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| Information Source: The Western Union Company |
- GAAP revenue was $1.03 billion, flat versus the prior year period; adjusted revenue, excluding Iraq, was down 1%
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- Branded Digital revenue grew 7% on a reported basis and 6% on an adjusted basis, with transactions up 12%
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- Consumer Services revenue grew 49% on both a reported and an adjusted basis.
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- GAAP EPS of $0.43, or adjusted EPS of $0.47
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| The Western Union Company (the “Company” or “Western Union”) (NYSE: WU) today reported third quarter 2025 financial results. |
| The Company’s third-quarter revenue of $1.03 billion was flat relative to the prior year period on a reported basis, while adjusted revenue, excluding Iraq, decreased 1%. The change in adjusted revenue was largely driven by growth in our Consumer Services and Branded Digital businesses, offset by a slowdown in our North America retail business. |
| “As we advance our strategy, we are diversifying and making meaningful progress in broadening our Consumer Services offerings, deepening our presence across key markets, and embedding a more efficient operating model to drive sustainable growth”, said Devin McGranahan, President and Chief Executive Officer. “Our ability to adapt and execute in dynamic conditions reflects the durability of our business model, the power of our brand recognition and the value of global reach.” |
| Third quarter GAAP EPS was $0.43, down from $0.78 in the prior year period. Adjusted EPS was $0.47 in the third quarter, up from $0.46 in the prior year period. The GAAP EPS in the prior period was affected by a $0.40 benefit from a settlement with the U.S. Internal Revenue Service regarding the Company’s 2017 and 2018 federal income tax returns. Both GAAP and Adjusted EPS benefited in the current period from improved cost efficiencies and fewer shares outstanding, partially offset by higher interest expense and a higher tax rate. |
| Q3 Business Results |
- Consumer Services segment revenue grew 49% on both a reported and an adjusted basis compared to the prior year period, driven by the expansion of our Travel Money business, which included the acquisition of Eurochange Limited, and higher revenues from our Argentina bill pay business.
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- Branded Digital revenue increased 7% on a reported basis, and 6% on an adjusted basis, with transaction growth of 12% compared to the prior year period. The Branded Digital business represented 29% and 38% of total Consumer Money Transfer (“CMT”) revenues and transactions in the third quarter, respectively.
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- CMT segment revenue decreased 6% on a reported basis, and on an adjusted basis, excluding Iraq, revenues and transactions declined 7% and 2%, respectively, compared to the prior year period.
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| Q3 Financial Results |
- GAAP operating margin was 20% in the current year period, up from 16% in the previous year period, while the adjusted operating margin was 20% in the current year period, up from 19% in the prior year period. GAAP and adjusted operating margin benefited from improved cost efficiencies.
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- The GAAP effective tax rate was a provision of 17% compared to the prior year's benefit of 95%. The prior year's GAAP effective tax rate was primarily impacted by the benefit related to the IRS settlement. The adjusted effective tax rate was 12% in the current year period, up from 8% in the prior year period, with the increase due to discrete benefits in the prior period.
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| 2025 Outlook |
| The Company expects the following financial results for the full year 2025, which assumes no material changes in macroeconomic conditions, including changes in immigration policies, foreign currencies or Argentina inflation, and represents no change versus the previous outlook. |
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2025 Outlook |
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GAAP |
Adjusted |
| Revenue(1) |
$4,085 to $4,185 |
$4,035 to $4,135 |
| Operating Margin |
18% to 20% |
19% to 21% |
| EPS(2) |
$1.45 to $1.55 |
$1.65 to $1.75 |
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| 1 In millions, adjusted revenue excludes the impact of currency and Argentina inflation in quarters when hyperinflationary (over 50% within a quarter) |
| 2 The GAAP effective tax rate is expected to be 19% to 21% and the adjusted effective tax rate is expected to be 13% to 15%. |
| Non-GAAP Measures |
| Western Union presents 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 revenues translate revenues denominated in foreign currencies to the United States dollar, net of the effect of foreign currency hedges, at rates consistent with those in the prior year. The Company calculates Argentina inflation as the revenue growth not attributable to either transaction growth or the price change (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. |
| For the full document, click the link below |
| The Western Union Company |
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