Western Union Reports Decline in Revenues, Increase in Net Income for Q3 and Nine Months of 2024

The Western Union Company reported its financial results for the third quarter and the first nine months of 2024, highlighting a decline in revenues but an increase in net income compared to the same periods in 2023. For the three months ended September 30, 2024, total revenues were $1,036.0 million, a decrease of 6% from $1,097.8 million in the prior year. For the nine months ended September 30, 2024, revenues totaled $3,151.5 million, down 5% from $3,304.7 million in 2023. The decline in revenue was attributed to foreign currency translation effects and inflation impacts in Argentina.

Despite the revenue drop, net income for the third quarter increased significantly to $264.8 million, up 55% from $171.0 million in the same quarter of 2023. For the nine-month period, net income rose to $548.5 million, a 10% increase from $499.0 million in the previous year. This growth in net income was supported by a substantial tax benefit of $137.8 million resulting from the settlement of an IRS examination of the company’s 2017 and 2018 federal income tax returns.

Operating income for the third quarter was $164.9 million, down 22% from $210.9 million in the same period last year. For the nine months, operating income decreased to $547.7 million, a 17% decline from $658.2 million in 2023. The decrease in operating income was primarily due to lower revenues, although reduced agent commissions and employee incentive compensation provided some offset.

The Consumer Money Transfer segment, which is a key revenue driver, reported revenues of $932.2 million for the third quarter, down 9% from $1,019.0 million in the prior year. For the nine months, revenues in this segment were $2,859.2 million, a decrease of 6% compared to $3,029.5 million in 2023. The segment's operating income also fell, reflecting the revenue decline.

In contrast, the Consumer Services segment experienced growth, with revenues increasing by 32% to $103.8 million for the third quarter and by 19% to $292.3 million for the nine months. However, operating income in this segment decreased significantly due to increased expenses related to retail foreign exchange services and new service investments.

As of September 30, 2024, Western Union's cash and cash equivalents stood at $1,097.6 million, down from $1,268.6 million at the end of 2023. The company also reported total assets of $7,675.8 million, a decrease from $8,198.8 million, while total liabilities fell to $7,023.1 million from $7,719.8 million. Total stockholders' equity increased to $652.7 million from $479.0 million.

Strategically, Western Union completed the divestiture of its Business Solutions business on July 1, 2023, which has since impacted its revenue reporting. The company continues to focus on its core segments of Consumer Money Transfer and Consumer Services, with ongoing efforts to manage costs and enhance operational efficiency.