| Imagery Source: Usien |
| Information Source: The Western Union Company |
- GAAP revenue of $984 million, down 6% on a reported basis; adjusted revenue, excluding Iraq, was down 2%
|
- Branded Digital reported revenue grew 7%, or 8% on an adjusted basis, with transactions up 14%
|
- GAAP EPS of $0.36, or adjusted EPS of $0.41
|
- Company reaffirms 2025 financial outlook
|
| The Western Union Company (the “Company” or “Western Union”) (NYSE: WU) today reported first quarter 2025 financial results. |
| The Company’s first-quarter revenue of $984 million decreased 6% on a reported basis. The revenue decrease was largely driven by a lower contribution from Iraq compared to the prior year period, which negatively impacted the revenue growth rate by 6 percentage points. |
| “We are proud to have achieved our eighth consecutive quarter of double-digit transaction growth for our Branded Digital business, a testament to the momentum we are building even with an uncertain macroeconomic environment,” said Devin McGranahan, President and Chief Executive Officer. “We continue to focus on accelerating our Evolve 2025 strategy and providing accessible financial services to the aspiring populations of the world, which we believe positions us well to drive improved revenue performance and create long-term shareholder value as the year progresses.” |
| First quarter GAAP EPS was $0.36, down from $0.41 in the prior year period. Adjusted EPS was $0.41, down from $0.45 in the prior year period due to a lower contribution from Iraq in the current period, partially offset by lower operating expenses, a lower adjusted effective tax rate and fewer shares outstanding. |
| Q1 Business Results |
- Consumer Money Transfer (“CMT”) segment revenue decreased 9% on a reported basis, and decreased 2% on an adjusted basis, excluding Iraq, while transactions increased 3% compared to the prior year period.
|
- Branded Digital revenue increased 7% on a reported basis, or 8% on an adjusted basis, with transaction growth of 14% compared to the prior year period. The Branded Digital business represented 28% and 35% of total CMT revenues and transactions in the first quarter, respectively.
|
- Consumer Services segment revenue grew 27% on a reported basis, or was down 3% on an adjusted basis over the prior year period, primarily due to softness in consumer bill payments in Argentina and a delay in a media contract. In April 2025, the Company acquired Eurochange Limited, a provider of retail foreign exchange services and a current CMT partner in the United Kingdom.
|
| Q1 Financial Results |
- GAAP operating margin was 18% in both the current and prior year periods, while the adjusted operating margin was 19% compared to 20% in the prior year period. Adjusted operating margins primarily decreased due to a lower contribution from Iraq in the current period, partially offset by lower operating costs.
|
- The GAAP effective tax rate was 16% for both periods. The adjusted effective tax rate in the quarter was 10%, compared to 16% in the prior year period. The GAAP effective tax rate was impacted by the reorganisation of the Company’s international operations, offset by discrete benefits in the current period. The decrease in the adjusted effective tax rate was primarily due to discrete benefits in the current period.
|
| 2025 Outlook |
| The Company expects the following financial results for full year 2025, which assumes no material changes in macroeconomic conditions, including changes in immigration policies, foreign currencies or Argentina inflation. |
| For the full document, click the link below |
| The Western Union Company |
| Stay ahead of the curve! Subscribe to InsidEntity for daily updates on all your favourite companies. |
