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The Western Union Company (NYSE: WU) today reported financial results for the 2013 second quarter. The Company also affirmed its full year financial outlook provided on April 30, 2013.
“The strategy we laid out at the beginning of the year is working,” said
President and Chief Executive Officer Hikmet Ersek. “We have confidence in the strength of our business model, and I am pleased with the second quarter results. Business trends improved, and we continued to make good progress toward our 2013 strategies to strengthen consumer money transfer, increase customers and usage in business-to-business, and generate and deploy strong cash flow for our shareholders.”
Ersek added, “Consumer money transfer transaction growth rates accelerated, with the Western Union brand increasing 7%, driven by strategic pricing investments and strong performance in electronic channels. Business Solutions delivered another quarter of steady growth, and year-to-date we have returned over $450 million to shareholders through dividends and share repurchases. We affirmed our financial outlook for the full year, and believe we are on target to return to revenue and profit growth in 2014.”
As expected, second quarter revenues declined 3% compared to the prior year, or 2% on a constant currency basis, primarily due to pricing investments in the Consumer-to-Consumer (C2C) segment. C2C revenues declined 4%, or 3% constant currency, including a negative 1% impact from the Vigo and Orlandi Valuta brands.
C2C pricing investments in key corridors are meeting the Company’s transaction objectives and contributing to the second quarter acceleration in transaction growth compared to the first quarter. Western Union branded C2C transactions increased 7% in the second quarter, compared to a 2% increase in the first quarter. Total C2C transactions increased 3% in the second quarter, compared to a 2% decline in the first quarter. Total transaction growth continued to be negatively impacted by compliance related changes, including actions implemented in the third quarter of 2012 which affected the Vigo and Orlandi Valuta brands.