The Western Union Company (WU) Goldman Sachs Communacopia + Technology Conference 2024 summary

Strategic progress and business performance

• Three-pillar strategy focuses on stabilizing retail, reinvigorating digital, and expanding Consumer Services.

• Achieved four consecutive quarters of mid-single-digit transaction growth and 13% digital transaction growth in Q2.

• Consumer Services revenue grew 14% in Q2, with double-digit growth expected for the year.

• Retail transaction growth stabilized, and the gap between transaction and revenue growth is narrowing.

• Digital and retail pricing structures have been aligned to support logical customer migration.

Customer trends and market resilience

• Core customer base has shown resilience despite inflation, with flat or slightly rising average principal per transaction.

• Some volatility and dislocation observed in South America due to elections and policy changes.

• LACA region, once a growth leader, now faces more volatility, but other regions are improving.

• Volatility in the Mexican peso led to minor losses during election periods.

Channel management and digital transformation

• Retail channel serves as a key customer acquisition engine, especially for new migrants.

• Digital customers originating from retail show higher retention and value than purely digital acquisitions.

• Enhanced customer experience through faster transactions and improved POS systems, reducing transaction times from 7.5 minutes to just over 1 minute.

• Customer-centric approach and loyalty programs are driving higher retention and transaction growth.