Western Union Reports Fourth Quarter and Full Year 2024 Results

• Q4 GAAP revenue of $1.1 billion, up 1% on both a reported basis and adjusted basis, excluding Iraq; full year GAAP revenue of $4.2 billion, down 3% on a reported basis, and up 0.5% on an adjusted basis, excluding Iraq
• Both Q4 and full year Branded Digital GAAP revenue grew 7%, or 8% on an adjusted basis
• Q4 Consumer Services GAAP revenue grew 56%, or 23% on an adjusted basis; full year GAAP revenue grew 28%, or 15% on an adjusted basis
• Q4 GAAP EPS of $1.13 or adjusted EPS of $0.40; full year GAAP EPS of $2.74 or adjusted EPS of $1.74
• Board of Directors approved a dividend of $0.235 per share in the first quarter of 2025

Western Union Reports Fourth Quarter and Full Year 2024 Results

Media Relations:
Brad Jones
media@westernunion.com

Investor Relations:
Tom Hadley
WesternUnion.IR@westernunion.com

The Western Union Company (the “Company” or “Western Union”) (NYSE: WU) today reported fourth quarter and full year 2024 financial results.

The Company’s fourth-quarter revenue of $1.1 billion increased 1% on a reported basis. The revenue increase was driven by growth in Consumer Services and Branded Digital. Results included a lower contribution from Iraq compared to the prior year period, which negatively impacted the revenue growth rate by 3 percentage points.

“We concluded 2024 with a solid performance, marking our third consecutive quarter of positive adjusted revenue growth, excluding Iraq, which was bolstered by 15% adjusted revenue growth in Consumer Services and the seventh consecutive quarter of double-digit transaction growth in our Branded Digital business,” said Devin McGranahan, President and Chief Executive Officer. “As we enter the final year of our Evolve 2025 strategy, I am pleased with the advancements we have achieved and the positive shift in the Company’s growth trajectory. Looking ahead, I believe we are poised to drive further improvements and efficiencies, and I am confident in our ability to continue delivering value to our investors and stakeholders.”

Fourth quarter GAAP EPS was $1.13, up from $0.35 in the prior year period. GAAP EPS included a $0.75 tax benefit from the reorganization of the Company’s international operations. Adjusted EPS increased to $0.40 from $0.37 in the prior year period due to higher adjusted operating profit, fewer shares outstanding, and a lower adjusted effective tax rate.

The Board of Directors today approved the first quarter dividend of $0.235 per common share, payable March 31, 2025, to shareholders of record at the close of business on March 17, 2025.

Q4 Business Results

• The Company’s Consumer Money Transfer (CMT) segment revenue decreased 4% on a reported basis, and was flat on an adjusted basis, excluding Iraq, while transactions increased 3% compared to the prior period.

• Branded Digital revenue increased 7% on a reported basis, or 8% on an adjusted basis, with transaction growth of 13%. The Branded Digital business represented 25% and 32% of total CMT revenues and transactions, respectively.

• Consumer Services segment revenue grew 56% on a reported basis, or 23% on an adjusted basis, benefiting from new and expanded products led by the addition of the Company’s newly launched media network business and the expansion of the Company’s retail foreign exchange business, as well as the continued growth of the retail money order business.

Q4 Financial Results

• GAAP operating margin in the quarter was 17%, compared to 15% in the prior year period, while the adjusted operating margin was 17% compared to 16% in the prior year period. GAAP and adjusted operating margin increased due to improved marketing and technology efficiencies, partially offset by changes in foreign currencies and a lower contribution from Iraq in the current period.

• The GAAP effective tax rate in the quarter was a benefit of 161%, compared to a provision of 12% in the prior year period. The decrease in the GAAP effective rate was primarily related to the recognition of deferred tax assets, net of valuation allowance, associated with reorganizing the Company’s international operations in the current period. The adjusted effective tax rate in the quarter was 12%, compared to 14% in the prior year period, with the decrease due to the mix of income and discrete tax benefits.

2024 Full Year Financial Results

• The Company’s full year 2024 revenue of $4.2 billion declined 3% on a reported basis, or grew 0.5% on an adjusted basis, excluding Iraq.

• GAAP operating margin was 17%, compared to 19% in the prior year. The adjusted operating margin was 19% compared to 20% in the prior year. The decrease in the GAAP and adjusted operating margin was due to a lower contribution from Iraq in 2024, partially offset by improved marketing and technology efficiencies.

• The GAAP effective tax rate for 2024 was a benefit of 51% compared to a provision of 16% in the prior year. The GAAP effective tax rate decreased primarily due to the tax benefits associated with reorganizing the Company’s international operations and a settlement with the U.S. Internal Revenue Service regarding the Company’s 2017 and 2018 federal income tax returns, both occurring in 2024. The adjusted effective tax rate was 13% compared to 15% in the prior year, which decreased due to the mix of income and discrete tax benefits.

• GAAP EPS was $2.74 compared to $1.68 in 2023. GAAP EPS included a $0.75 tax benefit from the reorganization of the Company’s international operations as well as a $0.40 benefit from the IRS Settlement in 2024. Adjusted EPS was $1.74 in both 2024 and 2023, with 2024 benefiting from fewer shares outstanding and a lower adjusted effective tax rate, offset by a lower contribution from Iraq.

• Cash flow from operating activities was $406 million for the year, which included approximately $230 million in tax payments related to the 2017 Tax Act and the Company’s settlement with the U.S. Internal Revenue Service. In 2024, the Company returned approximately $496 million to shareholders in dividends and share repurchases, consisting of $318 million in dividends and $177 million in share repurchases.

2025 Outlook

The Company expects the following financial results for full year 2025, which includes no material changes in macroeconomic conditions, including changes in foreign currencies or Argentinian inflation.

Non-GAAP Measures

Western Union presents a number of non-GAAP financial measures because management believes that these metrics provide meaningful supplemental information in addition to the GAAP metrics and provide comparability and consistency to prior periods. Constant currency results assume foreign revenues are translated from foreign currencies to the U.S. dollar, net of the effect of foreign currency hedges, at rates consistent with those in the prior year. The Company estimates Argentina inflation as the revenue growth not attributable to either transaction growth or the change in price (revenue divided by principal).

Reconciliations of non-GAAP to comparable GAAP measures are available in the accompanying schedules and in the “Investor Relations” section of the Company’s website at https://ir.westernunion.com.

Additional Statistics

Additional key statistics for the quarter and historical trends can be found in the supplemental tables included with this press release. All amounts included in the supplemental tables to this press release are rounded to the nearest tenth of a million, except as otherwise noted. As a result, the percentage changes and margins disclosed herein may not recalculate precisely using the rounded amounts provided.

Investor and Analyst Conference Call and Presentation

The Company will host a conference call and webcast at 4:30 p.m. ET today.

The webcast and presentation will be available at https://ir.westernunion.com. Registration for the event is required, so please register at least 15 minutes prior to the scheduled start time. A webcast replay will be available shortly after the event.

To listen to the webcast, please visit the Investor Relations section of the Company’s website or use the following link: Webcast Link. Alternatively, participants may join via telephone. In the U.S., dial +1 (719) 359-4580, followed by the meeting ID, which is 992 3140 1790, and the passcode, which is 250832. For participants outside the U.S., dial the country number from the international directory, followed by the meeting ID, which is 992 3140 1790, and the passcode, which is 250832.

Safe Harbor Compliance Statement for Forward-Looking Statements

This press release contains certain statements that are forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are not guarantees of future performance and involve certain risks, uncertainties, and assumptions that are difficult to predict. Actual outcomes and results may differ materially from those expressed in, or implied by, our forward-looking statements. Words such as “expects,” “intends,” “targets,” “anticipates,” “believes,” “estimates,” “guides,” “provides guidance,” “provides outlook,” “projects,” “designed to,” and other similar expressions or future or conditional verbs such as “may,” “will,” “should,” “would,” “could,” and “might” are intended to identify such forward-looking statements. Readers of this press release of The Western Union Company (the “Company,” “Western Union,” “we,” “our,” or “us”) should not rely solely on the forward-looking statements and should consider all uncertainties and risks discussed in the Risk Factors section of our Annual Report on Form 10-K for the year ended December 31, 2023 and in our subsequent filings the Securities and Exchange Commission. The statements are only as of the date they are made, and the Company undertakes no obligation to update any forward-looking statement.

Possible events or factors that could cause results or performance to differ materially from those expressed in our forward-looking statements include the following: changes in economic conditions, trade disruptions, or significantly slower growth or declines in the money transfer, payment service, and other markets in which we operate; interruptions in migration patterns or other events, such as public health emergencies, any changes arising as a result of the recent United States’ elections, civil unrest, war, terrorism, natural disasters, or non-performance by our banks, lenders, insurers, or other financial services providers; failure to compete effectively in the money transfer and payment service industry, including among other things, with respect to digital, mobile and internet-based services, card associations, and card-based payment providers, and with digital currencies, including cryptocurrencies; geopolitical tensions, political conditions and related actions, including trade restrictions, tariffs, and government sanctions; deterioration in customer confidence in our business; failure to maintain our agent network and business relationships; our ability to adopt new technology; the failure to realize anticipated financial benefits from mergers, acquisitions and divestitures; decisions to change our business mix; exposure to foreign exchange rates; changes in tax laws, or their interpretation, and unfavorable resolution of tax contingencies; cybersecurity incidents involving any of our systems or those of our vendors or other third parties; cessation of or defects in various services provided to us by third-party vendors; our ability to realize the anticipated benefits from restructuring-related initiatives; our ability to attract and retain qualified key employees; failure to manage credit and fraud risks presented by our agents, clients, and consumers; adverse rating actions by credit rating agencies; our ability to protect our intellectual property rights, and to defend ourselves against potential intellectual property infringement claims; material changes in the market value or liquidity of securities that we hold; restrictions imposed by our debt obligations; liabilities or loss of business resulting from a failure by us, our agents, or their subagents to comply with laws and regulations and regulatory or judicial interpretations thereof; increased costs or loss of business due to regulatory initiatives and changes in laws, regulations, and industry practices and standards; developments resulting from governmental investigations and consent agreements with, or investigations or enforcement actions by, regulators and other government authorities; liabilities resulting from litigation; failure to comply with regulations and evolving industry standards regarding data privacy; failure to comply with consumer protection laws; effects of unclaimed property laws or their interpretation or the enforcement thereof; failure to comply with working capital requirements; changes in accounting standards, rules and interpretations; and other unanticipated events and management’s ability to identify and manage these and other risks.

About Western Union

The Western Union Company (NYSE: WU) is committed to helping people around the world who aspire to build financial futures for themselves, their loved ones and their communities. Our leading cross-border, cross-currency money movement, payments and digital financial services empower consumers, businesses, financial institutions and governments—across more than 200 countries and territories and over 130 currencies—to connect with billions of bank accounts, millions of digital wallets and cards, and a global footprint of hundreds of thousands of retail locations. Our goal is to offer accessible financial services that help people and communities prosper. For more information, visit www.westernunion.com.

WU-G

THE WESTERN UNION COMPANY
NOTES TO KEY STATISTICS
(Unaudited)
(in millions, unless indicated otherwise)

Western Union’s management believes the non-GAAP financial measures presented within this press release and related tables provide meaningful supplemental information regarding the Company’s results to assist management, investors, analysts, and others in understanding the Company’s financial results and to better analyze operating, profitability, and other financial performance trends in the Company’s underlying business because they provide consistency and comparability to prior periods or eliminate currency volatility, increasing the comparability of the Company's underlying results and trends.

A non-GAAP financial measure should not be considered in isolation or as a substitute for the most comparable GAAP financial measure. A non-GAAP financial measure reflects an additional way of viewing aspects of the Company’s operations that, when viewed with the Company’s GAAP results and the reconciliation to the corresponding GAAP financial measure, provides a more complete understanding of the Company’s business. Users of the financial statements are encouraged to review the Company’s financial statements and publicly-filed reports in their entirety and not to rely on any single financial measure. A reconciliation of non-GAAP financial measures to the most directly comparable GAAP financial measures is included below, where not previously reconciled above.