Western Union Reports Second Quarter 2024 Results
Western Union reported Q2 2024 results with revenue of $1.07 billion, down 9% on a reported basis or 7% on an adjusted basis. Consumer Money Transfer transactions grew 4%, led by 13% growth in Branded Digital transactions. The company reported GAAP EPS of $0.41 and adjusted EPS of $0.44. Consumer Services revenue grew 21% on a reported basis and 14% on an adjusted basis. The revenue decline was primarily driven by lower contribution from Iraq and the sale of Business Solutions. Excluding Iraq, the company reported positive adjusted revenue growth for the first time since 2021. Western Union reiterated its full year 2024 outlook, projecting revenue between $4.15 billion to $4.225 billion on an adjusted basis.
Western Union ha riportato i risultati del secondo trimestre del 2024 con entrate di 1,07 miliardi di dollari, in calo del 9% su base reportata o del 7% su base rettificata. Le transazioni di trasferimento di denaro al consumo sono cresciute del 4%, trainate da una crescita del 13% nelle transazioni Digitali Brandizzate. L'azienda ha riportato un utile per azione GAAP di 0,41 dollari e un utile per azione rettificato di 0,44 dollari. Le entrate dai Servizi al Consumo sono aumentate del 21% su base reportata e del 14% su base rettificata. Il calo delle entrate è stato principalmente guidato da un contributo inferiore dall'Iraq e dalla vendita di Business Solutions. Escludendo l'Iraq, l'azienda ha riportato una crescita delle entrate rettificate positiva per la prima volta dal 2021. Western Union ha ribadito le previsioni per l'anno intero 2024, proiettando entrate tra 4,15 miliardi e 4,225 miliardi di dollari su base rettificata.
Western Union informó los resultados del segundo trimestre de 2024 con ingresos de 1.07 mil millones de dólares, disminuyendo un 9% en base reportada o un 7% en base ajustada. Las transacciones de Transferencia de Dinero al Consumidor crecieron un 4%, lideradas por un crecimiento del 13% en las transacciones Digitales de Marca. La compañía reportó EPS GAAP de 0.41 dólares y EPS ajustado de 0.44 dólares. Los ingresos de Servicios al Consumidor crecieron un 21% en base reportada y un 14% en base ajustada. La disminución de ingresos fue impulsada principalmente por una menor contribución de Irak y la venta de Business Solutions. Excluyendo a Irak, la compañía reportó un crecimiento de ingresos ajustados positivo por primera vez desde 2021. Western Union reiteró su perspectiva para todo el año 2024, proyectando ingresos entre 4.15 mil millones y 4.225 mil millones de dólares en base ajustada.
웨스턴 유니온은 2024년 2분기 결과를 보고하며 수익이 10억 7천만 달러로, 보고 기준으로 9% 감소하고 조정 기준으로 7% 감소했습니다. 소비자 송금 거래는 4% 증가했으며, 이는 브랜드 디지털 거래의 13% 성장이 주도했습니다. 회사는 GAAP 주당순이익이 0.41달러, 조정 주당순이익이 0.44달러라고 보고했습니다. 소비자 서비스 수익은 보고 기준으로 21%, 조정 기준으로 14% 증가했습니다. 수익 감소는 주로 이라크에서의 낮은 기여와 비즈니스 솔루션 매각에 의해 촉발되었습니다. 이라크를 제외하면 회사는 2021년 이후 처음으로 긍정적인 조정 수익 성장을 보고했습니다. 웨스턴 유니온은 2024년 전체 연도의 전망을 재확인하며 조정 기준으로 41억 5천만 달러에서 42억 2천 5백만 달러 사이의 수익을 예상했습니다.
Western Union a annoncé les résultats du deuxième trimestre 2024 avec un chiffre d'affaires de 1,07 milliard de dollars, en baisse de 9 % sur une base déclarée ou de 7 % sur une base ajustée. Les transactions de transfert d'argent des consommateurs ont augmenté de 4 %, soutenues par une croissance de 13 % des transactions numériques de marque. L'entreprise a annoncé un BPA GAAP de 0,41 dollar et un BPA ajusté de 0,44 dollar. Le chiffre d'affaires des services aux consommateurs a augmenté de 21 % sur une base déclarée et de 14 % sur une base ajustée. Le déclin des revenus a été principalement causé par une contribution réduite de l'Irak et la vente de Business Solutions. En excluant l'Irak, l'entreprise a enregistré une première croissance positive du chiffre d'affaires ajusté depuis 2021. Western Union a réaffirmé ses prévisions pour l'année 2024, projetant des revenus entre 4,15 milliards et 4,225 milliards de dollars sur une base ajustée.
Western Union hat die Ergebnisse des zweiten Quartals 2024 mit Umsätzen von 1,07 Milliarden Dollar gemeldet, was einem Rückgang von 9 % auf berichteter Basis oder 7 % auf adjustierter Basis entspricht. Die Transaktionen im Bereich Verbrauchergeldtransfers sind um 4 % gewachsen, angetrieben von einem Wachstum von 13 % bei markenbezogenen digitalen Transaktionen. Das Unternehmen meldete GAAP EPS von 0,41 Dollar und angepasstes EPS von 0,44 Dollar. Die Umsätze in den Verbraucherdiensten stiegen um 21 % auf berichteter Basis und um 14 % auf adjustierter Basis. Der Rückgang der Einnahmen wurde hauptsächlich durch niedrigere Beiträge aus dem Irak und den Verkauf von Business Solutions verursacht. Ohne den Irak berichtete das Unternehmen erstmals seit 2021 ein positives angepasstes Umsatzwachstum. Western Union bekräftigte seinen Ausblick für das gesamte Jahr 2024 und prognostizierte Einnahmen zwischen 4,15 Milliarden und 4,225 Milliarden Dollar auf adjustierter Basis.
- Consumer Money Transfer transactions grew 4%, with Branded Digital transactions up 13%
- Consumer Services revenue grew 21% on a reported basis and 14% on an adjusted basis
- Positive adjusted revenue growth excluding Iraq, for the first time since 2021
- Company reiterated full year 2024 outlook, showing confidence in future performance
- Overall revenue decreased 9% on a reported basis and 7% on an adjusted basis
- GAAP EPS declined from $0.47 to $0.41 year-over-year
- Adjusted EPS decreased from $0.51 to $0.44 year-over-year
- Lower contribution from Iraq negatively impacted adjusted revenue growth by 7 percentage points
Insights
Western Union's Q2 2024 results paint a mixed picture, with some encouraging signs amid ongoing challenges. The 4% growth in Consumer Money Transfer transactions, led by a robust 13% increase in Branded Digital transactions, indicates positive momentum in the company's digital transformation efforts. However, the
The company's Consumer Services segment showed impressive growth, with revenue up
Despite the revenue decline, Western Union's ability to maintain an adjusted operating margin of
The reiterated full-year 2024 outlook, with projected revenue of
Investors should closely monitor Western Union's progress in its digital initiatives and diversification efforts, as these appear to be key drivers for future growth and stability in an evolving remittance market.
Western Union's Q2 results reflect the evolving landscape of the global remittance market. The
The company's performance in Consumer Services, with
However, the
The company's goal to drive sustainable positive revenue growth in 2025 and beyond is ambitious but not unrealistic, given the positive adjusted revenue growth excluding Iraq. This target suggests that Western Union is focusing on long-term strategic initiatives to overcome current headwinds.
As the remittance market continues to evolve, with increasing competition from fintech startups and digital-first solutions, Western Union's ability to balance its traditional strengths with digital innovation will be important for maintaining its market position and driving future growth.
-
Consumer Money Transfer transactions grew
4% in Q2 led by13% growth in Branded Digital transactions -
Q2 GAAP revenue of
, down$1.07 billion 9% on a reported basis, or down7% on an adjusted basis, including7% headwind fromIraq -
Consumer Services revenue grew
21% on a reported basis and14% on an adjusted basis -
Q2 GAAP EPS of
or adjusted EPS of$0.41 $0.44
The Company’s second-quarter revenue of
“This quarter we reported positive adjusted revenue growth for the first time since 2021, excluding
GAAP EPS in the second quarter was
Q2 Business Results
-
The Company’s Consumer Money Transfer (CMT) segment revenue decreased
10% on a reported basis and9% on an adjusted basis, while transactions increased4% compared to the prior period. The revenue decline was largely driven by lower contribution fromIraq . ExcludingIraq , transaction growth was5% in the second quarter, which was similar to the first quarter of 2024. -
Branded Digital revenue increased
5% on a reported or7% on an adjusted basis with transaction growth of13% . The Branded Digital business represented24% and31% of total CMT revenues and transactions, respectively. -
Consumer Services segment revenue grew
21% on a reported basis and14% 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 to20.7% in the prior year period, while the adjusted operating margin was19.0% compared to21.8% in the prior year period. GAAP and adjusted operating margins decreased mainly due to lower contribution fromIraq and incremental volatility in foreign currencies. -
The GAAP effective tax rate in the quarter was
14.7% , compared to18.6% in the prior year period. The adjusted effective tax rate was16.0% 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 |
|
|
Operating Margin |
|
|
EPS3 |
|
|
1 |
Assumes |
|
2 |
In millions, adjusted revenue excludes the impact of currency and |
|
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
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
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
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 |
|
82.6 |
|
|
91.4 |
|
||
Goodwill |
|
2,056.4 |
|
|
2,034.6 |
|
||
Other intangible assets, net of accumulated amortization of |
|
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, |
|
— |
|
|
— |
|
||
Common stock, |
|
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 |
(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 |
(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 |
(k) |
|
8.2 |
|
|
|
(5.9 |
) |
|
|
1.2 |
|
|
|
15.4 |
|
|
|
5.6 |
|
|
|
6.4 |
|
|
|
12.0 |
|
|||
|
Revenues, constant currency, net of |
|
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 |
|
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 |
(k) |
|
4.5 |
|
|
|
(7.1 |
) |
|
|
(3.4 |
) |
|
|
4.6 |
|
|
|
2.5 |
|
|
|
12.7 |
|
|
|
15.2 |
|
|||
|
Revenues, constant currency, net of |
$ |
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 |
(k) |
|
4.1 |
|
|
|
1.2 |
|
|
|
4.8 |
|
|
|
10.7 |
|
|
|
3.0 |
|
|
|
(6.2 |
) |
|
|
(3.2 |
) |
|||
|
Revenues, constant currency, net of |
$ |
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 |
(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 |
|
(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 |
|
(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 |
|
|
||
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 |
|
(cc) |
Represents the |
|
(dd) |
Represents the |
|
(ee) |
Represents the |
|
(ff) |
Represents the |
|
(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
Source: The Western Union Company
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