Western Union raises annual profit view on strong growth in C2C service

The Western Union

26/07/2023 22:39

July 26 (Reuters) - Western Union Co  WU.N  raised its
annual profit forecast on Wednesday after an upbeat second
quarter in which transactions jumped on strong growth
consumer-to-consumer (C2C) service, sending its shares up about
4% after the bell.
    With markets rebounding across the globe and unemployment
still low, the company saw a predominant jump in its C2C
business due to strong cross-border transactions.
    Western Union recorded the highest growth in its C2C
business since 2021 as both money transfer revenue and
transactions surged 4% for the three months ended June 30.
    The C2C money transfer business, which is the biggest
contributor to its income, relies largely on migration which
brings workers to countries with greater economic opportunities.
    The company now expects its 2023 adjusted earnings per share
in the range of $1.65 to $1.75 compared to prior guidance of
$1.55 to $1.65.
    The company said it saw a big increase in its business
originating from Iraq, which is believed to be the fallout of
policy changes by the Central Bank of Iraq.
    The results were also helped by an increase in local
currency revenue per transaction in the firm's Argentine
operations due to inflation in the region.
    However, Western Union expects the elevated remittance
volumes related to Iraq to be significantly low following the
U.S government's recent actions to bar 14 Iraqi banks from
dollar transactions.
    On an adjusted basis, the company reported a profit of 51
cents per share, beating analysts' average estimate of 39 cents,
according to Refinitiv data.

 (Reporting by Sri Hari N S in Bengaluru; Editing by Pooja
Desai)
 ((SriHari.NS@thomsonreuters.com;))