(Reuters) - Western Union (NYSE:WU) Co 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.