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:
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