- Consumer Money Transfer transactions grew 4% in Q2 led by
13% growth in Branded Digital transactions
- Q2 GAAP revenue of $1.07 billion, down 9% on a reported
basis, or down 7% on an adjusted basis, including 7% headwind from
Iraq
- Consumer Services revenue grew 21% on a reported basis and
14% on an adjusted basis
- Q2 GAAP EPS of $0.41 or adjusted EPS of $0.44
The Western Union Company (the “Company” or “Western Union”)
(NYSE: WU) today reported second quarter 2024 financial
results.
The Company’s second-quarter revenue of $1.07 billion decreased
9% on a reported basis or decreased 7% on an adjusted basis. The
revenue decline was driven by lower contribution from Iraq compared
to the prior year period as well as the sale of Business Solutions.
Iraq negatively impacted the adjusted revenue growth rate by 7
percentage points.
“This quarter we reported positive adjusted revenue growth for
the first time since 2021, excluding Iraq. This demonstrates we are
turning the corner on a number of the initiatives we put into place
as part of our new go-to-market strategy,” said Devin McGranahan,
President and Chief Executive Officer. “We believe these results
show that our goal to drive sustainable positive revenue growth in
2025 and beyond is achievable.”
GAAP EPS in the second quarter was $0.41 compared to $0.47 in
the prior year period. Adjusted EPS in the second quarter was $0.44
compared to $0.51 in the prior year period. GAAP and adjusted EPS
in the current period were impacted by lower operating profit
associated with lower Iraq revenue partially mitigated by a lower
share count.
Q2 Business Results
- The Company’s Consumer Money Transfer (CMT) segment revenue
decreased 10% on a reported basis and 9% on an adjusted basis,
while transactions increased 4% compared to the prior period. The
revenue decline was largely driven by lower contribution from Iraq.
Excluding Iraq, transaction growth was 5% in the second quarter,
which was similar to the first quarter of 2024.
- Branded Digital revenue increased 5% on a reported or 7% on an
adjusted basis with transaction growth of 13%. The Branded Digital
business represented 24% and 31% of total CMT revenues and
transactions, respectively.
- Consumer Services segment revenue grew 21% on a reported basis
and 14% on an adjusted basis, benefiting from new or expanded
products, led by the expansion of our retail foreign exchange, as
well as the continued strength of our Retail Money Order
business.
Q2 Financial Results
- GAAP operating margin in the quarter was 17.9%, compared to
20.7% in the prior year period, while the adjusted operating margin
was 19.0% compared to 21.8% in the prior year period. GAAP and
adjusted operating margins decreased mainly due to lower
contribution from Iraq and incremental volatility in foreign
currencies.
- The GAAP effective tax rate in the quarter was 14.7%, compared
to 18.6% in the prior year period. The adjusted effective tax rate
was 16.0% in both periods. The decrease in GAAP rate was primarily
due to a reduction in domestic income and a non-recurring benefit
in the current period.
2024 Outlook
Based on the performance, the Company reiterated its full year
2024 outlook. The outlook assumes no material changes in
macroeconomic conditions.
2024 Outlook1
GAAP
Adjusted
Revenue2
$4,125 to $4,200
$4,150 to $4,225
Operating Margin
18% to 20%
19% to 21%
EPS3
$1.62 to $1.72
$1.70 to $1.80
1
Assumes $10 to $30 million of
revenue from Iraq per quarter for the remainder of the year
2
In millions, adjusted revenue
excludes the impact of currency and Argentina inflation
3
The GAAP and adjusted effective
tax rates are expected to be in the mid-teens range
Non-GAAP Measures
Western Union presents a number of non-GAAP financial measures
because management believes that these metrics provide meaningful
supplemental information in addition to the GAAP metrics and
provide comparability and consistency to prior periods. Constant
currency results assume foreign revenues are translated from
foreign currencies to the U.S. dollar, net of the effect of foreign
currency hedges, at rates consistent with those in the prior year.
The Company estimates Argentina inflation as the revenue growth not
attributable to either transaction growth or the change in price
(revenue divided by principal).
Reconciliations of non-GAAP to comparable GAAP measures are
available in the accompanying schedules and in the “Investor
Relations” section of the Company’s website at
https://ir.westernunion.com.
Additional Statistics
Additional key statistics for the quarter and historical trends
can be found in the supplemental tables included with this press
release. All amounts included in the supplemental tables to this
press release are rounded to the nearest tenth of a million, except
as otherwise noted. As a result, the percentage changes and margins
disclosed herein may not recalculate precisely using the rounded
amounts provided.
Environmental, Social, and Governance
(ESG)
Western Union is committed to making a positive impact. For more
details on how Western Union is addressing some of the most
pressing issues facing society, our shared environment, and our
Company, please view our latest ESG report:
https://corporate.westernunion.com/esg.
Investor and Analyst Conference Call
and Presentation
The Company will host a conference call and webcast at 4:30 p.m.
ET today.
The webcast and presentation will be available at
https://ir.westernunion.com. Registration for the event is
required, so please register at least 15 minutes prior to the
scheduled start time. A webcast replay will be available shortly
after the event.
To listen to the conference call via telephone in the U.S., dial
+1 (719) 359-4580 15 minutes prior to the start of the call,
followed by the meeting ID, which is 931 4556 9038, and the
passcode, which is 422904, or follow this link. To listen to the
conference call via telephone outside the U.S., dial the country
number from the international directory, followed by the meeting
ID, which is 931 4556 9038, and the passcode, which is 422904.
Safe Harbor Compliance Statement for Forward-Looking
Statements
This press release contains certain statements that are
forward-looking within the meaning of the Private Securities
Litigation Reform Act of 1995. These statements are not guarantees
of future performance and involve certain risks, uncertainties, and
assumptions that are difficult to predict. Actual outcomes and
results may differ materially from those expressed in, or implied
by, our forward-looking statements. Words such as “expects,”
“intends,” “targets,” “anticipates,” “believes,” “estimates,”
“guides,” “provides guidance,” “provides outlook,” “projects,”
“designed to,” and other similar expressions or future or
conditional verbs such as “may,” “will,” “should,” “would,”
“could,” and “might” are intended to identify such forward-looking
statements. Readers of this press release of The Western Union
Company (the “Company,” “Western Union,” “we,” “our,” or “us”)
should not rely solely on the forward-looking statements and should
consider all uncertainties and risks discussed in the Risk Factors
section and throughout the Annual Report on Form 10-K for the year
ended December 31, 2023. The statements are only as of the date
they are made, and the Company undertakes no obligation to update
any forward-looking statement.
Possible events or factors that could cause results or
performance to differ materially from those expressed in our
forward-looking statements include the following: (i) events
related to our business and industry, such as: changes in general
economic conditions and economic conditions in the regions and
industries in which we operate, including global economic downturns
and trade disruptions, or significantly slower growth or declines
in the money transfer, payment service, and other markets in which
we operate, including downturns or declines related to
interruptions in migration patterns or other events, such as public
health emergencies, epidemics, or pandemics, civil unrest, war,
terrorism, natural disasters, or non-performance by our banks,
lenders, insurers, or other financial services providers; failure
to compete effectively in the money transfer and payment service
industry, including among other things, with respect to price or
customer experience, with global and niche or corridor money
transfer providers, banks and other money transfer and payment
service providers, including digital, mobile and internet-based
services, card associations, and card-based payment providers, and
with digital currencies and related exchanges and protocols, and
other innovations in technology and business models; geopolitical
tensions, political conditions and related actions, including trade
restrictions and government sanctions, which may adversely affect
our business and economic conditions as a whole, including
interruptions of United States or other government relations with
countries in which we have or are implementing significant business
relationships with agents, clients, or other partners;
deterioration in customer confidence in our business, or in money
transfer and payment service providers generally; failure to
maintain our agent network and business relationships under terms
consistent with or more advantageous to us than those currently in
place; our ability to adopt new technology and develop and gain
market acceptance of new and enhanced services in response to
changing industry and consumer needs or trends; mergers,
acquisitions, and the integration of acquired businesses and
technologies into our Company, divestitures, and the failure to
realize anticipated financial benefits from these transactions, and
events requiring us to write down our goodwill; decisions to change
our business mix; changes in, and failure to manage effectively,
exposure to foreign exchange rates, including the impact of the
regulation of foreign exchange spreads on money transfers; changes
in tax laws, or their interpretation, any subsequent regulation,
and unfavorable resolution of tax contingencies; any material
breach of security, including cybersecurity, or safeguards of or
interruptions in any of our systems or those of our vendors or
other third parties; cessation of or defects in various services
provided to us by third-party vendors; our ability to realize the
anticipated benefits from restructuring-related initiatives, which
may include decisions to downsize or to transition operating
activities from one location to another, and to minimize any
disruptions in our workforce that may result from those
initiatives; our ability to attract and retain qualified key
employees and to manage our workforce successfully; failure to
manage credit and fraud risks presented by our agents, clients, and
consumers; adverse rating actions by credit rating agencies; our
ability to protect our trademarks, patents, copyrights, and other
intellectual property rights, and to defend ourselves against
potential intellectual property infringement claims; material
changes in the market value or liquidity of securities that we
hold; restrictions imposed by our debt obligations; (ii) events
related to our regulatory and litigation environment, such as:
liabilities or loss of business resulting from a failure by us, our
agents, or their subagents to comply with laws and regulations and
regulatory or judicial interpretations thereof, including laws and
regulations designed to protect consumers, or detect and prevent
money laundering, terrorist financing, fraud, and other illicit
activity; increased costs or loss of business due to regulatory
initiatives and changes in laws, regulations and industry practices
and standards, including changes in interpretations, in the United
States and abroad, affecting us, our agents or their subagents, or
the banks with which we or our agents maintain bank accounts needed
to provide our services, including related to anti-money laundering
regulations, anti-fraud measures, our licensing arrangements,
customer due diligence, agent and subagent due diligence,
registration and monitoring requirements, consumer protection
requirements, remittances, immigration, and sustainability
reporting including climate-related reporting; liabilities,
increased costs or loss of business and unanticipated developments
resulting from governmental investigations and consent agreements
with, or investigations or enforcement actions by regulators and
other government authorities; liabilities resulting from
litigation, including class-action lawsuits and similar matters,
and regulatory enforcement actions, including costs, expenses,
settlements, and judgments; failure to comply with regulations and
evolving industry standards regarding consumer privacy, data use,
the transfer of personal data between jurisdictions, and
information security, failure to comply with the Dodd-Frank Wall
Street Reform and Consumer Protection Act, as well as regulations
issued pursuant to it and the actions of the Consumer Financial
Protection Bureau and similar legislation and regulations enacted
by other governmental authorities in the United States and abroad
related to consumer protection; effects of unclaimed property laws
or their interpretation or the enforcement thereof; failure to
maintain sufficient amounts or types of regulatory capital or other
restrictions on the use of our working capital to meet the changing
requirements of our regulators worldwide; changes in accounting
standards, rules and interpretations, or industry standards
affecting our business; and (iii) other events, such as
catastrophic events and management’s ability to identify and manage
these and other risks.
About Western Union
The Western Union Company (NYSE: WU) is committed to helping
people around the world who aspire to build financial futures for
themselves, their loved ones and their communities. Our leading
cross-border, cross-currency money movement, payments and digital
financial services empower consumers, businesses, financial
institutions and governments—across more than 200 countries and
territories and over 130 currencies—to connect with billions of
bank accounts, millions of digital wallets and cards, and a global
footprint of hundreds of thousands of retail locations. Our goal is
to offer accessible financial services that help people and
communities prosper. For more information, visit
www.westernunion.com.
WU-G
THE WESTERN UNION
COMPANY
CONDENSED CONSOLIDATED
STATEMENTS OF INCOME
(Unaudited)
(in millions, except per share
amounts)
Three Months Ended
Six Months Ended
June 30,
June 30,
2024
2023
% Change
2024
2023
% Change
Revenues
$
1,066.4
$
1,170.0
(9)
%
$
2,115.5
$
2,206.9
(4)
%
Expenses:
Cost of services
663.9
698.9
(5)
%
1,305.2
1,328.4
(2)
%
Selling, general, and
administrative
211.8
228.5
(7)
%
427.5
431.2
(1)
%
Total expenses
875.7
927.4
(6)
%
1,732.7
1,759.6
(2)
%
Operating income
190.7
242.6
(21)
%
382.8
447.3
(14)
%
Other income/(expense):
Interest income
3.7
4.2
(11)
%
6.8
7.4
(8)
%
Interest expense
(31.1
)
(27.0
)
15
%
(57.2
)
(52.0
)
10
%
Other income/(expense), net
1.9
(3.4
)
(a)
2.8
(5.3
)
(a)
Total other expense, net
(25.5
)
(26.2
)
(3)
%
(47.6
)
(49.9
)
(5)
%
Income before income taxes
165.2
216.4
(24)
%
335.2
397.4
(16)
%
Provision for income taxes
24.2
40.2
(39)
%
51.5
69.4
(26)
%
Net income
$
141.0
$
176.2
(20)
%
$
283.7
$
328.0
(14)
%
Earnings per share:
Basic
$
0.42
$
0.47
(11)
%
$
0.83
$
0.88
(6)
%
Diluted
$
0.41
$
0.47
(13)
%
$
0.83
$
0.87
(5)
%
Weighted-average shares
outstanding:
Basic
338.6
375.0
341.5
374.7
Diluted
339.6
375.6
342.6
375.6
____________________
(a)
Calculation not meaningful.
THE WESTERN UNION
COMPANY
CONDENSED CONSOLIDATED BALANCE
SHEETS
(Unaudited)
(in millions, except per share
amounts)
June 30,
December 31,
2024
2023
Assets
Cash and cash equivalents
$
1,033.0
$
1,268.6
Settlement assets
3,648.3
3,687.0
Property and equipment, net of accumulated
depreciation of $440.5 and $438.8, respectively
82.6
91.4
Goodwill
2,056.4
2,034.6
Other intangible assets, net of
accumulated amortization of $652.3 and $685.9, respectively
347.0
380.2
Other assets
804.0
737.0
Total assets
$
7,971.3
$
8,198.8
Liabilities and stockholders'
equity
Liabilities:
Accounts payable and accrued
liabilities
$
376.5
$
453.0
Settlement obligations
3,648.3
3,687.0
Income taxes payable
454.0
659.5
Deferred tax liability, net
144.0
147.6
Borrowings
2,635.8
2,504.6
Other liabilities
271.9
268.1
Total liabilities
7,530.5
7,719.8
Stockholders' equity:
Preferred stock, $1.00 par value; 10
shares authorized; no shares issued
—
—
Common stock, $0.01 par value; 2,000
shares authorized; 337.8 shares and 350.5 shares issued and
outstanding as of June 30, 2024 and December 31, 2023,
respectively
3.4
3.5
Capital surplus
1,050.8
1,031.9
Accumulated deficit
(451.3
)
(389.1
)
Accumulated other comprehensive
loss
(162.1
)
(167.3
)
Total stockholders' equity
440.8
479.0
Total liabilities and stockholders'
equity
$
7,971.3
$
8,198.8
THE WESTERN UNION
COMPANY
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
(Unaudited)
(in millions)
Six Months Ended
June 30,
2024
2023
Cash flows from operating
activities
Net income
$
283.7
$
328.0
Adjustments to reconcile net
income to net cash provided by operating activities:
Depreciation and amortization
92.7
92.5
Other non-cash items, net
50.4
35.6
Increase/(decrease) in cash,
excluding the effects of acquisitions and divestitures, resulting
from changes in:
Other assets
(72.9
)
(52.7
)
Accounts payable and accrued
liabilities
(75.3
)
(52.0
)
Income taxes payable
(208.8
)
(86.4
)
Other liabilities
(9.6
)
(1.0
)
Net cash provided by operating
activities
60.2
264.0
Cash flows from investing
activities
Capital expenditures
(64.5
)
(90.1
)
Purchases of settlement
investments
(251.6
)
(198.3
)
Proceeds from the sale of
settlement investments
171.8
66.8
Maturities of settlement
investments
96.9
54.3
Proceeds from the sale of
non-settlement investments
—
100.0
Other investing activities
(21.0
)
2.2
Net cash used in investing
activities
(68.4
)
(65.1
)
Cash flows from financing
activities
Cash dividends and dividend
equivalents paid
(162.3
)
(178.7
)
Common stock repurchased
(180.8
)
(6.0
)
Net proceeds from commercial
paper
129.9
494.6
Principal payments on
borrowings
—
(300.0
)
Proceeds from exercise of
options
—
0.3
Net change in settlement
obligations
(78.5
)
(619.8
)
Other financing activities
(0.9
)
0.1
Net cash used in financing
activities
(292.6
)
(609.5
)
Net change in cash and cash
equivalents, including settlement, and restricted cash
(300.8
)
(410.6
)
Cash and cash equivalents,
including settlement, and restricted cash at beginning of
period
1,786.2
2,040.7
Cash and cash equivalents,
including settlement, and restricted cash at end of period
$
1,485.4
$
1,630.1
June 30,
2024
2023
Reconciliation of balance
sheet cash and cash equivalents to cash flows:
Cash and cash equivalents on
balance sheet
$
1,033.0
$
1,585.9
Settlement cash and cash
equivalents
434.7
11.1
Restricted cash in Other
assets
17.7
33.1
Cash and cash equivalents,
including settlement, and restricted cash at end of period
$
1,485.4
$
1,630.1
THE WESTERN UNION
COMPANY
SUMMARY SEGMENT DATA
(Unaudited)
(in millions, unless indicated
otherwise)
Three Months Ended
Six Months Ended
June 30,
June 30,
2024
2023
% Change
2024
2023
% Change
Revenues:
Consumer Money Transfer
$
965.0
$
1,072.2
(10)
%
$
1,927.0
$
2,010.5
(4)
%
Consumer Services
101.4
83.5
21
%
188.5
166.7
13
%
Business Solutions (a)
—
14.3
(e)
—
29.7
(e)
Total consolidated revenues
$
1,066.4
$
1,170.0
(9)
%
$
2,115.5
$
2,206.9
(4)
%
Segment operating income:
Consumer Money Transfer
$
191.5
$
230.7
(17)
%
$
379.1
$
408.5
(7)
%
Consumer Services
11.1
18.4
(39)
%
29.7
50.5
(41)
%
Business Solutions (a)
—
1.8
(e)
—
3.7
(e)
Total segment operating income
202.6
250.9
(19)
%
408.8
462.7
(12)
%
Redeployment program costs (b)
(9.4
)
(8.3
)
14
%
(23.4
)
(15.4
)
52
%
Acquisition, separation, and integration
costs (c)
(0.5
)
—
(e)
(0.6
)
—
(e)
Amortization and impairment of
acquisition-related intangible assets (d)
(2.0
)
—
(e)
(2.0
)
—
(e)
Total consolidated operating income
$
190.7
$
242.6
(21)
%
$
382.8
$
447.3
(14)
%
Segment operating income margin
Consumer Money Transfer
19.8
%
21.5
%
(1.7)
%
19.7
%
20.3
%
(0.6)
%
Consumer Services
11.0
%
22.0
%
(11.0)
%
15.8
%
30.3
%
(14.5)
%
Business Solutions (a)
—
12.1
%
(e)
—
12.4
%
(e)
____________________
(a)
On August 4, 2021, the Company
entered into an agreement to sell its Business Solutions business.
The sale was completed with the final closing on July 1, 2023.
(b)
Represents severance, expenses
associated with streamlining the Company's organizational and legal
structure, and other expenses associated with the Company's program
to redeploy expenses in its cost base through optimizations in
vendor management, real estate, marketing, and people strategy, as
previously announced in October 2022. Expenses incurred under the
program also include non-cash impairments of operating lease
right-of-use assets and property and equipment. The expenses are
not included in the measurement of segment operating income
provided to the Chief Operating Decision Maker (“CODM”) for
purposes of performance assessment and resource allocation. These
expenses are therefore excluded from the Company's segment
operating income results.
(c)
Represents the impact from
expenses incurred in connection with the Company's acquisition and
divestiture activity, including for the review and closing of these
transactions, and integration costs directly related to the
Company’s acquisitions. Beginning in 2024, the Company changed its
segment reporting methodology to no longer allocate these costs to
its segments. These costs were previously allocated entirely to
Consumer Services, and the amount included in the Consumer Services
segment was immaterial for both the three and six months ended June
30, 2023. The expenses are no longer included in the measurement of
segment operating income provided to the CODM for purposes of
performance assessment and resource allocation. These expenses are
therefore excluded from the Company's segment operating income
results.
(d)
Represents the incremental
non-cash amortization and impairment of acquired intangible assets
in connection with recent business acquisitions. The expenses are
not included in the measurement of segment operating income
provided to the CODM for purposes of performance assessment and
resource allocation. These expenses are therefore excluded from the
Company's segment operating income results.
(e)
Calculation not meaningful.
THE WESTERN UNION
COMPANY
KEY STATISTICS
(Unaudited)
Notes*
2Q23
3Q23
4Q23
FY2023
1Q24
2Q24
YTD 2Q24
Consolidated Metrics Revenues (GAAP) - YoY % change
3
%
1
%
(4)
%
(3)
%
1
%
(9)
%
(4)
%
Adjusted revenues (non-GAAP) - YoY % change
(a)
6
%
4
%
(1)
%
1
%
3
%
(7)
%
(2)
%
Operating margin (GAAP)
20.7
%
19.2
%
15.1
%
18.8
%
18.3
%
17.9
%
18.1
%
Adjusted operating margin (non-GAAP)
(b)
21.8
%
19.6
%
16.1
%
19.6
%
19.7
%
19.0
%
19.3
%
Consumer Money Transfer (CMT) Segment Metrics
Revenues (GAAP) - YoY % change
4
%
4
%
(1)
%
0
%
3
%
(10)
%
(4)
%
Adjusted revenues (non-GAAP) - YoY % change
(g)
5
%
3
%
(1)
%
0
%
3
%
(9)
%
(3)
%
Transactions (in millions)
70.6
70.6
72.9
279.4
69.0
73.3
142.3
Transactions - YoY % change
4
%
5
%
5
%
2
%
6
%
4
%
5
%
Cross-border principal, as reported - YoY % change
17
%
13
%
8
%
9
%
7
%
(6)
%
0
%
Cross-border principal (constant currency) - YoY % change
(h)
18
%
11
%
7
%
9
%
7
%
(5)
%
1
%
Operating margin
21.5
%
19.0
%
15.3
%
18.7
%
19.5
%
19.8
%
19.7
%
Branded Digital revenues (GAAP) - YoY % change
(gg)
(2)
%
3
%
4
%
0
%
9
%
5
%
7
%
Branded Digital foreign currency translation and Argentina
inflation impact
(k)
0
%
0
%
0
%
0
%
0
%
2
%
1
%
Adjusted Branded Digital revenues (non-GAAP) - YoY % change
(gg)
(2)
%
3
%
4
%
0
%
9
%
7
%
8
%
Branded Digital transactions - YoY % change
(gg)
12
%
12
%
13
%
11
%
13
%
13
%
13
%
CMT Segment Regional Metrics - YoY % change
NA region revenues (GAAP)
(aa), (bb)
(8)
%
(3)
%
(1)
%
(5)
%
2
%
1
%
1
%
NA region foreign currency translation impact
(k)
1
%
0
%
0
%
0
%
0
%
0
%
1
%
Adjusted NA region revenues (non-GAAP)
(aa), (bb)
(7)
%
(3)
%
(1)
%
(5)
%
2
%
1
%
2
%
NA region transactions
(aa), (bb)
4
%
7
%
6
%
5
%
6
%
6
%
6
%
EU & CIS region revenues (GAAP)
(aa), (cc)
(12)
%
(9)
%
(8)
%
(11)
%
(5)
%
(6)
%
(6)
%
EU & CIS region foreign currency translation impact
(k)
2
%
(1)
%
(1)
%
0
%
0
%
2
%
2
%
Adjusted EU & CIS region revenues (non-GAAP)
(aa), (cc)
(10)
%
(10)
%
(9)
%
(11)
%
(5)
%
(4)
%
(4)
%
EU & CIS region transactions
(aa), (cc)
(1)
%
0
%
4
%
(6)
%
5
%
3
%
4
%
MEASA region revenues (GAAP)
(aa), (dd)
66
%
42
%
12
%
31
%
16
%
(35)
%
(15)
%
MEASA region foreign currency translation impact
(k)
1
%
0
%
0
%
1
%
1
%
0
%
0
%
Adjusted MEASA region revenues (non-GAAP)
(aa), (dd)
67
%
42
%
12
%
32
%
17
%
(35)
%
(15)
%
MEASA region transactions
(aa), (dd)
8
%
9
%
7
%
6
%
6
%
0
%
3
%
LACA region revenues (GAAP)
(aa), (ee)
6
%
10
%
2
%
8
%
7
%
8
%
8
%
LACA region foreign currency translation and Argentina inflation
impact
(k)
(2)
%
(5)
%
(4)
%
(3)
%
(2)
%
0
%
(2)
%
Adjusted LACA region revenues (non-GAAP)
(aa), (ee)
4
%
5
%
(2)
%
5
%
5
%
8
%
6
%
LACA region transactions
(aa), (ee)
8
%
9
%
4
%
7
%
3
%
2
%
3
%
APAC region revenues (GAAP)
(aa), (ff)
(7)
%
(8)
%
(7)
%
(7)
%
(10)
%
(11)
%
(11)
%
APAC region foreign currency translation impact
(k)
3
%
1
%
2
%
2
%
4
%
6
%
6
%
Adjusted APAC region revenues (non-GAAP)
(aa), (ff)
(4)
%
(7)
%
(5)
%
(5)
%
(6)
%
(5)
%
(5)
%
APAC region transactions
(aa), (ff)
1
%
0
%
6
%
1
%
7
%
6
%
6
%
% of CMT Revenue
NA region revenues
(aa), (bb)
35
%
37
%
39
%
37
%
38
%
40
%
38
%
EU & CIS region revenues
(aa), (cc)
24
%
24
%
25
%
25
%
24
%
25
%
25
%
MEASA region revenues
(aa), (dd)
26
%
23
%
18
%
21
%
21
%
18
%
20
%
LACA region revenues
(aa), (ee)
10
%
11
%
12
%
11
%
12
%
12
%
12
%
APAC region revenues
(aa), (ff)
5
%
5
%
6
%
6
%
5
%
5
%
5
%
Branded Digital revenues
(aa), (gg)
21
%
21
%
23
%
22
%
23
%
24
%
24
%
Consumer Services (CS)
Revenues (GAAP) - YoY % change
10
%
22
%
(1)
%
13
%
5
%
21
%
13
%
Adjusted revenues (non-GAAP) - YoY % change
(i)
16
%
24
%
6
%
17
%
8
%
14
%
11
%
Operating margin
22.0
%
27.5
%
26.6
%
28.7
%
21.3
%
11.0
%
15.8
%
% of Total Company Revenue (GAAP) Consumer Money
Transfer segment revenues
92
%
93
%
93
%
92
%
92
%
90
%
91
%
Consumer Services segment revenues
7
%
7
%
7
%
7
%
8
%
10
%
9
%
Business Solutions segment revenues
1
%
0
%
0
%
1
%
0
%
0
%
0
%
____________________
*
See the “Notes to Key Statistics”
section of the press release for the applicable Note references and
the reconciliation of non-GAAP financial measures, unless already
reconciled herein.
THE WESTERN UNION COMPANY NOTES TO
KEY STATISTICS (Unaudited) (in millions, unless
indicated otherwise)
Western Union’s management believes the non-GAAP financial
measures presented within this press release and related tables
provide meaningful supplemental information regarding the Company’s
results to assist management, investors, analysts, and others in
understanding the Company’s financial results and to better analyze
operating, profitability, and other financial performance trends in
the Company’s underlying business because they provide consistency
and comparability to prior periods or eliminate currency
volatility, increasing the comparability of the Company's
underlying results and trends.
A non-GAAP financial measure should not be considered in
isolation or as a substitute for the most comparable GAAP financial
measure. A non-GAAP financial measure reflects an additional way of
viewing aspects of the Company’s operations that, when viewed with
the Company’s GAAP results and the reconciliation to the
corresponding GAAP financial measure, provides a more complete
understanding of the Company’s business. Users of the financial
statements are encouraged to review the Company’s financial
statements and publicly-filed reports in their entirety and not to
rely on any single financial measure. A reconciliation of non-GAAP
financial measures to the most directly comparable GAAP financial
measures is included below, where not previously reconciled
above.
Notes
2Q23
3Q23
4Q23
FY2023
1Q24
2Q24
YTD 2Q24
Consolidated Metrics
(a)
Revenues (GAAP)
$
1,170.0
$
1,097.8
$
1,052.3
$
4,357.0
$
1,049.1
$
1,066.4
$
2,115.5
Foreign currency translation and Argentina inflation impact (k)
8.2
(5.9
)
1.2
15.4
5.6
6.4
12.0
Revenues, constant currency, net of Argentina inflation (non-GAAP)
1,178.2
1,091.9
1,053.5
4,372.4
1,054.7
1,072.8
2,127.5
Less Business Solutions revenues, constant currency (non-GAAP) (k),
(n)
(13.9
)
—
—
(29.9
)
—
—
—
Adjusted revenues (non-GAAP)
$
1,164.3
$
1,091.9
$
1,053.5
$
4,342.5
$
1,054.7
$
1,072.8
$
2,127.5
Prior year revenues (GAAP)
$
1,138.3
$
1,089.6
$
1,091.9
$
4,475.5
$
1,036.9
$
1,170.0
$
2,206.9
Less prior year revenues from Business Solutions (GAAP) (n)
(35.7
)
(42.6
)
(29.5
)
(196.9
)
(15.4
)
(14.3
)
(29.7
)
Adjusted prior year revenues (non-GAAP)
$
1,102.6
$
1,047.0
$
1,062.4
$
4,278.6
$
1,021.5
$
1,155.7
$
2,177.2
Revenues (GAAP) - YoY % change
3
%
1
%
(4)
%
(3)
%
1
%
(9)
%
(4)
%
Revenues, constant currency, net of Argentina inflation (non-GAAP)
- YoY% change
4
%
0
%
(4)
%
(2)
%
2
%
(8)
%
(4)
%
Adjusted revenues (non-GAAP) - YoY % change
6
%
4
%
(1)
%
1
%
3
%
(7)
%
(2)
%
(b)
Operating income (GAAP)
$
242.6
$
210.9
$
159.3
$
817.5
$
192.1
$
190.7
$
382.8
Acquisition, separation, and integration costs (m)
2.4
0.5
0.2
3.1
0.1
0.5
0.6
Amortization and impairment of acquisition-related intangible
assets (p)
—
—
—
—
—
2.0
2.0
Redeployment program costs (o)
8.3
4.1
10.0
29.5
14.0
9.4
23.4
Less Business Solutions operating income (n)
(1.7
)
—
—
(3.6
)
—
—
—
Adjusted operating income (non-GAAP)
$
251.6
$
215.5
$
169.5
$
846.5
$
206.2
$
202.6
$
408.8
Operating margin (GAAP)
20.7
%
19.2
%
15.1
%
18.8
%
18.3
%
17.9
%
18.1
%
Adjusted operating margin (non-GAAP)
21.8
%
19.6
%
16.1
%
19.6
%
19.7
%
19.0
%
19.3
%
(c)
Net income (GAAP)
$
176.2
$
171.0
$
127.0
$
626.0
$
142.7
$
141.0
$
283.7
Acquisition, separation, and integration costs (m)
2.4
0.5
0.2
3.1
0.1
0.5
0.6
Amortization and impairment of acquisition-related intangible
assets (p)
—
—
—
—
—
2.0
2.0
Business Solutions gain (n)
—
(18.0
)
—
(18.0
)
—
—
—
Redeployment program costs (o)
8.3
4.1
10.0
29.5
14.0
9.4
23.4
Income tax expense/(benefit) from other adjustments (m), (n), (o),
(p), (q)
3.8
1.7
(4.6
)
4.6
(1.5
)
(4.0
)
(5.5
)
Adjusted net income (non-GAAP)
$
190.7
$
159.3
$
132.6
$
645.2
$
155.3
$
148.9
$
304.2
(d)
Net income (GAAP)
$
176.2
$
171.0
$
127.0
$
626.0
$
142.7
$
141.0
$
283.7
Provision for income taxes
40.2
33.3
17.1
119.8
27.3
24.2
51.5
Interest income
(4.2
)
(3.6
)
(4.6
)
(15.6
)
(3.1
)
(3.7
)
(6.8
)
Interest expense
27.0
27.0
26.3
105.3
26.1
31.1
57.2
Depreciation and amortization
45.9
46.0
45.1
183.6
46.6
46.1
92.7
Other (income)/expense, net
3.4
1.2
(6.5
)
—
(0.9
)
(1.9
)
(2.8
)
Business Solutions gain (n)
—
(18.0
)
—
(18.0
)
—
—
—
Acquisition, separation, and integration costs (m)
2.4
0.5
0.2
3.1
0.1
0.5
0.6
Amortization and impairment of acquisition-related intangible
assets (p)
—
—
—
—
—
2.0
2.0
Redeployment program costs (o)
8.3
4.1
10.0
29.5
14.0
9.4
23.4
Less Business Solutions operating income (n)
(1.7
)
—
—
(3.6
)
—
—
—
Adjusted EBITDA (non-GAAP) (l)
$
297.5
$
261.5
$
214.6
$
1,030.1
$
252.8
$
248.7
$
501.5
(e)
Effective tax rate (GAAP)
19
%
16
%
12
%
16
%
16
%
15
%
15
%
Other adjustments (m), (n), (o), (p), (q)
(3)
%
1
%
2
%
(1)
%
0
%
1
%
1
%
Adjusted effective tax rate (non-GAAP)
16
%
17
%
14
%
15
%
16
%
16
%
16
%
(f)
Diluted earnings per share (GAAP) ($- dollars)
$
0.47
$
0.46
$
0.35
$
1.68
$
0.41
$
0.41
$
0.83
Pretax impacts from the following:
Acquisition, separation, and integration costs (m)
0.01
—
—
0.01
—
—
—
Amortization and impairment of acquisition-related intangible
assets (p)
—
—
—
—
—
0.01
0.01
Business Solutions gain (n)
—
(0.05
)
—
(0.05
)
—
—
—
Redeployment program costs (o)
0.02
0.01
0.03
0.08
0.04
0.03
0.07
Income tax expense/(benefit) impacts from the following:
Other adjustments (m), (n), (o), (p), (q)
0.01
0.01
(0.01
)
0.02
—
(0.01
)
(0.02
)
Adjusted diluted earnings per share (non-GAAP) ($- dollars)
$
0.51
$
0.43
$
0.37
$
1.74
$
0.45
$
0.44
$
0.89
CMT Segment Metrics
(g)
Revenues (GAAP)
$
1,072.2
$
1,019.0
$
975.5
$
4,005.0
$
962.0
$
965.0
$
1,927.0
Foreign currency translation and Argentina inflation impact (k)
4.5
(7.1
)
(3.4
)
4.6
2.5
12.7
15.2
Revenues, constant currency, net of Argentina inflation (non-GAAP)
$
1,076.7
$
1,011.9
$
972.1
$
4,009.6
$
964.5
$
977.7
$
1,942.2
Prior year revenues (GAAP)
$
1,026.9
$
982.4
$
985.2
$
3,993.5
$
938.3
$
1,072.2
$
2,010.5
Revenues (GAAP) - YoY % change
4
%
4
%
(1)
%
0
%
3
%
(10)
%
(4)
%
Adjusted revenues (non-GAAP) - YoY % change
5
%
3
%
(1)
%
0
%
3
%
(9)
%
(3)
%
(h)
Cross-border principal, as reported ($- billions)
$
27.5
$
26.0
$
25.2
$
101.7
$
24.6
$
25.9
$
50.5
Foreign currency translation impact (k)
0.0
(0.3
)
(0.2
)
0.0
0.0
0.3
0.3
Cross-border principal, constant currency ($- billions)
$
27.5
$
25.7
$
25.0
$
101.7
$
24.6
$
26.2
$
50.8
Prior year cross-border principal, as reported ($- billions)
$
23.4
$
23.0
$
23.4
$
93.6
$
23.0
$
27.5
$
50.5
Cross-border principal, as reported - YoY % change
17
%
13
%
8
%
9
%
7
%
(6)
%
0
%
Cross-border principal, constant currency - YoY % change
18
%
11
%
7
%
9
%
7
%
(5)
%
1
%
CS Segment Metrics
(i)
Revenues (GAAP)
$
83.5
$
78.8
$
76.8
$
322.3
$
87.1
$
101.4
$
188.5
Foreign currency translation and Argentina inflation impact (k)
4.1
1.2
4.8
10.7
3.0
(6.2
)
(3.2
)
Revenues, constant currency, net of Argentina inflation (non-GAAP)
$
87.6
$
80.0
$
81.6
$
333.0
$
90.1
$
95.2
$
185.3
Prior year revenues (GAAP)
$
75.7
$
64.6
$
77.2
$
285.1
$
83.2
$
83.5
$
166.7
Revenues (GAAP) - YoY % change
10
%
22
%
(1)
%
13
%
5
%
21
%
13
%
Adjusted revenues (non-GAAP) - YoY % change
16
%
24
%
6
%
17
%
8
%
14
%
11
%
Business Solutions Segment Metrics
(j)
Revenues (GAAP)
$
14.3
$
—
$
—
$
29.7
$
—
$
—
$
—
Foreign currency translation impact (k)
(0.4
)
—
—
0.2
—
—
—
Revenues, constant currency (non-GAAP)
$
13.9
$
—
$
—
$
29.9
$
—
$
—
$
—
2024 Consolidated Outlook Metrics
Notes
Range
Revenues (GAAP)
$
4,125
$
4,200
Foreign currency translation and Argentina inflation impact (k)
25
25
Revenues, adjusted (non-GAAP)
$
4,150
$
4,225
Range
Operating margin (GAAP)
18
%
20
%
Redeployment program costs (o)
1
%
1
%
Impact from acquisition, separation, and integration costs (m)
0
%
0
%
Amortization and impairment of acquisition-related intangible
assets (p)
0
%
0
%
Operating margin, adjusted (non-GAAP)
19
%
21
%
Range
Earnings per share (GAAP) ($- dollars)
$
1.62
$
1.72
Redeployment program costs (o)
0.08
0.08
Acquisition, separation, and integration costs (m)
—
—
Amortization and impairment of acquisition-related intangible
assets (p)
0.01
0.01
Income taxes associated with these adjustments (m), (o), (p), (q)
(0.01
)
(0.01
)
Earnings per share, adjusted (non-GAAP) ($- dollars)
$
1.70
$
1.80
Non-GAAP related notes:
(k)
Represents the impact from the
fluctuation in exchange rates between all foreign currency
denominated amounts and the United States dollar. Constant currency
results exclude any benefit or loss caused by foreign exchange
fluctuations between foreign currencies and the United States
dollar, net of foreign currency hedges, which would not have
occurred if there had been a constant exchange rate. Constant
currency results also reflect the impact of Argentina inflation,
where indicated, due to its economy being hyperinflationary. The
Company estimates Argentina inflation as the revenue growth not
attributable to either transaction growth or the change in price
(revenue divided by principal).
(l)
Earnings before Interest, Taxes,
Depreciation, and Amortization (“EBITDA”) results from taking
operating income and adjusting for depreciation and amortization
expenses. EBITDA results provide an additional performance
measurement calculation which helps neutralize the operating income
effect of assets acquired in prior periods.
(m)
Represents the impact from
expenses incurred in connection with the Company's acquisition and
divestiture activity, including for the review and closing of these
transactions, and integration costs directly related to the
Company's acquisitions. Beginning in 2024, the expenses are not
included in the measurement of segment operating income provided to
the CODM for purposes of performance assessment and resource
allocation.
(n)
During 2021, the Company entered
into an agreement to sell its Business Solutions business to
Goldfinch Partners LLC and The Baupost Group LLC (collectively, the
“Buyer”). The sale was completed in three closings, the first of
which occurred on March 1, 2022 with the entirety of the cash
consideration collected at that time and allocated to the closings
on a relative fair value basis. The final closing, which included
the European Union operations, occurred on July 1, 2023 and
resulted in a gain of $18.0 million. Revenues have been adjusted to
exclude the carved out financial information for the Business
Solutions business to compare the year-over-year changes and trends
in the Company's continuing businesses, excluding the effects of
this divestiture.
(o)
Represents severance, expenses
associated with streamlining the Company's organizational and legal
structure, and other expenses associated with the Company's program
to redeploy expenses in its cost base through optimizations in
vendor management, real estate, marketing, and people strategy as
previously announced in October 2022. Expenses incurred under the
program also include non-cash impairments of operating lease
right-of-use assets and property and equipment. The expenses are
not included in the measurement of segment operating income
provided to the CODM for purposes of performance assessment and
resource allocation. The Company has also excluded a tax benefit
directly associated with streamlining the Company’s legal structure
in the fourth quarter of 2023 from its measures of adjusted net
income, adjusted effective tax rate, and adjusted diluted earnings
per share.
(p)
Represents the incremental
non-cash amortization and impairment of acquired intangible assets
in connection with recent business acquisitions. The expenses are
not included in the measurement of segment operating income
provided to the CODM for purposes of performance assessment and
resource allocation. These expenses are therefore excluded from the
Company's segment operating income results.
(q)
In addition to the income tax
effects of the adjustments described above, the second quarter of
2024 includes an adjustment to exclude income tax benefit of $2.6
million related to the non-cash impact of remeasuring the Company’s
deferred tax assets and liabilities for tax law changes that were
enacted in the period in Barbados.
Other
notes:
(aa)
Geographic split for transactions
and revenue, including transactions initiated digitally, as earlier
defined, is determined entirely based upon the region where the
money transfer is initiated.
(bb)
Represents the North America
(United States and Canada) (“NA”) region of the Company's Consumer
Money Transfer segment.
(cc)
Represents the Europe and the
Commonwealth of Independent States (“EU & CIS”) region of the
Company's Consumer Money Transfer segment.
(dd)
Represents the Middle East,
Africa, and South Asia (“MEASA”) region of the Company's Consumer
Money Transfer segment, including India and certain South Asian
countries, which consist of Bangladesh, Bhutan, Maldives, Nepal,
and Sri Lanka.
(ee)
Represents the Latin America and
the Caribbean (“LACA”) region of the Company’s Consumer Money
Transfer segment, including Mexico.
(ff)
Represents the Asia Pacific
(“APAC”) region of the Company’s Consumer Money Transfer
segment.
(gg)
Represents transactions conducted
and funded through websites and mobile applications marketed under
the Company’s brands (“Branded Digital”).
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240730294041/en/
Media Relations: Brad Jones media@westernunion.com
Investor Relations: Tom Hadley
WesternUnion.IR@westernunion.com
Western Union (NYSE:WU)
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Western Union (NYSE:WU)
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부터 1월(1) 2024 으로 1월(1) 2025
