ENGLEWOOD, Colo.--(BUSINESS WIRE)--The Western Union Company (NYSE: WU) today reported financial results for the 2009 fourth quarter and full year.

“Our key growth strategies focus on extending our leadership position in cash money transfer, developing electronic channels, and expanding our Custom House B2B payments business. We are excited about the future, and see great opportunities for growth ahead while we continue to generate substantial free cash flow for our shareholders.”

Financial highlights for the quarter included:

• Revenue of $1.3 billion, an increase of 2% compared to last year’s fourth quarter


• Constant currency adjusted revenue down 1%


• GAAP and constant currency earnings per share (EPS) of $0.32; compared to fourth quarter 2008 GAAP EPS of $0.34, or $0.37 excluding restructuring expenses


• GAAP operating income margin of 24%, compared to fourth quarter 2008 GAAP operating income margin of 26%, or 28% excluding restructuring expenses


• Domestic money transfer business returned to positive transaction growth

Financial highlights for the full year included:

• Revenue of $5.1 billion, a decrease of 4% compared to 2008


• Constant currency adjusted revenue down 1%


• GAAP EPS of $1.21, or EPS of $1.29 excluding the third quarter Arizona and multi-state settlement accrual (the settlement accrual); compared to 2008 GAAP EPS of $1.24, or EPS of $1.31 excluding restructuring expenses


• GAAP operating income margin of 25%, or 27% excluding the settlement accrual, compared to 2008 GAAP operating income margin of 26%, or 27% excluding restructuring expenses


• Cash provided by operating activities of $1.2 billion

Strategic and operational highlights from 2009:

• Increased cross-border C2C money transfer market share from 17% in 2008 to an estimated 18% in 2009¹


• Grew agent locations to more than 410,000


• Completed the acquisition of Custom House, enabling the Company to enter the sizable international business-to-business (B2B) payments market


• Completed the acquisition of the money transfer business of FEXCO, strengthening the Company’s platform to expand retail distribution in Europe


• Advanced bank distribution initiatives, including new alliances with U.S. Bank and Fifth Third Bank


• Increased account-to-cash capabilities, with 12 banks now offering the service


• Expanded westernunion.com internet money transfer to 18 countries


• Initiated pilot programs in cross border mobile money transfer and prepaid cards

Western Union President and Chief Executive Officer Christina A. Gold said, “Given the challenging global economic environment, we were pleased with our performance in 2009. We delivered on our outlook, maintained strong margins, gained market share, and generated substantial cash flow, demonstrating the stability of our business model. We took an important step in repositioning the domestic money transfer business, which produced five percent transaction growth in the fourth quarter. We also made solid progress on our electronic channel and business-to-business payments initiatives, positioning us well for the future.”

⁽¹⁾ Aite Group, LLC: “Money Transfers: Riding the Wave,” April 2009, and Western Union estimates



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