opportunities. We’ll have to see what happens, but I think if we get to 92%, we’ll be pretty darn happy, and it also gives us a little bit of gas in the tank for the next year to growth.
Darrin Peller: That does make sense. When we think about China reopening, can you just maybe remind us, in your view, what kind of contribution China €“ base travelers did to your business back before the pandemic whether it’s in any of the regions, frankly, I’m just curious if you have any insight on that?
Mike Brown: The biggest reason place where we have Chinese tourists would be in Asian markets like the Philippines, Malaysia, that opened up has that ticked up would be fairly good. They were 5% for European travel will be helpful as well. But a number of these countries are also putting limitations on Chinese Tourism little bit more friction in there, you know requiring COVID test before they come, et cetera.
Rick Weller: The other thing that’s important to remember about the China travelers is generally speaking, the China UnionPay card does not allow for DCC. Now, in markets where we have a surcharge opportunity and benefit there, but if China has not been that big of a contributor because we don’t get the spread on the DCC. We are working on opportunities to potentially enter into agreements with them to enable that, but as of now, it’s not there. So, clearly, China travel would give us some benefit, but we’ve never had a lot of benefit in our P&L from Chinese .
Darrin Peller: Understood. Thanks Rick.
Operator: Thank you. One moment for our next question. Our next question comes from the line of Cris Kennedy from William Blair.
Cris Kennedy: Good morning. Thanks for taking the question. Can you talk about, kind of the timing of Ren revenue hitting your income statement and how that’s tracking relative to your initial expectations?
Mike Brown: It’s tracking pretty much right on what I said in prior quarters. So, in the very first year that we were really selling Ren, which was two years ago, we did about 8 million in revenue at about, call it, an 80% margin. Last year, we did almost twice that. This year, we’re looking at 25 million to 30 million, if we can get everything installed. So, it’s kind of doubling up every year. So, we’re really excited about Ren and it’s only growing. And I understand, when we talk about 140 million, kind of in the pipeline, these are contracted minimum revenues in the contracts that we’re installing. So, that’s what’s exciting about it. That doesn’t include anything we’re going to €“ that we would sign this year. So, and our experience has been, once we put somebody on our platform, the transactions in almost every case exceeded their expectations.
I think darn near every case as the transaction €“ their transaction-based licenses. So, and as the transactions exceed the expectations of the people we contract with, we end up making a little bit more. So, there’s a lot of optimism around Ren right now.
Cris Kennedy: Great to hear. Thanks for taking the question.
