Western Union(US:WU)2025-02-20 21:05Dividends and Shareholder Returns - The Board of Directors declared a quarterly cash dividend of $0.235 per common share for 2024 and 2023, with future dividends dependent on financial conditions and cash generated by operating subsidiaries [198][199]. - Common stock dividends declared were $324.0 million in 2024, compared to $350.3 million in 2023, a decrease of 7.5% [370]. - The company repurchased 14.5 million shares in 2024, costing $186.0 million, compared to 24.9 million shares for $311.2 million in 2023 [370]. Financial Performance - Revenues for the year ended December 31, 2024, were $4,209.7 million, a decrease of 3.4% from $4,357.0 million in 2023 [355]. - Operating income for 2024 was $725.8 million, down 11.2% from $817.5 million in 2023 [355]. - Net income increased significantly to $934.2 million in 2024, compared to $626.0 million in 2023, reflecting a 49.1% increase [355]. - Basic earnings per share rose to $2.75 in 2024, up from $1.69 in 2023, marking a 62.7% increase [355]. - Total expenses for 2024 were $3,483.9 million, a decrease of 1.6% from $3,539.5 million in 2023 [355]. - Comprehensive income for 2024 was $961.0 million, an increase from $626.6 million in 2023 [359]. Assets and Liabilities - Total assets increased to $8,370.5 million in 2024, up from $8,198.8 million in 2023, representing a growth of 2.09% [362]. - Total liabilities decreased to $7,401.6 million in 2024 from $7,719.8 million in 2023, a reduction of 4.12% [362]. - Cash and cash equivalents at the end of 2024 were $2,106.9 million, up from $1,786.2 million in 2023, reflecting a growth of 17.9% [366]. - The company reported a net cash provided by operating activities of $406.3 million in 2024, down from $783.1 million in 2023, indicating a decline of 48.0% [365]. Taxation - The company reported a provision for income taxes of $(315.6) million in 2024, compared to $119.8 million in 2023, indicating a significant tax benefit [355]. - The effective tax rate for the year ended December 31, 2024, was -51.0%, significantly impacted by tax benefits from deferred tax assets and IRS settlements [492]. - Total deferred tax assets increased to $326.9 million in 2024 from $76.5 million in 2023, primarily due to a significant rise in intangibles, property, and equipment [496]. Foreign Currency and Interest Rate Risk - The company manages foreign currency exchange risk through short duration foreign currency forward contracts, with maturities ranging from a few days to one month [302][303]. - A hypothetical 10% strengthening or weakening of the U.S. dollar would have resulted in a decrease/increase to pre-tax annual income of approximately $18 million based on unhedged foreign currency exposure as of December 31, 2024 [304]. - The weighted-average effective rate on total borrowings was approximately 4.3% as of December 31, 2024 [308]. - A hypothetical 100 basis point increase in interest rates would result in a decrease to annual pre-tax income of approximately $8 million based on sensitive borrowings, while the same increase applied to floating rate cash and investments would result in an offsetting increase of approximately $15 million [309]. Business Operations and Segments - The Western Union Company operates in over 200 countries and territories, providing cross-border, cross-currency money movement and digital financial services [373]. - The Consumer Money Transfer segment facilitates money transfers primarily through retail agents and digital platforms, contributing significantly to the Company's revenue [378]. - The company completed the sale of its Business Solutions business on July 1, 2023, which may impact future revenue streams [374]. Shareholder Equity and Retained Earnings - The total stockholders' equity rose to $968.9 million in 2024, up from $479.0 million in 2023, reflecting an increase of 102.1% [370]. - Retained earnings improved to $35.2 million in 2024 from a deficit of $389.1 million in 2023, marking a significant turnaround [370]. Legal and Regulatory Matters - The company faced legal challenges in the DRC, with judgments totaling €19.5 million ($20.3 million as of December 31, 2024) against it [457][459]. - The reasonably possible potential litigation losses were approximately $30 million as of December 31, 2024, exceeding the recorded liability for probable and estimable losses [450]. Impairments and Intangible Assets - The Company recorded approximately $9 million of impairments related to other intangible assets during the year ended December 31, 2023 [407]. - Other intangible assets totaled $914.4 million as of December 31, 2024, with an estimated future aggregate amortization expense of $121.8 million in 2025 [405]. - Amortization expenses for other intangible assets were $141.7 million, $144.5 million, and $141.1 million for the years ended December 31, 2024, 2023, and 2022, respectively [401].