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What does The Western Union do and what are its main business segments?

Did The Western Union beat or miss consensus estimates last quarter?

What is the revenue and EPS growth rate for The Western Union year over year?

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What factors drove the changes in The Western Union's revenue and profit?

What were the key takeaways from The Western Union’s earnings call?

- **Revenue resilience**: $1.03B Q3 revenue with Consumer Services up 49% (Travel Money +50%), offsetting North America retail decline.
- **Digital acceleration**: 12% transaction growth in digital channels, 50%+ payout-to-account principal, 0.5M digital wallet users.
- **Strategic wins**: Intermex acquisition to expand U.S. agent network; Eurochange driving 50% of Consumer Services growth.
- **Financial strength**: 19% operating margin, $400M+ free cash flow, $120M+ quarterly shareholder returns.
- **Future growth**: 2026 Travel Money target of $150M, digital wallet revenue to $150M+, stable 19-21% margins.

**【CEO Summary Section】**
- Q3 2025 revenue: $1.033 billion (down 1% YoY excluding Iraq), driven by Consumer Services (+49%) and digital growth, offset by North America retail weakness.
- Key markets: Europe (+mid-single digits), South America (+12% digital transactions), Asia (+6% digital revenue). U.S. to Mexico corridor down 8% YoY but showing stabilization.
- Strategic initiatives: Intermex acquisition (10,000+ locations) to expand U.S. independent agent network; digital wallet launches in 7 countries (0.5M users) with 15%+ payout-to-account adoption in Argentina.
- Long-term vision: Digital-first transformation with 50%+ transactions via digital channels, expansion of payout-to-account (now 50% of digital principal), and stable 19-21% operating margins.

**【CFO Financial Commentary】**
- Adjusted EPS: $0.47 (up 2% YoY), driven by 19% operating margin (vs. 18% YoY) and $400M+ free cash flow.
- Consumer Services: $150M+ Travel Money revenue target for 2026, 22% segment margin (up 1,300bps YoY).
- Digital business: 12% transaction growth (8th consecutive quarter), 6% revenue growth, 40%+ payout-to-account principal growth.
- Balance sheet: $1B cash, $2.6B debt (2.6x gross leverage), $120M+ quarterly shareholder returns.

**【Q&A Key Highlights】**
- **North America trends**: August 2025 saw 17% YoY decline vs. July 2025 (13%), but September/October showed stabilization; Bank of Mexico data supports 8% YoY decline in Q3.
- **Digital penetration**: 38% of transactions digital (up from 35% Q2), with 55%+ digital-initiated transactions; Middle East partnerships drive 12% transaction growth.
- **Consumer Services growth**: Eurochange acquisition contributed ~50% of Q3 CS growth; Travel Money to reach $150M+ in 2026.
- **Intermex integration**: 3 U.S. metro markets with strategic pricing model, aiming for nationwide rollout by end-2026.
- **Digital wallet adoption**: 15% of Argentina payouts via wallets, 5% in Brazil; targeting $150M+ digital wallet revenue in 2026.


The Western Union Company (WU) Q3 2025 Earnings Call Transcript

- **Resilient Growth Despite Headwinds**: Q2 revenue $1.026B (-1% YoY ex-Iraq), driven by 6% digital revenue growth and 40% consumer services expansion. Travel Money business nearing $100M annual run rate.
- **Digital Transformation Accelerated**: New 1% remittance tax expected to affect <20% of revenue; 50% of U.S. CMT via noncash methods. Digital wallet adoption to reduce exposure further.
- **AI and Stablecoin Innovations**: AI reducing customer service handle times by 50%; stablecoin pilots for faster settlements and lower capital requirements.
- **Strategic Expansion**: Europe retail growth (+15% Spain, +80% payout-to-account), U.S. digital wallet rollout, and Travel Money expansion highlight long-term opportunities.


**【CEO Summary Section】**
- **Revenue Performance**: Q2 2025 adjusted revenue of $1.026 billion, down 1% YoY (excluding Iraq). Consumer Money Transfer (CMT) transactions declined 3%, but principal growth was mid-single digits on a constant currency basis. Digital business revenue grew 6%, while consumer services revenue surged 40% due to the Eurochange acquisition and strong travel demand.
- **Strategic Initiatives**: Emphasized the Evolve 2025 strategy, focusing on customer-centricity, execution rigor, and omnichannel experiences. Travel Money business nearing $100 million in annual revenue. AI adoption driving cost efficiencies (e.g., 50% reduction in customer service handle times).
- **Macro Challenges**: U.S. immigration enforcement and policy changes impacting transaction volumes, particularly in the U.S. to Mexico corridor. New 1% remittance tax on cash-based transactions expected to affect <20% of global revenue, with plans to accelerate digital wallet adoption to mitigate impact.
- **Stablecoin Exploration**: Testing stablecoin solutions for back-end treasury operations, including faster settlements and lower capital requirements. Exploring partnerships for on/off-ramp services in regions with currency controls.

**【CFO Financial Commentary】**
- **Financial Results**: GAAP revenue $1.0 billion; adjusted EPS $0.42 (down from $0.44 YoY). Operating margin remained stable at 19%, benefiting from cost savings ($40M year-to-date) and FX gains, offset by higher fraud losses.
- **Segment Performance**: 
  - **CMT**: Transactions down 3% (2% ex-Iraq), PPT up 5% YoY. Digital revenue growth muted by loyalty accruals but expected to improve in H2.
  - **Retail**: North America weakness (-Vigo growth), Europe strong (Spain +15%, U.K. exclusive U.K. Post deal).
  - **Consumer Services**: +41% Q2, driven by Travel Money (+50% contribution) and bill-pay growth.
- **Outlook**: 2025 guidance revised to $4.035B-$4.135B revenue, 19%-21% operating margin, $1.65-$1.75 EPS. Digital and consumer services expected to drive growth.

**【Q&A Highlights】**
- **Remittance Tax Impact**: <20% of revenue exposed; 50% of U.S. CMT via noncash methods. Digital wallet adoption could reduce exposure to 15%. No material impact expected, but infrastructure investments underway.
- **Stablecoin Opportunities**: Testing on/off-ramp solutions with partners in Latin America and Africa. Potential to reduce capital deployment and improve liquidity management.
- **Market Resilience**: Despite U.S. headwinds, global migration trends remain strong. Europe and Middle East digital growth offset U.S. slowdown. Consumer Services (Travel Money) expected to grow 40%+ in 2025.
- **AI Efficiency**: AI tools reducing handle times by 50%, improving QA sampling from <1% to 90%. Treasury AI pilots optimizing pre-funding needs.


The Western Union Company (WU) Q2 2025 Earnings Call Transcript

- **Resilient Growth Despite Headwinds**: 3% transaction growth (ex-Iraq) driven by Europe and Middle East, offsetting Americas slowdown. Digital revenue +8%, APN growth 35%.
- **Strategic Acquisitions Pay Off**: Eurochange adds 1% 2025 revenue, boosting Travel Money segment and FX services.
- **Financial Discipline**: $140M operational savings, 19% operating margin, and $148M cash flow support $1.75-$1.85 EPS guidance.
- **Geopolitical Risks Managed**: Diversified global footprint cushions U.S. migration trends, with Europe and Middle East outperforming.

**【CEO Summary Section】**
- **Evolve 2025 Strategy Progress**: 7 consecutive quarters of >3% transaction growth (excluding Iraq, Russia, Belarus), driven by competitive pricing and improved customer experience. Europe shows double-digit transaction growth, while Americas face geopolitical headwinds.
- **Regional Performance**: Rest of World (50% of CMT revenue) grows with double-digit transaction growth in Middle East, Europe, and APAC. Americas show deceleration in North America (1.5% transaction decline) and LACA (200bps slowdown), but principal per transaction (PPT) increases mid-single digits.
- **Digital Growth**: Branded digital revenue up 8%, transactions +14%, with 35% growth in payout-to-account (APN) business. Loyalty program relaunch in U.S. impacts Q1 revenue but aims to boost retention.
- **Acquisition Update**: Eurochange acquisition in U.K. adds 1% revenue growth in 2025, enhancing Travel Money segment and FX services.

**【CFO Financial Commentary】**
- **Q1 2025 Results**: GAAP revenue $984M, adjusted revenue -2% YoY. Adjusted EPS $0.41 (-$0.04 YoY) due to lower Iraq contributions. Operating margin 19% (vs. 20% YoY), benefiting from $30M operational savings (total $140M YTD).
- **Guidance 2025**: Adjusted revenue $4.115B-$4.215B, operating margin 19%-21%, EPS $1.75-$1.85. Branded digital and Consumer Services growth offset retail challenges. Operational efficiency savings to drive bottom-line impact.
- **Cash Flow & Balance Sheet**: Operating cash flow $148M (+50% YoY). Debt $2.8B, leverage 2.8x (investment-grade). Final $200M tax payment completed, freeing cash for M&A or buybacks.

**【Q&A Highlights】**
- **Digital Channel Migration**: Slow in North America, with channel mix stable. PPT growth in retail suggests customers send less frequently but larger amounts, possibly due to geopolitical risk aversion.
- **Macroeconomic Risks**: Argentina bill pay business down double-digits, but Europe's Travel Money business poised for growth. U.S. outbound to non-Mexico Latin America shows digital strength (2% transaction growth).
- **Travel Money Expansion**: Eurochange adds 200+ U.K. locations, complementing Spain, Italy, and Singapore. Target: Travel Money to surpass retail money orders by year-end.
- **Competitive Dynamics**: Consolidation in retail, with Western Union focusing on agent productivity and pricing in North America, mirroring successful Europe strategy.

The Western Union Company (WU)-23 Apr 25-2025 Q1 Earnings call transcript

- **Revenue Growth Accelerates**: Q4 2024 adjusted revenue ex-Iraq up 1.4%, with Consumer Services segment growing 23%.
- **Digital Expansion**: 70,000 locations now use cloud-based POS, with plans to launch next-gen platform in 10+ countries.
- **Retail Turnaround**: Global retail transaction growth improved 500bps since 2022, targeting 2025 for first positive year-over-year growth.
- **Financial Strength**: 2024 adjusted EPS $1.74, with $500M returned to shareholders via dividends and buybacks.
- **2025 Outlook**: Target 1% adjusted revenue growth, $1.75-$1.85 EPS, and completion of $150M expense savings program.

**【CEO Summary Section】**
- Reported Q4 2024 revenue of $1.06 billion, with 1.4% adjusted revenue growth ex-Iraq, the third consecutive quarter of positive growth.
- Consumer Services segment grew 23% in Q4, driven by Media Network, foreign exchange, and retail money order businesses.
- Digital business transaction growth reached 13% in Q4, with 70,000 locations now using a new cloud-based POS system.
- Emphasized retail business turnaround, with 500-basis point improvement in transaction growth since 2022, and plans to expand owned locations in high-volume corridors.
- Highlighted strategic partnerships, including Urpay in Saudi Arabia and du Pay in UAE, to enhance digital footprint.

**【CFO Financial Commentary】**
- Full year 2024 GAAP revenue $4.2 billion, with adjusted revenue growth ex-Iraq of 0.5%, ahead of 2022 Investor Day targets.
- Q4 adjusted EPS $0.40, up 8% YoY, driven by higher operating profit and lower tax rate.
- 2025 outlook: adjusted revenue $4.115-$4.215 billion (1% growth midpoint), adjusted EPS $1.75-$1.85.
- $150 million expense redeployment program completed two years ahead of schedule, with $110 million savings achieved.
- $1 billion share repurchase authorization approved, maintaining 9% dividend yield.

**【Q&A Key Highlights】**
- **Digital Growth Drivers**: Branded digital revenue growth of 8% in Q4, with 30% account payout transaction growth. Plans to launch next-gen platform in 10+ countries in 2025.
- **Consumer Services Margin**: Operating margin improved 200bps to 11% in Q4, targeting long-term margins above company average.
- **Retail Business Volatility**: North America softness due to U.S.-Mexico migration patterns, but global retail transactions down 2% in 2024 vs. 7% in 2022.
- **M&A Strategy**: DASH and Mexico digital wallet acquisitions pending regulatory approval, expected to close H2 2025.
- **Crypto Outlook**: Exploring crypto for float reduction and SWIFT efficiency, but prioritizing regulatory compliance.


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