The Western Union Company (NYSE: WU) today reported financial results for the 2013 third quarter. The Company also affirmed its full year financial outlook provided on July 30, 2013, with the EPS outlook narrowed to the higher end of its previous range, and announced plans to significantly increase investments in compliance and regulatory capabilities.
“I am pleased with the progress we made in the third quarter,” said President and Chief Executive Officer Hikmet Ersek. “The strategies we implemented to strengthen consumer money transfer are driving positive results. We are on track with our financial outlook for the year, and have narrowed our earnings per share outlook to the higher end of our previous range.”
Ersek added, “Our business continues to generate strong cash flow and margins, and in the third quarter we produced our highest quarterly consumer-to-consumer transaction growth rate in three years. Electronic channels delivered robust growth, and now represent 5% of our total revenues, while Business Solutions generated a double-digit constant currency revenue increase.”
Third quarter revenues declined 1% compared to the prior year, and were flat on a constant currency basis. Consumer-to-consumer (C2C) revenues declined 2%, or 1% constant currency, as transaction gains were offset by the impact of previously implemented price reductions in certain corridors.Western Union branded C2C transactions increased 10% in the third quarter, compared to a 7% increase in the second quarter. Total C2C transactions increased 9% in the third quarter, which compared to a 3% increase in the second quarter. The total C2C transaction growth rate improvement relative to the second quarter is attributable to additional traction from the pricing investments, increased growth in non-priced corridors, and a less negative impact from the Vigo and Orlandi Valuta brands, which have been affected over the past year by compliance related actions implemented in the third quarter of 2012.