NEW YORK: Western Union Co. on Thursday reported modest declines in net profit and revenue during its third quarter, as currency swings damped growth in U.S. outbound money transfers.
Western Union has faced increased competition in recent years, as it expands from a cash-based business to one with an increased focus on digital payments. PayPal Holdings Inc.’s deal to buy Xoom, struck in July, will create a large global competitor for Western Union in money transfer.
In the latest quarter, Western Union said it saw strength in U.S. outbound money transfers and on its westernunion.com transaction sites.
Western Union said consumer-to-consumer transactions increased 2%. Revenue from consumer-to-business transactions grew 10% excluding currency impacts, driven by its Argentina walk-in and U.S. electronic bill payment businesses.
In all, for the quarter ended Sept. 30, the company reported earnings of $232.3 million, compared with $234.1 million a year earlier. Per-share earnings ticked up slightly to 45 cents from 44 cents a year earlier amid fewer shares outstanding.
Revenue fell 2.9% to $1.4 billion, but would have been up 3% excluding currency swings.
Analysts polled by Thomson Reuters were looking for 44 cents a share in earnings on $1.41 billion in revenue.
Operating margin was flat at 21.8%.
The company backed its full-year outlook for adjusted earnings of $1.60 and $1.67 a share.
