Western Union Reports Third Quarter 2024 Results
Western Union reported Q3 2024 financial results with revenue of $1.04 billion, down 6% on a reported basis. Branded Digital revenue grew 8% with transactions up 15%, while Consumer Services revenue increased 32%. Q3 GAAP EPS was $0.78, including a $0.40 benefit from an IRS settlement, while adjusted EPS was $0.46. The revenue decline was primarily due to lower contribution from Iraq, which negatively impacted growth by 7 percentage points. The Consumer Money Transfer segment saw a 9% revenue decrease but maintained 3% transaction growth. The company maintained its adjusted 2024 outlook.
Western Union ha riportato i risultati finanziari del terzo trimestre del 2024 con un fatturato di 1,04 miliardi di dollari, in calo del 6% su base riportata. I ricavi del Digital Brand sono cresciuti dell'8% con un aumento delle transazioni del 15%, mentre i ricavi dei Servizi per i Consumatori sono aumentati del 32%. L'utile per azione GAAP del terzo trimestre è stato di 0,78 dollari, includendo un beneficio di 0,40 dollari derivante da un accordo con l'IRS, mentre l'utile per azione rettificato è stato di 0,46 dollari. Il calo dei ricavi è stato principalmente dovuto al minor contributo dall'Iraq, che ha impattato negativamente la crescita di 7 punti percentuali. Il segmento del trasferimento di denaro per i consumatori ha visto una diminuzione dei ricavi del 9% ma ha mantenuto una crescita delle transazioni del 3%. L'azienda ha confermato le sue previsioni rettificate per il 2024.
Western Union presentó los resultados financieros del tercer trimestre de 2024 con ingresos de 1.04 mil millones de dólares, una disminución del 6% en base reportada. Los ingresos de Digital Branded crecieron un 8% con un aumento del 15% en las transacciones, mientras que los ingresos de Servicios al Consumidor incrementaron un 32%. El EPS GAAP del tercer trimestre fue de 0.78 dólares, incluyendo un beneficio de 0.40 dólares por un acuerdo con el IRS, mientras que el EPS ajustado fue de 0.46 dólares. La disminución de los ingresos se debió principalmente a la menor contribución de Irak, que impactó negativamente el crecimiento en 7 puntos porcentuales. El segmento de Transferencia de Dinero al Consumidor experimentó una disminución del 9% en ingresos, pero mantuvo un crecimiento del 3% en transacciones. La empresa mantuvo su perspectiva ajustada para 2024.
웨스턴유니언은 2024년 3분기 재무 결과를 발표했으며, 수익은 10억 4천만 달러로 보고 기준으로 6% 감소했습니다. 브랜드 디지털 수익은 8% 증가했으며, 거래는 15% 증가했지만 소비자 서비스 수익은 32% 증가했습니다. 3분기 GAAP EPS는 0.78달러로, IRS 정산으로 인한 0.40달러의 혜택이 포함된 반면, 조정 EPS는 0.46달러였습니다. 수익 감소는 주로 이라크의 기여 감소 때문이며, 이는 성장에 7%포인트의 부정적인 영향을 미쳤습니다. 소비자 송금 부문은 9%의 수익 감소를 보였지만, 3%의 거래 성장세를 유지했습니다. 회사는 2024년도 조정 전망을 유지했습니다.
Western Union a annoncé ses résultats financiers pour le troisième trimestre 2024, avec un chiffre d'affaires de 1,04 milliard de dollars, en baisse de 6 % sur une base déclarée. Le chiffre d'affaires Branded Digital a augmenté de 8 %, avec une hausse des transactions de 15 %, tandis que le chiffre d'affaires des Services aux Consommateurs a augmenté de 32 %. Le BPA GAAP du troisième trimestre était de 0,78 USD, y compris un avantage de 0,40 USD provenant d'un règlement avec l'IRS, tandis que le BPA ajusté était de 0,46 USD. La baisse des revenus était principalement due à une contribution plus faible de l'Irak, ce qui a eu un impact négatif sur la croissance de 7 points de pourcentage. Le segment des transferts d'argent pour les consommateurs a connu une baisse de 9 % de son chiffre d'affaires, mais a maintenu une croissance des transactions de 3 %. L'entreprise a maintenu ses prévisions ajustées pour 2024.
Western Union berichtete über die Finanzzahlen des 3. Quartals 2024 mit einem Umsatz von 1,04 Milliarden US-Dollar, was einem Rückgang von 6 % im berichteten Vergleich entspricht. Der Umsatz im Segment Branded Digital stieg um 8 %, während die Transaktionen um 15 % zunahmen, während der Umsatz im Bereich Consumer Services um 32 % anstieg. Der GAAP EPS im 3. Quartal betrug 0,78 USD, einschließlich eines Vorteils von 0,40 USD aus einer Einigung mit dem IRS, während der bereinigte EPS 0,46 USD betrug. Der Rückgang des Umsatzes war hauptsächlich auf einen niedrigeren Beitrag aus dem Irak zurückzuführen, was das Wachstum um 7 Prozentpunkte negativ beeinflusste. Das Segment der Geldtransfers für Verbraucher verzeichnete einen Rückgang des Umsatzes um 9 %, konnte jedoch ein Transaktionswachstum von 3 % aufrechterhalten. Das Unternehmen hält an seiner angepassten Prognose für 2024 fest.
- Branded Digital revenue grew 8% with 15% transaction growth
- Consumer Services revenue increased 32% on reported basis
- Maintained positive transaction growth in Consumer Money Transfer for five consecutive quarters
- Adjusted EPS improved to $0.46 from $0.43 year-over-year
- Overall revenue declined 6% to $1.04 billion
- Consumer Money Transfer revenue decreased 9%
- Operating margin declined to 15.9% from 19.2% year-over-year
- Significant revenue impact from lower Iraq contribution
Insights
Western Union's Q3 results show mixed performance with some concerning trends. While the
The
The company's digital transformation shows promise with
-
Q3 GAAP revenue of
, down$1.04 billion 6% on a reported basis; Adjusted revenue, excludingIraq , was up1% -
Branded Digital reported revenue grew
8% , or9% on an adjusted basis, with transactions up15% -
Consumer Services revenue grew
32% on a reported basis and15% on an adjusted basis -
Q3 GAAP EPS of
or adjusted EPS of$0.78 $0.46
The Company’s third-quarter revenue of
“We are pleased with third quarter results, which demonstrate continued progress of our Evolve 2025 strategy,” said Devin McGranahan, President and Chief Executive Officer. “We’ve maintained mid-single digit transaction growth in our Consumer Money Transfer business for five quarters in a row and are now seeing the effect on revenue, with positive adjusted consolidated revenue growth for two consecutive quarters, excluding Iraq.”
GAAP EPS in the third quarter was
Q3 Business Results
-
The Company’s Consumer Money Transfer (CMT) segment revenue decreased
9% on a reported basis and8% on an adjusted basis, while transactions increased3% compared to the prior period. The revenue decline was driven by lower contribution fromIraq .
-
Branded Digital revenue increased
8% on a reported basis or9% on an adjusted basis with transaction growth of15% . The Branded Digital business represented25% and32% of total CMT revenues and transactions, respectively.
-
Consumer Services segment revenue grew
32% on a reported basis and15% on an adjusted basis, benefiting from new and expanded products led by the expansion of the Company’s retail foreign exchange business and the addition of the Company’s newly launched media network business, as well as the continued strength of the retail money order business.
Q3 Financial Results
-
GAAP operating margin in the quarter was
15.9% , compared to19.2% in the prior year period, while the adjusted operating margin was19.1% compared to19.6% in the prior year period. GAAP operating margin in the current period included redeployment program costs andRussia asset impairments and termination costs. Adjusted operating margins decreased due to a lower contribution fromIraq and strategic investments in new and expanded products in Consumer Services.
-
The GAAP effective tax rate in the quarter was a benefit of
95.2% , compared to a provision of16.3% in the prior year period. The adjusted effective tax rate in the quarter was a provision of8.4% , compared to a provision of16.6% in the prior year period. The decrease in the GAAP effective rate was primarily related to the IRS settlement, partially offset by the effects of the sale of the Company's Business Solutions business in the prior periods. The decrease in the adjusted effective tax rate was primarily due to discrete tax benefits.
2024 Outlook
The Company revised its GAAP operating margin and EPS outlook to include the impact related to redeployment program costs,
|
2024 Outlook |
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|
GAAP |
Adjusted |
Revenue1 |
|
|
Operating Margin |
|
|
EPS2 |
|
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1 In millions, adjusted revenue excludes the impact of currency and |
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2 The adjusted effective tax rate is expected to be in the low 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 | Nine Months Ended | ||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||
2024 |
2023 |
% Change | 2024 |
2023 |
% Change | ||||||||||||||||
Revenues | $ | 1,036.0 |
|
$ | 1,097.8 |
|
(6)% |
$ | 3,151.5 |
|
$ | 3,304.7 |
|
(5)% |
|||||||
Expenses: | |||||||||||||||||||||
Cost of services | 653.6 |
|
687.2 |
|
(5)% |
1,958.8 |
|
2,015.6 |
|
(3)% |
|||||||||||
Selling, general, and administrative | 217.5 |
|
199.7 |
|
|
645.0 |
|
630.9 |
|
|
|||||||||||
Total expenses | 871.1 |
|
886.9 |
|
(2)% |
2,603.8 |
|
2,646.5 |
|
(2)% |
|||||||||||
Operating income | 164.9 |
|
210.9 |
|
(22)% |
547.7 |
|
658.2 |
|
(17)% |
|||||||||||
Other income/(expense): | |||||||||||||||||||||
Gain on divestiture of business (a) | — |
|
18.0 |
|
(b) | — |
|
18.0 |
|
(b) | |||||||||||
Interest income | 2.8 |
|
3.6 |
|
(23)% |
9.6 |
|
11.0 |
|
(13)% |
|||||||||||
Interest expense | (32.2 |
) |
(27.0 |
) |
|
(89.4 |
) |
(79.0 |
) |
|
|||||||||||
Other income/(expense), net | 0.2 |
|
(1.2 |
) |
(b) | 3.0 |
|
(6.5 |
) |
(b) | |||||||||||
Total other expense, net | (29.2 |
) |
(6.6 |
) |
(b) | (76.8 |
) |
(56.5 |
) |
|
|||||||||||
Income before income taxes | 135.7 |
|
204.3 |
|
(34)% |
470.9 |
|
601.7 |
|
(22)% |
|||||||||||
Provision for/(benefit from) income taxes | (129.1 |
) |
33.3 |
|
(b) | (77.6 |
) |
102.7 |
|
(b) | |||||||||||
Net income | $ | 264.8 |
|
$ | 171.0 |
|
|
$ | 548.5 |
|
$ | 499.0 |
|
|
|||||||
Earnings per share: | |||||||||||||||||||||
Basic | $ | 0.78 |
|
$ | 0.46 |
|
|
$ | 1.61 |
|
$ | 1.33 |
|
|
|||||||
Diluted | $ | 0.78 |
|
$ | 0.46 |
|
|
$ | 1.61 |
|
$ | 1.33 |
|
|
|||||||
Weighted-average shares outstanding: | |||||||||||||||||||||
Basic | 338.3 |
|
373.9 |
|
340.5 |
|
374.5 |
|
|||||||||||||
Diluted | 339.5 |
|
375.0 |
|
341.6 |
|
375.4 |
|
|||||||||||||
(a) | On July 1, 2023, the Company completed the final close of the sale of its Business Solutions business to Goldfinch Partners LLC and The Baupost Group LLC (collectively, the “Buyer”). | ||||||||||||||||||||
(b) | Calculation not meaningful. | ||||||||||||||||||||
THE WESTERN UNION COMPANY | ||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
(Unaudited) | ||||||||
(in millions, except per share amounts) | ||||||||
September 30, | December 31, | |||||||
2024 |
2023 |
|||||||
Assets | ||||||||
Cash and cash equivalents | $ | 1,097.6 |
|
$ | 1,268.6 |
|
||
Settlement assets | 3,306.9 |
|
3,687.0 |
|
||||
Property and equipment, net of accumulated depreciation of |
86.7 |
|
91.4 |
|
||||
Goodwill | 2,061.4 |
|
2,034.6 |
|
||||
Other intangible assets, net of accumulated amortization of |
330.8 |
|
380.2 |
|
||||
Other assets | 792.4 |
|
737.0 |
|
||||
Total assets | $ | 7,675.8 |
|
$ | 8,198.8 |
|
||
Liabilities and stockholders' equity | ||||||||
Liabilities: | ||||||||
Accounts payable and accrued liabilities | $ | 426.0 |
|
$ | 453.0 |
|
||
Settlement obligations | 3,306.9 |
|
3,687.0 |
|
||||
Income taxes payable | 261.8 |
|
659.5 |
|
||||
Deferred tax liability, net | 157.0 |
|
147.6 |
|
||||
Borrowings | 2,586.7 |
|
2,504.6 |
|
||||
Other liabilities | 284.7 |
|
268.1 |
|
||||
Total liabilities | 7,023.1 |
|
7,719.8 |
|
||||
Stockholders' equity: | ||||||||
Preferred stock, |
— |
|
— |
|
||||
Common stock, |
3.4 |
|
3.5 |
|
||||
Capital surplus | 1,060.3 |
|
1,031.9 |
|
||||
Accumulated deficit | (269.5 |
) |
(389.1 |
) |
||||
Accumulated other comprehensive loss | (141.5 |
) |
(167.3 |
) |
||||
Total stockholders' equity | 652.7 |
|
479.0 |
|
||||
Total liabilities and stockholders' equity | $ | 7,675.8 |
|
$ | 8,198.8 |
|
||
THE WESTERN UNION COMPANY | ||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
(Unaudited) | ||||||||
(in millions) | ||||||||
Nine Months Ended | ||||||||
September 30, | ||||||||
2024 |
2023 |
|||||||
Cash flows from operating activities | ||||||||
Net income | $ | 548.5 |
|
$ | 499.0 |
|
||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Depreciation and amortization | 135.7 |
|
138.5 |
|
||||
Gain on divestiture of business, excluding transaction costs | — |
|
(18.0 |
) |
||||
Other non-cash items, net | 89.3 |
|
64.7 |
|
||||
Increase/(decrease) in cash, excluding the effects of acquisitions and divestitures, resulting from changes in: | ||||||||
Other assets | (55.8 |
) |
(91.1 |
) |
||||
Accounts payable and accrued liabilities | (34.0 |
) |
(47.5 |
) |
||||
Income taxes payable | (403.2 |
) |
(60.0 |
) |
||||
Other liabilities | (8.2 |
) |
33.0 |
|
||||
Net cash provided by operating activities | 272.3 |
|
518.6 |
|
||||
Cash flows from investing activities | ||||||||
Capital expenditures | (91.8 |
) |
(117.2 |
) |
||||
Purchases of settlement investments | (336.3 |
) |
(382.0 |
) |
||||
Proceeds from the sale of settlement investments | 176.6 |
|
207.6 |
|
||||
Maturities of settlement investments | 142.2 |
|
112.9 |
|
||||
Proceeds from the sale of non-settlement investments | — |
|
100.0 |
|
||||
Other investing activities | (24.8 |
) |
2.2 |
|
||||
Net cash used in investing activities | (134.1 |
) |
(76.5 |
) |
||||
Cash flows from financing activities | ||||||||
Cash dividends and dividend equivalents paid | (241.9 |
) |
(266.0 |
) |
||||
Common stock repurchased | (182.5 |
) |
(97.1 |
) |
||||
Net proceeds from/(repayments of) commercial paper | 80.1 |
|
(10.0 |
) |
||||
Principal payments on borrowings | — |
|
(300.0 |
) |
||||
Proceeds from exercise of options | — |
|
0.3 |
|
||||
Net change in settlement obligations | (151.3 |
) |
(162.2 |
) |
||||
Other financing activities | (1.2 |
) |
— |
|
||||
Net cash used in financing activities | (496.8 |
) |
(835.0 |
) |
||||
Net change in cash and cash equivalents, including settlement, and restricted cash | (358.6 |
) |
(392.9 |
) |
||||
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 | $ | 1,427.6 |
|
$ | 1,647.8 |
|
||
September 30, | ||||||||
2024 |
2023 |
|||||||
Reconciliation of balance sheet cash and cash equivalents to cash flows: | ||||||||
Cash and cash equivalents on balance sheet | $ | 1,097.6 |
|
$ | 1,138.2 |
|
||
Settlement cash and cash equivalents | 327.2 |
|
484.4 |
|
||||
Restricted cash in Other assets | 2.8 |
|
25.2 |
|
||||
Cash and cash equivalents, including settlement, and restricted cash at end of period | $ | 1,427.6 |
|
$ | 1,647.8 |
|
||
THE WESTERN UNION COMPANY | |||||||||||||||||||||
SUMMARY SEGMENT DATA | |||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||
(in millions, unless indicated otherwise) | |||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||
2024 |
2023 |
% Change | 2024 |
2023 |
% Change | ||||||||||||||||
Revenues: | |||||||||||||||||||||
Consumer Money Transfer | $ | 932.2 |
|
$ | 1,019.0 |
|
(9)% |
$ | 2,859.2 |
|
$ | 3,029.5 |
|
(6)% |
|||||||
Consumer Services | 103.8 |
|
78.8 |
|
|
292.3 |
|
245.5 |
|
|
|||||||||||
Business Solutions (a) | — |
|
— |
|
(f) | — |
|
29.7 |
|
(f) | |||||||||||
Total consolidated revenues | $ | 1,036.0 |
|
$ | 1,097.8 |
|
(6)% |
$ | 3,151.5 |
|
$ | 3,304.7 |
|
(5)% |
|||||||
Segment operating income: | |||||||||||||||||||||
Consumer Money Transfer | $ | 188.3 |
|
$ | 193.4 |
|
(3)% |
$ | 567.4 |
|
$ | 601.9 |
|
(6)% |
|||||||
Consumer Services | 9.2 |
|
21.6 |
|
(58)% |
38.9 |
|
72.1 |
|
(46)% |
|||||||||||
Business Solutions (a) | — |
|
— |
|
(f) | — |
|
3.7 |
|
(f) | |||||||||||
Total segment operating income | 197.5 |
|
215.0 |
|
(8)% |
606.3 |
|
677.7 |
|
(11)% |
|||||||||||
Redeployment program costs (b) | (18.0 |
) |
(4.1 |
) |
(f) | (41.4 |
) |
(19.5 |
) |
(f) | |||||||||||
Acquisition, separation, and integration costs (c) | (1.7 |
) |
— |
|
(f) | (2.3 |
) |
— |
|
(f) | |||||||||||
Amortization and impairment of acquisition-related intangible assets (d) | (0.2 |
) |
— |
|
(f) | (2.2 |
) |
— |
|
(f) | |||||||||||
(12.7 |
) |
— |
|
(f) | (12.7 |
) |
— |
|
(f) | ||||||||||||
Total consolidated operating income | $ | 164.9 |
|
$ | 210.9 |
|
(22)% |
$ | 547.7 |
|
658.2 |
|
(17)% |
||||||||
Segment operating income margin | |||||||||||||||||||||
Consumer Money Transfer | 20.2 |
% |
19.0 |
% |
|
19.8 |
% |
19.9 |
% |
(0.1)% |
|||||||||||
Consumer Services | 8.7 |
% |
27.5 |
% |
(18.8)% |
13.3 |
% |
29.4 |
% |
(16.1)% |
|||||||||||
Business Solutions (a) | — |
|
— |
|
(f) | — |
|
12.4 |
% |
(f) | |||||||||||
(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) |
Represented severance, expenses associated with streamlining the Company's organizational and legal structure, and other expenses associated with the Company's program which redeployed 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 included non-cash impairments of operating lease right-of-use assets and property and equipment. |
||||||||||||||||||||
(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. |
||||||||||||||||||||
(d) |
Represents the incremental non-cash amortization and impairment of acquired intangible assets in connection with recent business acquisitions. |
||||||||||||||||||||
(e) |
Represents asset impairments related to the Company's assets in |
||||||||||||||||||||
(f) |
Calculation not meaningful. |
||||||||||||||||||||
THE WESTERN UNION COMPANY | |||||||||||||||||||||||
KEY STATISTICS | |||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||
Notes* | 3Q23 |
4Q23 |
FY2023 |
1Q24 |
2Q24 |
3Q24 |
YTD 3Q24 |
||||||||||||||||
Consolidated Metrics | |||||||||||||||||||||||
Revenues (GAAP) - YoY % change |
|
(4)% |
(3)% |
|
(9)% |
(6)% |
(5)% |
||||||||||||||||
Adjusted revenues (non-GAAP) - YoY % change | (a) |
|
(1)% |
|
|
(7)% |
(6)% |
(4)% |
|||||||||||||||
Adjusted revenues, excluding |
(a) | (4)% |
(4)% |
(4)% |
(1)% |
|
|
|
|||||||||||||||
Operating margin (GAAP) |
|
|
|
|
|
|
|
||||||||||||||||
Adjusted operating margin (non-GAAP) | (b) |
|
|
|
|
|
|
|
|||||||||||||||
Consumer Money Transfer (CMT) Segment Metrics | |||||||||||||||||||||||
Revenues (GAAP) - YoY % change |
|
(1)% |
|
|
(10)% |
(9)% |
(6)% |
||||||||||||||||
Adjusted revenues (non-GAAP) - YoY % change | (g) |
|
(1)% |
|
|
(9)% |
(8)% |
(5)% |
|||||||||||||||
Transactions (in millions) | 70.6 |
72.9 |
279.4 |
69.0 |
73.3 |
72.6 |
214.9 |
||||||||||||||||
Transactions - YoY % change |
|
|
|
|
|
|
|
||||||||||||||||
Cross-border principal, as reported - YoY % change |
|
|
|
|
(6)% |
|
|
||||||||||||||||
Cross-border principal (constant currency) - YoY % change | (h) |
|
|
|
|
(5)% |
|
|
|||||||||||||||
Operating margin |
|
|
|
|
|
|
|
||||||||||||||||
Branded Digital revenues (GAAP) - YoY % change | (gg) |
|
|
|
|
|
|
|
|||||||||||||||
Branded Digital foreign currency translation and |
(k) |
|
|
|
|
|
|
|
|||||||||||||||
Adjusted Branded Digital revenues (non-GAAP) - YoY % change | (gg) |
|
|
|
|
|
|
|
|||||||||||||||
Branded Digital transactions - YoY % change | (gg) |
|
|
|
|
|
|
|
|||||||||||||||
CMT Segment Regional Metrics - YoY % change | |||||||||||||||||||||||
NA region revenues (GAAP) | (aa), (bb) | (3)% |
(1)% |
(5)% |
|
|
(3)% |
|
|||||||||||||||
NA region foreign currency translation impact | (k) |
|
|
|
|
|
|
|
|||||||||||||||
Adjusted NA region revenues (non-GAAP) | (aa), (bb) | (3)% |
(1)% |
(5)% |
|
|
(3)% |
|
|||||||||||||||
NA region transactions | (aa), (bb) |
|
|
|
|
|
|
|
|||||||||||||||
EU & CIS region revenues (GAAP) | (aa), (cc) | (9)% |
(8)% |
(11)% |
(5)% |
(6)% |
|
(4)% |
|||||||||||||||
EU & CIS region foreign currency translation impact | (k) | (1)% |
(1)% |
|
|
|
|
|
|||||||||||||||
Adjusted EU & CIS region revenues (non-GAAP) | (aa), (cc) | (10)% |
(9)% |
(11)% |
(5)% |
(4)% |
|
(2)% |
|||||||||||||||
EU & CIS region transactions | (aa), (cc) |
|
|
(6)% |
|
|
|
|
|||||||||||||||
MEASA region revenues (GAAP) | (aa), (dd) |
|
|
|
|
(35)% |
(32)% |
(21)% |
|||||||||||||||
MEASA region foreign currency translation impact | (k) |
|
|
|
|
|
|
|
|||||||||||||||
Adjusted MEASA region revenues (non-GAAP) | (aa), (dd) |
|
|
|
|
(35)% |
(31)% |
(20)% |
|||||||||||||||
MEASA region transactions | (aa), (dd) |
|
|
|
|
|
|
|
|||||||||||||||
LACA region revenues (GAAP) | (aa), (ee) |
|
|
|
|
|
(2)% |
|
|||||||||||||||
LACA region foreign currency translation and |
(k) | (5)% |
(4)% |
(3)% |
(2)% |
|
|
|
|||||||||||||||
Adjusted LACA region revenues (non-GAAP) | (aa), (ee) |
|
(2)% |
|
|
|
(1)% |
|
|||||||||||||||
LACA region transactions | (aa), (ee) |
|
|
|
|
|
(2)% |
|
|||||||||||||||
APAC region revenues (GAAP) | (aa), (ff) | (8)% |
(7)% |
(7)% |
(10)% |
(11)% |
(2)% |
(8)% |
|||||||||||||||
APAC region foreign currency translation impact | (k) |
|
|
|
|
|
|
|
|||||||||||||||
Adjusted APAC region revenues (non-GAAP) | (aa), (ff) | (7)% |
(5)% |
(5)% |
(6)% |
(5)% |
|
(3)% |
|||||||||||||||
APAC region transactions | (aa), (ff) |
|
|
|
|
|
|
|
|||||||||||||||
% of CMT Revenue | |||||||||||||||||||||||
NA region revenues | (aa), (bb) |
|
|
|
|
|
|
|
|||||||||||||||
EU & CIS region revenues | (aa), (cc) |
|
|
|
|
|
|
|
|||||||||||||||
MEASA region revenues | (aa), (dd) |
|
|
|
|
|
|
|
|||||||||||||||
LACA region revenues | (aa), (ee) |
|
|
|
|
|
|
|
|||||||||||||||
APAC region revenues | (aa), (ff) |
|
|
|
|
|
|
|
|||||||||||||||
Branded Digital revenues | (aa), (gg) |
|
|
|
|
|
|
|
|||||||||||||||
Consumer Services (CS) | |||||||||||||||||||||||
Revenues (GAAP) - YoY % change |
|
(1)% |
|
|
|
|
|
||||||||||||||||
Adjusted revenues (non-GAAP) - YoY % change | (i) |
|
|
|
|
|
|
|
|||||||||||||||
Operating margin |
|
|
|
|
|
|
|
||||||||||||||||
% of Total Company Revenue (GAAP) | |||||||||||||||||||||||
Consumer Money Transfer segment revenues |
|
|
|
|
|
|
|
||||||||||||||||
Consumer Services segment revenues |
|
|
|
|
|
|
|
||||||||||||||||
Business Solutions segment revenues |
|
|
|
|
|
|
|
||||||||||||||||
* 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 | 3Q23 |
4Q23 |
FY2023 |
1Q24 |
2Q24 |
3Q24 |
YTD 3Q24 |
||||||||||||||||||||||||
Consolidated Metrics | |||||||||||||||||||||||||||||||
(a) |
Revenues (GAAP) | $ | 1,097.8 |
|
$ | 1,052.3 |
|
$ | 4,357.0 |
|
$ | 1,049.1 |
|
$ | 1,066.4 |
|
$ | 1,036.0 |
|
$ | 3,151.5 |
|
|||||||||
|
Foreign currency translation and |
(k) | (5.9 |
) |
1.2 |
|
15.4 |
|
5.6 |
|
6.4 |
|
(5.5 |
) |
6.5 |
|
|||||||||||||||
|
Revenues, constant currency, net of |
1,091.9 |
|
1,053.5 |
|
4,372.4 |
|
1,054.7 |
|
1,072.8 |
|
1,030.5 |
|
3,158.0 |
|
||||||||||||||||
|
Less Business Solutions revenues, constant currency (non-GAAP) | (k), (n) | — |
|
— |
|
(29.9 |
) |
— |
|
— |
|
— |
|
— |
|
|||||||||||||||
|
Adjusted revenues (non-GAAP) | $ | 1,091.9 |
|
$ | 1,053.5 |
|
$ | 4,342.5 |
|
$ | 1,054.7 |
|
$ | 1,072.8 |
|
$ | 1,030.5 |
|
$ | 3,158.0 |
|
|||||||||
|
Less |
(t) | (86.8 |
) |
(32.5 |
) |
(263.0 |
) |
(64.9 |
) |
(34.3 |
) |
(9.5 |
) |
(108.7 |
) |
|||||||||||||||
|
Adjusted revenues, excluding |
$ | 1,005.1 |
|
$ | 1,021.0 |
|
$ | 4,079.5 |
|
$ | 989.8 |
|
$ | 1,038.5 |
|
$ | 1,021.0 |
|
$ | 3,049.3 |
|
|||||||||
|
Prior year revenues (GAAP) | $ | 1,089.6 |
|
$ | 1,091.9 |
|
$ | 4,475.5 |
|
$ | 1,036.9 |
|
$ | 1,170.0 |
|
$ | 1,097.8 |
|
$ | 3,304.7 |
|
|||||||||
|
Less prior year revenues from Business Solutions (GAAP) | (n) | (42.6 |
) |
(29.5 |
) |
(196.9 |
) |
(15.4 |
) |
(14.3 |
) |
— |
|
(29.7 |
) |
|||||||||||||||
|
Adjusted prior year revenues (non-GAAP) | $ | 1,047.0 |
|
$ | 1,062.4 |
|
$ | 4,278.6 |
|
$ | 1,021.5 |
|
$ | 1,155.7 |
|
$ | 1,097.8 |
|
$ | 3,275.0 |
|
|||||||||
|
Less prior year revenues from |
(t) | (3.7 |
) |
(4.0 |
) |
(15.1 |
) |
(25.3 |
) |
(118.4 |
) |
(86.8 |
) |
(230.5 |
) |
|||||||||||||||
|
Adjusted prior year revenues, excluding |
$ | 1,043.3 |
|
$ | 1,058.4 |
|
$ | 4,263.5 |
|
$ | 996.2 |
|
$ | 1,037.3 |
|
$ | 1,011.0 |
|
$ | 3,044.5 |
|
|||||||||
|
Revenues (GAAP) - YoY % change | 1 |
% |
(4 |
)% |
(3 |
)% |
1 |
% |
(9 |
)% |
(6 |
)% |
(5 |
)% |
||||||||||||||||
|
Revenues, constant currency, net of |
0 |
% |
(4 |
)% |
(2 |
)% |
2 |
% |
(8 |
)% |
(6 |
)% |
(4 |
)% |
||||||||||||||||
|
Adjusted revenues (non-GAAP) - YoY % change | 4 |
% |
(1 |
)% |
1 |
% |
3 |
% |
(7 |
)% |
(6 |
)% |
(4 |
)% |
||||||||||||||||
|
Adjusted revenues, excluding |
(4 |
)% |
(4 |
)% |
(4 |
)% |
(1 |
)% |
0 |
% |
1 |
% |
0 |
% |
||||||||||||||||
|
|||||||||||||||||||||||||||||||
(b) |
Operating income (GAAP) | $ | 210.9 |
|
$ | 159.3 |
|
$ | 817.5 |
|
$ | 192.1 |
|
$ | 190.7 |
|
$ | 164.9 |
|
$ | 547.7 |
|
|||||||||
|
Acquisition, separation, and integration costs | (m) | 0.5 |
|
0.2 |
|
3.1 |
|
0.1 |
|
0.5 |
|
1.7 |
|
2.3 |
|
|||||||||||||||
|
Amortization and impairment of acquisition-related intangible assets | (p) | — |
|
— |
|
— |
|
— |
|
2.0 |
|
0.2 |
|
2.2 |
|
|||||||||||||||
|
Redeployment program costs | (o) | 4.1 |
|
10.0 |
|
29.5 |
|
14.0 |
|
9.4 |
|
18.0 |
|
41.4 |
|
|||||||||||||||
|
(r) | — |
|
— |
|
— |
|
— |
|
— |
|
12.7 |
|
12.7 |
|
||||||||||||||||
|
Less Business Solutions operating income | (n) | — |
|
— |
|
(3.6 |
) |
— |
|
— |
|
— |
|
— |
|
|||||||||||||||
|
Adjusted operating income (non-GAAP) | $ | 215.5 |
|
$ | 169.5 |
|
$ | 846.5 |
|
$ | 206.2 |
|
$ | 202.6 |
|
$ | 197.5 |
|
$ | 606.3 |
|
|||||||||
|
Operating margin (GAAP) | 19.2 |
% |
15.1 |
% |
18.8 |
% |
18.3 |
% |
17.9 |
% |
15.9 |
% |
17.4 |
% |
||||||||||||||||
|
Adjusted operating margin (non-GAAP) | 19.6 |
% |
16.1 |
% |
19.6 |
% |
19.7 |
% |
19.0 |
% |
19.1 |
% |
19.2 |
% |
||||||||||||||||
|
|||||||||||||||||||||||||||||||
(c) |
Net income (GAAP) | $ | 171.0 |
|
$ | 127.0 |
|
$ | 626.0 |
|
$ | 142.7 |
|
$ | 141.0 |
|
$ | 264.8 |
|
$ | 548.5 |
|
|||||||||
|
Acquisition, separation, and integration costs | (m) | 0.5 |
|
0.2 |
|
3.1 |
|
0.1 |
|
0.5 |
|
1.7 |
|
2.3 |
|
|||||||||||||||
|
Amortization and impairment of acquisition-related intangible assets | (p) | — |
|
— |
|
— |
|
— |
|
2.0 |
|
0.2 |
|
2.2 |
|
|||||||||||||||
|
Business Solutions gain | (n) | (18.0 |
) |
— |
|
(18.0 |
) |
— |
|
— |
|
— |
|
— |
|
|||||||||||||||
|
Redeployment program costs | (o) | 4.1 |
|
10.0 |
|
29.5 |
|
14.0 |
|
9.4 |
|
18.0 |
|
41.4 |
|
|||||||||||||||
|
(r) | — |
|
— |
|
— |
|
— |
|
— |
|
13.7 |
|
13.7 |
|
||||||||||||||||
|
IRS settlement | (s) | — |
|
— |
|
— |
|
— |
|
— |
|
(137.8 |
) |
(137.8 |
) |
|||||||||||||||
|
Income tax expense/(benefit) from other adjustments | (m), (n), (o), (p), (q), (r) |
1.7 |
|
(4.6 |
) |
4.6 |
|
(1.5 |
) |
(4.0 |
) |
(5.6 |
) |
(11.1 |
) |
|||||||||||||||
|
Adjusted net income (non-GAAP) | $ | 159.3 |
|
$ | 132.6 |
|
$ | 645.2 |
|
$ | 155.3 |
|
$ | 148.9 |
|
$ | 155.0 |
|
$ | 459.2 |
|
|||||||||
|
|||||||||||||||||||||||||||||||
(d) |
Net income (GAAP) | $ | 171.0 |
|
$ | 127.0 |
|
$ | 626.0 |
|
$ | 142.7 |
|
$ | 141.0 |
|
$ | 264.8 |
|
$ | 548.5 |
|
|||||||||
|
Provision for/(benefit from) income taxes | 33.3 |
|
17.1 |
|
119.8 |
|
27.3 |
|
24.2 |
|
(129.1 |
) |
(77.6 |
) |
||||||||||||||||
|
Interest income | (3.6 |
) |
(4.6 |
) |
(15.6 |
) |
(3.1 |
) |
(3.7 |
) |
(2.8 |
) |
(9.6 |
) |
||||||||||||||||
|
Interest expense | 27.0 |
|
26.3 |
|
105.3 |
|
26.1 |
|
31.1 |
|
32.2 |
|
89.4 |
|
||||||||||||||||
|
Depreciation and amortization | 46.0 |
|
45.1 |
|
183.6 |
|
46.6 |
|
46.1 |
|
43.0 |
|
135.7 |
|
||||||||||||||||
|
Other (income)/expense, net | 1.2 |
|
(6.5 |
) |
— |
|
(0.9 |
) |
(1.9 |
) |
(0.2 |
) |
(3.0 |
) |
||||||||||||||||
|
Business Solutions gain | (n) | (18.0 |
) |
— |
|
(18.0 |
) |
— |
|
— |
|
— |
|
— |
|
|||||||||||||||
|
Acquisition, separation, and integration costs | (m) | 0.5 |
|
0.2 |
|
3.1 |
|
0.1 |
|
0.5 |
|
1.7 |
|
2.3 |
|
|||||||||||||||
|
Amortization and impairment of acquisition-related intangible assets | (p) | — |
|
— |
|
— |
|
— |
|
2.0 |
|
0.2 |
|
2.2 |
|
|||||||||||||||
|
Redeployment program costs | (o) | 4.1 |
|
10.0 |
|
29.5 |
|
14.0 |
|
9.4 |
|
18.0 |
|
41.4 |
|
|||||||||||||||
|
(r) | — |
|
— |
|
— |
|
— |
|
— |
|
12.7 |
|
12.7 |
|
||||||||||||||||
|
Less Business Solutions operating income | (n) | — |
|
— |
|
(3.6 |
) |
— |
|
— |
|
— |
|
— |
|
|||||||||||||||
|
Adjusted EBITDA (non-GAAP) | (l) | $ | 261.5 |
|
$ | 214.6 |
|
$ | 1,030.1 |
|
$ | 252.8 |
|
$ | 248.7 |
|
$ | 240.5 |
|
$ | 742.0 |
|
||||||||
|
|||||||||||||||||||||||||||||||
(e) |
Effective tax rate (GAAP) | 16 |
% |
12 |
% |
16 |
% |
16 |
% |
15 |
% |
(95 |
)% |
(16 |
)% |
||||||||||||||||
|
IRS settlement | (s) | 0 |
% |
0 |
% |
0 |
% |
0 |
% |
0 |
% |
102 |
% |
29 |
% |
|||||||||||||||
|
Other adjustments | (m), (n), (o), (p), (q), (r) |
1 |
% |
2 |
% |
(1 |
)% |
0 |
% |
1 |
% |
1 |
% |
0 |
% |
|||||||||||||||
|
Adjusted effective tax rate (non-GAAP) | 17 |
% |
14 |
% |
15 |
% |
16 |
% |
16 |
% |
8 |
% |
13 |
% |
||||||||||||||||
|
|||||||||||||||||||||||||||||||
(f) |
Diluted earnings per share (GAAP) ($- dollars) | $ | 0.46 |
|
$ | 0.35 |
|
$ | 1.68 |
|
$ | 0.41 |
|
$ | 0.41 |
|
$ | 0.78 |
|
$ | 1.61 |
|
|||||||||
|
Pretax impacts from the following: | — |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
||||||||||||||||
|
Acquisition, separation, and integration costs | (m) | — |
|
— |
|
0.01 |
|
— |
|
— |
|
— |
|
— |
|
|||||||||||||||
|
Amortization and impairment of acquisition-related intangible assets | (p) | — |
|
— |
|
— |
|
— |
|
0.01 |
|
— |
|
— |
|
|||||||||||||||
|
Business Solutions gain | (n) | (0.05 |
) |
— |
|
(0.05 |
) |
— |
|
— |
|
— |
|
— |
|
|||||||||||||||
|
Redeployment program costs | (o) | 0.01 |
|
0.03 |
|
0.08 |
|
0.04 |
|
0.03 |
|
0.05 |
|
0.12 |
|
|||||||||||||||
|
(r) | — |
|
— |
|
— |
|
— |
|
— |
|
0.04 |
|
0.04 |
|
||||||||||||||||
|
Income tax expense/(benefit) impacts from the following: | ||||||||||||||||||||||||||||||
|
IRS settlement | (s) | — |
|
— |
|
— |
|
— |
|
— |
|
(0.40 |
) |
(0.40 |
) |
|||||||||||||||
|
Other adjustments | (m), (n), (o), (p), (q), (r) |
0.01 |
|
(0.01 |
) |
0.02 |
|
— |
|
(0.01 |
) |
(0.01 |
) |
(0.03 |
) |
|||||||||||||||
|
Adjusted diluted earnings per share (non-GAAP) ($- dollars) | $ | 0.43 |
|
$ | 0.37 |
|
$ | 1.74 |
|
$ | 0.45 |
|
$ | 0.44 |
|
$ | 0.46 |
|
$ | 1.34 |
|
|||||||||
|
|||||||||||||||||||||||||||||||
|
CMT Segment Metrics | ||||||||||||||||||||||||||||||
(g) |
Revenues (GAAP) | $ | 1,019.0 |
|
$ | 975.5 |
|
$ | 4,005.0 |
|
$ | 962.0 |
|
$ | 965.0 |
|
$ | 932.2 |
|
$ | 2,859.2 |
|
|||||||||
|
Foreign currency translation and |
(k) | (7.1 |
) |
(3.4 |
) |
4.6 |
|
2.5 |
|
12.7 |
|
7.4 |
|
22.6 |
|
|||||||||||||||
|
Revenues, constant currency, net of |
$ | 1,011.9 |
|
$ | 972.1 |
|
$ | 4,009.6 |
|
$ | 964.5 |
|
$ | 977.7 |
|
$ | 939.6 |
|
$ | 2,881.8 |
|
|||||||||
|
Prior year revenues (GAAP) | $ | 982.4 |
|
$ | 985.2 |
|
$ | 3,993.5 |
|
$ | 938.3 |
|
$ | 1,072.2 |
|
$ | 1,019.0 |
|
$ | 3,029.5 |
|
|||||||||
|
Revenues (GAAP) - YoY % change | 4 |
% |
(1 |
)% |
0 |
% |
3 |
% |
(10 |
)% |
(9 |
)% |
(6 |
)% |
||||||||||||||||
|
Adjusted revenues (non-GAAP) - YoY % change | 3 |
% |
(1 |
)% |
0 |
% |
3 |
% |
(9 |
)% |
(8 |
)% |
(5 |
)% |
||||||||||||||||
|
|||||||||||||||||||||||||||||||
(h) |
Cross-border principal, as reported ($- billions) | $ | 26.0 |
|
$ | 25.2 |
|
$ | 101.7 |
|
$ | 24.6 |
|
$ | 25.9 |
|
$ | 25.9 |
|
$ | 76.4 |
|
|||||||||
|
Foreign currency translation impact | (k) | (0.3 |
) |
(0.2 |
) |
0.0 |
|
0.0 |
|
0.3 |
|
0.1 |
|
0.4 |
|
|||||||||||||||
|
Cross-border principal, constant currency ($- billions) | $ | 25.7 |
|
$ | 25.0 |
|
$ | 101.7 |
|
$ | 24.6 |
|
$ | 26.2 |
|
$ | 26.0 |
|
$ | 76.8 |
|
|||||||||
|
Prior year cross-border principal, as reported ($- billions) | $ | 23.0 |
|
$ | 23.4 |
|
$ | 93.6 |
|
$ | 23.0 |
|
$ | 27.5 |
|
$ | 26.0 |
|
$ | 76.5 |
|
|||||||||
|
Cross-border principal, as reported - YoY % change | 13 |
% |
8 |
% |
9 |
% |
7 |
% |
(6 |
)% |
0 |
% |
0 |
% |
||||||||||||||||
|
Cross-border principal, constant currency - YoY % change | 11 |
% |
7 |
% |
9 |
% |
7 |
% |
(5 |
)% |
0 |
% |
0 |
% |
||||||||||||||||
|
|||||||||||||||||||||||||||||||
|
CS Segment Metrics | ||||||||||||||||||||||||||||||
(i) |
Revenues (GAAP) | $ | 78.8 |
|
$ | 76.8 |
|
$ | 322.3 |
|
$ | 87.1 |
|
$ | 101.4 |
|
$ | 103.8 |
|
$ | 292.3 |
|
|||||||||
|
Foreign currency translation and |
(k) | 1.2 |
|
4.8 |
|
10.7 |
|
3.0 |
|
(6.2 |
) |
(12.9 |
) |
(16.0 |
) |
|||||||||||||||
|
Revenues, constant currency, net of |
$ | 80.0 |
|
$ | 81.6 |
|
$ | 333.0 |
|
$ | 90.1 |
|
$ | 95.2 |
|
$ | 90.9 |
|
$ | 276.3 |
|
|||||||||
|
Prior year revenues (GAAP) | $ | 64.6 |
|
$ | 77.2 |
|
$ | 285.1 |
|
$ | 83.2 |
|
$ | 83.5 |
|
$ | 78.8 |
|
$ | 245.5 |
|
|||||||||
|
Revenues (GAAP) - YoY % change | 22 |
% |
(1 |
)% |
13 |
% |
5 |
% |
21 |
% |
32 |
% |
19 |
% |
||||||||||||||||
|
Adjusted revenues (non-GAAP) - YoY % change | 24 |
% |
6 |
% |
17 |
% |
8 |
% |
14 |
% |
15 |
% |
13 |
% |
||||||||||||||||
|
|||||||||||||||||||||||||||||||
|
Business Solutions Segment Metrics | ||||||||||||||||||||||||||||||
(j) |
Revenues (GAAP) | $ | — |
|
$ | — |
|
$ | 29.7 |
|
$ | — |
|
$ | — |
|
$ | — |
|
$ | — |
|
|||||||||
|
Foreign currency translation impact | (k) | — |
|
— |
|
0.2 |
|
— |
|
— |
|
— |
|
— |
|
|||||||||||||||
|
Revenues, constant currency (non-GAAP) | $ | — |
|
$ | — |
|
$ | 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) | 17 |
% |
19 |
% |
||||||||||||||||||||||||||
|
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 |
% |
|||||||||||||||||||||||||
|
(r) | 1 |
% |
1 |
% |
||||||||||||||||||||||||||
|
Operating margin, adjusted (non-GAAP) | 19 |
% |
21 |
% |
||||||||||||||||||||||||||
|
|||||||||||||||||||||||||||||||
|
Range | ||||||||||||||||||||||||||||||
|
Earnings per share (GAAP) ($- dollars) | $ | 1.94 |
|
$ | 2.04 |
|
||||||||||||||||||||||||
|
Redeployment program costs | (o) | 0.11 |
|
0.11 |
|
|||||||||||||||||||||||||
|
Acquisition, separation, and integration costs | (m) | 0.01 |
|
0.01 |
|
|||||||||||||||||||||||||
|
Amortization and impairment of acquisition-related intangible assets | (p) | 0.01 |
|
0.01 |
|
|||||||||||||||||||||||||
|
(r) | 0.04 |
|
0.04 |
|
||||||||||||||||||||||||||
|
Income taxes associated with these adjustments | (m), (o), (p), (q), (r) |
(0.01 |
) |
(0.01 |
) |
|||||||||||||||||||||||||
|
IRS settlement | (s) | (0.40 |
) |
(0.40 |
) |
|||||||||||||||||||||||||
|
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 Chief Operating Decision Maker (“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) | Represented severance, expenses associated with streamlining the Company's organizational and legal structure, and other expenses associated with the Company's program which redeployed 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 included non-cash impairments of operating lease right-of-use assets and property and equipment. The expenses were not included in the measurement of segment operating income provided to the CODM for purposes of performance assessment and resource allocation. The Company had 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 included an adjustment to exclude an income tax benefit of |
||||||||||||||
(r) | While the Company had previously made a decision to suspend its operations in |
||||||||||||||
(s) | In the third quarter of 2024, the Company entered into a settlement with the |
||||||||||||||
(t) | Represents revenues from transactions originated in |
||||||||||||||
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/20241023404087/en/
Media Relations:
Brad Jones
media@westernunion.com
Investor Relations:
Tom
WesternUnion.IR@westernunion.com
Source: The Western Union Company
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