Q1 2025 Western Union Co Earnings Call Transcript
Key Points
- The Western Union Co (WU) reported a seventh consecutive quarter of above 3% transaction growth, excluding Iraq, Russia, and Belarus.
- The company's branded digital business continues to perform well with 14% transaction growth and 8% adjusted revenue growth in the quarter.
- Europe showed strong performance with 10% transaction growth, leading to regional revenue growth of 5%.
- The acquisition of Euro Change is expected to add roughly 1% to revenue growth this year and is anticipated to be accretive in 2025.
- The company achieved $30 million in operational efficiency savings in the quarter, bringing total savings to $140 million, ahead of schedule.
- Adjusted revenue, excluding Iraq, declined 2% due to a difficult macro environment and tough comparisons against the previous year.
- The Americas faced geopolitical headwinds, with North America transaction growth about 100 basis points lower and LACA about 200 basis points lower than the previous quarter.
- Consumer Services adjusted revenue was down slightly due to a decline in the bill payment business in Latin America and a seasonally slow quarter for advertising and European travel.
- Adjusted earnings per share decreased to $0.41, down $0.04 from the same quarter last year, partly due to lower revenues from Iraq.
- The retail business in North America is underperforming, primarily due to geopolitical issues and slowing migration trends.
Good day, and welcome to the Western Union first quarter 2025 results conference call. (Operator Instructions) Please note, this event is being recorded. I would now like to turn the conference over to Tom Hadley, Vice President of Investor Relations. Tom, please go ahead.
Thank you. On today's call, we will discuss the company's first quarter 2025 results, 2025 outlook, and then we will take your questions. The slides that accompany this call and webcast can be found at westernunion.com under the Investor Relations tab and will remain available after the call. Additional operational statistics have been provided in supplemental tables with our press release.
Joining me on the call today is our CEO, Devin McGranahan, and our CFO, Matt Cagwin. Today's call is being recorded, and our comments include forward-looking statements. Please refer to the cautionary language in the earnings release and in Western Union's filings with the Securities and Exchange Commission, including the 2024 Form 10-K.
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