Western Union(US:WU)2025-04-23 20:06Financial 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]