Sunday, 3 March 2024


Western Union reports growth and strategic progress in Q4 By

Western Union Declares $0.235 Quarterly Dividend; 8% Yield

© Reuters.

Western Union Co. (NYSE:) has announced robust financial results for the fourth quarter and full year of 2023, highlighting a period of significant transaction growth and strategic advancements. The company’s fourth-quarter revenue rose to $1.050 billion, marking a 3% increase on a constant currency basis, while adjusted earnings per share (EPS) grew by 16% to $0.37. Western Union emphasized its focus on enhancing customer experience, expanding its market reach, and investing in digital transformation, which has led to a consistent transaction growth exceeding 5% for two consecutive quarters, a first in nearly ten years. The company also returned $650 million to shareholders through dividends and stock buybacks.

Key Takeaways

– Western Union’s fourth-quarter revenue reached $1.050 billion, a 3% year-over-year increase on a constant currency basis.

– Adjusted EPS for the quarter was $0.37, up 16% from the previous year.

– The company achieved transaction growth of over 5% for the second consecutive quarter.

– Western Union returned $650 million to shareholders in 2023 through dividends and stock buybacks.

– A partnership with Visa (NYSE:) was announced, expanding services in 40 countries across five regions.

– The company expects 2024 adjusted revenue to be between $4.1 billion and $4.2 billion, with adjusted operating margins of 19% to 21%, and EPS of $1.65 to $1.75.

Company Outlook

– Western Union projects 2024 adjusted revenue in the range of $4.1 billion to $4.2 billion.

– Adjusted operating margins for 2024 are anticipated to be between 19% and 21%.

– The company targets an EPS range of $1.65 to $1.75 for the next year.

– Focus on growing the profitable Consumer Services segment revenue by double-digit percentages annually.

Bearish Highlights

– Revenue per transaction in the physical retail business (excluding Iraq) has declined due to strategic price reductions and FX yield changes.

– Overall volumes in the Middle East have decreased, although the transaction mix remains stable.

Bullish Highlights

– Strong transaction growth in the digital business and stable trends in the retail business.

– Double-digit revenue growth in the Consumer Services segment for the second consecutive year.

– Improved customer retention and acquisition, with a focus on high-quality cross-border remittance customers.

– A positive shift in the LTV to ratio, allowing for adjusted marketing expenditures.


– The company did not provide specific guidance for…

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