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The Western Union Company (NYSE: WU) today reported financial results for the 2013 fourth quarter and full year, and its financial outlook for 2014. The Company also announced that its board of directors approved a new $500 million share repurchase authorization, which expires June 30, 2015.
For the full year, the Company reported a revenue decline of 2%, or 1% on a constant currency basis, and earnings per share of $1.43, which was at the high end of the outlook range provided at the beginning of the year. Cash provided by operating activities reached approximately $1.1 billion in 2013, with $671 million returned to shareholders through dividends and share repurchases. The results were consistent with the Company’s financial outlook, as revenues and profits were impacted as expected by the implementation of pricing and other strategic investments that were intended to help drive future growth, as well as by increased compliance costs.
“We made good progress executing the key strategic actions we began to implement in late 2012,” said
President and Chief Executive Officer Hikmet Ersek. “Our pricing investments and emphasis on digital expansion drove acceleration in consumer money transfer transaction growth. We established a strong business-to-business foundation, with renewed focus on sales and product development. And we initiated important efficiency initiatives to further streamline our long-term cost structure, while still generating over $1 billion of operating cash flow.”
The Company’s 2014 outlook projects low to mid-single digit constant currency revenue growth and EPS in a range of $1.40 to $1.50. The outlook reflects the impact of increases in compliance costs and changes in certain compliance procedures, as previously disclosed.
Fourth Quarter 2013 Results
Fourth quarter revenues were flat compared to the prior year period, and increased 1% on a constant currency basis. Consumer-to-consumer (C2C) revenues declined 1%, and were flat constant currency, as transaction gains were offset by the impact of previously implemented price reductions in certain corridors.