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Western Union Generated 80% Revenues from One Segment

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Revenues fell 3% YoY

In 3Q15, the consumer-to-consumer segment comprised 80% of Western Union’s (WU) overall revenues. Revenues in the segment fell by 3% YoY (year-over-year) but rose 3% on a constant currency basis, while total transactions rose 2%. Cross-border principal fell by 6% YoY but rose 1% on a constant currency basis.

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Revenues per region for Western Union

The chart above indicates the consumer-to-consumer revenues per region. Here’s the breakdown:

  • Europe and CIS: Revenues generated from this region comprised 20% of total revenues. The region saw a revenue fall of 10% and a transaction fall of 3% in 3Q15
  • North America: Revenues generated from this region comprised 19% of total revenues. The region saw a revenue fall of 1% and a transaction growth of 4% in 3Q15
  • Middle East and Africa: Revenues generated from this region comprised 16% of total revenues. The region saw a revenue fall of 2% and no transaction growth or fall in 3Q15
  • Asia Pacific: Revenues generated from this region comprised 11% of total revenues. The region saw a revenue fall of 8% and a transaction fall of 6% in 3Q15

Revenues for peer companies Fiserv (FISV) and Global Payments (GPN) rose by 1.2% and 5.9%, respectively, YoY in the last quarter.

Consumer-to-business and business-to-business

In 3Q15, the consumer-to-business segment comprised 11% of Western Union’s (WU) overall revenues. Revenues in the segment rose by 6% YoY and by 10% on a constant currency basis.

In 3Q15, the business-to-business segment comprised 7% of Western Union’s (WU) overall revenues. Revenues in the segment fell by 4% YoY but rose by 6% on a constant currency basis.

Chief financial officer, Raj Agrawal, stated, “In the quarter we achieved constant currency revenue growth in each of our segments and generated strong operating margins and cash flow, which we continued to deploy for our shareholders. We are pleased to affirm the full year financial outlook, including the adjusted earnings per share outlook that was raised in July.”

Western Union comprises 0.06% of the SPDR S&P 500 ETF Trust (SPY) and the iShares S&P 500 Growth ETF (IYW).

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