ENGLEWOOD — Money transfer agent The Western Union Co. on Tuesday said its profit rose 11 percent in the third quarter, driven by international growth in its consumer business.
But the company also warned of slowing growth in the fourth quarter, and tightened its earnings outlook for the year.
For the three months ended Sept. 30, Western Union earned $240.8 million, or 33 cents per share, up 11 percent from $216.3 million, or 28 cents per share, in the year-ago period.
The per-share results reflect a 4 percent reduction in the number of shares outstanding year over year.
Revenue rose 10 percent to $1.38 billion, from $1.26 billion last year.
Analysts surveyed by Thomson Reuters, on average, expected profit of 34 cents per share, on revenue of $1.38 billion.
Western Union said growth in its consumer-to-consumer business, which accounts for 85 percent of company revenue, moderated during the quarter, particularly in China and some European countries.
Strong growth in the Middle East, India and the Philippines partially offset that slowdown.
Overall, the international consumer business accounted for 69 percent of company revenue, and grew 15 percent during the quarter.
Transactions that originated outside the U.S. posted revenue growth of 21 percent, the company said.
In the U.S., revenue slipped 3 percent. “Results in this region continue to be impacted by the challenging U.S. economy,” Western Union said.
The company’s consumer-to-business segment saw revenue slip 2 percent, reflecting declines in the company’s U.S. bill payment business. “Western Union is handling significantly fewer bill payments than originally anticipated at the beginning of 2008 as many more American consumers who would use this service are currently unable to pay their bills and unable to obtain new credit,” the company said.
Citing slowing growth and the stronger dollar, Western Union narrowed its outlook for full-year profit to earnings per share of $1.23 to $1.25.
