Western Union Beats View, Raises Outlook

ENGLEWOOD,Colo ( TheStreet) -- Western Union ( WU) raised its outlook for the year after its second-quarter profits beat estimates, helped by higher transaction volume in its consumer-to-consumer segment.

The global payments services provider reported a net income of $221 million in the second quarter or 33 cents a share, up from $220.2 million or 31 cents a share in the year-ago quarter. Excluding restructuring charges of $35 million, the company earned an EPS of 36 cents during the quarter, higher than the consensus estimate of 32 cents.

The company also raised its EPS outlook for the year by 2 cents to $1.31 to $1.36 a share, excluding restructuring charges, higher than estimates. Restructuring charges are expected to impact year-end reported EPS by 7 cents.

Revenue rose 2% to $1.27 billion from $1.25 billion a year ago. The consumer-to-consumer segment, which accounts for about 84% of its business, registered a 9% increase in transaction volume. The U.S. domestic money transfer business was a key driver of volumes, recording a 28% transaction growth.

Chief Operating Officer and CEO-Elect Hilmet Ersek said that the company was benefiting from a diversified geographic portfolio. Ersek will become CEO on September 1, upon the retirement of Christina A. Gould.

-- Reported by Shanthi Venkataraman in New York.

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