Q3 2024 Western Union Co Earnings Call Transcript
Key Points
- The Western Union Co (WU) reported a 4% growth in consumer money transfer transactions, excluding Iraq, marking the fifth consecutive quarter of mid-single-digit growth.
- Branded digital business saw a 15% increase in transaction growth, with revenue growth improving by 200 basis points compared to the prior quarter.
- Consumer Services segment achieved 15% adjusted revenue growth, driven by expansion in the FX business and Media Network business.
- The company has successfully rolled out a new point-of-sale system, improving transaction speed and efficiency, with plans to expand to 25,000 agent locations by the end of the year.
- The Western Union Co (WU) has signed agreements to acquire digital wallet businesses in Singapore and Mexico, aiming to expand its digital financial ecosystem and enhance its market position.
- The company faced challenges in the Latin America region due to political events affecting migration flows, impacting approximately 10% of consumer money transfer revenue.
- Adjusted operating margins decreased to 19.1% from 19.6% last year, primarily due to lower Iraq revenue and strategic investments in Consumer Services.
- The retail business in North America experienced a slowdown, particularly in the US to Mexico corridors, attributed to macroeconomic factors.
- Despite improvements, the retail business excluding Iraq saw a 4% year-over-year decline in revenue on an FX-neutral basis.
- The company's revenue from Iraq was at the lower end of the expected range, contributing to ongoing volatility and uncertainty in financial results.
Good day, and welcome to the Western Union third quarter 2024 results conference call. (Operator Instructions). Please note that this event is being recorded.
I would now like to turn the conference over to Tom Hadley, Vice President of Investor Relations. Tom, please go ahead.
Thank you. On today's call, we will discuss the company's third quarter 2024 results, and then we will take your questions. The slides that accompany this call and webcast can be found at westernunion.com under the Investor Relations tab and will remain available after the call. Additional operational statistics have been provided in supplemental tables with our press release.
Joining me on the call today is our CEO, Devin McGranahan, and our CFO, Matt Cagwin. Today's call is being recorded, and our comments include forward-looking statements. Please refer to the cautionary language in the earnings release and in Western Union's filings with the Securities and Exchange Commission, including the 2023 Form 10-K
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