The Western Union Company (WU) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue was $1.07 billion, down 9% year-over-year, mainly due to lower Iraq contribution and the sale of Business Solutions; adjusted revenue was $1.073 billion, down 7% year-over-year, but turned positive excluding Iraq for the first time since 2021.

• Consumer Money Transfer transactions grew 4–5% year-over-year excluding Iraq, with Branded Digital transactions up 13% and Consumer Services revenue up 21% (reported) and 14% (adjusted).

• Evolve 2025 strategy is delivering results, focusing on digital-first experiences, scalable marketing, and operational excellence, with market share gains and improved customer and agent experiences.

• Net income for Q2 2024 was $141.0 million, a 20% decrease from Q2 2023; six-month net income was $283.7 million, down 14% year-over-year.

• The Business Solutions segment was fully divested as of July 1, 2023, impacting year-over-year comparability.

Financial highlights

• Adjusted revenue was $1.073 billion, down 7% year-over-year; adjusted operating margin was 19.0% (down from 21.8%); adjusted EPS was $0.44, compared to $0.51 last year.

• GAAP operating margin was 17.9% (down from 20.7%); GAAP EPS was $0.41, down from $0.47 in Q2 2023.

• Year-to-date operating cash flow was $60 million, impacted by $160 million in IRS payments and $30 million in pre-funding for account payout partners.

• Cash and cash equivalents at June 30, 2024, were over $1 billion; debt at $2.6 billion.

• Returned $335 million to shareholders year-to-date through dividends and share repurchases.

Outlook and guidance

• 2024 GAAP revenue expected between $4,125–$4,200 million; adjusted revenue $4,150–$4,225 million; adjusted operating margin at 19–21%; adjusted EPS $1.70–$1.80.

• Expect continued steady improvement in adjusted revenue excluding Iraq for the remainder of 2024; Iraq revenue expected to remain volatile, with $10–$30 million per quarter anticipated.

• Ongoing redeployment program aims to redeploy $150 million in expenses through 2027 to fund strategic initiatives.