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Dec 31, 2023

Western Union Q4 2023 Earnings Report

Western Union's fourth quarter results reflected a mix of revenue decrease and adjusted EPS increase, driven by strategic progress and market dynamics.

Key Takeaways

Western Union reported a 4% decrease in Q4 GAAP revenue to $1.05 billion, but adjusted revenue increased by 3%. GAAP EPS decreased by 46% to $0.35, while adjusted EPS increased by 16% to $0.37. Consumer Money Transfer transactions grew by 5%, led by a 13% increase in Branded Digital transactions.

Q4 GAAP revenue decreased by 4%, while adjusted revenue increased by 3%.

Q4 GAAP EPS decreased by 46%, while adjusted EPS increased by 16%.

Consumer Money Transfer transactions grew by 5%, with Branded Digital transactions up by 13%.

The Board of Directors approved a dividend of $0.235 per share for Q1 2024.

Total Revenue
$1.05B
Previous year: $1.09B
-3.6%
EPS
$0.37
Previous year: $0.32
+15.6%
C2C Transactions
72.9M
Previous year: 69.3M
+5.2%
C2C Transaction Growth
5%
Previous year: -12%
-141.7%
Branded Digital Rev Growth
4%
Gross Profit
$351M
Previous year: $411M
-14.6%
Cash and Equivalents
$1.27B
Previous year: $1.29B
-1.3%
Free Cash Flow
$258M
Previous year: $48.4M
+432.6%
Total Assets
$8.2B
Previous year: $8.5B
-3.5%

Western Union

Western Union

Western Union Revenue by Segment

Western Union Revenue by Geographic Location

Forward Guidance

The Company expects the following financial outlook for full year 2024, which assumes no material changes in macroeconomic conditions, including changes in foreign currencies or Argentinian inflation.

Positive Outlook

  • Revenue (GAAP): $4,075 to $4,175 million
  • Revenue, adjusted (non-GAAP): $4,100 to $4,200 million
  • Operating Margin (GAAP): 18% to 20%
  • Operating Margin, adjusted (non-GAAP): 19% to 21%
  • EPS, adjusted (non-GAAP): $1.65 to $1.75

Challenges Ahead

  • Revenue is expected to be impacted by foreign currency translation and Argentina inflation.
  • Operating margin will be impacted by Operating expense redeployment program costs
  • Earning per share will be impacted by Operating expense redeployment program costs
  • Assumes no material changes in macroeconomic conditions
  • Includes impact from acquisition and separation costs

Revenue & Expenses

Visualization of income flow from segment revenue to net income