Financial Performance - First quarter 2025 revenue was $984 million, a decrease of 6% year-over-year, primarily due to lower contributions from Iraq[2] - GAAP EPS for Q1 2025 was $0.36, down from $0.41 in the prior year, while adjusted EPS was $0.41, down from $0.45[3] - Total consolidated revenues decreased by 6% to $983.6 million in Q1 2025, down from $1,049.1 million in Q1 2024[24] - Net income for Q1 2025 was $123.5 million, a decrease of 13.5% from $142.7 million in Q1 2024[22] - Consumer Money Transfer revenues fell by 9% to $872.9 million, compared to $962.0 million in the same period last year[24] - The company reported revenues (GAAP) of $3,798 million for FY2024, with a year-over-year decline of 5%[45] - Adjusted revenues (non-GAAP) for FY2024 are projected to be $4,083.3 million, with a year-over-year decline of 3%[39] Segment Performance - Consumer Money Transfer segment revenue decreased 9% on a reported basis, with transactions increasing by 3% compared to the prior year[4] - The Consumer Services segment revenue grew 27% on a reported basis, but was down 3% on an adjusted basis due to challenges in Argentina[8] - The company reported a 27% increase in Consumer Services revenues, rising to $110.7 million from $87.1 million year-over-year[24] - Branded Digital revenue grew 7% on a reported basis, with a 14% increase in transactions[5] Future Projections - The company expects full year 2025 revenue to be between $4,090 million and $4,190 million, with adjusted revenue between $4,115 million and $4,215 million[8] - Operating margin for 2025 is projected to be between 18% and 20% on a GAAP basis, and between 19% and 21% on an adjusted basis[8] - The company anticipates a revenue decline of 6% in Q1 2025 compared to Q1 2024[37] - The effective tax rate (GAAP) for FY2025 is projected to be between 19% and 21%, while the adjusted effective tax rate (non-GAAP) is expected to be between 13% and 15%[47] Cash Flow and Assets - Net cash provided by operating activities increased significantly to $148.2 million, compared to $94.0 million in Q1 2024[22] - Cash and cash equivalents at the end of Q1 2025 were $1,447.4 million, down from $1,540.8 million at the end of Q1 2024[22] - Total assets as of March 31, 2025, were $8,337.9 million, a slight decrease from $8,370.5 million at the end of 2024[20] Taxation - The GAAP effective tax rate for Q1 2025 was 16%, with an adjusted effective tax rate of 10%[8] - The company recorded an effective tax rate (GAAP) of 16% in 1Q24, which is expected to stabilize around 16% in 1Q25[43] Acquisitions and Organizational Changes - The company acquired Eurochange Limited in April 2025, enhancing its retail foreign exchange services in the UK[8] - The Company reorganized its international operations in Q4 2024, recognizing deferred tax assets associated with this reorganization[50] - The Company excluded non-cash recognition of deferred tax assets from its reported results due to its significance[50] Market and Regulatory Environment - The Company experienced a significant increase in business originating from Iraq starting March 2023, attributed to policy changes by U.S. and Iraqi regulators[50] - In July 2023, the U.S. Treasury and the Federal Reserve Bank of New York banned 14 Iraqi banks from conducting U.S. dollar transactions, impacting the Company's operations[50] - The Central Bank of Iraq suspended the Company's largest agent in October 2023, but the agent was later reinstated[50] - Management believes that revenue measures excluding Iraq revenues provide better consistency and comparability to prior periods[50] Transaction Metrics - The number of transactions in Q1 2025 was 70.8 million, a 3% increase compared to 69.0 million in Q1 2024[28] - The geographic split for transactions is based on the region where the money transfer is initiated, with specific regions defined for reporting[50] - Transactions marketed under the Company's brands initiated through digital platforms are categorized as "Branded Digital," excluding those from Iraq due to volatility[50]

Financial Performance - Revenues for the three months ended March 31, 2025, were $983.6 million, a decrease of 6% compared to $1,049.1 million in the same period of 2024[147] - Operating income decreased by 8% to $177.4 million for the three months ended March 31, 2025, down from $192.1 million in 2024[147] - Net income for the three months ended March 31, 2025, was $123.5 million, reflecting a 13% decline from $142.7 million in the prior year[147] - Basic earnings per share decreased by 10% to $0.37 for the three months ended March 31, 2025, compared to $0.41 in 2024[157] - Total expenses for the three months ended March 31, 2025, were $806.2 million, a decrease of 6% from $857.0 million in the same period of 2024[147] - Adjusted revenues (Non-GAAP) decreased by 8% for the three months ended March 31, 2025, primarily due to foreign currency translation and Argentina inflation impacts[151] Segment Performance - Consumer Money Transfer segment accounted for 89% of total revenues in Q1 2025, down from 92% in Q1 2024[161] - Consumer Money Transfer segment revenues decreased by 9% to $872.9 million for the three months ended March 31, 2025, compared to $962.0 million in the same period of 2024[162] - Operating income for the Consumer Money Transfer segment fell by 15% to $159.3 million, with an operating income margin of 18%[162] - Total transactions in the Consumer Money Transfer segment increased by 3% to 70.8 million for the three months ended March 31, 2025[162] - Cross-border principal transferred by consumers rose to $25.8 billion in Q1 2025, up from $24.6 billion in Q1 2024[167] - Adjusted revenue growth for the Consumer Money Transfer segment, net of foreign currency impacts and Argentina inflation, showed a decline of 8%[166] - Consumer Services segment revenues increased by 27% to $110.7 million, with operating income rising by 46% to $27.1 million[173] Cash Flow and Capital Structure - Cash provided by operating activities increased to $148.2 million in Q1 2025, compared to $94.0 million in Q1 2024[187] - As of March 31, 2025, the company had cash and cash equivalents of $1,289.0 million, down from $1,474.0 million at the end of 2024[183] - The company had outstanding borrowings of $2,800.0 million as of March 31, 2025, primarily consisting of unsecured fixed-rate notes[188] - The Revolving Credit Facility was increased to $1.6 billion on February 28, 2025, maturing on November 30, 2029[190] - The company has a total committed balance of $1.6 billion under its Revolving Credit Facility, with no outstanding borrowings as of March 31, 2025[192] - As of March 31, 2025, the company had $350 million in outstanding commercial paper borrowings with a weighted-average annual interest rate of approximately 4.6%[194] - Capital expenditures for the three months ended March 31, 2025, were $24.4 million, compared to $35.1 million for the same period in 2024[197] - The company repurchased 7.0 million shares for $75 million during the three months ended March 31, 2025, at an average cost of $10.76 per share[198] Tax and Liabilities - The board declared quarterly cash dividends of $0.235 per common share, totaling $78.8 million in the first quarter of 2025[199] - The company has a 2017 United States federal tax liability of approximately $800 million, with a final installment of about $221 million due in the second quarter of 2025[202] - As of March 31, 2025, the company had approximately $65 million in outstanding letters of credit and bank guarantees[205] - The company’s total amount of unrecognized income tax benefits was $53.7 million as of March 31, 2025[206] Interest Rates and Sensitivity - The effective tax rate for the three months ended March 31, 2025, was 16.1%, slightly up from 16.0% in 2024[156] - The company’s weighted-average effective rate on total borrowings was approximately 4.5% as of March 31, 2025[218] - A hypothetical 100 basis point increase in interest rates would result in a decrease to pre-tax income of approximately $12 million based on sensitive borrowings[219] - Interest expense increased by 25% to $32.6 million for the three months ended March 31, 2025, compared to $26.1 million in 2024[147] Revenue Impact Factors - A reduction in transactions originating from Iraq negatively impacted revenues by 6% for the three months ended March 31, 2025[152]

Core Viewpoint - Analysts project that Western Union will report a quarterly earnings of $0.42 per share, reflecting a year-over-year decline of 6.7% and revenues of $1 billion, down 4.6% from the same quarter last year [1] Group 1: Earnings Projections - The consensus EPS estimate has been adjusted downward by 1.5% over the past 30 days, indicating a reassessment by covering analysts [1][2] - The importance of earnings projections is highlighted, as they significantly influence investor reactions and short-term stock price movements [2] Group 2: Revenue Estimates - Analysts estimate 'Revenue- Consumer Services' will reach $97.82 million, showing a year-over-year increase of 12.3% [4] - The 'Revenue- Consumer Money Transfer' is projected to be $898.87 million, indicating a decline of 6.6% from the prior-year quarter [4] - The total 'Consumer Money Transfer transactions' are expected to be 68.16 million, slightly down from 69 million a year ago [5] Group 3: Market Performance - Western Union shares have returned -8.9% over the past month, underperforming compared to the Zacks S&P 500 composite's -6.3% change [6] - The company holds a Zacks Rank 4 (Sell), suggesting it is expected to lag the overall market performance in the near future [6]

Core Viewpoint - The market anticipates a year-over-year decline in Western Union's earnings due to lower revenues, with actual results being crucial for stock price movement [1][2]. Earnings Expectations - Western Union is expected to report quarterly earnings of $0.42 per share, reflecting a -6.7% change year-over-year, and revenues are projected to be $1 billion, down 4.6% from the previous year [3]. - The earnings report is scheduled for April 23, 2025, and could lead to stock price increases if results exceed expectations, while missing estimates may result in a decline [2]. Estimate Revisions - The consensus EPS estimate has been revised down by 1.48% over the last 30 days, indicating a bearish sentiment among analysts regarding the company's earnings prospects [4][10]. - The Most Accurate Estimate for Western Union is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -9.40% [10][11]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that a positive Earnings ESP reading is a strong predictor of an earnings beat, particularly when combined with a favorable Zacks Rank [8]. - Western Union currently holds a Zacks Rank of 4, making it challenging to predict an earnings beat conclusively [11]. Historical Performance - In the last reported quarter, Western Union was expected to post earnings of $0.42 per share but delivered only $0.40, resulting in a surprise of -4.76% [12]. - Over the past four quarters, the company has beaten consensus EPS estimates twice [13]. Conclusion - Western Union does not appear to be a compelling candidate for an earnings beat, and investors should consider other factors when making decisions regarding the stock ahead of the earnings release [16].

NEW YORK, April 16, 2025 (GLOBE NEWSWIRE) -- Magnite (NASDAQ:MGNI), the largest independent sell-side advertising company, today announced an agreement with Western Union to support growth of the financial services company's new Media Network business. In doing so, Magnite will provide Western Union with technology to buy media as an advertiser and monetize its owned media. To further increase direct access to streaming inventory, Western Union Media Network is the first commerce media company to leverage M ...

Group 1 - Western Union (NYSE: WU) stock is currently trading at all-time lows, indicating a significant decline in its market value [1] - The article aims to provide a comprehensive history of the factors contributing to the stagnation of Western Union stock, particularly for new investors [1] - The author has a background in the tech industry and aims to identify GARP (Growth at a Reasonable Price) opportunities, suggesting a focus on value investing [1] Group 2 - The author has a beneficial long position in Western Union shares, indicating a personal investment interest in the company [2] - The article expresses the author's own opinions and is not influenced by external compensation, emphasizing an objective analysis [2] - There is no business relationship with any company mentioned in the article, reinforcing the independence of the analysis [2]

Group 1 - Western Union has launched a partnership with HCLTech focused on artificial intelligence to transition to a "platform operating model" for enhanced agility and scalability [1][2] - The collaboration will leverage HCLTech's digital, cloud, and AI solutions to improve platform and channel capabilities, aiming to deliver innovative customer experiences [2][3] - An advanced technology center will be established in Hyderabad, India, to strengthen Western Union's technological capabilities [2][3] Group 2 - Western Union's new media network business contributed to a 56% revenue growth in its Consumer Services unit during the fourth quarter [3] - The media network allows companies to advertise to Western Union customers, reaching a global audience and engaging consumers in a "commerce mindset" [3] - There is a noted apprehension among 91% of organizations using generative AI regarding its impact on sensitive company-wide data [4]

Core Insights - HCLTech and Western Union have formed a strategic partnership aimed at driving innovation and transformation in the financial services industry [1] - HCLTech is now Western Union's largest preferred partner, focusing on empowering fintech companies through digital engineering and innovative solutions [1] Company Overview - Western Union operates in over 200 countries and territories, providing cross-border, cross-currency money movement and digital financial services [2] - HCLTech employs over 220,000 people across 60 countries, with consolidated revenues of $13.8 billion for the 12 months ending December 2024 [3] Partnership Objectives - Transition to a platform operating model using HCLTech's AI-powered solutions to enhance agility and scalability for Western Union [4] - Accelerate platform and channel transformation by leveraging HCLTech's digital, cloud, and AI solutions to improve customer experiences [4] - Utilize HCLTech's expertise in digital engineering to reimagine Western Union's technology landscape and increase operational efficiency [4] - Establish an advanced technology center in Hyderabad, India, to enhance Western Union's global technology capabilities and foster innovation [4]

NEW YORK CITY, March 07, 2025 (GLOBE NEWSWIRE) -- Western Union has been recognized as the leading international money transfer service in Canada, according to Expert Consumers' annual review of financial services. As the global demand for secure and efficient cross-border transactions continues to rise, Western Union remains at the forefront, providing Canadians with a reliable solution for sending money abroad. Top Money Transfer Service Canada Western Union - top choice for secure, flexible, and accessi ...

NEW YORK CITY, March 07, 2025 (GLOBE NEWSWIRE) -- Expert Consumers has recognized Western Union as the top money transfer service for Canadians in 2025. The evaluation highlights Western Union’s reliability, global reach, and commitment to security, which are essential factors in an increasingly digital and interconnected financial landscape. Top Money Transfer Service Western Union: offers the best way to send money from Canada reliably, securely, and conveniently Western Union is a global financial servi ...