WU - Earnings call transcript Q3 2024 | The Western Union Company

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Operator

Good day, and welcome to the Western Union Third Quarter 2024 Results Conference Call. [Operator Instructions]. Please note that this event is being recorded. I would now like to turn the conference over to Tom Hadley, Vice President of Investor Relations. Tom, please go ahead.

Tom Hadley

Thank you. will we company's will we results, quarter call, then and take today's discuss third the XXXX On your questions. accompany under tab that found after slides this webcast and The can the at call. westernunion.com will the and Relations Investor remain available call be

have operational press statistics tables our provided been Additional supplemental in with release.

and to Cagwin. in call include for release being is recorded, filings our could the comments the today concerning earnings Devin on differ call our me CEO, language and Today's Western in McGranahan, with statements. the that to Securities Union's including Commission, materially the Please XXXX and statements. refer from forward-looking cause factors additional Exchange Joining the actual results is our cautionary Form CFO, forward-looking Matt and XX-K information

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

the the items Devin X-K our GAAP We over under westernunion.com, McGranahan. as to in reconciled Chief well now will to to as most have attached our earnings Officer, Form the Executive turn our Investor section. I comparable call Relations website, release our those measures on

Devin McGranahan

afternoon. welcome Good Third Call. Western Quarter and Union's Results Financial XXXX to Conference

continue becoming leader providing aspiring the financial day every in the to world. populations services market to the focus accessible of We on

the to with their depend XXX to promise ones who deliver money We day are a to purpose-driven organization us send across on rapidly all our over world. on every million customers safely, and loved securely

as very ensure of we thank profitable Western trusting improve in focused continue trajectory. to members their revenue we on work strategy and our product sustainable value we X our high-quality adjusted team XXXX growth returning past to proposition reported revenue team our Over us the with importantly, appreciate our hard-earned our all I will for XXXX and implement greatly everything work of been growth quarter improving years, our our execution most the do. Evolve offering Evolve another at hard money. Today, has and Union of customers a strategy, which hard executing expand

last Consumer of trends been demonstrate grew the have continuation X money quarters. this are Iraq, years, excluding which we've a mid-single-digit quarter's indeed now quarter, meaningful seen working. continue to driving X the and the improvements, Over as transfer transactions the for the that in X% on we our on improvements adjusted efforts highlights results with despite X% comment in revenue Iraq. durability softness made of Americas, the the into have the positions we revenue to continued XXXX well business an and up basis, business rate the in head we we quarter, improve which excluding growth adjusted emerging will later. The last

of Our to accelerate a business growth transaction quarter. from continued branded the XX%, improvement with second digital continuing

as growth improving These returning revenue growth In our is well FX well continue X% XXX Services rates. confidence driven growth business Network lastly, way basis approaching addition, transaction business to Media our Consumer are and report revenue adjusted growth, us improved aspirations. And by branded as now digital in to trends revenue quarter we that to expansion growth quarter solid points at another core prior had our sustainable, we to strong an business. results the revenue on growth and XX% compared the double-digit as give with our our profitable

quarter, $X.XXX third the For our revenue reached billion.

at relative $X.XX outlook on call. in Adjusted were consecutive in which in earnings strong revenue per $X.XX detail operating Iraq, not meaningfully up quarter. from and X%, later will our or higher Iraq, to profits update our second provide from this a repeated quarter discuss current Matt ago, more this share revenues financial which results the the came and adjusted revenue XXXX quarter positive Excluding positive of benefited our was year growth growth. in an

the macro. to briefly switching Now

for in the region The third my Latin tenure. quarter saw first some our time America challenges in

we regions, a As America reminder, perspective. including Latin send a our from define

recent or initiated paid flows in number out transactions America are U.S. last Venezuela of disrupted either country. typical Mexico. In the that have Latin usually their election in the been have there attempted migration stem Panama, these outcome in have in the political elected American migration. and officials other several may events in instances, region to countries. migration in a And months, with vote delayed instances, some elections So residents the have Latin In the their of Republic, an Dominican to the stayed or newly other in and to see home

through reducing our For example, Latin We Panama route money revenue. events in attempted number is from these short-term American significantly the XX% believe the migrants Panama, new Colombia Gap a on migration Panama. which macro of consumer business, have transfer of President the roughly to into impact the Darien created close has entering

can from portfolio However, the it and globally from as our you see effect results, we us. broader business benefit diversified our affords

there and APAC, our revenue us XXX within basis and kinds the positives of portfolio. Operating will player smaller which of CMT growth of negatives benefit While many second quarter, manage regions frequently quarter. with in competitors. for Middle at-scale better account our a countries and to relative the global are by territories Latin in X,XXX of Europe, America We all all disruptions to to slowed together ex-Iraq XXX enable than believe truly regions the being means both points the revenue rates East, these in XX% X like improved improving

Now shifting business. digital to our

overall our for key to XXXX a As double-digit top our revenue growth organization returning company. essential revenue Day, at and digital is Investor driving for business our is to priority growth discussed the we line

we year, proposition improving value overall our Over driving market been and our experience, improving user the marketing onboarding effectiveness, experience. the focused on past have

been now and efforts happy more revenue. our new in customers, digital which more are over around dozen these the into also more is out transactions a countries rolling translating to have experience, We that now I'm report world.

the transaction in APAC. and solid meaningful America This quarter, in includes of growth reported since Middle quarter Europe, and second East growth we North rate acceleration transaction the across rates This highest the XXXX. growth

to retail. on Now

Over One improve to introduced we point-of-sale year, customer step improve experiences. me, and remember several agent Quick Refund improvements, one including Resend, Step the -- refund to last and

reliability, We continue begun am our journey. now in seek pleased improvement out experience. have agent installment to point-of-sale to support I system the and on improvements announce rolling next customer we speed,

with We of last our a the hardware the have improvements dependency agent variations. local that is learned reduce round deployment to key rapid to on more

just of As core rollouts processing on the such, us of lot hardware run cloud. this we our times. In has a in historically into recent test new enables the dramatic third able over were processes, quarter to were and which year Spain where of system a we speed is this which a completed year point-of-sale complete on this move we and from in accelerate ago. platform, iteration and just them agent transaction a minute, both This a were taken improvement significantly to new the X

reach waves and the year. of in rollouts. weeks, started the plan of on the platform the U.S. roll and in end pace step be to of improvement new coming meaningful would rollout to goal continue first have of the out over agent locations agents quarter already in by few now This have our commercialize the XX,XXX point-of-sale to this it. the this function a of We third additional retail our year product We to working to nearly XX,XXX is markets

faster Europe. We acceptance pleased select across improvements, are the significant to these product is gain now mid-XXXX agents have countries. Retail have and important in share platform agent at over agents. in to historically transactions rollout card-funded with transactions the our debit rolling market and we we has due basis cases, part the But the under-indexed level XX% the for still progress lack the making. a performing than we across over total debit cash-only offering. continued out addition runway year, began data transactions, of a points years. Even than have same the funded begun markets less to we our the meaningfully meaningful agents we we growth have better this higher continue we the account transaction When a to with of of market and and coming In have seeing in are look of are region, enabled some those Debit rates in and been believe agents category. agents multiples are expand than where in to enabled that cash-only growth product last that debit competitive hundreds

rollout our Europe, United States well. have to as launched debit addition card quarter in ongoing year just expanded in we program In of third this an in also the acceptance the

this locations, expectation the our this only grow years to coming meaningfully are is build Europe. in on and While in in segment now seeing to success the select we was V-Go launch

business contribution the our in our example, driving was the network accelerating on strategy. Through execution of basis to and Singapore. subsequent in September improving the has in of this X% XX% last As distribution years of years seen launch focus can year, prior Five the ago, an be with hundreds points own business margins store shrinking few lower over performance years. retail the of controlled our grown

in execution pleased the our in our making the Lucky location Additionally, I example dedication deliver also in of the our high premier XX,XXX commitment This report performance, network. of Singapore proposition company-owned the and September, market-leading that but of a exceeded to in our we one highlights with when brand transactions value am Plaza to it busiest team improve stores strength quality.

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this the segment pleased business saw quarter growth We in revenue of in have am goal I third report rate the made acceleration grow double growth our generated to it to annually. we of XX% the adjusted quarter. a we previous digits and

order And recently products marketplace. one in-store most in the our continue believe for growth of we have retail cash refunds business to money time. have first the solid the We in where see consumer-friendly we we implemented

biggest growth In Europe, and States. have the addition services media the travel in XX from months. robust over to the we from products or a in we to the continue our The benefited expanded were RMO, ForEx network contributors United and our meaningfully business see X which launched business to quarter last season in benefit

I Matt, make to closing In Before customary Evolve both and M&A XXXX some expand call would transactions I which strategy. over other few our I to like conditions. to signed weeks, regulatory continue approval the X a on we recent comments subject turn to have to opportunities remain see of

the financial meaningful mission of population transactions the world's become capital terms these commitments. accelerating We to in leader are providing in our to aspiring in solutions the small believe world. accessible While are they of

expected digital business, dollars of DASH we the to Group. the an agreement signed acquire of into active First, is wallet of millions and our deposits customers us Singtel This in of to incremental and desire. enable Singaporean acquisition hundreds market products additional expand customer services to us bring from that thousands

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an with own to Mexico, an our platform that while the markets We the believe a to business are where and most combination in we in report assets acquire onboarded help Union's one look in our in now acquisition in and to have signed we strategy on inbound customers wallet of Argentina, is month this of Argentina opportunity landed world. We will build all of own our their agreement forward America in seeing to happy relationship remittances with to recently XXX,XXX leverage digital capabilities create launched the their X% addition, the ecosystem Western are wallet fairly into momentum in In we Latin in us wallet. existing to remittance our nascent. the and September, digital customers important account-based accelerate

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market are Looking our remain initiatives. to optimistic strategic the on we deliver we position, about ahead, our progress making

across driven beginning improving that growth and the with remain are transaction digital that see tracking our the top company We we as are detail. both discuss to the prosperous of will are I well we to result. financial pleased a by and revenue results trends businesses the to our business call setting retail performance line today now over up well call joining future. Thank today. you achieve our for in more and Evolve now turn are for our goals I more a the Matt to confident XXXX

Matthew Cagwin

the we third Western revenue Devin, the represents good Evolve digital growth in a Union growth to by GAAP Iraq excluding quarter, continued to positive $X.XXX Consumer adjusted delivered In our of billion. Services. and the competitive you, and growth. XXXX demonstrate results the quarter On second This this an progress Thank was X%, revenue consecutive quarter led grew everyone. of return acceleration was branded afternoon, The business position. revenue the market basis, strategy of and

ago, Additionally, at of of in trajectory business XXXX. Iraq million ahead point we reach growth of are $XX to we strategy to to had with XXXX the quarter came range where in launched we revenue years pleased million first Evolve X% aspiration our that positive the when lower communicated. We're the at our previously be included we'd per this flat $XX and our X thought which end

the in current adjusted from margin in effective contributions elevated was our primarily range. rate adjusted revenue adjusted Adjusted in and and to business operating rate X.X% and from last the higher the the effective XX.X% tax year related expanded the the quarter count rate year was XX.X% was adjusted expect year offset driven Iraq primarily adjusted excluding lower effective in investments and margins tax revenue, tax benefiting Year-to-date, products last compared adjusted related in were partially benefits, XX.X% last teens tax XX.X%. Services to discrete strategic year. current Our by to share low versus new with Consumer period. The lower year. the $X.XX last the Iraq, operating The compared to by lower decrease be EPS Iraq was lower now rate we tax year. to full $X.XX

relates IRS X million operating provide was this This that and and U.S. paid of disputes tax related from million, XXXX with our also was of the would quarter, an in are benefit earlier entered that will open this share to to remainder We be pleased Since dispute already adjusted paid the resulted year excluded income. resolving we've EPS. net taxes in any flow in XXXX. The we've X and paid, to of favor GAAP into XXXX returns. settlement $XX settlement noncash the our to a resolution us income a already final a $XXX our benefit benefit second noncash quarter open cash million the cash our $XX a tax and payment of which

transactions label adjusted business. X%, by as or excluding as led Now branded X% to consumer headwind lower revenue CMT X%, well CMT an transfer our which business grew our business. of from included CMT the money Iraq, Iraq strength was revenue. digital our digital white down turning

XXXX. quarterly Our for adjusted changes spreads both positive Europe in achieved points basis as price revenue prior since implemented the substantially and XXX APAC grew time over the we improved year. first Regionally, sequentially our growth

comparison business This a Our sixth last double-digit quarter grew against and transactions growth branded grew to digital achieve and transaction XX%. was year. of X% the consecutive marks adjusted revenue tougher

remain to branded basis was X,XXX sequential growth flat as improvement in in each. Europe, point well in America. continued driven both as APAC points transaction digital XXX MESA and XXX transaction sequentially, transactions adjusted solid spreads the by improvement improved While This and revenue basis North performance

Our payout XX% grew the account transactions in to quarter.

revenue performance, progress we're We approach confidence into as branded Australia aspirations are third gives strong continued with reaching double-digit the which digital us revenue its XX% pleased the quarter. making going we in XXXX. growth growth

of possible new is message. value have digital believe on in As countries success improvement the one initial right we the a late we when proposition Australia underscores we deployed right product the XXXX. and the the was our right that marketing reminder, This solution

the and supported from to to payout Now This was turning transition sequential includes of by as encouraged which basis this strength transaction regions we point the anticipate the services wallet X% like continued achieved a a counter improvement. enhancements results, quarter, XXX controlled third anniversary we to and growth our agent debit account strategy, optimizing XXX quarter concept going retail in well by business. Europe distribution kiosk-only the adding We're owned card and key into as In retail, the retail and success continued fourth enablement as technological model. our stores capabilities. in

Now the moving to Americas.

to volatility, retail U.S. As while Devin impacts with in can challenges largely corridors. The right we're encountered and belief network, lack the migration, earlier, grow we in stabilize slowed Mexico of technology primarily some driven our intra Europe that business quarter, right the geopolitical right discussed due or to lack reinforce America retail [indiscernible] our progress seeing by operations. the including North the this

our Now business, up media the Adjusted our of which retail exchange our for Services retail foreign benefiting segment, continued total new as transitioning network revenue. well expansion to XX% of revenue accounts as from money business was our XX%, Consumer growth order. quarterly in

XX% are growth on year-to-date. revenue this track growth achieve We adjusted year to our with double-digit

anticipate strategic and was Services expanded double-digit Consumer driven both investments. revenue In margins we operating by and adjusted product growth quarter, new ahead, third sustained products. Looking driven the by and X%

these improve be anticipate above scale or at and will average. margins total will products, we company that As our we

management. cost switching Now to

we the our adds to This $XXX million as $XX costs incurred continue we to Year-to-date, million. our X-year freed freed our in XXXX. up we the And to $XX $XX complete leverage X-year we drive million be efficiencies, have million XXXX. in we continued cost expense third on and strides program. make confident redeployment opportunity quarter, optimize years further our that to to expect In we've up early continue in base. We redeployment X have I scale, commitment

taxes turning Act of discussed higher our million to million was impacted to $XXX related balance Now settlement million the cash which Year-to-date, generated and for negatively the sheet. flows, Tax $XXX income $XX operating by cash flow and I have payment we IRS the earlier. including

payment make final X% tax of the roughly both agent aligning will to strategically under settlement. our make to year-to-date, Tax of in million final of million dividends approximately million $XXX to paid and have investing repurchases. revenue. quarter were pleased million Act key payment final am deferred payment remain of IRS which we in second returned compensation stockholders we in covers and XXXX, -- and As our expenditures $XX $XXX the the total Year-to-date, $XXX with $XXX capital with We areas the that report in million performance. I committed we share our or

and maintain continue sheet We balance equivalents $X.X also to billion. of strong over a with [indiscernible] cash cash

Our net strong provides believe and we're rating. M&A X.Xx ample us turn on which and for basis, gross our at we capital maintaining while remained credit flexibility X.Xx a leverage ratios and investment-grade or potential

the outlook to Today, our performance assumes changes outlook. material we reaffirm in macroeconomic quarter Now to confidence our in outlook. the third on adjusted on quarter This XXXX our conditions. and no moving our ahead, based

of the $X.XX. is EPS of To to in we $X.XX $X.XXX range conclude, our the are to As and in a adjusted with billion, to be we to pleased billion results. expected expect $X.XX adjusted revenue range reminder, be

and Operator, can questions. date that joining our you ready XXXX results call. Evolve take we outlook. Thank now for strategy the along us deliver progress we're these to give confidence Our with to

Operator

Instructions]. [Operator

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

Jason Kupferberg

the outcomes assume is Does So I mentioned I election to LatAm. wanted a thinking QX going on for business? the into I on to 'XX for And the Just U.S. know of matter? are all there your headwind immigration. that that the and you being guess, guidance election just even headwind. focus early start implications core obviously, you guys potential just how the for persist about

Matthew Cagwin

bit we results is we're but still good We minute right forward February I elections. good seeing Thank really and in about talked seconds that for also America with The I guidance a the impact on much can updating very the about you Latin shared in very just to we now, the a question. feel ago. look little give XXXX, America feel ago. on the Devin just fluid but everybody North a few

Devin McGranahan

the Obviously, paying, a we're of different obviously, lot have South seen political to immigration. different U.S. what we've attention environment candidates in perspectives on transpire America. Jason, given Latin and

money We continue employed won't in are clients near have believe, and of either on impact election a They're platforms time, we and in change true significant the results years. a business. especially don't to something but the in We business, over haven't migration to the of sending intermediate term, here U.S. Over reduction U.S. to the gainfully parties dramatic obviously it's majority home. our that's our already the seen The would inward that effect our the though, several productive expect with in that last election. the

Jason Kupferberg

follow-up, just branded steady it bps, just Okay. growth. then bit know where a was I this little out a as earlier transactions widened but it digital revenue year. and XXX it's the spread was from And at between

it target that, digital I as know bps. do if So in the incremental the longer-term term? Where comment environment maybe pricing kind on more you got the of going driven And I guess of near that you've can of part to you XXX what's widening? generally. see just XXX

Matthew Cagwin

I've and throughout Devin I'll also on. that hoping [ Jason, I pretty spread been see stay with this because we'd an start the wide year let for acceleration. ] was the to then consistent

our results and both this saw accelerated revenue of hundred you transactions a by quarter, points. As couple basis in

at that the now, account. to growth XX% we've to This account XX% typically business payout us we've mid-XX% confidence grow the revenue about by business our several been now range. much actually has per highlighted ago XX% You to digital seen we've to in account come from transaction, gives grow continue our go but years that because to payoff also also we prepared seen X heard my remarks to are during X/X. and more I These in payout years can lower digital a customers it's much had our around that stickier

So it us there. lot gives confidence a more

Devin McGranahan

And to we Jason, long have company target, XXX the for described. XXX basis we the term continue points to the as in

wide-ish has accelerate revenue we we transactions. this maintaining Matt it posted we're we continue outlook, to to we about, accelerate that continue will keep both as keep and advantage develops. As talked now, the long-term We'll happy take have anticipate right to you opportunity but as But if of that opportunity.

Operator

comes from Our Tien-Tsin us to next question from Huang JPMorgan.

Tien-Tsin Huang

Good bit you -- some invest what results from for away other Services what little -- those from when not we to are here. would you curious double year and opportunities digit, that a are pivot? there in crazy to And or trending want XXXX in follow-up a or the And down say, growing momentum as But where you perhaps away from year quick this you Evolve. we're it's challenges to a a Devin, branded XXXX, you some thought? this caused -- little targets just digital harder a that. LatAm. set with mid-double Consumer is more and with better than I'm all then Maybe do

Devin McGranahan

competitive. out underlying we well said new some we under original to concerned the of feel as the water took is from October business. pricing we coming we or that we're to customers, that from talked the revenue customers together probably of of driving the of X bridge those transactions to gap it's lot ahead the out last was accelerate that become initially the to point, quarters plan health which, investments metrics working like beginning, We've were Thanks, But in the from in X 'XX, of about a years. X actions close the couple your what years transactions make in for Tien-Tsin. That's about market had months and nicely. And hard the we the laid pretty we that was people acquiring then of believe ago, on so quite many those ultimately, to durability the

Now into digital X quarters quarters mid-single double-digit X growth. with digit in transaction

well we increased this working services positions acceleration confidence America. getting retail to of question, would better have very also continue we've continue accelerate seen see and and was the original on than we in United us happens out business, it done your digital actually business and sustainable lay what particularly helping. the quarter, is Both the our North as will is remain plan. we're outside States durable in opportunities retail XXXX. those consumer in think what I I did of we XXXX. To that for And momentum obviously as in to like the further beyond

Tien-Tsin Huang

Got you.

great. curious, But about thinking So midterm That's beyond I'm you Services the respect of another the base. set place? we have sort at outlook expect some which give new do have consumer and could targets? do services that XX other any all updates Consumer know have. expect you corporate the initiatives above should with in you newer [indiscernible], have that you'll to is or be 'XX, of Devin, you And of we I or to with some longer-term -- starting margins as I you mentioned

Devin McGranahan

second work we hard set will our we've in with Tien-Tsin, are midterm group for what we for the next in out the together which be half our are to in XXXX. expectations 'XX, we guidance look that bringing year happens lay at forward sometime investors with of working, beyond to guidance. this line But and

rebuilding has reestablishing our the sale years you been been today, in putting know, lot of doing competitiveness. It's and coming platforms our building, of about X you cloud, organically been now multiproduct point been And products has X-sided our of It's our in market and foundation in we've either investing wrapped investing as around of and a in payment experiences. last what end-to-end and a is as our a the importantly, ecosystem. generation for in nicely together technology digital As heard inorganically. it. That some core services, cases, the most ecosystem in next an offering terms transaction

look and are to about we've we with year forward So next the of together beyond we very 'XX. second excited on everyone are the and outlook in where made the progress half getting

Operator

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

Darrin Peller

going the to these to acquisition going seen been I start be I'm deals It's little was at Western a see thoughts while we've since ask to I M&A on good hear strategy. M&A updated It's off guess curious your really -- to Union. with I'd done. now. being And

these the top maybe could and around is path this your couple on those the us a down mean that over next even over of in going of Singapore what maybe time. Devin, Mexico, years that. more and of vision what and So give for sense come business wallets to on

Devin McGranahan

for question. thanks Darrin, the

that's local markets. capital organically. In do cases, after acquisitions a spent and we X get the well that talent to X transaction access hopefully it access have with credibility since the building consistent business, strengths know, licenses, services. a access and the and a trying we're years core and trying which opportunities with both manner operating strategy and Day, technology to time. think of with built thoughtful of the team on the subject those Matt matter as of in model, are accelerate in from in to we where it beyond many There come frankly, get management to of I build over growth, our was of our do pace our with we expertise capabilities. to that working We're a our of up hundred Investor will financial mid-single-digit really can payments our and I couple in simply world We our lot in prudent establishing. quarters digital place of deployments you to world And accelerate

made progress And in with which company store time long that network, we've did acquisition master the was my of controlled Singapore a our been an had agent before prepared in the earlier our own so frankly I strategy. we laid comments, distribution out launched a ago languishing

wallet saw, that to revenue for from foundation business digits. a we a years that took purchased to we've That's double multiple Singtel you in transaction shrinking digital into. As put growing now great ecosystem from over this

building those other X of of opportunities things that we world. good can can what the a we're the vision come we obviously so talk about accelerate think standpoint a about take we're foundation a about. we our we've team, how confidence those where the financial together, it, in global on local trying do. foundation that's built strategy looking to Matt building And we around management ecosystem, but strength digital opportunities. And strength, end feel is and of We're from at

Matthew Cagwin

Darrin, just building Devin said. what little a bit on has

are Singapore about network a talking probably the since spot to been digital been ago. sense. ones escalator, got of talked couple of continue X retail We've a points has half we've It Devin which as proof make of So and looked in that. multitude entirely about of great why Investor to on. other expand there, just last X years we've Day of But our what years. some the didn't these

will acquisitions like CMT hopefully, of see, to services market fall going things into quarters next [ space, X over the you're core consumer that these as So couple and come the benefits the both with available, looks right being well. right come if ] but the acquisitions some in

Devin McGranahan

other that investors The but the equation to remain that Matt capital add, our is return advancing alternatives not to the returning we would make the of is disciplined I to exceptionally our and sure strategy, compared investors. just also Darren, always thing we're

strategically So it motivated and financially disciplined. is

Darrin Peller

the remind examples mid-teens improving and and that transaction of your you're or markets. at better maintaining are how Western you've guess same follow-up in time, retail blocks Union something the I just and to be digital shown some the so stability. of this obviously time. the while would conviction progress rate? quick think after this growth this best around just building I welcome us is investors that going select I you've shown continues, conviction mean stable to for Maybe

Devin McGranahan

Yes.

I now network little our world. talked which experience the and And customer is on seeing at So returning the those talked bit really and the couple we've here, around the the course that and investments a was we're ], last paying over operational about market there's on, markets our of support of X point which focused these elements, side, both the -- off competitiveness. agent the right? retail agent And the company we're of they This excellence about years to the about improving in really many sale. of [ digital

every that somewhat frankly, exceptionally a transactional, something able things time into being experience can and and these and a customer wandered be have each a we While to high-quality have agent away boring important Union is probably walks from. Western

controlled is get customer third, in volume cost really of about branded and benefit the Lucky agents exclusive independent one great the the then where Union us allows fixed Plaza in distribution, our a I and the which revenue we the growing to Western is locations experience. The which high own stores have high-volume talked like

it actually that it's now deploying are just not as the most flat, X-part markets in in which a growth. world, highlighted competitive is well, Matt we're mid-single-digit the executing the retail one where So of around transaction world, Europe, us mature getting we in strategy

that to more achieve from not, in more we aspirations stable confidence, our build weren't places we if a already the thus, world, confident possible and So foundation believe retail our around to and business it's and else. in which the growing everything

Operator

comes question Citi. Schmidt Andrew next us to Our from from

Andrew Schmidt

North down drill unpack you're just performance then of migration competitive seeing. comments maybe in versus And on there? just trends the the U.S. to Mexico. positioning? wanted also there, macro on America, the I specifically you persistence What's the going Can across versus to

Matthew Cagwin

today. call the joining for thanks Andrew,

competitors our space. result nature, bit we've seen market the large its for It [indiscernible] with partners. other for So being the to on to of similar last weeks heaviest seeing the and we're feels seeing our with We've evaluating partners in own. over Mexico working a is we're so couple U.S. in in much slowdown tie-in a with met more America macro X that still a very a concentration or in but The Latin of what similar Mexico. with are

Devin McGranahan

I things happened Panama [ and Chile our We're what little them. just trip dislocation But and frankly, we digital did to business ] Lokai Colombia Panama patterns has unrest migratory customers I the onboarding that weeks of Colombia, that the palatable of the or from slowdown into in back in especially our the migration have lots and X from then of the we still ago came Mexico, important our from pleased are on -- have Venezuela retail get continued in corridors Mexico, customers like in to into bit to and a apps. Haiti. These I'm locations. ground. new sense a a to impacting the dependent in in back on Chile and Colombia Peru

So either it is they a X onetime highest customer, of economic where or customers, migratory make sometimes it's countries X of we'll have in one see as or search in of and regions south the same where north the journey, we regions X the opportunity. the

slowdown the last of couple with in So that years. that transaction rates growth a we're migration patterns, seeing the in for slowdown enjoyed the we've

Andrew Schmidt

any seen get from quarter? just competitive in Or your the larger of there X on particular, another Got in least is a outage it. curious to as competitor kind Obviously, But the environment. a you a to had in strategy shifted have as agent benefit I'm their the have to seems large Maybe of at well-known MTOs. the result. that tail quarter. to it any that? perspective the competitive environment as large relates well

Devin McGranahan

Yes. Thank you.

in places actually places God, there It Union Jamaica, our world. doesn't every exclusively it's safety But more to reminds unfortunate the global or few the I it's like there obviously that competitor and saw now. We're high-quality very our to our market, and a So and work the upticks and anymore obviously we're to bad grace their market. a world and to us situation. where hard a XX at that it day and we tabs mean to to years existed exclusive change in customers. people on have side-by-side just on competitive but with are U.S. U.K. actors it's protect that Western Australia be keeping and certainly well fundamentals few MoneyGram world focus the continue to to in saw We go of business. all for some places MoneyGram week need maybe close was Pacific exceptionally a lot and we Islands, out customers ago, a that's bad the for against, we are vigilant of a XX our the wishes that and upticks it's driving security where them but in and like

Operator

from Suchoski Ken Autonomous. question from next comes Our to us

Kenneth Suchoski

estimated Maybe Iraq ask we're on question just just down a on correctly. the fiscal to ex-Iraq thinking business. follow-up I was FX-neutral that make ex math the to about X% about We retail wanted fiscal Darren's retail about to an sure year-over-year basis. retail revenue

X%. neutral think down with quarter, X%, down last So per I similar also to transactions FX rev transaction

moving then lapping loss, that broadly. promotional better a just to more lapping math run pieces correctly. And of know wanted agent environment there's pricing, about So you, to pricing of the make we're there's I thinking sure it a by lot with I an

business you about the So physical I guess components are those how coming quarters? that thinking retail X of over

Matthew Cagwin

to pieces to Ken, are for thanks the each exactly able the I numbers joining of continue impressed a actually right model. somehow have and every you call, get I data one few your and time. by and get be the all

So you're on. spot yes,

Kenneth Suchoski

guess, the I That's get now? Okay. And spread of we in great. and business should in that better transactions to expect then right. All accelerate terms to being that trend that

Matthew Cagwin

in kiosk. to that We from lap being little better we bit being do expect a agent only went to the QX get as European full

think improvement around time. I we initiatives our modest the expect about and up and as do speeding debit passes. both over solution we time talked point-of-sale will And So Devin improve

Kenneth Suchoski

out of that? for year investing the And XXXX? great. we you get that. that a for the just sense for and business said my then you just follow-up, think average. around timing Consumer the Maybe that in sort a you Is Services expect to that us segment? nice Can you're next are in overall back beyond business. looking company Or growth Okay, I where sense And give margins really to just

Devin McGranahan

Ken. Thanks,

bill transactional prepaid As our our what to there's and you been buckets our We've will business, order I our which in pay investing consider innovations payment X products. business. be product money know, businesses big in there. includes of There's business, products, new retail

to the accelerate. we expect of to part business So continue that

and term, which business you in that long term, get going what's second The of stable the quite from business of Argentina, on more a be the the in will large short part our the a [indiscernible]. in from assets, bill they includes country. pressures Argentina, that has than that feeling tame which people is know, economic is to pay pressure people But good inflationary case. business in if And inflation non-U.S. is effect economy been environment our decelerating feel as the

third in of but them, wallets, some the and to things we are and we delivery digital our invest network. that's for returns. today are in those, tails media newer to fairly future that's think that businesses, The the long and These both product is really in continue our have our the nascent,

Matthew Cagwin

and point time. about the things let we're where Ken, making phases And over rollout of These question on your just margins that. have on timing the investments Devin's build me

in than So goal is our company any going operating margin product we is our an income or invest have average. better to at

you a to upfront So while into for you that's rollout one. have you're that that rollout will costs strategy have our quarters have when go hit building hit then There's marketing, you impact. build other a country and couple a for we then a of it,

the at or So Thanks year using question. the years. scale quarters one how scale, and fast different it a each pace will conscious word coming the gets for been here. as over a and of We've very

Operator

next comes from Hone from BMO. question to us Rufus Our

Rufus Hone

to wanted you thoughts digital I'd to love business. industry I hear competition the about ask your pricing. around and

to pressure your in you opportunity momentum see seeing on maybe digital in some an But marketing good spend? digital your put competitors You're you dial this some obviously and smaller up as for business. do incremental

Devin McGranahan

LTV, on value Rufus, LTV to at terms retention in-period that of as or expanded and don't, the We've the creation when sense CAC heavily customers. of behind due X expenses model value being that. And from we well around years ago, due the focused marketing focused looked executing in on are we we customer economic and began pull more back. quality see pretty of when the we to a either customers built And the an investments were either economics had business of future the Historically, lifetime kind those the business it this invest and of the acquisition transactional or to program of acquired into we we world. transforming principal versus opportunities business

and an of see couple discipline advantage in the maintaining of CAC to business. so quarters. take last around the we model, for been this can quarter, which whenever And have has true see driven opportunity, LTV it you And that the we

players it to are higher customer to smaller, having we that the creating payout stability funding is sense market that want for also be players, know whether scale the see been previous and operate us that's the Matt, in had less to certain continue like creating proposition was conducive irrationally retain in extent, don't creating add and market continue about a behaving that. the behind retail, account and might I to creating invest makes call, if value more market due We acquire those you has and environment. Competitors discipline. to a that it at and it with talked to amongst well-capitalized digital opportunities who to is the now have before, in We us harder a or who rate it interest and been expensive environment, a to anything than therefore, rationality time participants customers. to

Matthew Cagwin

on. spot No,

Operator

Tim UBS. from to Chiodo comes us question next Our from

Unknown Analyst

us the bit card in that and on further. little in the out but plans to and acceptance touched remarks, roll also slides a debit You the prepared the

being the takes factor out limiting just And also rate make broader could gross margin and on a talk profile of any additional little profit to about, from what it gross bit to if neutral those for past have of take the roll future? would you kind a the makeup things that perspective? If in the then in availability been what that. transactions, And one, with any of there's maybe acceptance associated clearly, cost that an the there's

Devin McGranahan

service our at of a or products and retail and bank our to value believe I'll the many make retail the language we I'll to our pay ability more contemporary, service. the was have you well evolved, Historically, we're part cash helps per and value out as bank those -- and includes of retail experience turns expanding cash in-person point believe cultural accounts, actually there sale the sale. We sometimes the that, largely the familiarity I'll perspective a transaction. talk has have in take sometimes customers business with transactions first in that modern. unit bank-based reinvention as more out. of now at retail, that Tim, we a the higher also they part let world of is of countries, account-funded even had of proposition that Matt customers some economics. and as the to about that in-person proposition principal also of product, retail have as point card-based It

with transactors can the imagine, and, not you cases, than As cash. they're are in some heavier customers. walking of around wads all-cash

benefit dealing point-of-sale equipped the even So the of Matt a didn't acceptance. Historically, many with have of and offsetting And sometimes that talk of merchant we a see, system card-funded markets. about cost these cash. versus acquiring relationships can we and have it, transactions we in didn't settlement system was with

positive in of locations infrastructure, build agent at we're had to be and our We ability that fund to in do Europe and acquiring ensure rolling settlement point we the merchant So and seeing to to merchant point-of-sale connected high-quality to movement acquiring first have invest merchant and devices our the we sale had did relationships to install and to able our local it we're now and results. out operations. U.S.,

Matthew Cagwin

Devin's on build to around point just Tim, economics. unit the

on principal prepared and talked per wanted what retail a results some lower. In pay get We the what of markets. the know, wanted test higher this fair we And on it we transaction, cost bit our that this that little and that business, cash the in bit do Armor of we levels, other lodgement. remarks acceleration to for up I'm with where a can just car today, money we about do talked get the transaction pickup uplift was We the with sure you see to the You to of it you insights in our Devin the purpose. of interchange probably less picked did test in opening meaningfully as European cost Europe. started is about it in the insights market, and

kind but accretive. at costs So early point, at passes. hope get well as And those U.S., seeing it's in we we and principal optimism we're and we've business not the in Europe, it still calls come days, got transaction be from differentiation actually in per our any but on looking should make we're as the of our down. it uplift this monitoring as per I location our we'll U.S. had we're pricing European is what time transactions

Devin McGranahan

side The by independent U.S., side we in other thing, of European debit markets competitors with Tim, particularly in channel some acceptance. have other in and certainly the offered MTOs many where our the sit

so coming or cash the debit in with card V-Go locations Western from a who not automatically need. could Union brand that of our away And to and independent competitors we're a customers directed fulfill one

independent a share disadvantage. there are we are debit market multi-brand we've for hoping customers where and been locations So gains historically product at preferring

Operator

Ramsey Our from next us El-Assal from to comes question Barclays.

Ramsey El-Assal

volatility do of we in $XX you you continue Iraq what Or impossible for kind Do to see your also you contribution stabilizing us expectations range? And of forward? should revenue some see? that the QX? a Where the sort of Could that to give $XX trends in you color land expect on to market? million little million in expect question do going

Matthew Cagwin

Ramsey, nice to catch you. up with

Devin McGranahan

Ramsey, a it's might an we for a Iraq. get has on question the call X without We lost Matt through bet. time thought in quarters great. earnings first

Matthew Cagwin

to Thank you a for pay him me wine. making bottle of nice

to end end end I in range. It's was range, public of it QX that gave to answer didn't to year target. the $XX that that may million has the have quarters. lower the go reasons million next But the a So Iraq, at QX was at my of now, range and XX to the $XX lower end of why think that upper things closer our guidance. because moving upper the I right have the narrow volatile. about with very crystal of one we answer of we're from intentionally at noticed the been were is you public trending the range X the one was mean ball be because we're this feel to X, earlier for can guidance we really we today, the If and uncertain. days end. change Could same unfortunately, lower I Iraq. good our the over on it

Ramsey El-Assal

enough. it. Got Fair

longer-term the home whenever the in performance and a feels our seems Singapore, owned in XX gating like Slide that on What it seems on question really factors strategy, your like like the broadly? business. has part Or bring of a much the store out road owned Another impact of is to you run. map. strategy up that always It beneficial sort stores more of are it rolling kind that

Devin McGranahan

So what of expenses I is normal as will include discipline, recipe you light success with fixed for water the and comes is stuff. as power own employees that lease operating Every discipline discipline. well and store expenses tell sort the

and expensive network a put in cover to have able you in manage in hiring So to to mass fixed the critical to execution be you it's the generate any it and to across enough too to revenue selective be them do of one-off. market which expenses the locations because ensure stores can then both enough staffing you

you network have mindset go into then disciplined return. to quite mass, a you that really you So with in critical and it locations get choose the the in get to order to have be to

modeling Netherlands. company to network Panama and we in Peru, the Italy, where and Switzerland including certain had parts see in that of the the the are years that, be Europe, Mexico. been conditions in Brazil. ripe in in and some countries out now many on the We've for Argentina building expanded We've Spain, We in

a further long time. measured see our retail with makes business is as think provide it expand can require a foundation out. viable term, to But a at a that you to something what going it to in on outside is As of done and We one that but market important come build Singapore. extreme looking the to the component country that we're strategy, countries to escalator, important discipline. really in we've an couple more and retail Asia, patients that's it's in digital to process we'll

Matthew Cagwin

the what know, we you have Ramsey, approximately a But better increase never team able been the Devin meaningfully the to couple this making as and they've be last locations. to to is to We margins. They've active X and said a only to world we impacts, here have handful ago it of X in channels sure the and it large years, we whether we're markets years had they when another thing I'd handful, add Devin's U.S., a we've starting did they get over closer working very it small where trip the very they're agent it to around work the be point, by and XXX,XXX is, percentage. much anticipate X different or expand to right we or been get just working there Singapore were a have now approach. tenaciously to that

distribution. area So a number, it small the will always is be it but actually an that's important to control

Operator

question to from Bank. come final Deutsche Bryan from Keane will Our us

Bryan Keane

-- XX.X% margins. to year-to-date the coming adjusted he pretty there, about range wide came you is Matt, XX%. think I which operating in ask, XX% I to at know wanted in -- get just the I and out

you So range? of the end just any there curious reason the to towards why why range. come the in not would mid- Is narrow high

Matthew Cagwin

as Bryan, out. to the unlikely that is range the probably we changed high be not We've at end upper started range. since

to point sustainably wise is been revenue not our really over time. started. XXX It's deliver and focus continue main we Our just adjusted. basis and we've EPS when to grow

Operator

day. We additional Third There Earnings a you Conference Call. Western you Thank joining great at are time. Results questions today's Union for no this have hope Quarter

The Western Union Company (WU) 23 Oct 242024 Q3 Earnings call transcript