The Western Union Company (WU) BofA Securities 2024 Global Technology Conference summary

Strategic plan progress

• Four-pillar strategy focused on stabilizing retail, growing digital, expanding financial services, and operational excellence.

• Retail business stabilized faster than expected, with transactions flat for three quarters and revenue declining at a low single-digit rate.

• Digital business now growing double digits in transactions and high single digits in revenue, driven by improved app, marketing, and pricing.

• Financial services segment has achieved double-digit growth for two consecutive years, with 8% growth in Q1.

• Operational excellence program has actioned 50% of $150M cost redeployment target in 18 months, aiming for two-thirds by year-end.

Market and macro environment

• Principal per transaction has remained flat, indicating resilient customer demand despite macroeconomic pressures.

• Retail business expected to improve in the second half of the year and into 2025, with a long runway for growth.

• Retail market seen as flattish, with potential for growth as new migrants initially use retail channels.

• Digital business expected to maintain a 300-400 bps spread between transaction and revenue growth near term, narrowing to 200-300 bps long term.

Regional and product initiatives

• Gained market share in key corridors like Mexico after a period of share loss.

• Latin America remains a strong market, with digital wallet launches in Argentina and Brazil and a growing digital platform.

• Digital wallet now live in six countries, with a single app solution in development and U.S. launch planned for later this year.

• Loyalty program relaunched in France, aiming for a unified customer experience across retail and digital.