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Western Union Reports Second Quarter Results

Stocks in this article: WU

Revenue and C2C Transactions

  • Low single digit constant currency revenue declines
  • Consumer money transfer pricing investments of approximately $300 million, or 5% of total Company revenue, are reflected in the outlook
  • Mid to high single digit Western Union brand C2C transaction increases
  • Overall C2C transaction growth approximately 2 percentage points lower than the Western Union brand due to declines from Vigo and Orlandi Valuta resulting from compliance related actions

Operating Margins

  • GAAP operating margin of approximately 20%
  • EBITDA margin of approximately 24.5%

Tax Rate

  • Effective tax rate of approximately 15%

Earnings per Share

  • GAAP EPS in a range of $1.33 to $1.43

Cash Flow

  • Cash flow from operating activities of approximately $900 million, or approximately $1 billion excluding anticipated final tax payments relating to the agreement announced with the U.S. Internal Revenue Service in December 2011. Approximately $100 million of tax payments related to the agreement are included in the 2013 cash flow outlook, although it is possible some of the payments may not occur until 2014.

Additional Statistics

Additional key statistics for the quarter and historical trends can be found in the supplemental tables included with this press release.

Non-GAAP Measures

Western Union presents a number of non-GAAP financial measures because management believes that these metrics provide meaningful supplemental information in addition to the GAAP metrics and provide comparability and consistency to prior periods. These non-GAAP financial measures include revenue change constant currency adjusted; Consumer-to-Consumer segment revenue change constant currency adjusted; Consumer-to-Business segment revenue change constant currency adjusted; Business Solutions segment revenue change constant currency adjusted; 2013 EBITDA margin outlook; 2013 operating cash flow outlook IRS Agreement adjusted; and additional measures found in the supplemental schedule included with this press release.

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