ENGLEWOOD, Colo.—Money transfer services provider Western Union Co. said Thursday its fourth-quarter earnings rose 12 percent due to transaction fee growth and improved foreign exchange revenue.
Net income increased to $243.3 million, or 32 cents per share, from $217.2 million, or 28 cents per share, during the same period last year.
Analysts polled by Thomson Financial, on average, forecast earnings of 31 cents per share for the quarter on revenue of $1.3 billion.
Revenue increased 12 percent to $1.31 billion from $1.17 billion.
Transaction fees accounted for $1.06 billion in revenue during the quarter, a 10 percent increase from the $964.9 million generated during the final quarter of 2006.
Western Union also received a revenue boost from improved foreign exchange. The company’s foreign exchange revenue increased 23 percent from the year-ago period to $215.7 million.
For the full year, Western Union’s earnings fell 6 percent to $857.3 million, or $1.11 per share, from $914 million, or $1.19 per share, in 2006. Revenue rose 10 percent to $4.9 billion from $4.47 billion.
In 2008, Western Union expects to earn between $1.24 per share and $1.28 per share on revenue growth of up to 11 percent.
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AP Business Writer Stephen Bernard in New York.
