- Q4 GAAP revenue of $1.1 billion, up 1% on both a reported
basis and adjusted basis, excluding Iraq; full year GAAP revenue of
$4.2 billion, down 3% on a reported basis, and up 0.5% on an
adjusted basis, excluding Iraq
- Both Q4 and full year Branded Digital GAAP revenue grew 7%,
or 8% on an adjusted basis
- Q4 Consumer Services GAAP revenue grew 56%, or 23% on an
adjusted basis; full year GAAP revenue grew 28%, or 15% on an
adjusted basis
- Q4 GAAP EPS of $1.13 or adjusted EPS of $0.40; full year
GAAP EPS of $2.74 or adjusted EPS of $1.74
- Board of Directors approved a dividend of $0.235 per share
in the first quarter of 2025
The Western Union Company (the “Company” or “Western Union”)
(NYSE: WU) today reported fourth quarter and full year 2024
financial results.
The Company’s fourth-quarter revenue of $1.1 billion increased
1% on a reported basis. The revenue increase was driven by growth
in Consumer Services and Branded Digital. Results included a lower
contribution from Iraq compared to the prior year period, which
negatively impacted the revenue growth rate by 3 percentage
points.
“We concluded 2024 with a solid performance, marking our third
consecutive quarter of positive adjusted revenue growth, excluding
Iraq, which was bolstered by 15% adjusted revenue growth in
Consumer Services and the seventh consecutive quarter of
double-digit transaction growth in our Branded Digital business,”
said Devin McGranahan, President and Chief Executive Officer. “As
we enter the final year of our Evolve 2025 strategy, I am pleased
with the advancements we have achieved and the positive shift in
the Company’s growth trajectory. Looking ahead, I believe we are
poised to drive further improvements and efficiencies, and I am
confident in our ability to continue delivering value to our
investors and stakeholders.”
Fourth quarter GAAP EPS was $1.13, up from $0.35 in the prior
year period. GAAP EPS included a $0.75 tax benefit from the
reorganization of the Company’s international operations. Adjusted
EPS increased to $0.40 from $0.37 in the prior year period due to
higher adjusted operating profit, fewer shares outstanding, and a
lower adjusted effective tax rate.
The Board of Directors today approved the first quarter dividend
of $0.235 per common share, payable March 31, 2025, to shareholders
of record at the close of business on March 17, 2025.
Q4 Business Results
- The Company’s Consumer Money Transfer (CMT) segment revenue
decreased 4% on a reported basis, and was flat on an adjusted
basis, excluding Iraq, while transactions increased 3% compared to
the prior period.
- Branded Digital revenue increased 7% on a reported basis, or 8%
on an adjusted basis, with transaction growth of 13%. The Branded
Digital business represented 25% and 32% of total CMT revenues and
transactions, respectively.
- Consumer Services segment revenue grew 56% on a reported basis,
or 23% on an adjusted basis, benefiting from new and expanded
products led by the addition of the Company’s newly launched media
network business and the expansion of the Company’s retail foreign
exchange business, as well as the continued growth of the retail
money order business.
Q4 Financial Results
- GAAP operating margin in the quarter was 17%, compared to 15%
in the prior year period, while the adjusted operating margin was
17% compared to 16% in the prior year period. GAAP and adjusted
operating margin increased due to improved marketing and technology
efficiencies, partially offset by changes in foreign currencies and
a lower contribution from Iraq in the current period.
- The GAAP effective tax rate in the quarter was a benefit of
161%, compared to a provision of 12% in the prior year period. The
decrease in the GAAP effective rate was primarily related to the
recognition of deferred tax assets, net of valuation allowance,
associated with reorganizing the Company’s international operations
in the current period. The adjusted effective tax rate in the
quarter was 12%, compared to 14% in the prior year period, with the
decrease due to the mix of income and discrete tax benefits.
2024 Full Year Financial
Results
- The Company’s full year 2024 revenue of $4.2 billion declined
3% on a reported basis, or grew 0.5% on an adjusted basis,
excluding Iraq.
- GAAP operating margin was 17%, compared to 19% in the prior
year. The adjusted operating margin was 19% compared to 20% in the
prior year. The decrease in the GAAP and adjusted operating margin
was due to a lower contribution from Iraq in 2024, partially offset
by improved marketing and technology efficiencies.
- The GAAP effective tax rate for 2024 was a benefit of 51%
compared to a provision of 16% in the prior year. The GAAP
effective tax rate decreased primarily due to the tax benefits
associated with reorganizing the Company’s international operations
and a settlement with the U.S. Internal Revenue Service regarding
the Company’s 2017 and 2018 federal income tax returns, both
occurring in 2024. The adjusted effective tax rate was 13% compared
to 15% in the prior year, which decreased due to the mix of income
and discrete tax benefits.
- GAAP EPS was $2.74 compared to $1.68 in 2023. GAAP EPS included
a $0.75 tax benefit from the reorganization of the Company’s
international operations as well as a $0.40 benefit from the IRS
Settlement in 2024. Adjusted EPS was $1.74 in both 2024 and 2023,
with 2024 benefiting from fewer shares outstanding and a lower
adjusted effective tax rate, offset by a lower contribution from
Iraq.
- Cash flow from operating activities was $406 million for the
year, which included approximately $230 million in tax payments
related to the 2017 Tax Act and the Company’s settlement with the
U.S. Internal Revenue Service. In 2024, the Company returned
approximately $496 million to shareholders in dividends and share
repurchases, consisting of $318 million in dividends and $177
million in share repurchases.
2025 Outlook
The Company expects the following financial results for full
year 2025, which includes no material changes in macroeconomic
conditions, including changes in foreign currencies or Argentinian
inflation.
2025 Outlook
GAAP
Adjusted
Revenue1
$4,090 to $4,190
$4,115 to $4,215
Operating Margin
18% to 20%
19% to 21%
EPS2
$1.54 to $1.64
$1.75 to $1.85
1
In millions, adjusted revenue
excludes the impact of currency and Argentina inflation
2
The GAAP effective tax rate is
expected to be 20% to 22% and the adjusted effective tax rate is
expected to be 14% to 16%
Non-GAAP Measures
Western Union presents a number of non-GAAP financial measures
because management believes that these metrics provide meaningful
supplemental information in addition to the GAAP metrics and
provide comparability and consistency to prior periods. Constant
currency results assume foreign revenues are translated from
foreign currencies to the U.S. dollar, net of the effect of foreign
currency hedges, at rates consistent with those in the prior year.
The Company estimates Argentina inflation as the revenue growth not
attributable to either transaction growth or the change in price
(revenue divided by principal).
Reconciliations of non-GAAP to comparable GAAP measures are
available in the accompanying schedules and in the “Investor
Relations” section of the Company’s website at
https://ir.westernunion.com.
Additional Statistics
Additional key statistics for the quarter and historical trends
can be found in the supplemental tables included with this press
release. All amounts included in the supplemental tables to this
press release are rounded to the nearest tenth of a million, except
as otherwise noted. As a result, the percentage changes and margins
disclosed herein may not recalculate precisely using the rounded
amounts provided.
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 webcast, please visit the Investor Relations
section of the Company’s website or use the following link: Webcast
Link. Alternatively, participants may join via telephone. In the
U.S., dial +1 (719) 359-4580, followed by the meeting ID, which is
992 3140 1790, and the passcode, which is 250832. For participants
outside the U.S., dial the country number from the international
directory, followed by the meeting ID, which is 992 3140 1790, and
the passcode, which is 250832.
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 of our Annual Report on Form 10-K for the year ended
December 31, 2023 and in our subsequent filings the Securities and
Exchange Commission. 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: changes in
economic conditions, trade disruptions, or significantly slower
growth or declines in the money transfer, payment service, and
other markets in which we operate; interruptions in migration
patterns or other events, such as public health emergencies, any
changes arising as a result of the recent United States’ elections,
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 digital, mobile and internet-based services, card
associations, and card-based payment providers, and with digital
currencies, including cryptocurrencies; geopolitical tensions,
political conditions and related actions, including trade
restrictions, tariffs, and government sanctions; deterioration in
customer confidence in our business; failure to maintain our agent
network and business relationships; our ability to adopt new
technology; the failure to realize anticipated financial benefits
from mergers, acquisitions and divestitures; decisions to change
our business mix; exposure to foreign exchange rates; changes in
tax laws, or their interpretation, and unfavorable resolution of
tax contingencies; cybersecurity incidents involving any of our
systems or those of our vendors or other third parties; cessation
of or defects in various services provided to us by third-party
vendors; our ability to realize the anticipated benefits from
restructuring-related initiatives; our ability to attract and
retain qualified key employees; failure to manage credit and fraud
risks presented by our agents, clients, and consumers; adverse
rating actions by credit rating agencies; our ability to protect
our intellectual property rights, and to defend ourselves against
potential intellectual property infringement claims; material
changes in the market value or liquidity of securities that we
hold; restrictions imposed by our debt obligations; liabilities or
loss of business resulting from a failure by us, our agents, or
their subagents to comply with laws and regulations and regulatory
or judicial interpretations thereof; increased costs or loss of
business due to regulatory initiatives and changes in laws,
regulations, and industry practices and standards; developments
resulting from governmental investigations and consent agreements
with, or investigations or enforcement actions by, regulators and
other government authorities; liabilities resulting from
litigation; failure to comply with regulations and evolving
industry standards regarding data privacy; failure to comply with
consumer protection laws; effects of unclaimed property laws or
their interpretation or the enforcement thereof; failure to comply
with working capital requirements; changes in accounting standards,
rules and interpretations; and other unanticipated events and
management’s ability to identify and manage these and other
risks.
About Western Union
The Western Union Company (NYSE: WU) is committed to helping
people around the world who aspire to build financial futures for
themselves, their loved ones and their communities. Our leading
cross-border, cross-currency money movement, payments and digital
financial services empower consumers, businesses, financial
institutions and governments—across more than 200 countries and
territories and over 130 currencies—to connect with billions of
bank accounts, millions of digital wallets and cards, and a global
footprint of hundreds of thousands of retail locations. Our goal is
to offer accessible financial services that help people and
communities prosper. For more information, visit
www.westernunion.com.
WU-G
THE WESTERN UNION
COMPANY
CONSOLIDATED STATEMENTS OF
INCOME
(Unaudited)
(in millions, except per share
amounts)
Three Months Ended
Twelve Months Ended
December 31,
December 31,
2024
2023
% Change
2024
2023
% Change
Revenues $
1,058.2
$
1,052.3
1
%
$
4,209.7
$
4,357.0
(3)
%
Expenses: Cost of services
661.7
656.1
1
%
2,620.5
2,671.7
(2)
%
Selling, general, and administrative
218.4
236.9
(8)
%
863.4
867.8
(1)
%
Total expenses
880.1
893.0
(1)
%
3,483.9
3,539.5
(2)
%
Operating income
178.1
159.3
12
%
725.8
817.5
(11)
%
Other income/(expense): Gain on divestiture of business (a)
—
—
(c)
—
18.0
(c)
Interest income
2.3
4.6
(51)
%
11.9
15.6
(24)
%
Interest expense
(30.4
)
(26.3
)
16
%
(119.8
)
(105.3
)
14
%
Other income/(expense), net
(2.3
)
6.5
(c)
0.7
—
(c)
Total other expense, net
(30.4
)
(15.2
)
(c)
(107.2
)
(71.7
)
50
%
Income before income taxes
147.7
144.1
2
%
618.6
745.8
(17)
%
Provision for/(benefit from) income taxes (b)
(238.0
)
17.1
(c)
(315.6
)
119.8
(c)
Net income $
385.7
$
127.0
(c)
$
934.2
$
626.0
49
%
Earnings per share: Basic $
1.14
$
0.35
(c)
$
2.75
$
1.69
63
%
Diluted $
1.13
$
0.35
(c)
$
2.74
$
1.68
63
%
Weighted-average shares outstanding: Basic
338.4
359.7
340.0
370.8
Diluted
339.8
361.1
341.1
371.8
____________________
(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.
(b)
During the three months ended
December 31, 2024, the Company recognized a net tax benefit of
$255.2 million from deferred tax assets associated with the
reorganization of the Company's international operations.
Additionally, in the twelve months ended December 31, 2024, the
Company entered into a settlement with the U.S. Internal Revenue
Service (“IRS”) regarding the Company’s 2017 and 2018 federal
income tax returns and recognized a tax benefit of $137.8
million.
(c)
Calculation not meaningful.
THE WESTERN UNION
COMPANY
CONSOLIDATED BALANCE
SHEETS
(Unaudited)
(in millions, except per share
amounts)
December 31,
December 31,
2024
2023
Assets Cash and cash equivalents $
1,474.0
$
1,268.6
Settlement assets
3,360.8
3,687.0
Property and equipment, net of accumulated depreciation of $454.9
and $438.8, respectively
84.2
91.4
Goodwill
2,059.6
2,034.6
Other intangible assets, net of accumulated amortization of $599.0
and $685.9, respectively
315.4
380.2
Deferred tax asset, net
265.0
—
Other assets
811.5
737.0
Total assets $
8,370.5
$
8,198.8
Liabilities and stockholders' equity Liabilities: Accounts
payable and accrued liabilities $
407.9
$
453.0
Settlement obligations
3,360.8
3,687.0
Income taxes payable
272.2
659.5
Deferred tax liability, net
155.6
147.6
Borrowings
2,940.8
2,504.6
Other liabilities
264.3
268.1
Total liabilities
7,401.6
7,719.8
Stockholders' equity: Preferred stock, $1.00 par value; 10
shares authorized; no shares issued
—
—
Common stock, $0.01 par value; 2,000 shares authorized; 337.9
shares and 350.5 shares issued and outstanding as of December 31,
2024 and 2023, respectively
3.4
3.5
Capital surplus
1,070.8
1,031.9
Retained earnings/(accumulated deficit)
35.2
(389.1
)
Accumulated other comprehensive loss
(140.5
)
(167.3
)
Total stockholders' equity
968.9
479.0
Total liabilities and stockholders' equity $
8,370.5
$
8,198.8
THE WESTERN UNION
COMPANY
CONSOLIDATED STATEMENTS OF
CASH FLOWS
(Unaudited)
(in millions)
Year Ended
December 31,
2024
2023
Cash flows from operating activities Net income $
934.2
$
626.0
Adjustments to reconcile net income to net cash provided by
operating activities: Depreciation and amortization
179.1
183.6
Gain on divestiture of business, excluding transaction costs
—
(18.0
)
Deferred income tax benefit
(248.8
)
(11.0
)
Other non-cash items, net
123.5
113.9
Increase/(decrease) in cash, excluding the effects of acquisitions
and divestitures, resulting from changes in: Other assets
(125.7
)
(36.3
)
Accounts payable and accrued liabilities
(46.4
)
(22.4
)
Income taxes payable
(394.6
)
(68.1
)
Other liabilities
(15.0
)
15.4
Net cash provided by operating activities
406.3
783.1
Cash flows from investing activities Capital expenditures
(130.6
)
(147.8
)
Purchases of settlement investments
(396.7
)
(495.3
)
Proceeds from the sale of settlement investments
356.0
262.0
Maturities of settlement investments
170.2
144.0
Proceeds from the sale of non-settlement investments
—
100.0
Other investing activities
(15.2
)
(3.7
)
Net cash used in investing activities
(16.3
)
(140.8
)
Cash flows from financing activities Cash dividends and
dividend equivalents paid
(321.5
)
(349.0
)
Common stock repurchased
(186.2
)
(308.4
)
Net (repayments of)/proceeds from commercial paper
(364.9
)
184.9
Net proceeds from issuance of borrowings
798.1
—
Principal payments on borrowings
—
(300.0
)
Net change in settlement obligations
6.1
(122.8
)
Other financing activities
(0.9
)
(1.5
)
Net cash used in financing activities
(69.3
)
(896.8
)
Net change in cash and cash equivalents, including settlement, and
restricted cash
320.7
(254.5
)
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 $
2,106.9
$
1,786.2
December 31,
2024
2023
Reconciliation of balance sheet cash and cash equivalents to
cash flows: Cash and cash equivalents on balance sheet $
1,474.0
$
1,268.6
Settlement cash and cash equivalents
631.6
496.0
Restricted cash in Other assets
1.3
21.6
Cash and cash equivalents, including settlement, and restricted
cash at end of period $
2,106.9
$
1,786.2
THE WESTERN UNION
COMPANY
SUMMARY SEGMENT DATA
(Unaudited)
(in millions, unless indicated
otherwise)
Three Months Ended
Twelve Months Ended
December 31,
December 31,
2024
2023
% Change
2024
2023
% Change
Revenues: Consumer Money Transfer $
938.8
$
975.5
(4)
%
$
3,798.0
$
4,005.0
(5)
%
Consumer Services
119.4
76.8
56
%
411.7
322.3
28
%
Business Solutions (a)
—
—
(g)
—
29.7
(g)
Total consolidated revenues $
1,058.2
$
1,052.3
1
%
$
4,209.7
$
4,357.0
(3)
%
Segment operating income: Consumer Money Transfer $
170.0
$
148.9
14
%
$
737.4
$
750.8
(2)
%
Consumer Services
13.4
20.4
(34)
%
52.3
92.5
(43)
%
Business Solutions (a)
—
—
(g)
—
3.7
(g)
Total segment operating income
183.4
169.3
8
%
789.7
847.0
(7)
%
Redeployment program costs (b)
—
(10.0
)
(g)
(41.4
)
(29.5
)
(g)
Severance costs (c)
(1.2
)
—
(g)
(1.2
)
—
(g)
Acquisition, separation, and integration costs (d)
(1.8
)
—
(g)
(4.1
)
—
(g)
Amortization and impairment of acquisition-related intangible
assets (e)
(0.2
)
—
(g)
(2.4
)
—
(g)
Russia asset impairments and termination costs (f)
(2.1
)
—
(g)
(14.8
)
—
(g)
Total consolidated operating income $
178.1
$
159.3
12
%
$
725.8
$
817.5
(11)
%
Segment operating income margin Consumer Money Transfer
18
%
15
%
3
%
19
%
19
%
0
%
Consumer Services
11
%
27
%
(16)
%
13
%
29
%
(16)
%
Business Solutions (a)
—
—
(g)
—
12
%
(g)
____________________
(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 severance costs which
have been excluded from the segments as management excludes
severance in making operating decisions, including allocating
resources to the Company's segments.
(d)
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.
(e)
Represents the non-cash
amortization and impairment of acquired intangible assets in
connection with recent business acquisitions.
(f)
Represents asset impairments
related to the Company's assets in Russia and the costs associated
with operating the Russian entity. While the Company had previously
made a decision to suspend its operations in Russia, in the third
quarter of 2024, the Company decided to pursue either liquidating
or selling the Russian assets, which triggered a review of the
carrying value of these assets.
(g)
Calculation not meaningful.
THE WESTERN UNION
COMPANY
KEY STATISTICS
(Unaudited)
Notes*
4Q23
FY2023
1Q24
2Q24
3Q24
4Q24
FY2024
Consolidated Metrics Revenues (GAAP) - YoY % change
(4)%
(3)%
1%
(9)%
(6)%
1%
(3)%
Adjusted revenues (non-GAAP) - YoY % change
(a)
(1)%
1%
3%
(7)%
(6)%
(1)%
(3)%
Adjusted revenues, excluding Iraq (non-GAAP) - YoY % change
(a)
(4)%
(4)%
(1)%
0%
1%
1%
0%
Operating margin (GAAP)
15%
19%
18%
18%
16%
17%
17%
Adjusted operating margin (non-GAAP)
(b)
16%
20%
20%
19%
19%
17%
19%
Consumer Money Transfer (CMT) Segment Metrics
Revenues (GAAP) - YoY % change
(1)%
0%
3%
(10)%
(9)%
(4)%
(5)%
Adjusted revenues (non-GAAP) - YoY % change
(g)
(1)%
0%
3%
(9)%
(8)%
(3)%
(4)%
Adjusted revenues, excluding Iraq (non-GAAP) - YoY % change
(g)
(4)%
(6)%
(1)%
(1)%
0%
0%
(1)%
Transactions (in millions)
72.9
279.4
69.0
73.3
72.6
75.0
289.9
Transactions - YoY % change
5%
2%
6%
4%
3%
3%
4%
Cross-border principal, as reported - YoY % change
8%
9%
7%
(6)%
0%
5%
1%
Cross-border principal (constant currency) - YoY % change
(h)
7%
9%
7%
(5)%
0%
6%
2%
Operating margin
15%
19%
19%
20%
20%
18%
19%
Branded Digital revenues (GAAP) - YoY % change
(gg)
4%
0%
9%
5%
8%
7%
7%
Branded Digital foreign currency translation and Argentina
inflation impact
(k)
0%
0%
0%
2%
1%
1%
1%
Adjusted Branded Digital revenues (non-GAAP) - YoY % change
(gg)
4%
0%
9%
7%
9%
8%
8%
Branded Digital transactions - YoY % change
(gg)
13%
11%
13%
13%
15%
13%
13%
CMT Segment Regional Metrics - YoY % change
NA region revenues (GAAP)
(aa), (bb)
(1)%
(5)%
2%
1%
(3)%
(5)%
(1)%
NA region foreign currency translation impact
(k)
0%
0%
0%
0%
0%
0%
0%
Adjusted NA region revenues (non-GAAP)
(aa), (bb)
(1)%
(5)%
2%
1%
(3)%
(5)%
(1)%
NA region transactions
(aa), (bb)
6%
5%
6%
6%
3%
0%
3%
EU & CIS region revenues (GAAP)
(aa), (cc)
(8)%
(11)%
(5)%
(6)%
0%
3%
(2)%
EU & CIS region foreign currency translation impact
(k)
(1)%
0%
0%
2%
1%
1%
1%
Adjusted EU & CIS region revenues (non-GAAP)
(aa), (cc)
(9)%
(11)%
(5)%
(4)%
1%
4%
(1)%
EU & CIS region transactions
(aa), (cc)
4%
(6)%
5%
3%
6%
8%
5%
MEASA region revenues (GAAP)
(aa), (dd)
12%
31%
16%
(35)%
(32)%
(10)%
(19)%
MEASA region foreign currency translation impact
(k)
0%
1%
1%
0%
1%
0%
1%
Adjusted MEASA region revenues (non-GAAP)
(aa), (dd)
12%
32%
17%
(35)%
(31)%
(10)%
(18)%
MEASA region transactions
(aa), (dd)
7%
6%
6%
0%
0%
7%
3%
LACA region revenues (GAAP)
(aa), (ee)
2%
8%
7%
8%
(2)%
(3)%
2%
LACA region foreign currency translation and Argentina inflation
impact
(k)
(4)%
(3)%
(2)%
0%
1%
2%
1%
Adjusted LACA region revenues (non-GAAP)
(aa), (ee)
(2)%
5%
5%
8%
(1)%
(1)%
3%
LACA region transactions
(aa), (ee)
4%
7%
3%
2%
(2)%
(3)%
0%
APAC region revenues (GAAP)
(aa), (ff)
(7)%
(7)%
(10)%
(11)%
(2)%
(6)%
(7)%
APAC region foreign currency translation impact
(k)
2%
2%
4%
6%
3%
2%
4%
Adjusted APAC region revenues (non-GAAP)
(aa), (ff)
(5)%
(5)%
(6)%
(5)%
1%
(4)%
(3)%
APAC region transactions
(aa), (ff)
6%
1%
7%
6%
11%
7%
8%
% of CMT Revenue
NA region revenues
(aa), (bb)
39%
37%
38%
40%
39%
39%
39%
EU & CIS region revenues
(aa), (cc)
25%
25%
24%
25%
27%
27%
26%
MEASA region revenues
(aa), (dd)
18%
21%
21%
18%
17%
17%
18%
LACA region revenues
(aa), (ee)
12%
11%
12%
12%
11%
12%
12%
APAC region revenues
(aa), (ff)
6%
6%
5%
5%
6%
5%
5%
Branded Digital revenues
(aa), (gg)
23%
22%
23%
24%
25%
25%
24%
Consumer Services (CS)
Revenues (GAAP) - YoY % change
(1)%
13%
5%
21%
32%
56%
28%
Adjusted revenues (non-GAAP) - YoY % change
(i)
6%
17%
8%
14%
15%
23%
15%
Operating margin
27%
29%
21%
11%
9%
11%
13%
% of Total Company Revenue (GAAP) Consumer Money
Transfer segment revenues
93%
92%
92%
90%
90%
89%
90%
Consumer Services segment revenues
7%
7%
8%
10%
10%
11%
10%
Business Solutions segment revenues
0%
1%
0%
0%
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
4Q23
FY2023
1Q24
2Q24
3Q24
4Q24
FY2024
Consolidated Metrics
(a)
Revenues (GAAP) $
1,052.3
$
4,357.0
$
1,049.1
$
1,066.4
$
1,036.0
$
1,058.2
$
4,209.7
Foreign currency translation and Argentina inflation impact (k)
1.2
15.4
5.6
6.4
(5.5
)
(17.6
)
(11.1
)
Revenues, constant currency, net of Argentina inflation (non-GAAP)
1,053.5
4,372.4
1,054.7
1,072.8
1,030.5
1,040.6
4,198.6
Less Business Solutions revenues, constant currency (non-GAAP) (k),
(n)
—
(29.9
)
—
—
—
—
—
Adjusted revenues (non-GAAP) $
1,053.5
$
4,342.5
$
1,054.7
$
1,072.8
$
1,030.5
$
1,040.6
$
4,198.6
Less Iraq revenues (GAAP) (t)
(32.5
)
(263.0
)
(64.9
)
(34.3
)
(9.5
)
(6.6
)
(115.3
)
Adjusted revenues, excluding Iraq (non-GAAP) $
1,021.0
$
4,079.5
$
989.8
$
1,038.5
$
1,021.0
$
1,034.0
$
4,083.3
Prior year revenues (GAAP) $
1,091.9
$
4,475.5
$
1,036.9
$
1,170.0
$
1,097.8
$
1,052.3
$
4,357.0
Less prior year revenues from Business Solutions (GAAP) (n)
(29.5
)
(196.9
)
(15.4
)
(14.3
)
—
—
(29.7
)
Adjusted prior year revenues (non-GAAP) $
1,062.4
$
4,278.6
$
1,021.5
$
1,155.7
$
1,097.8
$
1,052.3
$
4,327.3
Less prior year revenues from Iraq (GAAP) (t)
(4.0
)
(15.1
)
(25.3
)
(118.4
)
(86.8
)
(32.5
)
(263.0
)
Adjusted prior year revenues, excluding Iraq (non-GAAP) $
1,058.4
$
4,263.5
$
996.2
$
1,037.3
$
1,011.0
$
1,019.8
$
4,064.3
Revenues (GAAP) - YoY % change
(4)
%
(3)
%
1
%
(9)
%
(6)
%
1
%
(3)
%
Revenues, constant currency, net of Argentina inflation (non-GAAP)
- YoY% change
(4)
%
(2)
%
2
%
(8)
%
(6)
%
(1)
%
(4)
%
Adjusted revenues (non-GAAP) - YoY % change
(1)
%
1
%
3
%
(7)
%
(6)
%
(1)
%
(3)
%
Adjusted revenues, excluding Iraq (non-GAAP) - YoY % change
(4)
%
(4)
%
(1)
%
0
%
1
%
1
%
0
%
(b)
Operating income (GAAP) $
159.3
$
817.5
$
192.1
$
190.7
$
164.9
$
178.1
$
725.8
Acquisition, separation, and integration costs (m)
0.2
3.1
0.1
0.5
1.7
1.8
4.1
Amortization and impairment of acquisition-related intangible
assets (p)
—
—
—
2.0
0.2
0.2
2.4
Redeployment program costs (o)
10.0
29.5
14.0
9.4
18.0
—
41.4
Severance costs (u)
—
—
—
—
—
1.2
1.2
Russia asset impairments and termination costs (r)
—
—
—
—
12.7
2.1
14.8
Less Business Solutions operating income (n)
—
(3.6
)
—
—
—
—
—
Adjusted operating income (non-GAAP) $
169.5
$
846.5
$
206.2
$
202.6
$
197.5
$
183.4
$
789.7
Operating margin (GAAP)
15
%
19
%
18
%
18
%
16
%
17
%
17
%
Adjusted operating margin (non-GAAP)
16
%
20
%
20
%
19
%
19
%
17
%
19
%
(c)
Net income (GAAP) $
127.0
$
626.0
$
142.7
$
141.0
$
264.8
$
385.7
$
934.2
Acquisition, separation, and integration costs (m)
0.2
3.1
0.1
0.5
1.7
1.8
4.1
Amortization and impairment of acquisition-related intangible
assets (p)
—
—
—
2.0
0.2
0.2
2.4
Business Solutions gain (n)
—
(18.0
)
—
—
—
—
—
Redeployment program costs (o)
10.0
29.5
14.0
9.4
18.0
—
41.4
Severance costs (u)
—
—
—
—
—
1.2
1.2
Russia asset impairments, termination costs, and currency
remeasurement (r)
—
—
—
—
13.7
3.0
16.7
IRS settlement (s)
—
—
—
—
(137.8
)
—
(137.8
)
Non-cash tax impacts of international reorganization (v)
—
—
—
—
—
(255.2
)
(255.2
)
Income tax expense/(benefit) from other adjustments (m), (n), (o),
(p), (q), (r), (u)
(4.6
)
4.6
(1.5
)
(4.0
)
(5.6
)
(1.1
)
(12.2
)
Adjusted net income (non-GAAP) $
132.6
$
645.2
$
155.3
$
148.9
$
155.0
$
135.6
$
594.8
(d)
Net income (GAAP) $
127.0
$
626.0
$
142.7
$
141.0
$
264.8
$
385.7
$
934.2
Provision for/(benefit from) income taxes
17.1
119.8
27.3
24.2
(129.1
)
(238.0
)
(315.6
)
Interest income
(4.6
)
(15.6
)
(3.1
)
(3.7
)
(2.8
)
(2.3
)
(11.9
)
Interest expense
26.3
105.3
26.1
31.1
32.2
30.4
119.8
Depreciation and amortization
45.1
183.6
46.6
46.1
43.0
43.4
179.1
Stock-based compensation expense
8.7
35.9
8.7
10.2
9.5
10.5
38.9
Other (income)/expense, net
(6.5
)
—
(0.9
)
(1.9
)
(0.2
)
2.3
(0.7
)
Business Solutions gain (n)
—
(18.0
)
—
—
—
—
—
Acquisition, separation, and integration costs (m)
0.2
3.1
0.1
0.5
1.7
1.8
4.1
Amortization and impairment of acquisition-related intangible
assets (p)
—
—
—
2.0
0.2
0.2
2.4
Redeployment program costs (o)
10.0
29.5
14.0
9.4
18.0
—
41.4
Severance costs (u)
—
—
—
—
—
1.2
1.2
Russia asset impairments and termination costs (r)
—
—
—
—
12.7
2.1
14.8
Less Business Solutions operating income (n)
—
(3.6
)
—
—
—
—
—
Adjusted EBITDA (non-GAAP) (l) $
223.3
$
1,066.0
$
261.5
$
258.9
$
250.0
$
237.3
$
1,007.7
(e)
Effective tax rate (GAAP)
12
%
16
%
16
%
15
%
(95)
%
(161)
%
(51)
%
IRS settlement (s)
0
%
0
%
0
%
0
%
102
%
0
%
22
%
Non-cash tax impacts of international reorganization (v)
0
%
0
%
0
%
0
%
0
%
173
%
41
%
Other adjustments (m), (n), (o), (p), (q), (r), (u)
2
%
(1)
%
0
%
1
%
1
%
0
%
1
%
Adjusted effective tax rate (non-GAAP)
14
%
15
%
16
%
16
%
8
%
12
%
13
%
(f)
Diluted earnings per share (GAAP) ($- dollars) $
0.35
$
1.68
$
0.41
$
0.41
$
0.78
$
1.13
$
2.74
Pretax impacts from the following:
Acquisition, separation, and integration costs (m)
—
0.01
—
—
—
0.01
0.01
Amortization and impairment of acquisition-related intangible
assets (p)
—
—
—
0.01
—
—
0.01
Business Solutions gain (n)
—
(0.05
)
—
—
—
—
—
Redeployment program costs (o)
0.03
0.08
0.04
0.03
0.05
—
0.12
Severance costs (u)
—
—
—
—
—
—
—
Russia asset impairments, termination costs, and currency
remeasurement (r)
—
—
—
—
0.04
0.01
0.05
Income tax expense/(benefit) impacts from the following:
IRS settlement (s)
—
—
—
—
(0.40
)
—
(0.40
)
Non-cash tax impacts of international reorganization (v)
—
—
—
—
—
(0.75
)
(0.75
)
Other adjustments (m), (n), (o), (p), (q), (r), (u)
(0.01
)
0.02
—
(0.01
)
(0.01
)
—
(0.04
)
Adjusted diluted earnings per share (non-GAAP) ($- dollars) $
0.37
$
1.74
$
0.45
$
0.44
$
0.46
$
0.40
$
1.74
CMT Segment Metrics
(g)
Revenues (GAAP) $
975.5
$
4,005.0
$
962.0
$
965.0
$
932.2
$
938.8
$
3,798.0
Foreign currency translation and Argentina inflation impact (k)
(3.4
)
4.6
2.5
12.7
7.4
7.5
30.1
Revenues, constant currency, net of Argentina inflation (non-GAAP)
972.1
4,009.6
964.5
977.7
939.6
946.3
3,828.1
Less Iraq revenues (GAAP) (t)
(32.5
)
(263.0
)
(64.9
)
(34.3
)
(9.5
)
(6.6
)
(115.3
)
Adjusted revenues, excluding Iraq (non-GAAP) $
939.6
$
3,746.6
$
899.6
$
943.4
$
930.1
$
939.7
$
3,712.8
Prior year revenues (GAAP) $
985.2
$
3,993.5
$
938.3
$
1,072.2
$
1,019.0
$
975.5
$
4,005.0
Less prior year revenues from Iraq (GAAP) (t)
(4.0
)
(15.1
)
(25.3
)
(118.4
)
(86.8
)
(32.5
)
(263.0
)
Prior year revenues, excluding Iraq (non-GAAP) $
981.2
$
3,978.4
$
913.0
$
953.8
$
932.2
$
943.0
$
3,742.0
Revenues (GAAP) - YoY % change
(1)
%
0
%
3
%
(10)
%
(9)
%
(4)
%
(5)
%
Adjusted revenues (non-GAAP) - YoY % change
(1)
%
0
%
3
%
(9)
%
(8)
%
(3)
%
(4)
%
Adjusted revenues, excluding Iraq (non-GAAP) - YoY % change
(4)
%
(6)
%
(1)
%
(1)
%
0
%
0
%
(1)
%
(h)
Cross-border principal, as reported ($- billions) $
25.2
$
101.7
$
24.6
$
25.9
$
25.9
$
26.5
$
102.9
Foreign currency translation impact (k)
(0.2
)
0.0
0.0
0.3
0.1
0.2
0.6
Cross-border principal, constant currency ($- billions) $
25.0
$
101.7
$
24.6
$
26.2
$
26.0
$
26.7
$
103.5
Prior year cross-border principal, as reported ($- billions) $
23.4
$
93.6
$
23.0
$
27.5
$
26.0
$
25.2
$
101.7
Cross-border principal, as reported - YoY % change
8
%
9
%
7
%
(6)
%
0
%
5
%
1
%
Cross-border principal, constant currency - YoY % change
7
%
9
%
7
%
(5)
%
0
%
6
%
2
%
CS Segment Metrics
(i)
Revenues (GAAP) $
76.8
$
322.3
$
87.1
$
101.4
$
103.8
$
119.4
$
411.7
Foreign currency translation and Argentina inflation impact (k)
4.8
10.7
3.0
(6.2
)
(12.9
)
(25.1
)
(41.2
)
Revenues, constant currency, net of Argentina inflation (non-GAAP)
$
81.6
$
333.0
$
90.1
$
95.2
$
90.9
$
94.3
$
370.5
Prior year revenues (GAAP) $
77.2
$
285.1
$
83.2
$
83.5
$
78.8
$
76.8
$
322.3
Revenues (GAAP) - YoY % change
(1)
%
13
%
5
%
21
%
32
%
56
%
28
%
Adjusted revenues (non-GAAP) - YoY % change
6
%
17
%
8
%
14
%
15
%
23
%
15
%
Business Solutions Segment Metrics
(j)
Revenues (GAAP) $
—
$
29.7
$
—
$
—
$
—
$
—
$
—
Foreign currency translation impact (k)
—
0.2
—
—
—
—
—
Revenues, constant currency (non-GAAP) $
—
$
29.9
$
—
$
—
$
—
$
—
$
—
2025 Consolidated Outlook Metrics
Notes
Range
Revenues (GAAP) $
4,090
$
4,190
Foreign currency translation and Argentina inflation impact
(k)
25
25
Revenues, adjusted (non-GAAP)
$
4,115
$
4,215
Range
Operating margin (GAAP)
18
%
20
%
Severance costs
(u)
1
%
1
%
Acquisition, separation, and integration costs
(m)
0
%
0
%
Amortization and impairment of acquisition-related intangible
assets
(p)
0
%
0
%
Russia asset impairments and termination costs
(r)
0
%
0
%
Operating margin, adjusted (non-GAAP)
19
%
21
%
Range
Effective tax rate (GAAP)
20
%
22
%
Non-cash tax impacts of international reorganization
(v)
(6)
%
(6)
%
Other adjustments
(m), (p), (r), (u)
0
%
0
%
Effective tax rate (non-GAAP)
14
%
16
%
Range
Earnings per share (GAAP) ($- dollars)
$
1.54
$
1.64
Severance costs
(u)
0.08
0.08
Acquisition, separation, and integration costs
(m)
—
—
Amortization and impairment of acquisition-related intangible
assets
(p)
—
—
Russia asset impairments, termination costs, and currency
remeasurement
(r)
—
—
Income taxes associated with these adjustments
(m), (p), (r), (u)
—
—
Non-cash tax impacts of international reorganization
(v)
0.13
0.13
Earnings per share, adjusted (non-GAAP) ($- dollars) $
1.75
$
1.85
Non-GAAP related
notes:
(k)
Represents the impact from the
fluctuation in exchange rates between all foreign currency
denominated amounts and the United States dollar. Constant currency
results exclude any benefit or loss caused by foreign exchange
fluctuations between foreign currencies and the United States
dollar, net of foreign currency hedges, which would not have
occurred if there had been a constant exchange rate. Constant
currency results also reflect the impact of Argentina inflation,
where indicated, due to its economy being hyperinflationary. The
Company estimates Argentina inflation as the revenue growth not
attributable to either transaction growth or the change in price
(revenue divided by principal). Argentina inflation has
historically had a more significant impact to revenues in the
Company's Consumer Services segment, as proportionally, there are
higher revenues generated from Argentina in the Company's Consumer
Services segment, relative to its Consumer Money Transfer
segment.
(l)
Earnings before Interest, Taxes,
Depreciation, and Amortization (“EBITDA”) results from taking
operating income and adjusting for non-cash depreciation and
amortization and stock-based compensation 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. The sale was
completed in three closings, the first of which occurred on March
1, 2022 with the entirety of the cash consideration collected at
that time and allocated to the closings on a relative fair value
basis. The final closing, which included the European Union
operations, occurred on July 1, 2023 and resulted in a gain of
$18.0 million. Revenues have been adjusted to exclude the carved
out financial information for the Business Solutions business to
compare the year-over-year changes and trends in the Company's
continuing businesses, excluding the effects of this
divestiture.
(o)
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 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 and
full year of 2024 included an adjustment to exclude an income tax
benefit of $2.6 million related to the non-cash impact of
remeasuring the Company’s deferred tax assets and liabilities for
tax law changes that were enacted in that period in Barbados.
(r)
While the Company had previously
made a decision to suspend its operations in Russia, in the third
quarter of 2024, the Company decided to pursue either liquidating
or selling the Russian assets, which triggered a review of the
carrying value of these assets. In the third and fourth quarter of
2024, the Company recorded asset impairments of $12.0 million and
$1.4 million, respectively, related to its assets in Russia.
Amounts presented also include the costs associated with operating
the Russian entity which are no longer needed for the Company’s
ongoing operations. Beginning with the third quarter of 2024, the
expenses have only been incurred in order to complete the
liquidation or possible sale of the Russian assets. Additionally,
where indicated, the Company has excluded the impact of the foreign
currency remeasurement of the Russian ruble because of the decision
to liquidate or sell the Russian assets. These costs are not
included in the measurement of segment operating income provided to
the CODM for purposes of performance assessment and resource
allocation.
(s)
In the third quarter of 2024, the
Company entered into a settlement with the IRS regarding the
Company’s 2017 and 2018 federal income tax returns. The Company is
contesting the one remaining unagreed adjustment at the IRS Appeals
level and has fully reserved for this unagreed adjustment. The
Company has excluded the non-cash reversal of the uncertain tax
position liability associated with the settlement because of the
significance of this settlement on its reported results.
(t)
Represents revenues from
transactions originated in Iraq. Beginning in March 2023, the
Company experienced a significant increase in its business
originating from Iraq. The Company believes this volume to have
been the effect of policy changes by United States and Iraqi
regulators. For several months, the Company has been in regular
discussions with policymakers in both the United States and Iraq
about the remittance volumes flowing through its network in Iraq.
In July 2023, the United States Treasury and the Federal Reserve
Bank of New York announced actions that banned 14 Iraqi banks, some
of whom were the Company's agents, from conducting U.S. dollar
transactions. Additionally, in October 2023, the Central Bank of
Iraq suspended the Company's largest agent in the country, although
that agent was later reinstated and resumed offering the Company's
services. The effect of fluctuations between the Iraqi dinar and
United States dollar on reported revenues was not significant for
these periods. Because of the significant volatility in revenues
and challenges in offering the Company's services in the country,
management believes that revenue measures that exclude the Iraq
revenues provide better consistency and comparability to prior
periods and assist in understanding trends in the Company’s ongoing
revenues.
(u)
Represents severance costs, which
have been excluded from the segments as management excludes
severance in making operating decisions, including allocating
resources to the Company's segments. Management excludes severance
costs in its measurement of non-GAAP profitability to focus on
those factors it believes to be most relevant to the Company’s
operations.
(v)
In the fourth quarter of 2024,
the Company reorganized the international operations of its
business to realign and consolidate the Company's international
activities. The Company recognized deferred tax assets, net of
valuation allowance, associated with this reorganization, including
from the step-up in tax basis associated with the reorganization.
The Company has excluded the non-cash recognition of the deferred
tax assets associated with this reorganization because of the
significance of this recognition on its reported results. The
Company has also removed the expected non-cash reversal of these
deferred tax assets from its 2025 adjusted effective tax rate and
adjusted earnings per share outlook.
Other notes:
(aa)
Geographic split for transactions
and revenue, including transactions initiated digitally, as earlier
defined, is determined entirely based upon the region where the
money transfer is initiated.
(bb)
Represents the North America
(United States and Canada) (“NA”) region of the Company's Consumer
Money Transfer segment.
(cc)
Represents the Europe and the
Commonwealth of Independent States (“EU & CIS”) region of the
Company's Consumer Money Transfer segment.
(dd)
Represents the Middle East,
Africa, and South Asia (“MEASA”) region of the Company's Consumer
Money Transfer segment, including India and certain South Asian
countries, which consist of Bangladesh, Bhutan, Maldives, Nepal,
and Sri Lanka.
(ee)
Represents the Latin America and
the Caribbean (“LACA”) region of the Company’s Consumer Money
Transfer segment, including Mexico.
(ff)
Represents the Asia Pacific
(“APAC”) region of the Company’s Consumer Money Transfer
segment.
(gg)
Represents transactions conducted
and funded through websites and mobile applications marketed under
the Company’s brands (“Branded Digital”).
View source
version on businesswire.com: https://www.businesswire.com/news/home/20250204893052/en/
Media Relations: Brad Jones media@westernunion.com
Investor Relations: Tom Hadley
WesternUnion.IR@westernunion.com
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