Log in
Forgot password ?
Become a member for free
Sign up
Sign up
Dynamic quotes 

4-Traders Homepage  >  Equities  >  Nyse  >  Western Union    WU

Mes dernières consult.
Most popular
News SummaryMost relevantAll newsSector newsTweets

Western Union : Reports First Quarter Results

share with twitter share with LinkedIn share with facebook
share via e-mail
05/11/2017 | 08:41pm CET

By a News Reporter-Staff News Editor at Investment Weekly News -- The Western Union Company (NYSE: WU) reported first quarter financial results and affirmed its outlook for 2017, which was previously provided on February 9, 2017.

In the first quarter the Company generated revenue of $1.3 billion, which was flat compared to the prior year, or increased 3% on a constant currency basis.

Earnings per share of $0.33 includes a ($0.02) impact from expenses associated with the WU Way business transformation program. Excluding the WU Way related expenses, earnings per share of $0.35 compares to $0.37 in the same period last year. The decline in earnings per share in the current quarter primarily resulted from the tax impact of changes in the internal ownership structure of certain of the Company's international subsidiaries. These changes are expected to result in lower taxes of a comparable amount for the remainder of the year.

"We are pleased with the start to the year, as our money transfer business delivered solid performance, led by digital," said President and Chief Executive Officer Hikmet Ersek. "Westernunion.com money transfer transactions increased 27 percent, and our consumer bill payments business produced very good growth."

"We also further expanded our digital network. We now have online transaction sites in 40 countries, including across the European Union, and mobile apps in 18 markets, allowing consumers to send to over 200 countries and territories around the world," Ersek added.

Executive Vice President and Chief Financial Officer Raj Agrawal stated, "The first quarter results have us on track to deliver our full year financial outlook. We are executing our business plans, while continuing to implement the WU Way business transformation program. We also returned more than $300 million to our shareholders in the quarter through share repurchases and dividends."

The WU Way program is intended to transform the Company's operating model to better enable innovation, improve the customer experience, and drive cost efficiencies. The program includes implementation of lean management techniques, organizational redesign, and other initiatives. Q1 Business Unit Highlights Consumer-to-Consumer (C2C) revenues were flat, or increased 2% on a constant currency basis. Transactions grew 2%, driven by strong increases from westernunion.com. Geographically, constant currency revenue growth was led by transactions originated in the Latin America and Caribbean, North America, and Europe and CIS regions, which was partially offset by declines from oil producing countries in the Middle East, Africa, and South Asia region.Westernunion.com C2C revenues increased 26%, or 28% on a constant currency basis, on transaction growth of 27%. Westernunion.com represented 9% of total C2C revenue in the quarter.

Consumer-to-Business (C2B) revenues increased 8% in the quarter, or 10% on a constant currency basis. The growth was driven by the Argentina walk-in and U.S. electronic bill payments businesses.

Western Union Business Solutions revenues declined 6%, or decreased 3% on a constant currency basis. Revenue was impacted by the termination of a partner contract and reductions in sales of hedging products. Additional Q1 Financial Highlights GAAP operating margin in the quarter was 18.4%. Excluding the impact of the WU Way related expenses, adjusted operating margin was 19.5%, which compares to 19.9% in the prior year period. The decline compared to prior year was primarily due to the negative impact of foreign exchange and unfavorable customer and funding mix in C2B, partially offset by timing of marketing spend.

GAAP operating profit in the quarter was $240 million. Excluding the $14 million of WU Way related expenses, adjusted operating income of $254 million compared to $259 million in the prior year period. The current quarter operating income reflects a negative impact of approximately $15 million from changes in foreign exchange rates.

The effective tax rate in the quarter was 24.1%, or 24.8% excluding the impact of the WU Way related expenses, which compares to 14.6% in the prior year period. The increase was due to the discrete items mentioned above, and the Company's full year outlook for the effective tax rate remains at 11% GAAP, and 13% adjusted for WU Way related expenses.

Cash flow from operating activities totaled $86 million, which includes $151 million of payments related to the settlement with federal and state governments announced in January 2017, and approximately $19 million of WU Way related payments. Excluding these items, cash flow from operating activities was $256 million in the quarter.

Keywords for this news article include: Finance and Investment, The Western Union Company.

Our reports deliver fact-based news of research and discoveries from around the world. Copyright 2017, NewsRx LLC

(c) 2017 NewsRx LLC, source Business Newsletters

share with twitter share with LinkedIn share with facebook
share via e-mail
Latest news on WESTERN UNION
03/16WESTERN UNION : Business Solutions celebrates opening of new office
03/15WESTERN UNION : to Present at the Barclays Emerging Payments Forum
03/15WESTERN UNION : Ex-dividend day for
03/14WESTERN UNION : Settlement Between Department of Justice and Western Union will ..
03/13MONEYGRAM INTERNATIONAL : Bitcoin start-ups in Asia take aim at remittances mark..
03/11WESTERN UNION : Blount County Fraud Reports for Sunday, March 11, 2018
03/08WESTERN UNION : to Present at the Barclays Emerging Payments Forum
03/01WESTERN UNION : "Consumer Due Diligence for Money Transfer Systems and Methods" ..
03/01WAL MART STORES : Lincoln County couple taken by 'free government grant' scam
02/28WESTERN UNION : Compensation for Western Union Scam Is Now Available for Victims
More news
News from SeekingAlpha
03/14Western Union goes ex-dividend tomorrow 
02/15Tracking David Abrams' Abrams Capital Management Portfolio - Q4 2017 Update 
02/14The Western Union Company 2017 Q4 - Results - Earnings Call Slides 
02/13The Western Union's (WU) CEO Hikmet Ersek on Q4 2017 Results - Earnings Call .. 
02/13Western Union misses by $0.04, beats on revenue 
Financials ($)
Sales 2018 5 708 M
EBIT 2018 1 123 M
Net income 2018 824 M
Debt 2018 -
Yield 2018 3,70%
P/E ratio 2018 10,83
P/E ratio 2019 10,30
Capi. / Sales 2018 1,61x
Capi. / Sales 2019 1,57x
Capitalization 9 195 M
Duration : Period :
Western Union Technical Analysis Chart | WU | US9598021098 | 4-Traders
Technical analysis trends WESTERN UNION
Short TermMid-TermLong Term
Income Statement Evolution
Mean consensus HOLD
Number of Analysts 19
Average target price 20,7 $
Spread / Average Target 3,4%
EPS Revisions
Hikmet Ersek President, Chief Executive Officer & Director
Jeffrey A. Joerres Non-Executive Chairman
Rajesh K. Agrawal Chief Financial Officer & Executive Vice President
Sheri Rhodes Chief Technology Officer
Betsy DeHaas Holden Independent Non-Executive Director
Sector and Competitors
1st jan.Capitalization (M$)
FISERV13.20%30 669
CIELO-4.12%18 182
WIRECARD7.42%15 560