Western Union Looks to ’23 to Reverse Revenue Decline

Despite expected third-quarter revenue declines and earnings guidance that falls short of Wall Street consensus, Western Union is delivering a financial outlook and strategy through 2025 that puts revenue trends on an upward trajectory starting in 2023.

Western Union’s Evolve 2025 strategy connects its purpose by bringing high-value, accessible financial services to emerging populations around the globe, according to a statement from the company on Thursday (Oct. 20).

The global money transfer business is reporting a 15% decline in revenue on a reported basis, or 6% on a constant currency basis excluding the contribution from Business Solutions, which was sold this year.

For the fiscal 2023, Western Union expects its revenues to drop by roughly 8% to 10%, with revenue on an adjusted basis to fall by about 2% to 4% and earnings per share (EPS) of $1.55 to $1.65.

See also: Western Union Expects Q3 Revenue to Decline 15%

Earnings for the third quarter were negatively affected by the $910 million sale of the firm’s Western Union Business Solutions (WUBS) division to Goldfinch Partners and The Baupost Group, which is taking place across three closings, PYMNTS reported on Wednesday (Oct. 19).

The first closing took place in March, with the second expected in December and the final in the first quarter of 2023.

EPS growth in 2024 and 2025 is expected to be in the mid-single digit range, with operating margins anticipated to be an estimated 19% to 21% across the next three years, according to the release.

“Our new strategy is designed to enhance the products and services we provide to our customers. It will leverage the strong foundation we have built to create a more meaningful relationship with our customers by providing essential financial services outside of money transfer,” said Western Union President and CEO Devin McGranahan.

Read more: Western Union Business Solutions Now Convera, Says is Largest Non-Bank Global B2B Payments Platform

WUBS was rebranded as Convera, a new standalone B2B payments company, PYMNTS reported in March. News of the sale was first announced in August 2021. Convera is among the largest non-bank FinTechs operating in the global B2B payments space.