Western Union Q1'23 earnings report shows a decline in revenue

Western Union’s quarterly earnings report highlighted a decline in revenues despite the recorded rise in digital transactions. Promotional pricing and halted operations in Russia and Belarus are among the factors behind the reported drop in revenues.

Western Union’s earnings

Western Union’s latest earnings report showed an increase in its digital transactions. In particular, the company recorded a 7% growth in digital transactions during the initial three months of 2023.

Even so, its revenue dropped by 10%. Its branded digital revenue fell by 7% while its consumer-to-consumer revenue was down by 6%.

In a press release, the company’s CEO stated, “While revenue remained below our long-term aspirations for the company, we are pleased to see a significant improvement in trajectory relative to the fourth quarter in many key markets around the world. We are particularly pleased with the ongoing momentum in our digital business with 14% growth in our new branded digital customer base, which accelerated global branded digital transaction growth to 7%”.

The firm attributes the decline in revenues to the suspension of its operations in Belarus and Russia. Besides, promotional pricing and softness in the retail money transfer sector has contributed to the recorded drop.

With regards to promotional pricing, Western Union has employed an array of activities related to its go-to-market strategy. The strategy dubbed “Evolve 2025” was unveiled in 2022 with the aim of modernizing their products and services. This also includes strengthening their relationship with customers by providing crucial financial services other than money transfer.

As this strategy gained momentum into 2023, Western Union saw its new customers increase by 14% in Q1’23. Granted, the promotional activities may continue to impact the firm’s revenues in the near term.