Western Union quarterly profits up 8%

This quarter Western Union reported a net income of $223.4m, up from $207.1m in the same period a year earlier. Revenue was $1.2bn, down 5% from the same period last year, but flat when adjusted for currency fluctuations. Additionally, Western Union successfully closed the acquisition of the money transfer business of FEXCO and grew its agent locations to 379,000 globally.

Christina Gold, President and Chief Executive Officer, Western Union, said:

"We were pleased with the first quarter results, particularly in light of the world's economic challenges. Global consumer-to-consumer transactions increased 7% for the period, and in combination with cost reductions, led to strong margins."

Europe, the Middle East, Africa and the South Asian (EMEASA) region, which represent 43% of Western Union's revenue, experienced a first quarter revenue decline of 4% on transaction growth of 15% compared to last year's first quarter. Performance of the Gulf States was particularly strong, declining only slightly from the fourth quarter of 2008.

Gold commented, "We believe 2009 is a year of opportunity - one where financially strong companies and world-class brands will increase separation from their peers."

She added, "With one quarter complete, we reaffirm our 2009 outlook recognizing that throughout this year the economic environment remains challenging and uncertain."

In February, Western Union said the global money-transfer market would grow more slowly in 2009. The company today reaffirmed its 2009 outlook and said it expects revenue to decline 5% to 8%.