The Western Union Co (WU, Financial) released its 8-K filing on July 30, 2024, detailing its financial performance for the second quarter of 2024. Western Union, the largest money transfer company in the world, provides domestic and international money transfers through its global network of about 600,000 outside agents and handled over 270 million transactions in 2023.
Performance Overview
The Western Union Co (WU, Financial) reported second-quarter revenue of $1.07 billion, a 9% decrease on a reported basis and a 7% decrease on an adjusted basis. The decline was primarily driven by lower contributions from Iraq and the sale of Business Solutions. Despite these challenges, the company saw a 4% growth in Consumer Money Transfer transactions, led by a 13% increase in Branded Digital transactions.
Financial Achievements
Western Union's Consumer Services segment showed robust growth, with revenue increasing by 21% on a reported basis and 14% on an adjusted basis. This growth was driven by new or expanded products, particularly in retail foreign exchange and Retail Money Order business.
Income Statement Highlights
| Metric | Q2 2024 | Q2 2023 | % Change |
|---|---|---|---|
| Revenue | $1.07 billion | $1.17 billion | -9% |
| GAAP EPS | $0.41 | $0.47 | -13% |
| Adjusted EPS | $0.44 | $0.51 | -14% |
GAAP EPS for the second quarter was $0.41, down from $0.47 in the prior year period. Adjusted EPS was $0.44, compared to $0.51 in the previous year. The decline in EPS was attributed to lower operating profit due to reduced revenue from Iraq, partially offset by a lower share count.
Balance Sheet and Cash Flow
As of June 30, 2024, Western Union reported total assets of $7.97 billion, down from $8.20 billion at the end of 2023. Cash and cash equivalents stood at $1.03 billion, a decrease from $1.27 billion. The company also reported a decrease in accounts payable and accrued liabilities, from $453.0 million to $376.5 million.
Key Metrics and Analysis
Western Union's operating margin for the quarter was 17.9%, down from 20.7% in the prior year period. The adjusted operating margin was 19.0%, compared to 21.8% previously. The decrease in margins was mainly due to lower contributions from Iraq and increased foreign currency volatility.
"This quarter we reported positive adjusted revenue growth for the first time since 2021, excluding Iraq. This demonstrates we are turning the corner on a number of the initiatives we put into place as part of our new go-to-market strategy," said Devin McGranahan, President and Chief Executive Officer.
Outlook for 2024
Western Union reiterated its full-year 2024 outlook, expecting GAAP revenue between $4.125 billion and $4.200 billion and adjusted revenue between $4.150 billion and $4.225 billion. The company also projected GAAP EPS to range from $1.62 to $1.72 and adjusted EPS from $1.70 to $1.80.
For more detailed financial information, readers can access the full 8-K filing.
Explore the complete 8-K earnings release (here) from The Western Union Co for further details.
