Western Union Company (the) · NYSE:WU
Western Union Company (the) — The Western Union Company — Q1 2025 Earnings Presentation
33 slides from Western Union Company (the)'s earnings presentation, Apr 23, 2025
Slide 1: First Quarter 2025 Financial Results
First Quarter 2025 Financial Results April 23, 2025
Slide 2: Tom Hadley, VP of Investor Relations
Western Union Tom Hadley Vice President of Investor Relations 2
Slide 3: Forward-Looking Statements
Western Union Forward-Looking Statements This presentation 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 assumpti
Slide 4: Devin McGranahan, President & CEO
Western Union Devin McGranahan President & CEO 4
Slide 5: Evolve 2025 Driving Transaction Improvements
Western Union Evolve 2025 Driving Transaction Improvements Regional CMT Transaction Growth Trends Rest of World (ex Iraq) Americas 10 9% 10% 6% 8% +3% 5% 5 5% 5% Q1 2025 Consumer Money 2% Transfer transactions 0 -1% -2% +14% -5 Q1 2025 Branded Digital 1Q24 2Q24 3Q24 4Q24 1Q25 transactions 5
Slide 6: First Quarter Results
Western Union First Quarter Results $984 million GAAP revenue 18% 19% GAAP operating margin Adjusted operating margin* $0.36 $0.41 GAAP EPS Adjusted EPS* 6 *Note: See appendix for reconciliation of GAAP to Non-GAAP financial measures.
Slide 7: Globally Diverse Business
Western Union Maintaining clarity in a shifting landscape CMT revenue is distributed globally as shown below as a percent of total CMT revenue: Globally NA: 39% EU & CIS: 27% Diverse Business Helps to LACA: 11% Minimize Market APAC: 6% Volatility MEASA: 17% Americas: 50% of CMT Revenue Rest of World
Slide 8: Momentum in the Middle East
Western Union Momentum in the Middle East 8
Slide 9: Europe & Expansion of Travel Money Segment
Western Union Europe & Expansion of Travel Money Segment Benefits Eurochange UK Branches • Expanding our customer base among travelers Branch network covers • Adding additional vertical in 50%+ of the UK population financial services • Better leveraging fixed cost base • Creating a pan-European offe
Slide 10: Evolve 2025 Strategy
Western Union Evolve 2025 Strategy • Digital first customer • Digital first customer experiences experiences • Scalable marketing driven • Remittance-led offering customer acquisition • Expanded set of accessible • Retail to digital escalator products and services Deliver Accelerate digital accessib
Slide 11: Matt Cagwin, Chief Financial Officer
Western Union Matt Cagwin Chief Financial Officer 11
Slide 12: Business Trends
Western Union Business Trends 1200 Adjusted Revenue Growth* 12% Adjusted Operating Margin* 1199.8 Adj. Rev. Growth Adj. Rev. Growth ex. Iraq 10% 8% 1199.6 6% 1199.4 3% 4% 1199.2 0% 1% 1% 2% -1% -2% 0% 1199 1198.8 -2% 20% 19% 19% 17% 19% -6% -1% -4% 1198.6 -7% -8% -6% 1198.4 -8% ($M) 1Q24 1Q24 2Q24 2
Slide 13: CMT Business Trends
Western Union CMT Business Trends Key Highlights • Branded Digital achieved 8th consecutive quarter of double- digit transaction growth • Branded Digital achieved 5th consecutive quarter of high single-digit adjusted revenue growth* • European Retail’s momentum continued with 10% transaction growth
Slide 14: Consumer Services
Western Union Consumer Services Highlights • Adjusted revenue* decreased 3% in Q1 • Includes bill payments, retail money order, forex exchange, media network, prepaid card, lending partnerships, and digital wallets • Achieved 24% operating margin • Acquired Eurochange Limited, a provider of retail f
Slide 15: Accomplished nearly 100% of our Investor Day goal
Western Union 5-Year $150M Expense Redeployment Program Remaining to be achieved in 2025 $10M Achieved in Q1 2025 Accomplished Achieved $30M in 2023 $50M nearly 100% of our Investor Day Goal $60M Achieved in 2024 15
Slide 16: Financial Highlights
Western Union Financial Highlights YTD March 31, 2025 Cash flow from operations $148 million Capital expenditures $24 million Leverage Ratios Dividends paid $79 million 2.8x* (Gross) Share repurchases $75 million Cash balance $1.3 billion 1.5x* (Net) Debt outstanding $2.8 billion 16 *Note: See appen
Slide 17: 2025 Financial Outlook
Western Union 2025 Financial Outlook Revenue1 (M) Operating Margin EPS2 GAAP $4,090 to $4,190 18% to 20% $1.54 to $1.64 Adjusted* $4,115 to $4,215 19% to 21% $1.75 to $1.85 1 In millions, adjusted revenue excludes the impact of currency and Argentina inflation 17 2 The GAAP effective tax rate is exp
Slide 18: Questions and Answers
Western Union Questions and Answers 18
Slide 19: Appendix
Western Union Appendix First Quarter 2025 19
Slide 20: Key Statistics and Reconciliation of Non-GAAP Measures
Western Union Key Statistics and Reconciliation of Non-GAAP Measures Western Union’s management believes the non-GAAP financial A non-GAAP financial measure should not be considered in measures presented within this presentation provide meaningful isolation or as a substitute for the most comparable
Slide 21: Key Statistics: Consolidated and CMT Metrics
Western Union Notes 1Q24 2Q24 3Q24 4Q24 FY2024 1Q25 Consolidated Metrics Revenues (GAAP) - YoY % change 1% (9)% (6)% 1% (3)% (6)% Adjusted revenues (non-GAAP) - YoY % change (a) 3% (7)% (6)% (1)% (3)% (8)% Adjusted revenues, excluding Iraq (non-GAAP) - YoY % change (a) (1)% 0% 1% 1% 0% (2)% Operatin
Slide 22: CMT Segment Regional Metrics
Western Union Notes 1Q24 2Q24 3Q24 4Q24 FY2024 1Q25 CMT Segment Regional Metrics - YoY % change NA region revenues (GAAP) 2% 1% (3)% (5)% (1)% (7)% NA region foreign currency translation impact (j) 0% 0% 0% 0% 0% 1% Adjusted NA region revenues (non-GAAP) 2% 1% (3)% (5)% (1)% (6)% NA region transacti
Slide 23: Regional Revenue Mix and Consumer Services
Western Union Notes 1Q24 2Q24 3Q24 4Q24 FY2024 1Q25 % of CMT Revenue NA region revenues 38% 40% 39% 39% 39% 39% EU & CIS region revenues 24% 25% 27% 27% 26% 27% M EASA region revenues 21% 18% 17% 17% 18% 17% LACA region revenues 12% 12% 11% 12% 12% 11% APAC region revenues 5% 5% 6% 5% 5% 6% Consumer
Slide 24: Consolidated Metrics Reconciliation
Western Union Notes 1Q24 2Q24 3Q24 4Q24 FY2024 1Q25 Consolidated Metrics (a) Revenues (GAAP) $ 1,049.1 $ 1,066.4 $ 1,036.0 $ 1,058.2 $ 4,209.7 $ 983.6 Foreign currency translation and Argentina inflation impact (j) 5.6 6.4 (5.5) (17.6) (11.1) (14.4) Revenues, constant currency, net of Argentina infl
Slide 25: Consolidated Metrics Reconciliation (continued)
Western Union Notes 1Q24 2Q24 3Q24 4Q24 FY2024 1Q25 Consolidated Metrics cont. (c) Net income (GAAP) $ 142.7 $ 141.0 $ 264.8 $ 385.7 $ 934.2 $ 123.5 Acquisition, separation, and integration costs (l) 0.1 0.5 1.7 1.8 4.1 1.6 Amortization and impairment of acquisition-related intangible assets (o) — 2
Slide 26: Tax Rate and EPS Reconciliation
Western Union Notes 1Q24 2Q24 3Q24 4Q24 FY2024 1Q25 Consolidated Metrics cont. (e) Effective tax rate (GAAP) 16% 15% (95)% (161)% (51)% 16% IRS settlement (r) 0% 0% 102% 0% 22% 0% Non-cash tax impacts of international reorganization (u) 0% 0% 0% 173% 41% (6)% Other adjustments (l), (n), (o), (p), (q
Slide 27: CMT Segment Metrics
Western Union Notes 1Q24 2Q24 3Q24 4Q24 FY2024 1Q25 CMT Segment Metrics (g) Revenues (GAAP) $ 962.0 $ 965.0 $ 932.2 $ 938.8 $ 3,798.0 $ 872.9 Foreign currency translation and Argentina inflation impact (j) 2.5 12.7 7.4 7.5 30.1 11.4 Revenues, constant currency, net of Argentina inflation (non-GAAP)
Slide 28: CS Segment Metrics
Western Union Notes 1Q24 2Q24 3Q24 4Q24 FY2024 1Q25 CS Segment Metrics (i) Revenues (GAAP) $ 87.1 $ 101.4 $ 103.8 $ 119.4 $ 411.7 $ 110.7 Foreign currency translation and Argentina inflation impact (j) 3.0 (6.2) (12.9) (25.1) (41.2) (25.9) Revenues, constant currency, net of Argentina inflation (non
Slide 29: Cash Flow and Operating Income Reconciliation
Western Union Notes 1Q24 2Q24 3Q24 4Q24 FY2024 1Q25 Net cash provided by/(used in) operating activities (GAAP) $ 94.0 $ (33.8) $ 212.1 $ 134.0 $ 406.3 $ 148.2 Depreciation (9.2) (9.5) (8.9) (9.8) (37.4) (9.5) Amortization (37.4) (36.6) (34.1) (33.6) (141.7) (32.4) Other non-cash items, net, includin
Slide 30: 2025 Consolidated Outlook Metrics
Western Union 2025 Consolidated Outlook Metrics Notes Range Revenues (GAAP) $ 4,090 $ 4,190 Foreign currency translation and Argentina inflation impact (j) 25 25 Revenues, adjusted (non-GAAP) $ 4,115 $ 4,215 Range Operating margin (GAAP) 18% 20% Severance costs (t) 1% 1% Acquisition, separation, and
Slide 31: Notes to Non-GAAP Measures
Western Union (j) Represents the impact from the fluctuation in exchange rates between all foreign currency denominated amounts and the United States dollar. Constant currency results exclude any benefit or loss caused by foreign exchange fluctuations between foreign currencies and the United States
Slide 32: Notes to Non-GAAP Measures (continued)
Western Union (q) While the Company had previously made a decision to suspend its operations in Russia, in the third quarter of 2024, the Company decided to pursue either liquidating or selling the Russian assets, which triggered a review of the carrying value of these assets. In the third and fourt
Slide 33: Thank you.
Thank you. ©2024 Western Union Holdings, Inc. All rights reserved
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