Western Union Reports $4.21 Billion Revenue, 49% Increase in Net Income for Fiscal Year 2024

The Western Union Company reported a revenue of $4.21 billion for the fiscal year ending December 31, 2024, a decrease of 3% from $4.36 billion in 2023. The decline in revenue was primarily attributed to a reduction in transactions originating from Iraq, which was impacted by changes in monetary policy and central bank actions. Despite the revenue drop, the company saw a significant increase in net income, which rose by 49% to $934.2 million, compared to $626 million in the previous year. This increase in profitability was largely due to a substantial tax benefit resulting from the recognition of deferred tax assets associated with the reorganization of international operations.

In terms of operational metrics, Western Union's Consumer Money Transfer segment, which constitutes 90% of total revenues, experienced a 5% decline in revenue to $3.80 billion, while transaction volume increased by 4% to 289.9 million transactions. The company’s Consumer Services segment, which includes bill payment and money order services, reported a revenue increase of 28% to $411.7 million, driven by growth in retail foreign exchange services and new service introductions. The overall customer base remained stable, with approximately 380,000 agent locations conducting money transfer activities in the past year.

Strategically, Western Union completed the divestiture of its Business Solutions segment on July 1, 2023, which had previously contributed to its revenue. The company has since focused on enhancing its Consumer Money Transfer and Consumer Services segments, including the launch of a digital wallet in select markets. The company also reported a significant investment in technology and compliance measures to adapt to evolving regulatory requirements, particularly in anti-money laundering and consumer protection.

As of December 31, 2024, Western Union's total assets stood at $8.37 billion, with cash and cash equivalents amounting to $1.47 billion. The company maintained a strong liquidity position, with no outstanding borrowings under its revolving credit facility and a total debt of approximately $2.94 billion. The company’s effective tax rate for the year was notably low at -51%, reflecting the impact of tax benefits recognized during the year. Looking ahead, Western Union anticipates continued challenges in the global money transfer market, particularly due to regulatory pressures and competition from digital payment solutions, but remains committed to leveraging its extensive agent network and brand recognition to drive future growth.