Western Union Profits Grow 7%

The Western Union Company (NYSE: WU) today announced that its first quarter net income grew 7 percent to $207 million while revenue grew 12 percent to $1.3 billion as the company introduced new payment options and its consumer-to-consumer business posted strong growth figures.

During the quarter, Western Union incurred a total of $24 million in restructuring expenses. Of this total, $17 million was related to the company’s decision to close substantially all of its union operating facilities in Missouri and Texas and transition these operations to existing facilities outside the U.S. and to third-party providers. The restructuring expenses are expected to total approximately $60 million this year.

Western Union doesn’t break out results for its products in the collections business. However, the company did say that it started a micro lending pilot in Hong Kong in the first quarter, and that preliminary results indicate strong demand for the product.

The company also expects further expansion of its mobile-phone based money transfer service, that it rolled out late in the first quarter (“RadioShack, Trumpet Mobile and Western Union Launch Mobile Money Transfer Service,” April 4).

The company, together with two other partners, Smart Communications and Globe Telecom, will enter the market this quarter with its mobile money transfer service to the Philippines. Additionally, Western Union will begin offering inbound and outbound money transfer services in the third quarter in South Africa through the company’s new agreement with ABSA, one of the country’s largest financial services organizations and a subsidiary of Barclays Bank PLC.