Western Union's EPS Surges: A Closer Look at the Full Year 2024 Results

Western Union (NYSE: WU) has reported its full year 2024 earnings, with earnings per share (EPS) surpassing analyst expectations. The company's EPS for the year was $2.74, up from $1.68 in 2023, driven by a 49% increase in net income to $934.2 million. Revenue, however, decreased by 3.4% to $4.21 billion, primarily due to a decline in the Consumer Money Transfer segment.



Western Union's profit margin improved significantly, rising to 22% from 14% in 2023. This increase was primarily driven by lower expenses, as the company focused on improving marketing and technology efficiencies. The company's adjusted operating margin also increased to 19% from 20% in 2023, demonstrating its ability to maintain profitability despite the revenue decline.



The Consumer Money Transfer segment, which accounts for the majority of Western Union's revenue, saw a decline of 3.4% in 2024. However, the Consumer Services segment grew by 28% on a reported basis, or 15% on an adjusted basis, driven by new and expanded products. The Branded Digital business, part of the Consumer Services segment, contributed significantly to this growth, with revenue increasing by 7% on a reported basis, or 8% on an adjusted basis, and transaction growth of 13%.



Western Union's digital strategy has been a key driver of its growth. The company has invested in digital infrastructure and expanded its digital wallet services in Singapore and Mexico. Additionally, it has grown a new advertising business segment, further diversifying its revenue streams. These initiatives have contributed to the company's overall financial performance and growth.

Devin McGranahan, President and Chief Executive Officer of Western Union, stated, "We concluded 2024 with a solid performance, marking our third consecutive quarter of positive adjusted revenue growth, excluding Iraq, which was bolstered by 15% adjusted revenue growth in Consumer Services and the seventh consecutive quarter of double-digit transaction growth in our Branded Digital business. As we enter the final year of our Evolve 2025 strategy, I am pleased with the advancements we have achieved and the positive shift in the Company’s growth trajectory. Looking ahead, I believe we are poised to drive further improvements and efficiencies, and I am confident in our ability to continue delivering value to our investors and stakeholders."



In conclusion, Western Union's full year 2024 earnings results demonstrate the company's ability to maintain profitability and drive growth, despite a decline in its core Consumer Money Transfer segment. The company's focus on improving efficiencies, innovating, and expanding its product offerings has contributed to its overall financial performance and growth. As Western Union enters the final year of its Evolve 2025 strategy, investors can expect the company to continue delivering value and driving further improvements.