Q3 2025 Western Union Co Earnings Call Transcript
Key Points
- The Western Union Co (WU) reported a solid quarter with strong performance in Europe, South America, and Asia, driven by their retail business in Europe and digital business in Asia.
- The company's branded digital business increased transactions by 12% and adjusted revenue by 6% in the quarter, marking the eighth consecutive quarter of mid-single-digit or better revenue growth.
- Consumer services adjusted revenue was up 49% in the quarter, driven by the acquisition of Eurochange and a strong European travel quarter.
- The company has made significant progress in becoming a more digital-centric company, with digital channels now accounting for over 40% of the principal moved globally.
- The Western Union Co (WU) has maintained strong cost discipline, resulting in an industry-leading adjusted operating margin of 20% in the quarter, up from 19% in the prior year period.
- The Western Union Co (WU) faced continued weakness in North America, particularly in the US to Mexico corridor, which remains a critical area to monitor.
- Revenue for the third quarter was down 1% year-over-year on an adjusted basis, excluding impacts from Iraq.
- Consumer money transfer transactions declined by 2.5% in the quarter, excluding Iraq, indicating challenges in transaction growth.
- The company is experiencing headwinds in its retail business in the Americas due to geopolitical factors and restrictive migration policies in the US.
- Despite improvements in some areas, the overall performance in North America remains inconsistent, with fluctuations in transaction trends across different months.
Ladies and gentlemen, our program will begin momentarily. Please note that all lines will be placed on mute. Good day and welcome to the Western Union third-quarter 2025 results conference call. (Operator Instructions) Please note, 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.
Thank you. On today's call, we will discuss the company's third-quarter 2025 results, our 2025 outlook, and then we will take your questions. The slides that accompany this call and webcast can be found at westernunion.com under the investor relations tab and will remain available after the call.
Additional operational statistics have been provided in supplemental tables with our press release. Joining me on the call today is our CEO, Devin McGranahan; and our CFO, Matt Cagwin. Today's call is being recorded, and our comments include forward-looking statements.
Please refer to the cautionary language
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