Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Western Union beats on profit, to buy back $1.2 billion shares

Published 02/10/2015, 05:07 PM
Updated 02/10/2015, 05:07 PM
© Reuters. A Western Union branch is seen in New York

© Reuters. A Western Union branch is seen in New York

(Reuters) - Western Union, the world's largest money-transfer company, reported a better-than-expected quarterly profit, helped by cost cuts and a lower tax bill, and it said it would buy back up to $1.2 billion of shares.

Western Union, which gets most of its business from migrant workers sending money home, also forecast 2015 profit above analysts' estimates.

The company raised its quarterly dividend to 15.5 cents from 12.5 cents.

Western Union's shares rose about 3 percent in extended trading.

Revenue at Western Union's digital business, including westernunion.com and mobile money transfer, rose 17 percent in the fourth quarter ended Dec. 31. The business accounted for 6 percent of its total revenue.

The company has ramped up its digital money transfer business to compete with nimble online rivals such as privately owned Boom Financial Inc and Xoom Corp (O:XOOM).

Western Union said in January that it would enable customers to transfer money and pay bills using Apple Inc's (O:AAPL) mobile wallet, Apple Pay.

Revenue from consumer remittances, which account for about 80 percent of Western Union's total revenue, fell 2 percent in the fourth quarter.

The company forecast earnings of $1.58-$1.65 per share for 2015. Analysts on average were expecting $1.59, according to Thomson Reuters I/B/E/S.

Western Union's net income rose 28 percent to $221.5 million, or 42 cents per share, as total expenses fell 4 percent.

Total revenue declined 1 percent to $1.41 billion, mainly due to a stronger dollar. Analysts on average had expected a profit of 34 cents per share and revenue of $1.44 billion.

© Reuters. A Western Union branch is seen in New York

Western Union's shares were trading at $19 after the bell. Up to Tuesday's close, the stock had risen about 17 percent in the past 12 months.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.