Western Union Company (the) · NYSE:WU
Western Union Company (the) — The Western Union Company — Q4 2024 Earnings Presentation
39 slides from Western Union Company (the)'s earnings presentation, Feb 4, 2025
Slide 1: Fourth Quarter and Full Year 2024 Financial Results
Fourth Quarter and Full Year 2024 Financial Results February 4, 2025
Slide 2: Tom Hadley, Vice President 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 Shifting Growth Trajectory
Western Union Evolve 2025 Shifting Growth Trajectory Total Adjusted Revenue Growth* (ex. Iraq) 1.4% Three Consecutive 1.0% Quarters of Positive 0.1% -0.6% Adjusted Revenue Growth (ex. Iraq) -3.5% 4Q23 1Q24 2Q24 3Q24 4Q24 5 *Note: See appendix for reconciliation of GAAP to Non-GAAP financial measures
Slide 6: Fourth Quarter Results
Western Union Fourth Quarter Results $1.1 billion GAAP revenue 17% 17% GAAP operating margin Adjusted operating margin* $1.13 $0.40 GAAP EPS Adjusted EPS* 6 *Note: See appendix for reconciliation of GAAP to Non-GAAP financial measures.
Slide 7: Western Union
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Slide 8: Retail as the Gateway to Western Union
Western Union Retail as the Gateway to Western Union Retail Transaction YoY Growth* New Iteration of Point of Sale 2022 2024 Debit Card Acceptance Lifetime -2% Value Universal Customer ID Quick Resend Customer -7% Retention One Step Refund Customer Loyalty Program Experience +500 bps 8 *Excludes Rus
Slide 9: Accelerating Digital
Western Union Accelerating Digital Branded Digital Transaction YoY Growth* 2022 +1,200 2024 bps 13% 1% 9 *Excludes Russia and Belarus
Slide 10: Branded Digital Trends
Western Union Branded Digital Trends Branded Digital Branded Digital Total Customers (MAU)* Transactions Per Customer (MAU)* 4.0 2.300 3.8 2.250 2.200 3.6 2.150 3.4 2.100 3.2 2.050 3.0 2.000 2.8 1.950 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 202
Slide 11: Delivering Accessible Financial Services
Western Union Delivering Accessible Financial Services Bill Digital FX Lending Media Prepaid Retail Payment Wallets Exchange Partnerships Network Card Money Order 11
Slide 12: Our Valued Partners
Western Union Our Valued Partners 12
Slide 13: 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 14: Matt Cagwin, Chief Financial Officer
Western Union Matt Cagwin Chief Financial Officer 14
Slide 15: Business Trends
Western Union Business Trends Adjusted Revenue Growth* Adjusted Operating Margin* 1200 Adj. Rev. Growth Adj. Rev. Growth ex. Iraq FY 2024: 0.5% 12% FY 2024: 19% 1199.8 10% 8% 1199.6 6% 1199.4 3% 4% 1199.2 0% 1% 1% 2% -1% -1% 1199 0% 20% 19% 19% 17% 1198.8 -4% -2% 16% -6% -1% -4% 1198.6 -7% -6% 1198.
Slide 16: CMT Business Trends
Western Union CMT Business Trends Key Highlights • Branded Digital achieved 7th consecutive quarter of double- digit transaction growth • European Retail’s momentum continued with 9% transaction growth in the quarter North America Q4 2024: % of Q4 EU & CIS 2024 CMT MEASA CMT adj. revenue growth ex I
Slide 17: Consumer Services
Western Union Consumer Services Consumer Services Highlights Consumer Services • Adjusted revenue increased 23% in Adj. Revenue Growth* Q4 or 15% for the full year* FY 2024: 15% 23% • Includes bill payments, retail money order, forex exchange, media 14% 15% network, prepaid card, lending partnership
Slide 18: Five-Year $150M Expense Redeployment Program
Western Union 5-Year $150M Expense Redeployment Program Remaining to Achieved be achieved in 2023 Accomplished in 2025 $40M $50M nearly three- quarters of our Investor Day Goal $60M Achieved in 2024 18
Slide 19: Improved Operational Performance
Western Union Improved Operational Performance Global Operations Normalized Operating Expense ($M)1,2 • Customer experience and support was -18% down 30% over the 3-year period resulting in nearly $30 million in savings • Total service interactions decreased nearly 40% during the same 3-year period3
Slide 20: Financial Highlights
Western Union Financial Highlights YTD December 31, 2024 Cash flow from operations $406 million Unusual tax payments included $230 million Leverage Ratios in operating cash flow* Capital Expenditures $131 million 2.9x (Gross) Dividends paid $318 million Share repurchases $177 million 1.5x (Net) Cash
Slide 21: 2025 Financial Outlook
Western Union 2025 Financial Outlook Revenue (M) Operating margin EPS 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 21 *Note: See appendix for reconciliation of GAAP to Non-GAAP financial measures.
Slide 22: Questions and Answers
Western Union Questions and Answers 22
Slide 23: Appendix
Western Union Appendix Fourth Quarter and Full Year 2024 23
Slide 24: 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 25: Consolidated and CMT Segment Metrics
Western Union Notes 4Q23 FY2023 1Q24 2Q24 3Q24 4Q24 FY2024 Consolidated Metrics Revenues (GAAP) - YoY % change (4)% (3)% 1% (9)% (6)% 1% (3)% Adjusted revenues (non-GAAP) - YoY % change (a) (1)% 1% 3% (7)% (6)% (1)% (3)% Adjusted revenues, excluding Iraq (non-GAAP) - YoY % change (a) (4)% (4)% (1)%
Slide 26: CMT Segment Regional Metrics
Western Union Notes 4Q23 FY2023 1Q24 2Q24 3Q24 4Q24 FY2024 CMT Segment Regional Metrics - YoY % change NA region revenues (GAAP) (1)% (5)% 2% 1% (3)% (5)% (1)% NA region foreign currency translation impact (k) 0% 0% 0% 0% 0% 0% 0% Adjusted NA region revenues (non-GAAP) (1)% (5)% 2% 1% (3)% (5)% (1)%
Slide 27: Regional Mix and Consumer Services Metrics
Western Union Notes 4Q23 FY2023 1Q24 2Q24 3Q24 4Q24 FY2024 % of CMT Revenue NA region revenues 39% 37% 38% 40% 39% 39% 39% EU & CIS region revenues 25% 25% 24% 25% 27% 27% 26% MEASA region revenues 18% 21% 21% 18% 17% 17% 18% LACA region revenues 12% 11% 12% 12% 11% 12% 12% APAC region revenues 6% 6
Slide 28: Consolidated Metrics Reconciliation
Western Union Notes 4Q23 FY2023 1Q24 2Q24 3Q24 4Q24 FY2024 Consolidated Metrics (a) Revenues (GAAP) $ 1,052.3 $ 4,357.0 $ 1,049.1 $ 1,066.4 $ 1,036.0 $ 1,058.2 $ 4,209.7 Foreign currency translation and Argentina inflation impact (k) Notes 4Q23 1.2 FY2023 1Q24 15.42Q24 3Q24 5.6 4Q24 6.4FY2024 (5.5)
Slide 29: Net Income Reconciliation
Western Union Notes 4Q23 FY2023 1Q24 2Q24 3Q24 4Q24 FY2024 (c) Net income (GAAP) $ 127.0 $ 626.0 $ 142.7 $ 141.0 $ 264.8 $ 385.7 $ 934.2 Acquisition, separation, and integration costs (m) 0.2 3.1 0.1 0.5 1.7 1.8 4.1 Amortization and impairment of acquisition-related intangible assets (p) — — — 2.0 0
Slide 30: Effective Tax Rate and EPS Reconciliation
Western Union Notes 4Q23 FY2023 1Q24 2Q24 3Q24 4Q24 FY2024 Consolidated Metrics cont. (e) Effective tax rate (GAAP) 12% 16% 16% 15% (95)% (161)% (51)% IRS settlement (s) 0% 0% 0% 0% 102% 0% 22% Non-cash tax impacts of international reorganization (v) 0% 0% 0% 0% 0% 173% 41% Other adjustments (m), (n
Slide 31: CMT Segment Metrics Reconciliation
Western Union Notes 4Q23 FY2023 1Q24 2Q24 3Q24 4Q24 FY2024 CMT Segment Metrics (g) Revenues (GAAP) $ 975.5 $ 4,005.0 $ 962.0 $ 965.0 $ 932.2 $ 938.8 $ 3,798.0 Foreign currency translation and Argentina inflation impact (k) (3.4) 4.6 2.5 12.7 7.4 7.5 30.1 Notes 4Q23 FY2023 1Q24 2Q24 3Q24 4Q24 FY2024
Slide 32: CS and Business Solutions Segment Metrics
Western Union Notes 4Q23 FY2023 1Q24 2Q24 3Q24 4Q24 FY2024 (i) CS Segment Metrics Revenues (GAAP) $ 76.8 $ 322.3 $ 87.1 $ 101.4 $ 103.8 $ 119.4 $ 411.7 Foreign currency translation and Argentina inflation impact (k) 4.8 10.7 3.0 (6.2) (12.9) (25.1) (41.2) Revenues, constant currency, net of Argentin
Slide 33: Free Cash Flow Reconciliation
Western Union Notes FY2022 FY2023 FY2024 Net cash provided by operating activities (GAAP) $ 581.6 $ 783.1 $ 406.3 Capital expenditures (GAAP) (208.2) (147.8) (130.6) Free cash flow (non-GAAP) $ 373.4 $ 635.3 $ 275.7 Tax payment associated with the 2017 United States federal tax liability (w) 63.7 11
Slide 34: Operating Cash Flow and Net Income Reconciliation
Western Union Notes 4Q23 FY2023 1Q24 2Q24 3Q24 4Q24 FY2024 Net cash provided by/(used in) operating activities (GAAP) $ 264.5 $ 783.1 $ 94.0 $ (33.8) $ 212.1 $ 134.0 $ 406.3 Depreciation (9.2) (39.1) (9.2) (9.5) (8.9) (9.8) (37.4) Amortization (35.9) (144.5) (37.4) (36.6) (34.1) (33.6) (141.7) Gain
Slide 35: 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 (k) 25 25 Revenues, adjusted (non-GAAP) $ 4,115 $ 4,215 Range Operating margin (GAAP) 18% 20% Severance costs (u) 1% 1% Acquisition, separation, and
Slide 36: FY2022 Net Income Reconciliation
Western Union Notes FY2022 Net income (GAAP) $ 910.6 Acquisition and separation costs (m) 13.9 Business Solutions gain (n) (248.3) Russia/Belarus exit costs (z) 10.0 Operating expense redeployment program costs (o) 21.8 Income tax benefit from reversal of significant uncertain tax positions (a1) (81
Slide 37: EBITDA and Non-GAAP Definitions and Notes
Western Union (k) 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 38: Footnotes: IRS Settlement and Iraq Revenues
Western Union (s) In the third quarter of 2024, the Company entered into a settlement with the IRS regarding the Company’s 2017 and 2018 federal income tax returns. The Company is contesting the one remaining unagreed adjustment at the IRS Appeals level and has fully reserved for this unagreed adjus
Slide 39: Thank you.
Thank you. ©2024 Western Union Holdings, Inc. All rights reserved
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