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Jun 30, 2022

Western Union Q2 2022 Earnings Report

Reported a decline in revenue and an increase in adjusted EPS, with operating margin improvements driven by expense management and product mix.

Key Takeaways

Western Union reported a 12% decrease in revenue to $1.1 billion, but adjusted EPS increased to $0.51. The company is revising its full year financial outlook, lowering revenue expectations but raising operating profit margin outlook. They will provide an update on their global long-term strategy at an investor day on October 20, 2022.

Second quarter GAAP EPS was $0.50, while adjusted EPS was $0.51.

Revenue declined 12% on a reported basis, or 4% on a constant currency basis excluding Business Solutions.

The suspension of operations in Russia and Belarus negatively impacted revenue by approximately three percentage points.

The company is shifting focus to investing ahead of updated long-term strategy.

Total Revenue
$1.14B
Previous year: $1.29B
-11.8%
EPS
$0.51
Previous year: $0.48
+6.3%
C2C Transactions
68.2M
Previous year: 78M
-12.6%
C2C Transaction Growth
-13%
Previous year: 15%
-186.7%
Gross Profit
$485M
Previous year: $535M
-9.2%
Cash and Equivalents
$1.2B
Previous year: $1.06B
+13.2%
Free Cash Flow
$102M
Previous year: $165M
-38.1%
Total Assets
$8.79B
Previous year: $8.98B
-2.1%

Western Union

Western Union

Western Union Revenue by Segment

Forward Guidance

The Company revised its full year 2022 financial outlook, lowering its revenue outlook and raising its operating profit margin outlook for the year based on the timing of expenses, better than expected cost management year-to-date, as well as a softer environment for topline trends.

Revenue & Expenses

Visualization of income flow from segment revenue to net income