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Mar 31, 2023

Western Union Q1 2023 Earnings Report

Reported a decline in GAAP revenue and EPS, but exceeded expectations due to 'Evolve 2025' strategic initiatives and strength in the Middle East business.

Key Takeaways

Western Union reported a 10% decrease in GAAP revenue to $1.04 billion and a 46% decrease in GAAP EPS to $0.40 for Q1 2023. However, the company exceeded expectations due to momentum from its 'Evolve 2025' strategic initiatives and strength in its Middle East business.

Q1 GAAP revenue was $1.04 billion, down 10% on a reported basis, or 1% on an adjusted basis.

GAAP EPS was $0.40, a decrease of 46% year-over-year; Adjusted EPS was $0.43, a decrease of 16% year-over-year.

GAAP operating margin was 19.7%, a decrease of 80 bps year-over-year; Adjusted operating margin was 20.5%, a decrease of 130 bps year-over-year.

New branded digital go-to-market strategy continued momentum in Q1 with new customers up 14% and transactions up 7% globally.

Total Revenue
$1.04B
Previous year: $1.16B
-10.3%
EPS
$0.43
Previous year: $0.51
-15.7%
C2C Transactions
65.3M
Previous year: 69.7M
-6.3%
C2C Transaction Growth
-6%
Previous year: -4%
+50.0%
Gross Profit
$407M
Previous year: $501M
-18.6%
Cash and Equivalents
$1.23B
Previous year: $1.3B
-5.2%
Free Cash Flow
$131M
Previous year: $190M
-31.2%
Total Assets
$8.23B
Previous year: $8.49B
-3.0%

Western Union

Western Union

Western Union Revenue by Segment

Forward Guidance

The Company reaffirmed its 2023 adjusted full year financial outlook provided on February 7, 2023. The outlook assumes no material changes in macroeconomic conditions, including changes in foreign currencies or Argentina inflation.

Revenue & Expenses

Visualization of income flow from segment revenue to net income