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Jun 30, 2023

Western Union Q2 2023 Earnings Report

Reported a revenue increase and growth in C2C transactions, driven by digital initiatives and changes in Iraqi monetary policies.

Key Takeaways

Western Union reported a 3% increase in Q2 revenue, reaching $1.17 billion, driven by growth in C2C transactions and an increase in revenue from Iraq. The company's GAAP EPS was $0.47, while adjusted EPS was $0.51. C2C transactions grew by 4%, supported by a 12% increase in branded digital transactions.

Q2 GAAP revenue grew by 3% to $1.17 billion, or 9% on an adjusted basis.

Q2 GAAP EPS was $0.47, a decrease of 6% year-over-year; adjusted EPS was $0.51, flat year-over-year.

C2C transactions increased by 4%, driven by 12% branded digital transaction growth.

The company raised its full-year 2023 outlook.

Total Revenue
$1.17B
Previous year: $1.14B
+2.8%
EPS
$0.51
Previous year: $0.51
+0.0%
C2C Transactions
70.6M
Previous year: 68.2M
+3.5%
C2C Transaction Growth
4%
Previous year: -13%
-130.8%
Gross Profit
$471M
Previous year: $485M
-2.9%
Cash and Equivalents
$1.59B
Previous year: $1.2B
+31.9%
Free Cash Flow
$122M
Previous year: $102M
+20.1%
Total Assets
$8.49B
Previous year: $8.79B
-3.4%

Western Union

Western Union

Western Union Revenue by Segment

Forward Guidance

The company raised its 2023 full-year revenue and EPS outlook due primarily to business performance in Iraq. The outlook assumes no material changes in macroeconomic conditions, including changes in foreign currencies or Argentinian inflation.

Positive Outlook

  • Revenue growth
  • EPS growth

Challenges Ahead

  • Elevated remittance volumes from Iraq are expected to be significantly lower going forward due to recent U.S. government actions.
  • Guidance excludes elevated remittance volume from Iraq after July

Revenue & Expenses

Visualization of income flow from segment revenue to net income