This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

Western Union Reports Second Quarter Results

Consumer-to-Business (C2B) revenues increased 2%, or 7% constant currency, and Western Union Business Solutions revenues increased 6%, or 8% constant currency.

GAAP operating margin was 20.0%, which compares to 24.3% in the second quarter of 2012. Earnings per share of $0.36 compares to $0.44 in the prior year period. As previously disclosed, the Company expects 2013 to be a transitional year as it implements key strategic actions, with a return to profit and revenue growth expected in 2014.

Progress on 2013 Key Strategies

Strengthen consumer money transferThe pricing investments intended to regain customer momentum are driving increased transaction volumes and usage. C2C transactions increased 17% in the second quarter in the corridors in which pricing investments had been implemented prior to the beginning of the quarter. Excluding digital, C2C transactions in these priced corridors increased 11%. By the end of the quarter substantially all of the planned pricing investments for the year had been implemented.

Pricing investments in Mexico are delivering strong results. Western Union branded transactions in Mexico increased 22% in the second quarter, which compares to 9% growth in the first quarter.

Electronic channels continued to expand, with revenue growth of 26% in the quarter. Westernunion.com online money transfer transactions increased 68%, and transactions from account based money transfer through banks increased 51%.

The Company continues to add new channel options for consumers, including direct-to-bank transfer services to India, which were initiated in July. These services are available from the U.S. and the U.K. through both westernunion.com and participating agent locations. Western Union money transfer services are also now available at approximately 115,000 ATMs around the world.

Increase customers and usage in business-to-businessWestern Union Business Solutions delivered a second consecutive quarter of solid growth, as revenue increased 8% constant currency compared to the prior year quarter. Strategic progress in the quarter included the launch of an international payments service for small and medium sized businesses that utilize the online MasterCard Business Network, expansion of payments services in India and Japan, and the initiation of business-to-business offerings in a 32 nd country, Colombia.

Generate and deploy strong cash flow for shareholdersYear-to-date cash flow from operating activities totaled $478 million. The Company returned $194 million to shareholders in the quarter, consisting of $125 million of share repurchases and $69 million of dividends, and has returned $454 million year-to-date through June. In July, the Western Union board of directors declared a quarterly cash dividend of $0.125 per common share, payable September 30, 2013 to stockholders of record at the close of business on September 16, 2013. Full year share repurchases and dividends are expected to total approximately $700 million, which represents approximately 7% of current market capitalization.

2013 Full Year Outlook

The Company affirms its full year outlook for 2013 provided on April 30, 2013:

2 of 7

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG

Markets

DOW 18,199.52 -14.90 -0.08%
S&P 500 2,109.96 -0.78 -0.04%
NASDAQ 4,982.3190 -5.5710 -0.11%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs