Western Union Reports 2.8% Year-Over-Year Increase in Total Revenue for Q2 FY2023 at USD 1170.0 Million
August 23, 2023
☀️Earnings Overview
On June 30, 2023, WESTERN UNION ($NYSE:WU) revealed the earnings for the second quarter of FY2023. Total revenue was USD 1170.0 million, which indicated a 2.8% rise from the same time last year. Net income was reported as USD 176.2 million, reflecting a decrease of 9.2% year-over-year.
Analysis
GoodWhale recently conducted an analysis of the fundamentals of WESTERN UNION. According to Star Chart, WESTERN UNION has a high health score of 8/10 as its cashflows and debt appear to be in good standing. This suggests that the company is able to pay off its debts and fund operations for the future. Furthermore, considering that WESTERN UNION is classified as a ‘cow’, a type of company that has a track record of paying out consistent and sustainable dividends, it may be of interest to investors who are looking for shares that can offer steady returns. When taking a closer look at WESTERN UNION’s performance, it is apparent that it is strong in dividend and profitability, yet weak in terms of asset and growth. More…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Western Union. More…
| Total Revenues | Net Income | Net Margin |
| 4.39k | 751.3 | 15.1% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Western Union. More…
| Operations | Investing | Financing |
| 538.8 | 168.1 | -998.8 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Western Union. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 8.49k | 7.86k | 1.67 |
Key Ratios Snapshot
Some of the financial key ratios for Western Union are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| -3.7% | -1.9% | 20.8% |
| FCF Margin | ROE | ROA |
| 7.4% | 96.6% | 6.7% |
Peers
It has a wide network of agents and locations around the world. Western Union has several competitors, including American Express Co, Mastercard Inc, and PayPal Holdings Inc.
– American Express Co ($NYSE:AXP)
American Express is a financial services company that provides charge and credit cards, rewards programs, travel services, and more. The company has a market cap of 106.78B as of 2022. American Express was founded in 1850 and is headquartered in New York City, New York.
– Mastercard Inc ($NYSE:MA)
Mastercard Incorporated is an American multinational financial services corporation headquartered in Purchase, New York, United States. The company’s core products are credit, debit, prepaid, and commercial payment cards, issued to consumers and businesses worldwide. Mastercard also processed approximately $3.4 trillion in payments in 2019.
The company has a market cap of $286.32B as of 2022 and a Return on Equity of 110.3%. Mastercard is a publicly traded company with its shares listed on the New York Stock Exchange (NYSE).
– PayPal Holdings Inc ($NASDAQ:PYPL)
PayPal Holdings Inc is a US-based company that operates a worldwide online payments system that supports online money transfers and serves as an electronic alternative to traditional paper methods like checks and money orders. The company has a market cap of 98.05B as of 2022 and a Return on Equity of 11.16%. PayPal is one of the largest online payment processors in the world and handles over 9 million transactions every day.
Summary
Western Union‘s total revenue for Q2 FY2023 showed a slight increase of 2.8% year-over-year. However, net income for the period decreased by 9.2%. Investors have been monitoring the company’s performance as it positions itself for long-term growth, and while the slight revenue increase is positive, further improvements in profits are needed to instill confidence in potential investors. Over the past three years, the company has been making strides toward digital transformation and expanding its global reach, which could be promising for future results, but should be weighed against the current market conditions.
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