WU - Earnings call transcript Q1 2022 | The Western Union Company

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Operator

Good day and welcome to the Western Union First Quarter 2022 Results Conference Call. [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference over to Brad Windbigler, Head of Treasury and Investor Relations. Brad, please go ahead.

Brad Windbigler

Thank you. will financial company’s then outlook take questions. we results, quarter we call, your updated our for today’s discuss first the XXXX will On XXXX and at call will and available after can Slides Relations remain and call. accompany the Investor this be that found westernunion.com the under tab webcast

to Western the our actual cause in being XXXX concerning Securities have Raj Commission, include cautionary and language Devin our information in McGranahan; the statements. could comments our the Union’s and tables CFO, results press recorded earnings release to including is Form release. in refer additional operational that the statistics supplemental today XX-K CEO, Additional On differ for filings Today’s our materially is with call Agrawal. factors and been forward-looking provided Exchange from Please statements. with our call forward-looking and

will that accepted During some accounting the not generally principles. discuss call, conform to we items do

items the have section. to under westernunion.com the those GAAP our website, comparable most Investor We reconciled measures Relations on

Devin responsibility now the CEO, to disclaims noted call. I our We but and press can this will in metrics are call the in certain previously the and Union turn McGranahan. adjusted of to has that to expenses any property protection. not expect statements any the specific are from of officers The the initiatives, been company over the or metrics. Western excluded this the Union distribution call authorized similar of have future. Union on replay of expenses adjusted to incurred types by copyright Other release, that Company and also recording, will incur All made reasonably maybe discuss subject certain our Western than transcription to has replay Western for

Devin McGranahan

ongoing our and Brad Thank development for to good commentary financial today and some us discuss quarter you, XXXX results afternoon on strategy you first efforts. our Thank joining everyone.

X fully Union, changes I to for sustainable growth. years needed I the supply XXX really and of have in the war to Ukraine. potential of the the remains X the inflation, Western position platform next of and chain as days to like over more to have appreciate first geopolitical As the Global currently my come due issues magnitude elevated uncertainty CEO of reflected significant the some business on

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significant also digital Given white partnership profitable label market Russia with mix, the including our was us. Spare, business a very for

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from Turning Belarus reflect Russia except largely were quarter, for expectations, the first important the our and ongoing of slow of consistent our suspension results quarter of first the – recovery services and financial the with impact for our the to in for results several regions.

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Raj Agrawal

and our Devin and will first discuss quarter XXXX you, results I outlook. Thank financial afternoon Today, everyone. good

revenue basis. of reported $X.X a X% First decreased on quarter billion

reported or while X% compared down basis. to transactions Russia, prior in money approximately quarter year. cross-border partnership, CXC from first transfer quarter. CXC the the money growth X% suspended basis. Total by reduced money transfer transactions the a slightly same In the offset decreased transactions on in include constant or revenues Business driven basis were in which rate product our digital period good partnerships, in growth net In currency. Solutions, compared X a digital currency we revenue our the our transfer, reported decline reported money period. by a the from currency which a X% by of X% saw hedges digital March, We X% by prior segment, money revenues months basis quarter, on money constant for the on of digital BXC contribution X% X% by on to year, impact label or Excluding X% Currency transfer constant in first Spare increased year our constant on retail by partially first transfer. impacted was the retail basis million our and our principal which Digital $XX offset a transfer. increased including translation declined white the the X% declined in business branded a digital currency revenues,

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Excluding business growth have U.S. in led the would by grown U.S. domestic, Mexico. to

at the expect a constant region and to and of on full declined XX% Revenue Walmart region softness year. seeing continued or a more The in basis the business and with results. transaction Middle quarter. last was contributors we in and Belarus the United were pleased The in of South had and the occurred the in late the digital XX% the driven impact in on increased X% momentum high grew in region growth decline results a or by year constant and to be are retail while contributor CIS are reported in and Revenue in Kingdom softness decline some services region Europe and by this offset Russia the the continued in currency the transaction Asia transactions in to business Africa revenue France, the basis, larger retail. digital we basis growth on Germany March East, reported on X%. to of a in X% meaningful The drive our quarter. We X%. the to U.S. declines currency revenue impact suspension continues

impacts. and while or over region in constant a solid saw driver reported basis, Mexico, growth the with growth currency label STC continued At constant in Revenue Colombia of solid to factors growth Qatar. digital in Our mix X% in in region growth America continued XX%. generate basis partially X% country decline the the from Saudi or constant on X% performance. and on Revenue white transactions level, grow and resulted of region was declined a the APAC by revenue spread Latin The as Arabia partnership declined the currency X% a transactions between on X% currency retail up COVID-XX was We business. Caribbean offset Nicaragua. from a to revenue revenue growth transaction

send variant Philippines in declines region key closures the in like and driven transaction Japan. related largely predominantly revenue the by markets and Australia between due were Omicron Softness business. was to The spread the to

than the the more completed Business we and first March As received Solutions full previously of stage million. sale in announced, $XXX the of proceeds was

the completed regulatory in The approvals. expected to back the is second half subject of closing be year to

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prior excludes in the Turning divestiture which Solutions to the operating to in and the in The margin was points Solutions year due in current Belarus XX.X% in and to the quarter margin was both quarter GAAP contribution foreign and Business year-over-year product profitability, the consolidated timing primarily Adjusted year margins Prior operating margin the and and compared investments, increase XX Russia, period compared and in related XX.X% Business costs to periods exit Business costs period. in the in acquisition prior XX.X% impacted to and was year. was basis by changes of adjusted channel XX.X% operating Solutions. negatively mix from currency. margin,

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the $X.XX in the the by adjusted EPS to of was per Business our tax year to the effective discrete XX.X% prior period, in compared The the in XX% $X.XX to was services to compared in the GAAP Belarus. prior or prior the due and in was effective tax primarily and benefits of recurring in increase in period. sale year suspension While GAAP Solutions, rate in share not rate quarter adjusted quarter in the earnings period the Russia current the compared increase the by year is EPS period. adjusted earnings higher increase period, of in operating the profit partial EPS $X.XX GAAP Business reflects on the the margin, contributed The the while adjusted GAAP share. EPS in quarter, year gain effective quarter prior recognition share to In higher sale first while of and Solutions, was offset $X.XX Business rate. primarily tax per lower driven partially approximately count, both adjusted $X.XX in Solutions

Turning and to balance our sheet. flow cash

the remaining of shareholders of our billion. and our Capital outstanding the were repurchase $X.X the of share cash quarter combination and repurchases. quarter, During million of authorization, $X.X quarter, and returned first $XX end the $XXX we end business million shares, we $XXX $XXX equivalents million. expenditures At quarter of count million the in expires billion a was which cash at and end operating XXXX. of debt had we XXX flows, generated and million over through under approximately The at share to dividends cash share had

suspension related and outlook. our in Moving an the we our to of reflecting updated operations provided for XXXX, outlook Russia financial impacts. Belarus Today, and

remains approximately including buyers first and second to payments outlook remainder gain in of current adjustments. globally. earlier, the were closings, at divestiture time Devin Our subject XXXX, pretax reflect this contractual between recognized an best partial the million Solutions the the expected million costs, regulatory to Business year elevated of discussed ownership, which second our half quarter figures first presents with for as the representing but an profits occur full acquisition estimated view working to and of in GAAP year $XXX uncertainty $XXX of the capital costs and associated and exit

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stronger divestiture addition, adjusted well on effective gain expected and rate Business Solutions. the February and now for also as approximately Belarus expect exit excludes change related compared in and We excludes decline and costs decline adjusted Russia to and sale, The to associated costs GAAP divestiture acquisition tax exit XXXX. XX% Russia, Belarus to flat $XX costs. of of in currency now to exit operating decline margin from XXXX. our EPS a expect and In revenue reflects a to year. previously The expectation Solutions single-digit outlook excludes in our outlook acquisition and costs from from low included of of growth outlook, Solutions of revenue The the GAAP our previous have and our results change the single-digit million adjusted reflects low remainder constant and we XXXX increase. to dollar. The for Business revenue primarily U.S. Embedded compared revenue approximately Russia the exit expected revenue mid-single-digit Business our We both Belarus. adjusted X% as XX

our The XX% margin adjusted to which The revenues exit and of high now reflects and approximately on higher-margin our expected Russia the GAAP of XX%. approximately from primarily markets, rate decrease and Our to high lower now label due reflects GAAP is be outlook effective digital range outlook our from our tax anticipated is Belarus tax XX% to and Business operating in profit compared in businesses a primarily overall previous cost sale of the were a increase of XX% white range. assumptions the our updated expectations teens The compared to related to be Solutions. previous Russia a between structure. to expected gain

compared be was $X.XX revised primarily as the of $X.XX company’s a rate GAAP range of expect adjusted to take questions. $X.XX of the EPS Adjusted from effective for The revised well you our a exit sale reflects joining tax range range a And $X.XX. business we for mid-teens Russia to change outlook to of to on now are continue of of is the $X.XX today. operator, Thank previous be the to and in solutions. a to now EPS XXXX range. to to Belarus from $X. the outlook for tax assumption in call a $X.XX to We gain previous ready The to range as expected $X.XX

Operator

Deutsche Bryan first us [Operator to ask Our comes Please question Keane from from question. Bank. Instructions] your

Devin McGranahan

Hey, Bryan.

Bryan Keane

question my Devin, taking strategy thanks for guys. and Hi, for Thanks update. the

wallet analysis, And bit more about about little when do and it going revisiting done of to you transactions, customers digital, are then forward. you be some mean digital think? channels. you talked you to all domestic your in what digital digital about talked in for the what guys means losing the guys the a You that Do competitive need you’ve thinking might price

Devin McGranahan

our know, digital highly as Bryan, you is intertwined our retail with business business.

of because position cash up maintain transparency in in transactions obviously, competitive we digitally a digital. the in of, both retail over believe We our XX% very So, originated network because a and our end payout. pricing of

I anticipate Raj, maintain we I’ll know been if to money strategy I come domestic would So then that we’ve to And you to continue will the anything. back on. transfer add want don’t pursuing. the

Raj Agrawal

I our I pricing that any Bryan, more haven’t customers that add, aware our our offerings we business. our are in going just really to Yes. No, digital And and sure services rather would from pressure of use making digital really than making how they sure it’s just pricing about also, significant would standpoint, seen your competitor. know to say a

quarters. been We’re macro on a local the moving pricing and relatively conditions market basis, up the always on yields what’s global have depending and last consistent several over down But required.

Devin McGranahan

utility this as the money of know, within has business On network cash you country has an a for diminished. been the domestic retail as many that years transfer individual a side, payout

values customer not a but continue have service, is core the base. base customer a it We that growing to

model able believe higher within Germany to that country free, movement. we money now it being have to account higher engagement, enable, a to leads in generates more interaction, we we to and as Romania account retention for and As move done cross-border eventually creates

platform we will of and as actually ecosystem and but talk to about strategy we markets, more back a moving the implications So domestic and a see transfer. our the customer what it wallet-based opportunity engagement in at important in come time retention money

Bryan Keane

Got but your it. of related directly of And recession the Europe. that the just are to non going impacting forward. of of other or on and of follow-up Europe to Russia understand be I some not might business in thoughts figure helpful. And for pieces What trying to you be concern a or Raj. countries, about out A the impacts the related kind potential just other Thanks. Belarus impacts. would lot other some that outlined just those

Raj Agrawal

look, outlook. – an as softness in not impacts have full some saw of other some really European But of market quarters look, today. our about annualized revenues. our Russia things around change and continues And X% basis, year, Belarus the have for to really be see CIS are messaging see on visibility you that’s of environment play so impact made XXX are may the in we I there Bryan, mean, in That’s basis can the on macro global We or revenues will other Yes. right, three results. out. region, even yes, including for to our volatile, that’s we’ve how that you’re some and impacts. the points our the that about to we quite

this of play We’re the out year, giving how you certainly, don’t our we could And things some might uncertain change. really certainly degree. to today, impacts the rest it’s things but best know follow-on but and view

Bryan Keane

the taking for Thanks Great. questions.

Operator

question us David question. Evercore. comes from next ask Our Togut your to Please from

Devin McGranahan

Hey, David.

David Togut

very you Thank much. Yes.

how the growing outlook reaccelerate a to that to – the the of in tied it there Belarus, is business an transfer noted Russia, money for for you slowdown this dig could opportunity into digital the the digital see you business And XXXX? XXXX, QX in Raj, out year? bit, do called then you If balance I

Raj Agrawal

it’s very question. Yes, a good

we’re the the optimistic doing that good this First really of customer all, we our we’re year things feel long-term about have. strategies digital about We business. and that very on prospects acquisition the

long-term in you the mentioned, bit to be business first softer the a given growth be So that mid-XX% as digital quarter, expected range we certainly, that – of good. to had in we This year. year, little the continues very picture had quarter the the last first

was wu.com. markets. to we’ve that European the Russia also exited digital And well Further seen about that, revenue $XX that’s market, this two made related million So market. as because Sparebank some we the at in expected. our have Belarus we year of of That’s relationship and softness up have least now as to those

year that the some unique initiative the because long-term, banking relationships we’re the about is good globally. especially transition to account-based and sort happening. year this the are of with we feel a things digital prospects, So trying of very But create of that

David Togut

if updated especially proceeds deploy follow-up, you capital your allocation a how from Devin, just of the might could you the And us Understood. as priorities, give thoughts Business sale on Solutions?

Devin McGranahan

David. Thanks,

same remain continue on call. the last expressed philosophical the to in I that We outlook

a have priority. top We very ensuring disciplined returning a capital approach allocation to and remains to our capital to investors

the in coffers that and the we think received that get when to we look of might We performance we cash some strengthens ideas into go increment the on the the fall. side continue together strategic I forward I the to as early planning for process, business, on we strong see sharing have the and generation

David Togut

Thank you. Understood.

Devin McGranahan

Thanks, David.

Operator

Huang next from to ask your Our question. JPMorgan. Tien-tsin Please question us from comes

Tien-tsin Huang

Good all. difficult just Hi, assumed macro higher, and know, Russia to right? to oil, with And what should right, the know think call. I helpful. takes FX be bit much. it’s follow-up a the you’ve are But wanted I there sustainably little and beyond Bryan’s talked changed to here to can on outlook Oil trying with I what’s be states. and prices question I you about, in to? thanks see what speak with Belarus. migration lag same and really know Raj, about so that a just you here then And sometimes could you Gulf the and there. paying we puts I’m to attention is of more volatility

Raj Agrawal

Yes.

time. they adjust components, change foreign dramatically to effect because as of to profit and a primary price In related moved, we’ve period is as outlook also that tried your for Russia some On part, seen such exchange that. at GAAP rates That of in a impact closures quite some might positive has the in level the current right related our the you’ve you’re For have to Tien-tsin, in there lagged a impact other have the oil outlook, Belarus. obviously but short the time, point revenue specific most to is well. our

benefits that this see going of the year in to necessarily We’re the not Gulf markets.

So the we it potentially more move more to we And short-term specific moves will we’ve weakens, into we’ve parts seen the that short-term. in or extent can region. certainly have to if see, then that have peso in in different where an into but for of that the our moves And could seen impact migration currency, Mexico, influx of customer behavior example. business business that

we’re So that. for certainly watching

specific has But other Belarus, Belarus. we bit a we’ve Russia about the Russia we’re related stage. impact quarter Although and built these had overall, not maybe to out factors anything mostly and softer. come largely at little be expected related to And we of roughly where thought into than our would to what outlook, it’s first we this

Tien-tsin Huang

I cost digital at the growth, – omni that. want the you Thank but with. in don’t cost Day ask than if about there? of the to all any makes for just of want the maybe or How – that the it and that sooner doing if urgency know you maybe accelerating thinking of you sense retail user and sense driving then and about And later, don’t sell tickets you call, rather for can, the I wanted to to Devin, just Investor to do

Devin McGranahan

fall path the As Tien-tsin, moving. not to as waiting get started we I in the remarks my have in down for prepared the we’re event said

accelerating that idea me improvement one call, my of focusing of and base cost as dollars and commented experience, begun on the level. and as guided, able on really that in thinking and work heard of the point-of-sale we about the those, within idea to I cases, prioritization in can half how constraints back priorities is drive help our the the the guidance work is marketing to some billion behaviors provided. transaction year. have to, the I expect to As drive that say comments current That revenue would appropriately isn’t that in of the do base of prepared continue we at in And already we nearly allocate parts this ramp that about our have it growth. $X being last within cost with has accelerating reallocating the And of the you

Tien-tsin Huang

Great. Thank the you for thoughts.

Devin McGranahan

Thanks, Tien-tsin.

Operator

from comes question from next ask Shirvaikar Citi. to question. Our your Ashwin Please us

Devin McGranahan

Hi, Ashwin.

Ashwin Shirvaikar

But talk emerging if follow-up at I bit focus the that? pieces, you’re two and question guess pace. like, detail. Hi, the that question I And appreciate picture done could there the you could with what generally talk happen for two taking is little certain more state on to thank you to a end that – this if you about this, areas. does with yet, regards look a all the to Tien-tsin’s just has about once

Raj Agrawal

Ashwin. Sure,

at make has commented in plus institutional it knowledge broad-based we’ve sure process the And a take We top we call, Western advantage involved are in of get here to process. all Union as that in, last executives I the order been engagement. the on of that and XXX

right, an So you’re not process. it’s instantaneous

at relationships essence, putting the As the and our idea are to platform we customer of enable beginning, I in range products any using partnership a expand branded expand our and distribution that to, that commented gravitating with million-plus the we to customer broader center towards bringing of purview, this in enjoy of us the to cases strength everything services that relationship of we our our XXX do, at value.

our more that base permission seek customers sense for our both doing, to able and send customer we’re customers and we a ability which provider the our to customers in the parts from of with received in for and have make than frankly, lot many that we and do we the those ways and for So our strength of be us be to to our have customers brand world. find

we the So, at of of of the services that top begin that are of level relationships headed. broaden a we that helpful? the nature which to, cross-border of Is we believe transmission. out, of continue effect, the view we terms magnitude is transactional-based kind to and the can customers, in pace will in and products where outside both flesh money And

Ashwin Shirvaikar

omnichannel its for customer. its system, things engage per there customer of tightness was number Xx particularly that. opportunity ask navigate as little of example, agent I Union’s CRM then appreciate And I the a to relationships, high-value reflect days, to first say, – uncertainties. difficult on you your existing, here impression given what the Western Can And of attractive helpful. customers maybe trying revenue relationships, is XXX you like that’s Yes, is discussion your

that of to has Xx you some place. from maybe If break could down come

So, would certainly bit be more little a detail helpful.

Devin McGranahan

evolve have been assets the the it To out markets that commentary your number had what and help be strength of with them their player partners reflects And evolving of how in efforts retail many the communicate I a certainly them to some of with a businesses does in digital our serve does to mean inherited. Western and quality most in go today’s privilege Look, of have we it talk what ways. combination of other us distribution Union begun about Certainly. in across have meet and to and that I the to customer to most into rapidly exploring both the important point, what cases, is their my and world.

our have the So, been the are of nature that in the that with we of distribution our have things the is technology. trust ability brand, customers talking distribution, building. and to partnerships the relationships and about the deploy we are the strength which I accelerating foundation The upon frankly,

into time recognize greater when I you acceleration of underway, to a Those we was transactions. European percentage just its capabilities merely of then to that are about when and ensure talk the Europe to allows of of more things talk to delivery are reduce and that platforms accelerating that and bringing – bringing and was So, already bringing in the application banking it’s were here an have, digital when completed quickly. platform I Union. got a here, much outside like us transaction investments sale customers, new point our That we and across markets soon wallet the about

that we do trying wrap this omnichannel the do The of how them we point idea the are customers increment in offering what robust, To provided, are of how what digital doubling customer So, are better about your one and not us if both solution has best and the do. to that our larger more of of of a our around a accelerate retail and the to and transactions talking we integrated see a together they the convenience in by the them the about enabled assets, center we particularly building as value fact, we be customer, is be of to customer. we on. fashion, do underlying digital customer customer because have retail to that you does are and with a more encourage strategy is in a customers. that what both solution more the want a we are part What platform class frequent capabilities is, in of

experience integrated channel. replicating a we is omnichannel loyalty if a high-value who through view our behavior of customers offer will can program, recognizes world-class way kind on and that our the that have So, more other rewards and in channel our across a we customers recognizes attract channels and that or retain time hard those one competitors are focused

Ashwin Shirvaikar

detail. you it. I that Thank for appreciate

Operator

Wolfe ask to comes question. us from your Peller question next Please Darrin from Our Research.

Darrin Peller

of an more the Hey high-value what and a so course next initiative so? that the these do come attractive be side transition that going then have strategy one, And at wonder, that, are if guys. where the just I years, number are think probably is truly of that given potential of the accelerate ability of expedite those retail tactics expenses be invest over to think to know to I possible. your the could to to of to the about you pretty part customers do to that users in the if you from going of side I look digital nature from we I When indicated guess to couple is the there

Devin McGranahan

this is for which two important. or event but with many seen an they people with gotten brand, increasingly, to post-COVID and to franchise is some retail One actually. the the I digital think ability have And in who comfortable things transaction some enable was are convenient there customers customers a omnichannel comfortable are not that them. instances more Darrin, we were have because there of leverage retail underlying for is and pushed more even our retail because instances, either in option, into into us migrating a this have for preference the of digital strength

create seamlessly Western experience pillar want choose that way interact. the do customer is, the with how interact, and opportunity so we they want to they Union, they a how And to really, to want the first interact, when to the enables

lot spending on that profiles And between a sure so channels, seamlessly they customer of wherever making the show that technology move we up. our up, customer they time whenever are show recognize can

A are not that which we us become customers. a importantly, capable is place to enabling can to pursue. enable, only is it’s lot investment believe, And it high-value of those those if the of but so today allow attract, technology that retain omnichannel the customers that, if we trying we in goal and/or more will in

more directing message in existing our existing spend more marketing technology than been doing integrated and maybe integrated approach and to we a from the existing customers just So, are a we past. budgets have budget to

channels goal Google, fact, a in order a this us and Facebook, is, in short-term. digital that, run from etcetera. to going We with it’s plan to and take differentiated the then digital rate customers of to it Twitter, will fall the if to business back the it’s be see in in the And to how than that existing says, grow will merely to our more here enable fashion. in traditional meaningful But our works a more obviously, require accelerate going drive what’s you acquiring in in way to in that than we accelerate currently

Darrin Peller

transfer, quick One talked about. follow-up, you Alright. digitization in extend, around money the as I obviously, mean initiatives beyond

if so engagement ways there of than terms obviously just incremental more more a made in little And in being users give on could progress with us you color bit the just CXC. these

Devin McGranahan

So two Darrin, three-step is again, process, a or this right.

relationship moving First, have historically the about had we more talked as into relationship. of have from an account-based transaction-oriented we

wallet, interchange. part like be value of Union products between to accessing enable and that and I and have about comes ongoing relationship transaction. is wallet the cross-border was them money a with account-based With ability of stored have debit with Western talking us as the as for to allows model ongoing and just singular underlying services an establish idea that DMT, customer interactions to the bank to outside to So, the in the that us an

earned we access my are ancillary in and comments, products those. are can prepared heard also we beginning such our base as You suited so customer begin that services explore to enable well that to wage to

more from benefit have services. interact customers reason Western with one and to Union’s that and products yet So,

going evolution, when have the additional we So, lay relationship of how come from in as out ecosystem both back, relationship. see products services we that are transaction-based terms an to develop services that relationship of we in products account-based and we we to account-based our basically and an to

Darrin Peller

Thanks a guys. lot

Operator

from Suchoski Ken from us question ask next your Our question. Please comes to Autonomous.

Ken Suchoski

to business the everyone. that than margin incremental to the Belarus with sense the taking revenue in Belarus wanted I $XX expected, P&L? and revenue ask am to appreciate margin there? us wu.com. mean then it I questions. impact from the in out bit good million But the Russia, coming are came you the reduction off I Hi, the curious, But in we makes you modeling SpareBank just just within sizing just partnership from that, is Thanks that for the on higher the EPS EPS and I afternoon guidance. help And what’s about taking and guide. side what’s the the Russia a

Raj Agrawal

– the our variable nature. the in We margins. think haven’t exact about XX% Yes. Ken, just But of we of given costs specifics are

of $X a partnership, Russia sense label white we is are revenue for the higher digital the that margin a of you because gives overall for contribution the processor. entire that company. So, than

are money We somebody for moving just else.

higher lower being the – only commission side out the then an paying where we And And one and commissions that we digital the wu.com have a then for have a lower And structure so most transaction overall within out have we in typically, have cost business. margin much of structure. white is its paid label CIS business. of markets, on just

impact a flow-through to you see for have EPS. more why are business, of does that’s would than parts other it you seeing So, little our and bit the normally

Ken Suchoski

maybe Okay. question. just That’s helpful. follow-up And my for then really

Just you Are number to the thoughts to those back they a also about retail curious I we on or Just sends, are side back the if users? to get reducing perspective from seeing you economies normal, the trends channel there? back from growth as and digital from was could both are curious all? side engagement Thank they then up, at the going user get you. of talk the opened your

Raj Agrawal

health and are pandemic we drive we that. but closed a are doing strong anymore. significant physical specifics digital now growth I terms to we is to a try be we to very of had not of that quarter to in visit and don’t we certainly activity customer when of last of of things the trying I have were other – the say us, product there other again. and first is the so lot the development in very that, acquisition, customers influx growth customer year, new customers that a things Ken. in level seeing more Yes. would business sense, the are during the But the things of had impact underlying What right of continues of seeing and good. that Obviously, business in

Devin McGranahan

is to this which worse modeled. we and slightly activity customers the prior per of prior customers returning, we had a combination us, first modeled new I Ken, first the than than think quarter only we but how better we on at quarter, had the one for coming customers looking business, those about we in transaction had movie, customer the have the or customer prior slightly expected of quarter, had had but in returning

first which are terms the slightly expectation than we slightly the resulted was we the of I activity and are but in and modeled largely higher So, of quarter, awash the of in seeing guess, business. using for words, engagement, lower – seeing your in performance planned

Ken Suchoski

it. Got

all Okay. really makes That Thanks it. for the detail, appreciate sense.

Operator

Rayna us from Please to ask from comes question Kumar question. UBS. next Our your

Rayna Kumar

markets for grow? evening. that And Western my opportunity for you Good agent you sense corridors no make areas and characteristics looking are have that to question. taking for has to to are contrarily, locations? longer you What Thanks Union determine seeing

Devin McGranahan

no. question last definitive The the to answer is

identified which in a not markets should have We we any presence. believe have we don’t

historical are working one where them. dimensions or analysis are is reason, comment a hard or couple One markets heard and there for one first an of The we on important team of whatever two me underweight. is is you interesting on. the otherwise, obviously And

normal would We have what expect presence. less our than or we

And to thus network our change markets those be we in to time important markets, team or compete understand trying what our is product and to change change those spending so us or to the to applicable would to we either in more change, to which ability allow grow have are our to underway. in

received The the send bit of about me heard thing, relationship about talk received our me this notion you and about second it our heard markets. you where analysis network And markets, the is and little talk and thinking between strong our a do leverage markets, just how do send more broadly we we leverage how we the have those our and of about relationship And thinking received effects interaction potentially than markets. in cash out.

have allow are might corridors understand to of transactions customers, where the customer us opportunity. and we So, at to we looking dynamics

Rayna Kumar

models, half half? as out a the are with help for first to can in timing be of the investment margins our if Maybe quarters. the just you then That’s spend very expecting us operating second helpful. follow-up you versus And still through higher

Raj Agrawal

Rayna, Yes. is this Hi Raj.

the spend think of world helped quarter. a margins has I the we that also what changed some in Obviously, bit little with Russia. first of a because timing happened quite had bit

you will the closures, to the but negative also Belarus three retime Russia going next third see impact are a quarters. from the – quarters, that’s three and we will, if following the favorability, mostly – the going to So, to we in

of So, likely see had same the patterns originally expected. that to we not kind will we

Rayna Kumar

you. Thank

Operator

question. your Morgan James Stanley. question next Our ask us Please Faucette to comes from from

Devin McGranahan

Hello James. Hi James.

Operator

Govil Our next to comes question from us KBW. from Vasu

Raj Agrawal

Vasu?

Operator

Kupferberg to question from America. from Bank Jason next us comes of Our

Devin McGranahan

Hello Jason.

Jason Kupferberg

me? hear you can Hi,

Devin McGranahan

We Yes. can.

Jason Kupferberg

Okay. Great.

in on comments, build in Belarus, thought revenue on I for in does your terms do you the grow you about process I exit? digital double-digits growth was exposure targeting year? QX it earlier the I can down still Russia to Raj, just there. comp you digital So, single-digits. of there overall with and Russia, the growth think the Obviously, where just been the you even were double-digit But that you had leave toughest guess think mean revenue your

Raj Agrawal

because million that three is We growth Russia a Jason, double-digit of are the happened with cut for right. what’s next anymore, in quarters, $XX not given planning revenue mostly

think to So, that growth moderated that are going have the year. really thing changed. this is characteristics and haven’t I most think But we business we doing are I underlying important to the that the build things

you around banking So, open continuing our And hasn’t have type as changed. are well. to, strategy really as digital seen we markets up more digital

year come to is for in muted of So, more but to overall growth in this XXXX, be going digital. more terms

Jason Kupferberg

Understood.

pipeline pipeline does how there terms just big mean, because curious only the sounds How obviously, like follow-up. kind of look a of out like but opportunities? Walmarts Just would in quick Walmart is it there, be many is so the going I other well. looks just agent

Raj Agrawal

Yes.

are We Walmart. with very pleased

heard some – things have that Post. UK have of the You you heard about the

think large yet. other not we have We that just could that some digital have announced in number be nature a of we partnerships,

announce live, America in There are in something the they Middle of coming they and We one Latin the when soon world. them different and go is that’s in regions another East. will

to are we So, signed just for there have been live. are waiting that them go and partnerships

very are anything if know, I as want we perspective to from add to excited. your Devin, don’t So, you well? And

Devin McGranahan

agents world No, the large us. of existing only label the the is operations right prepared and digital that thing network are our as branded in the partnerships parts Raj, existing comments, complement to large white our distribution I would great interest in and evidenced of add,

so partnerships sharing announcements team look And for we forward new about events the and calls of to pipeline of good prospect those, feel behind momentum the I excited is continued I go our as these of that moving about those to it. shoulder kinds on. and putting be look continuing could

Jason Kupferberg

Thank you.

Brad Windbigler

there. Thank you. Operator, we it will end

Operator

joining first Q&A call. This day. Thank today’s you have session. We great concludes our a for earnings quarter you hope XXXX

The Western Union Company (WU) 28 Apr 222022 Q1 Earnings call transcript