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Western Union posts USD 1.4bn of 1Q14 revenue.

BANKING AND CREDIT NEWS-May 8, 2014--Western Union posts USD 1.4bn of 1Q14 revenue

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8 May 2014 - Colorado US-based money transfer firm The Western Union Co (NYSE: WU) said its 1Q14 revenues increased 2% compared to the prior year period or 4% on a constant currency basis.

Consumer-to-Consumer revenues increased 3%, or 4% constant currency, while transactions increased 9%. Transaction growth continued to benefit from the previously implemented pricing actions in key corridors, as well as strong performance from westernunion.com online money transfer.

Westernunion.com C2C transactions increased 55% in the quarter, and revenue increased 45%. Electronic channels, which include westernunion.com, account based money transfer through banks, and mobile money transfer, represented 6% of total company revenues in the quarter.

Consumer-to-Business revenues declined 4%, or increased 7% constant currency. The differential between reported and constant currency revenue changes in C2B was primarily the result of devaluation of the Argentine peso.

Western Union Business Solutions revenues increased 7%, or 10% on a constant currency basis, marking the third consecutive quarter of double digit constant currency revenue growth for the segment.

GAAP operating margin was 20.1% in the first quarter, which compares to 22.4% in 1Q13. The margin decline from prior year is primarily due to increases in C2C retail commission rates, higher compliance expenses, and C2B mix, partially offset by benefits from cost savings initiatives and lower integration costs.

Earnings per share were USD 0.37 both in the 2014 first quarter and in the prior year period. 1Q14 cash flow from operating activities totaled approximately USD 197m.

The company returned USD 248m to shareholders in the quarter, consisting of USD 180m of share repurchases and USD 68m of dividends.

Western Union, together with its Vigo, Orlandi Valuta, Pago Facil and Western Union Business Solutions branded payment services, provides consumers and businesses with ways to send and receive money around the world, to send payments and to purchase money orders.

As of March 31, 2014, the Western Union, Vigo and Orlandi Valuta branded services were offered through a combined network of over 500,000 agent locations in 200 countries and territories and over 100,000 AT.

Find out more at www.westernunion.com.

1 USD = 0.59 GBP

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Publication:M2 Banking & Credit News (BCN)
Date:May 8, 2014
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