Western Union Co. reported better-than-expected earnings in its most recent quarter, driven by growth in its digital presence.
The Douglas County-based company raised its outlook for the year, despite reporting lower revenue, hurt by a stronger U.S. dollar. For the year, the company now projects per-share earnings between $1.60 and $1.67, up from its prior range of $1.58 to $1.65.
The company also recently recorded after-tax charges of $24.2 million related to a settlement with the Consumer Financial Protection Bureau. The CFPB had claimed certain aspects of the marketing of Western Union’s subsidiary’s Equity Accelerator service violated the Consumer Financial Protection Act’s prohibition against unfair, deceptive and abusive acts and practices.
Western Union has faced increased competition in recent years, as it expands from a cash-based business to one with an increased focus on digital payments. PayPal’s announcement of plans to acquire Xoom creates a large global competitor for Western Union in money transfer.
For the quarter ended June 30, the company reported earnings of $189.3 million, compared with $193.8 million a year earlier. Per-share earnings were flat at 36 cents. Excluding charges, earnings were 41 cents a share. Revenue fell 2% to $1.38 billion.
Analysts polled by Thomson Reuters were looking for 39 cents a share on $1.36 billion in revenue.
