b UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-32903 THE WESTERN UNION COMPANY (Exact name of registrant as specified in its charter) Delaware (State or Other Jurisdiction of Incorpora ...

[Q2 2024 Financial Results](index=1&type=section&id=Western%20Union%20Reports%20Second%20Quarter%202024%20Results) [Performance Highlights](index=1&type=section&id=Performance%20Highlights) Western Union's Q2 2024 GAAP revenue declined 9%, but adjusted revenue grew positively, driven by a 4% increase in total transactions Q2 2024 Key Financial Metrics | Metric | Q2 2024 | Q2 2023 | Change | Note | | :--- | :--- | :--- | :--- | :--- | | **GAAP Revenue** | $1.07 billion | $1.17 billion | -9% | - | | **Adjusted Revenue** | - | - | -7% | Includes 7% headwind from Iraq | | **GAAP EPS** | $0.41 | $0.47 | -13% | - | | **Adjusted EPS** | $0.44 | $0.51 | -14% | - | | **Total Transactions** | - | - | +4% | Led by 13% growth in Branded Digital | - Excluding the impact from Iraq, the company reported **positive adjusted revenue growth** for the **first time since 2021**, which management views as a sign that its new go-to-market strategy is succeeding[3](index=3&type=chunk) - The revenue decline was primarily driven by lower contributions from Iraq, which negatively impacted the adjusted revenue growth rate by **7 percentage points**, and the sale of the Business Solutions segment[2](index=2&type=chunk) [Business Segment Performance](index=1&type=section&id=Business%20Segment%20Performance) CMT revenue declined 10% (9% adjusted) due to Iraq; Branded Digital grew 7% adjusted revenue and 13% transactions, while Consumer Services revenue increased 21% (14% adjusted) Q2 2024 Segment Revenue Growth (YoY) | Segment | Reported Growth | Adjusted Growth | | :--- | :--- | :--- | | **Consumer Money Transfer (CMT)** | -10% | -9% | | **Branded Digital (within CMT)** | +5% | +7% | | **Consumer Services** | +21% | +14% | - CMT total transactions grew **4%**, but excluding the impact from Iraq, transaction growth was **5%**[4](index=4&type=chunk) - Branded Digital now represents **24%** of total CMT revenues and **31%** of transactions[11](index=11&type=chunk) [Profitability and Margins](index=2&type=section&id=Profitability%20and%20Margins) Q2 2024 GAAP and adjusted operating margins declined due to lower Iraq revenue and foreign currency volatility; GAAP effective tax rate decreased significantly Q2 Operating Margin and Tax Rate | Metric | Q2 2024 | Q2 2023 | | :--- | :--- | :--- | | **GAAP Operating Margin** | 17.9% | 20.7% | | **Adjusted Operating Margin** | 19.0% | 21.8% | | **GAAP Effective Tax Rate** | 14.7% | 18.6% | | **Adjusted Effective Tax Rate** | 16.0% | 16.0% | [2024 Full-Year Outlook](index=2&type=section&id=2024%20Outlook) The company reiterated its full-year 2024 financial outlook, projecting GAAP revenue of $4.125-$4.200 billion and adjusted EPS of $1.70-$1.80 Full-Year 2024 Guidance (in millions) | Metric | GAAP | Adjusted | | :--- | :--- | :--- | | **Revenue** | $4,125M - $4,200M | $4,150M - $4,225M | | **Operating Margin** | 18% - 20% | 19% - 21% | | **EPS** | $1.62 - $1.72 | $1.70 - $1.80 | - The outlook assumes revenue from Iraq will be between **$10 million** and **$30 million** per quarter for the rest of the year[8](index=8&type=chunk) [Consolidated Financial Statements (Unaudited)](index=6&type=section&id=Consolidated%20Financial%20Statements%20%28Unaudited%29) [Condensed Consolidated Statements of Income](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) Q2 2024 revenues decreased 9% to **$1.066 billion**, operating income fell 21% to **$190.7 million**, and net income declined 20% to **$141.0 million**, with diluted EPS at **$0.41** Q2 2024 Income Statement Highlights (in millions, except EPS) | Line Item | Q2 2024 | Q2 2023 | % Change | | :--- | :--- | :--- | :--- | | **Revenues** | $1,066.4 | $1,170.0 | (9)% | | **Operating Income** | $190.7 | $242.6 | (21)% | | **Net Income** | $141.0 | $176.2 | (20)% | | **Diluted EPS** | $0.41 | $0.47 | (13)% | [Condensed Consolidated Balance Sheets](index=7&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 30, 2024, total assets were **$7.97 billion**, cash and equivalents **$1.03 billion**, total liabilities **$7.53 billion**, and stockholders' equity **$440.8 million**, all slightly down from year-end 2023 Balance Sheet Summary (in millions) | Account | June 30, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | **Cash and cash equivalents** | $1,033.0 | $1,268.6 | | **Total Assets** | $7,971.3 | $8,198.8 | | **Borrowings** | $2,635.8 | $2,504.6 | | **Total Liabilities** | $7,530.5 | $7,719.8 | | **Total Stockholders' Equity** | $440.8 | $479.0 | [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the six months ended June 30, 2024, net cash from operating activities significantly decreased to **$60.2 million**, with **$68.4 million** used in investing and **$292.6 million** in financing, including **$180.8 million** in share repurchases Six Months Ended June 30 Cash Flow Highlights (in millions) | Cash Flow Activity | 2024 | 2023 | | :--- | :--- | :--- | | **Net Cash from Operating Activities** | $60.2 | $264.0 | | **Net Cash used in Investing Activities** | $(68.4) | $(65.1) | | **Net Cash used in Financing Activities** | $(292.6) | $(609.5) | | **Cash Dividends Paid** | $(162.3) | $(178.7) | | **Common Stock Repurchased** | $(180.8) | $(6.0) | [Supplemental Financial Information](index=9&type=section&id=Supplemental%20Financial%20Information) [Summary Segment Data](index=9&type=section&id=Summary%20Segment%20Data) Q2 2024 CMT revenue was **$965.0 million** (down 10%) with a **19.8%** operating margin; Consumer Services revenue grew **21%** to **$101.4 million**, but its operating margin contracted to **11.0%** Q2 2024 Segment Performance (in millions) | Segment | Revenue | Revenue % Change | Operating Income | Operating Margin | | :--- | :--- | :--- | :--- | :--- | | **Consumer Money Transfer** | $965.0 | (10)% | $191.5 | 19.8% | | **Consumer Services** | $101.4 | 21% | $11.1 | 11.0% | | **Business Solutions** | $— | N/A | $— | N/A | [Key Statistics](index=10&type=section&id=Key%20Statistics) Q2 2024 consolidated adjusted revenue fell **7%**, CMT transactions grew **4%**, Branded Digital transactions grew **13%**, and MEASA revenue declined **35%** due to Iraq, while LACA grew **8%** [Consolidated and CMT Metrics](index=10&type=section&id=Consolidated%20and%20CMT%20Metrics) Q2 2024 Key Performance Indicators (YoY % Change) | Metric | Q2 2024 Change | | :--- | :--- | | **Consolidated Adjusted Revenues** | (7)% | | **CMT Transactions** | 4% | | **CMT Cross-border Principal (Reported)** | (6)% | | **Branded Digital Revenues (Adjusted)** | 7% | | **Branded Digital Transactions** | 13% | [CMT Regional Metrics](index=11&type=section&id=CMT%20Regional%20Metrics) Q2 2024 CMT Regional Performance (YoY % Change) | Region | GAAP Revenue | Adjusted Revenue | Transactions | | :--- | :--- | :--- | :--- | | **NA** | 1% | 1% | 6% | | **EU & CIS** | (6)% | (4)% | 3% | | **MEASA** | (35)% | (35)% | 0% | | **LACA** | 8% | 8% | 2% | | **APAC** | (11)% | (5)% | 6% | [Reconciliation of Non-GAAP Measures](index=13&type=section&id=Reconciliation%20of%20Non-GAAP%20Measures) This section details GAAP to non-GAAP reconciliations, with Q2 2024 adjustments for foreign currency, Business Solutions sale, redeployment, and acquisition costs, adjusting GAAP operating income from **$190.7 million** to **$202.6 million** Q2 2024 Reconciliation of Operating Income (in millions) | Description | Amount | | :--- | :--- | | **Operating income (GAAP)** | **$190.7** | | Acquisition, separation, and integration costs | $0.5 | | Amortization of acquisition related intangible assets | $2.0 | | Redeployment program costs | $9.4 | | **Adjusted operating income (non-GAAP)** | **$202.6** | Reconciliation of Diluted EPS | Description | Q2 2024 | | :--- | :--- | | **Diluted EPS (GAAP)** | **$0.41** | | Pretax impact from Amortization | $0.01 | | Pretax impact from Redeployment program costs | $0.03 | | Income tax benefit impacts | $(0.01) | | **Adjusted diluted EPS (non-GAAP)** | **$0.44** | [Other Information](index=3&type=section&id=Other%20Information) [Investor and Analyst Conference Call](index=3&type=section&id=Investor%20and%20Analyst%20Conference%20Call) A conference call and webcast for investors and analysts is scheduled for 4:30 p.m. ET on July 30, 2024, to discuss quarterly results, with details available online - A conference call and webcast is scheduled for **4:30 p.m. ET on July 30, 2024**[14](index=14&type=chunk) - The webcast, presentation, and replay will be available on the company's investor relations website[14](index=14&type=chunk) [Safe Harbor Compliance Statement](index=4&type=section&id=Safe%20Harbor%20Compliance%20Statement) This section provides a forward-looking statements disclaimer, highlighting risks such as economic conditions, competition, geopolitical tensions, regulatory changes, and cybersecurity threats - The press release contains forward-looking statements that are not guarantees of future performance and involve risks and uncertainties[16](index=16&type=chunk) - Key risk factors include changes in economic conditions, competition, geopolitical tensions, regulatory compliance failures, and cybersecurity breaches[17](index=17&type=chunk) [About Western Union](index=5&type=section&id=About%20Western%20Union) Western Union is a global leader in cross-border, cross-currency money movement, operating in over **200 countries** and **130 currencies** with a vast network of bank accounts, digital wallets, and retail locations - Western Union operates in over **200 countries and territories** and more than **130 currencies**[19](index=19&type=chunk) - The company's network includes billions of bank accounts, millions of digital wallets and cards, and hundreds of thousands of retail locations[19](index=19&type=chunk)

Swiss pharma giant Roche Holding AG (RHHBY) posted strong growth in the second quarter and first half of 2024 that propelled the company to raise its annual earnings guidance.Second-quarter revenues increased 7% to CHF 15.4 billion. Sales were up 9% at constant exchange rates (CER) as the decline in COVID-19-related product sales no longer affected the overall top-line growth.The company reports under two divisions — Pharmaceuticals and Diagnostics. All growth rates mentioned below are on a year-over-year b ...

The most recent trading session ended with Western Union (WU) standing at $12.61, reflecting a +1.2% shift from the previouse trading day's closing. The stock outpaced the S&P 500's daily gain of 1.08%. On the other hand, the Dow registered a gain of 0.32%, and the technology-centric Nasdaq increased by 1.58%.Shares of the money transfer company witnessed a gain of 0.97% over the previous month, beating the performance of the Business Services sector with its loss of 3.28% and the S&P 500's gain of 0.43%.In ...

Western Union (WU) closed at $12.60 in the latest trading session, marking a +1.2% move from the prior day. The stock outperformed the S&P 500, which registered a daily gain of 0.64%. Elsewhere, the Dow gained 1.85%, while the tech-heavy Nasdaq added 0.2%.Prior to today's trading, shares of the money transfer company had gained 2.13% over the past month. This has lagged the Business Services sector's gain of 2.71% and the S&P 500's gain of 3.82% in that time.Investors will be eagerly watching for the perfor ...

Core Insights - Western Union is positioned for growth due to increasing transaction volumes and strong performance in its Consumer Money Transfer segment across various regions [1][2] - The company has a market cap of $4.2 billion and its shares have gained 3.9% year-to-date, outperforming the industry [1] - The forward 12-month price-to-earnings ratio of 6.85X is significantly lower than the industry average of 20.83X, indicating affordability [1] Financial Performance - The Zacks Consensus Estimate for Western Union's current-year earnings is $1.76 per share, reflecting a 1.2% increase from the previous year [1] - The consensus estimate for current-year revenues is nearly $4.2 billion, with expectations of a 10% year-over-year revenue increase in the Consumer Services business for 2024 [2] - In the first quarter, the company distributed $80 million in dividends and $150 million in share buybacks, showcasing its commitment to returning value to shareholders [2] Strategic Initiatives - Collaborations with fintechs and financial institutions are enhancing service offerings, with innovations like Send Now, Pay Later expected to improve market penetration [2] - The extensive global network of Western Union, covering over 200 countries and territories, strengthens its market position and accessibility [2] Shareholder Value - As of March 31, 2024, Western Union had $198.2 million remaining in share repurchase authorization for the year [3] - Last year, the company returned $646 million to shareholders through buybacks and dividends, indicating a strong commitment to shareholder value [3] Dividend Yield - Western Union's current dividend yield is 7.6%, significantly higher than the industry average of 0.8%, likely attracting investor interest [2]

The Western Union Company (WU) recently teamed up with the payment institution, Cash Plus, to unveil Africa’s first "concept store" in the satellite city of Errahma, Morocco.A concept store provides access to personalized, safe and seamless international money transfer services in a high-traffic area. The store has been designed to provide easy access to a wide array of services and more flexibility, thus ensuring customers can connect with dedicated service representatives for personalized support and guid ...

Western Union (WU) ended the recent trading session at $12.19, demonstrating a +1.08% swing from the preceding day's closing price. The stock exceeded the S&P 500, which registered a gain of 0.77% for the day. On the other hand, the Dow registered a gain of 0.49%, and the technology-centric Nasdaq increased by 0.95%.Shares of the money transfer company have depreciated by 8.22% over the course of the past month, underperforming the Business Services sector's loss of 0.77% and the S&P 500's gain of 3.71%.Mar ...

Western Union (WU) closed the most recent trading day at $12.59, moving -1.41% from the previous trading session. The stock fell short of the S&P 500, which registered a gain of 0.27% for the day. Meanwhile, the Dow lost 0.31%, and the Nasdaq, a tech-heavy index, added 0.88%.The money transfer company's stock has dropped by 4.49% in the past month, falling short of the Business Services sector's loss of 0.58% and the S&P 500's gain of 2.85%.Market participants will be closely following the financial results ...

The most recent trading session ended with Western Union (WU) standing at $12.77, reflecting a -0.93% shift from the previouse trading day's closing. The stock trailed the S&P 500, which registered a daily gain of 0.26%. On the other hand, the Dow registered a gain of 0.18%, and the technology-centric Nasdaq increased by 0.35%.Prior to today's trading, shares of the money transfer company had lost 3.08% over the past month. This has lagged the Business Services sector's loss of 0.47% and the S&P 500's gain ...