{"id":523372,"date":"2021-08-04T16:10:55","date_gmt":"2021-08-04T20:10:55","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/western-union-reports-second-quarter-results\/"},"modified":"2021-08-04T16:10:55","modified_gmt":"2021-08-04T20:10:55","slug":"western-union-reports-second-quarter-results","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/western-union-reports-second-quarter-results\/","title":{"rendered":"Western Union Reports Second Quarter Results"},"content":{"rendered":"

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Western Union Reports Second Quarter Results<\/b><\/p>\n

Total Company GAAP revenues grow 16%, or 13% constant currency, to $1.3 billion; GAAP earnings per share (EPS) of $0.54, adjusted EPS of $0.48<\/i><\/b><\/p>\n

Digital money transfer revenues reach a new quarterly high of over $265 million with more than $500 million generated year-to-date<\/i><\/b><\/p>\n

Announced divestiture of Western Union Business Solutions, supporting the Company\u2019s strategic focus on its unique, global cross-border money transfer and payments platform and digital capabilities to serve an array of partners and use cases<\/i><\/b><\/p>\n

Reaffirms 2021 adjusted financial outlook <\/i><\/b><\/p>\n

DENVER–(BUSINESS WIRE<\/a>)–
\nThe Western Union Company (NYSE: WU), a global leader in cross-border, cross-currency money movement and payments, today reported second quarter financial results and reaffirmed key components of its 2021 financial outlook, while also updating certain metrics for the planned termination of the Company\u2019s pension plan, resulting in the recognition of non-cash expenses, and the planned divestiture of Western Union Business Solutions. In its announcement of the planned divestiture, Western Union separately communicated today that it has reached a definitive agreement to sell its Business Solutions business to Goldfinch Partners, LLC (\u201cGoldfinch\u201d) and The Baupost Group (\u201cBaupost\u201d).\n<\/p>\n

\nThe Company\u2019s second quarter revenue of $1.3 billion increased 16% on a reported basis, or 13% constant currency, compared to the prior year period. While year-over-year revenue growth benefited from a favorable comparison to the prior year period which was impacted by COVID-19, sequential quarterly growth was also strong led by improvement in retail money transfer and sustained growth in digital money transfer, which grew to a new quarterly high of over $265 million in revenue.\n<\/p>\n

\nGAAP EPS in the second quarter was $0.54 compared to $0.39 in the prior year period. The increase in GAAP EPS was driven by revenue growth, the gain on an investment sale, and a lower effective tax rate, partially offset by debt retirement expenses, compensation-related expenses, and strategic investments in marketing and technology.\n<\/p>\n

\nAdjusted EPS was $0.48 compared to $0.41 in the prior year period and was affected by the same factors impacting GAAP EPS noted above excluding certain items, which are detailed in the \u201cAdjustment Items\u201d section of this press release.\n<\/p>\n

\nPresident and CEO Hikmet Ersek said, \u201cOur second quarter results put us on track to achieve our 2021 adjusted financial outlook with strong top-line trends bolstered by continued growth in our digital business, which we expect will generate over $1 billion in revenue this year, and sequential improvement in our retail business. As we look toward the second half of 2021, while we recognize potential risks remain, we are optimistic that the business will continue to deliver solid top-line growth.\u201d\n<\/p>\n

\nErsek added, \u201cWith the planned sale of Western Union Business Solutions, we will be fully focused on increasing our penetration of the global cross-border consumer payments market, expanding our open platform strategy, which enables us to serve multiple customer segments and use cases, including through digital partnerships with financial institutions, telecoms, and technology companies, and increasing our total addressable market through a Western Union-branded ecosystem strategy. As the foundation of our strategy, we will continue to leverage our scalable, global platform, which is rooted in industry-leading network and compliance capabilities and our trusted brand.\u201d\n<\/p>\n

\nCFO Raj Agrawal stated, \u201cWe\u2019re pleased with the momentum of our business as revenues grew 16%. Additionally, we generated adjusted margins of over 20% while continuing to make strategic investments. Year-to-date, we have generated strong operating cash flow of nearly $350 million and have returned more than $340 million to shareholders through a combination of dividends and share repurchases. Based on our continued progress, we are affirming key aspects of our financial outlook and adjusted metrics for 2021 today.\u201d\n<\/p>\n

Q2 Business Highlights<\/span><\/b><\/p>\n