Q1 2024 The Western Union Co Earnings Call

Operator: Good day, and welcome to the Western Union First Quarter 2024 conference call. All participants will be in listen-only mode.

Good day and welcome to the Western Union first quarter 2024 conference call all participants will be in listen only mode. After today's presentation, there will be an opportunity to ask questions.

Operator: After today's presentation, there will be an opportunity to ask questions. Please note that this event is being recorded. I would now like to turn the call over to Tom Hadley, Vice President of Investor Relations. Tom, please go ahead.

Please note that this event is being recorded.

I would now like to turn the call over to Tom Hadley, Vice President of Investor Relations. Tom. Please go ahead.

Thomas Hadley: Thank you. On today's call, we will discuss the company's first quarter 2024 results, and then we will take your questions. The slides that accompany this call and webcast can be found at westernunion.com under the Investor Relations tab and will remain available after the call. Additional operational statistics have been provided in supplemental tables with our press release. Joining me on the call today is our CEO, Devin McGranahan, and our CFO, Matt Cagwin. Today's call is being recorded, and our comments include forward-looking statements.

Thomas Hadley: Thank you on today's call, we will discuss the company's first quarter 2024 results and then we will take your questions.

Thomas Hadley: Slides that accompany this call and webcast can be found at Western Union Dot com under the Investor Relations tab and will remain available after the call additional.

Speaker Change: Operational statistics have been provided in supplemental tables with our press release.

Speaker Change: Joining me on the call today is our CEO, Devin Mcgranahan, and our CFO Mac Haigwood today's call is being recorded in our comments include forward looking statements.

Thomas Hadley: Please refer to the cautionary language in the earnings release and in Western Union's filings with the Securities and Exchange Commission, including the 2023 Form 10-K, for additional information concerning factors that could cause actual results to differ materially from the forward-looking statement. During the call, we will discuss some items that do not conform to generally accepted accounting principles. We have reconciled those items to the most comparable gap measures in our earnings release attached to our Form 8K, as well as on our website, westernunion.com, under the Investor Relations section. I will now turn the call over to our Chief Executive Officer, Devin McGranahan.

Speaker Change: Please refer to the cautionary language in the earnings release and in Western Union's filings with the Securities and Exchange Commission, including the 2023 Form 10-K.

Speaker Change: For additional information concerning factors that could cause actual results to differ materially from the forward looking statements.

During the call we will discuss some items that do not conform to generally accepted accounting principles. We have reconciled those items to the most comparable GAAP measures in our earnings release attached to our form 8-K as well as on our website at Western Union Dot com.

Speaker Change: Under the Investor Relations section.

Speaker Change: I will now turn the call over to our Chief Executive Officer, Devin Mcgranahan.

Devin B. McGranahan: Good afternoon, and welcome to Western Union's first quarter 2024 financial results conference. Today we reported another quarter of steady progress, and I am pleased with the direction of our business under our Evolve 2025 strategy. Over the last 18 months, we have been working hard to return our digital business to double-digit revenue growth and to achieve stability in our retail business. This quarter's results further demonstrate that our efforts are working. We delivered positive revenue growth and improved transaction trends in both our retail and our digital businesses in the quarter. Consumer money transfer transactions grew at 6% in the quarter, the third consecutive quarter of 5% or more transaction growth.

Devin B. McGranahan: Good afternoon, and welcome to Western Union's first quarter 2024 financial results Conference call.

Devin B. McGranahan: Today, we reported another quarter of steady progress and I am pleased with the direction of our business under of all 2025 strategy.

Devin B. McGranahan: Over the last 18 months, we've been working hard to return our digital business to double digit revenue growth and to achieve stability in our retail business.

Devin B. McGranahan: This quarter's results further demonstrate that our efforts are working.

Devin B. McGranahan: We delivered positive revenue growth and improved transaction trends in both our retail and our digital businesses in the quarter.

Devin B. McGranahan: Consumer money transfer transactions grew at 6% in the quarter the third consecutive.

Devin B. McGranahan: Second in a 5% or more transaction growth.

Devin B. McGranahan: Excluding the COVID grow-over period, this is the first time we have seen three consecutive 5% plus transaction growth quarters since the second quarter of 2014, nearly ten years ago. As I have said before, we strongly believe that consistent and sustainable transaction growth is the best indicator of the future health of our business. In addition to maintaining our transaction momentum, this quarter, we also made significant progress in reducing the spread between transaction growth and revenue growth.

Devin B. McGranahan: Excluding the Covid grow over period. This is the first time, we've seen three consecutive 5% plus transaction growth quarters since the second quarter of 2014, nearly a decade ago.

Devin B. McGranahan: As I have said before we strongly believe that the consistent and sustainable transaction growth is the best indicator of the future health of our business.

Devin B. McGranahan: In addition to maintaining our transaction momentum this quarter. We also made significant progress in reducing the spread between transaction growth and revenue growth.

Devin B. McGranahan: As we have previously discussed, closing this gap towards our long-term goal of two to three hundred basis points is a priority, and we made a lot of progress in the first quarter. For total consumer money transfer, we improved the spread between transaction growth and revenue growth by approximately 300 basis points compared to the fourth quarter.

Devin B. McGranahan: As we have previously discussed closing this gap towards our long term goal of two to 300 basis points is a priority and we made a lot of progress in the first quarter.

Devin B. McGranahan: For total consumer consumer money transfer, we improve the spread between transaction growth and revenue growth by approximately 300 basis points compared to the fourth quarter and more importantly in our branded digital business, we improved 500 basis points quarter over quarter with our.

Devin B. McGranahan: And more importantly, in our branded digital business, we improved 500 basis points quarter over quarter, with our branded digital business now growing adjusted revenue at 9%, which is the highest growth rate we have seen since the third quarter of 2021. Our confidence in reaching sustainable, profitable revenue growth by 2025 grows each quarter as we see increased stability in our retail business, increased growth in our digital business, an ongoing broadening of our consumer services offerings, and better customer and agent experiences.

Devin B. McGranahan: Branded digital business now growing adjusted revenue at 9%, which is the highest growth rate we've seen since the third quarter of 2021.

Devin B. McGranahan: Our confidence in reaching sustainable profitable revenue growth by 2025 grows each quarter as we see increased stability in our retail business increased growth in our digital business and ongoing broadening of our consumer services offerings and better customer.

Devin B. McGranahan: Agent experiences.

Devin B. McGranahan: We are also achieving these goals while maintaining our industry-leading margins, adjusted margins, of 19 to 21 percent. Now, switching briefly to the macro, the macro backdrop remains consistent with what we have seen for the last couple of quarters.

Devin B. McGranahan: We are also achieving these goals, while maintaining our industry leading margins.

Devin B. McGranahan: Adjusted margins of 19% to 21%.

Devin B. McGranahan: Now switching briefly to the macro the macro backdrop remains consistent with what we have seen for the last couple of quarters, while beginning to temper, we continue to see elevated inflation and higher interest rates around much of the world the <unk>.

Devin B. McGranahan: While beginning to moderate, we continue to see elevated inflation and higher interest rates around much of the world. The good news is that our customers have found a way to adapt and to continue to send money in similar sizes as they have done in the past. This confirms our belief in the resilience of our customer base, the power of our brand, and our at-scale global operating model. Our principal per transaction in the quarter was up 1% on a constant currency basis when excluding the positive effects from IRAC, and our customers are broadly sending with similar frequency as they did a year ago. For the first quarter, our revenue reached $1,050,000,000, reflecting a 3% increase on an adjusted basis.

Devin B. McGranahan: Good news is our customers have found a way to adapt and to continue to send money in similar sizes as they have done in the past.

Devin B. McGranahan: This confirms our belief and the resilience of our customer base the power of our brand and our at scale Global operating model.

Devin B. McGranahan: Principal per transaction in the quarter was up 1% on a constant currency basis, when excluding the positive effects from Iraq and our customers are broadly sending with similar frequency as they did a year ago.

Devin B. McGranahan: For the first quarter, our revenue reached $1.050 billion, reflecting a 3% increase on an adjusted basis.

Devin B. McGranahan: Adjusted earnings per share came in strong at $0.45, or up 5% on a year-over-year basis, which now puts us in a position to increase our outlook for the full year. In the quarter, we continued to return capital to our shareholders with stock repurchases and dividends totaling $230 million. This brings our cumulative capital returned to shareholders since I joined the company in late 2021 to over one and a half billion dollars. We have facilitated this type of capital return while navigating an uncertain economic backdrop, resetting our market competitive position, exiting Russia, and investing significantly in our products, technology, and our go-to-market strategy.

Devin B. McGranahan: Adjusted earnings per share came in strong at 45 or up 5% on a year over year basis, which now puts us in a position to increase our outlook for the full year.

Devin B. McGranahan: In the quarter, we continued to return capital to our shareholders with stock repurchases and dividends totaling $230 million.

Devin B. McGranahan: This brings our cumulative capital returned to shareholders since I joined the company in late 2021 to over one 5 billion.

Devin B. McGranahan: We have facilitated this type of capital return, while navigating an uncertain economic backdrop.

Devin B. McGranahan: Resetting our market competitive position exiting Russia, and investing significantly in our products technology and our go to market strategies as.

Devin B. McGranahan: As revenue growth continues to accelerate, we expect to be able to continue to generate strong free cash flows while also investing in our future. Matt will further discuss our financial results in more detail and provide an update to our 2024 outlook during this call.

Devin B. McGranahan: As revenue growth continues to accelerate we expect to be able to continue to generate strong free cash flows while also investing in our future.

Devin B. McGranahan: Matt will further discuss our financial results in more detail and provide an update to our 2024 outlook later in this call.

Devin B. McGranahan: Over the last year, we have made significant progress on our most important strategic initiatives, including improving our retail operations, updating our digital platforms, enhancing our customer and agent experiences, and enhancing our overall value proposition in the marketplace. This focus on our strategic priorities is leading to the improved financial results we reported today. And while we have made substantial progress, we believe there are still opportunities to continue to improve our overall operating performance.

Speaker Change: Over the last.

Speaker Change: Last year, we have made significant progress on our most important strategic initiatives, including improving our retail operations updating our digital platforms, elevating our customer and agent experiences and enhancing our overall value proposition in the marketplace.

Matt: This focus on our strategic priorities is leading to the improved financial results. We reported today and while we have made substantial progress. We believe there are still opportunities to continue to improve our overall operating performance.

Devin B. McGranahan: Now on to our retail business. Immigration around the world is showing no signs of slowing down. In the U.S., for example, the migrant population hit 51 million people earlier this year, which is a new record and accounts for roughly 15 percent of the U.S. population and approximately 20 percent of the U.S. workforce, according to the Center for Immigration Studies.

Matt: Now on to our retail business.

Matt: Immigration around the world is showing no signs of slowing down in the U S. For example, the migrant population had 51 million people earlier this year, which is a new record and accounts for roughly 15% of the U S population and approximately 20% of the U S workforce.

Matt: According to the center for immigration studies. It was also reported that since the pandemic migrant workers in the U S have increased by $3 million, while at the same time the U S. Born workforce is down roughly 1 million people.

Devin B. McGranahan: It was also reported that since the pandemic, migrant workers in the U.S. have increased by three million, while at the same time, the U.S.-born workforce is down roughly one million people. Our research would indicate that many migrants start their remittance journey in a retail setting for a variety of important reasons. Given the likely future ongoing growth and migration around the world, we believe that macro trends support the fact that we can indeed stabilize a retail business while at the same time growing our digital and consumer services businesses.

Matt: Our research would indicate that many migrants start their remittance journey in a retail setting for a variety of important reasons.

Matt: Given the likely future ongoing growth and migration around the world, We believe that macro trends support. The fact that we can indeed stabilize our retail business while at the same time growing our digital and consumer services businesses.

Devin B. McGranahan: As you remember from our Investor Day, we view our retail business as the gateway to Western Union. In the last couple of years, we have seen more than 20 million new remittance customers annually in our agent retail locations around the world. These are 20 million new opportunities to showcase our brand, to build trust, to highlight our improved customer experience, and to start a relationship with our customers that will hopefully last decades. While many new migrants start their remittance journey in a retail setting, over time, a meaningful portion migrate to digital channels as they establish in-market banking relationships.

Matt: As you remember from our Investor Day, we view, our retail business as the gateway to Western Union over the last couple of years, we have seen more than 20 million, new remittance customers annually and our agent retail locations around the world. These are 20 million new opportunities to showcase our brand.

Matt: To build trust to highlight our improved customer experience and to start a relationship with our customers that will hopefully last decades.

Matt: While many new migrants start their remittance journey in a retail setting over time, a meaningful portion migrate to digital channels as they establish in market banking relationships.

Devin B. McGranahan: When we provide them with a world-class experience in retail, an attractive value proposition, and a broader set of financial service offerings, we build trust and can grow with them on their financial journey in their new home. Last year, we introduced several point-of-sale improvements, including Remember Me, Quick Resend, and One-Step Refund, to improve our customer and agent experience. I am happy to report that in the first quarter, we processed nearly 2 million transactions using Quick Resend, largely still in North America, which is up from roughly the 500,000 transactions we processed when I first shared the launch of this product in the second quarter of 2023.

Matt: When we provide them with a world class experience in retail and attractive value proposition and a broader set of financial service offerings, We build trust and can grow with them on their financial journey in their new home.

Matt: Last year, we introduced several point of sale improvements, including remember me quick <unk> in one step refund to improve our customer and agent experiences.

Matt: I am happy to report that in the first quarter, we processed nearly 2 million transactions using quick <unk> largely still in North America, which is up from roughly the 500000 transactions we processed when I first shared the launch of this product in the second quarter of 2000.

Matt: 23.

Devin B. McGranahan: In recent weeks, we've begun to roll out this functionality to Europe and APAC with the goal of building on the success of the improved customer convenience that we now see in North America. In addition to Quick Resend, we've expanded our one-step refund functionality, which allows agents to process refunds without the need to engage with our call center associates. This functionality is now available to the vast majority of our network around the world, and in the first quarter of 2024, two-thirds of all refunds processed globally were processed using our one-step refund approach.

Matt: In recent weeks, we've begun to roll out this functionality to Europe and APAC with the goal of building on the success of the improved customer convenience that we now see in North America.

Matt: In addition to quake resend, we've expanded our one step refund functionality, which allows agents to process refunds without the need to engage with our call Center associates.

Matt: This functionality is now available to the vast majority of our network around the world and in the first quarter of 2020 for two thirds of all refunds process globally were processed using our one step refund approach.

Devin B. McGranahan: This contributed to a significant reduction in call center volumes and an improved experience for both our agents and our customers alike. Lastly, we strive to create a more customer-centric approach through the expanded rollout of our universal customer ID. This technology enables one customer profile across our channels for both senders and receivers. It is allowing us to move from a transaction-centric company to a customer-centric company. With the universal customer ID and our improved CRM capabilities, we can now proactively alert customers when their transactions have been delivered. We can make recommendations to receivers on where they can conveniently pick up their transaction or, in some markets, even enable receivers to redirect their remittance directly into their account or to a Western Union digital wallet.

Matt: This contributed to a significant reduction in call center volumes and an improved experience for both our agents and our customers alike.

Matt: Lastly, we strive to create a more customer centric approach through the expanded rollout of our universal customer I'd.

Matt: This technology enables one customer profile across our channels for both senders and receivers.

Matt: It is allowing us to move from a transaction centric company to a customer centric company with a universal customer I'd and our improved CRM capabilities. We can now proactively alert customers when their transactions have been delivered we can make recommendations to receivers on where they can conveniently.

Matt: Pick up their transaction or in some markets even enabled receivers to redirect their remittance directly into their account or to a western Union digital wallet.

Devin B. McGranahan: A truly customer-centric and channel-agnostic approach is central to our new loyalty program, which I am very pleased to announce we successfully launched in France this week, achieving our goal of an April launch. Being able to recognize and reward customers across channels for both senders and receivers is something that we are excited about and believe it will help us improve both the engagement and the retention of our entire customer base. We are continuously looking for ways to improve our customer and agent experience.

Matt: A truly customer centric and channel agnostic approach is central to our new loyalty program, which I am very pleased to announce we successfully launched in France. This week, achieving our goal of an April launch.

Matt: Being able to recognize and reward customers across channels for both senders and receivers is something that we're excited about and believe it will help us improve both the engagement and the retention of our entire customer base.

Matt: We are continuously looking for ways to improve our customer and agent experience. We are working hard to expand the rollout of many new additional functionality, including debit payment at the point of sale digital receipts and enhanced path to account capabilities payout to account capabilities.

Devin B. McGranahan: We are working hard to expand the rollout of many new additional functionalities, including debit payment at the point of sale, digital receipts, and enhanced payout to account capabilities, payout to account capabilities around the globe. We look forward to updating you on these important initiatives in future quarters. In addition to these customer and agent-facing improvements, we are also nearing the end of our core transaction processing engine migration to the cloud. We expect this to be completed this summer, and we look forward to benefiting from a more consumption-based model and the increased scalability that comes with a modern cloud-based architecture.

Matt: Around the globe.

Matt: We look forward to updating you on these important initiatives in future quarters.

Matt: Yeah.

Matt: In addition to these customer and agent facing improvements. We are also nearing the end of our core transaction processing engine migration to the cloud. We expect this will be completed this summer and we look forward to benefiting from a more consumption based model and the increased scalability they come.

Matt: Comes with a modern cloud based architecture.

Devin B. McGranahan: This migration will enable our development teams to innovate more quickly and reliably deliver solutions to our agents and customers globally. Having a fully cloud-enabled core processing platform will enable us to be more agile and competitive in a digital-first world. We believe all regions will benefit from our improved technology-enabled experiences, but one I'd like to highlight today is our European region.

Matt: Migration will enable our development teams to innovate more quickly and reliably deliver solutions to our agents and customers globally, having a fully cloud enabled core processing platform will enable us to be more agile and competitive in a digital first world.

Matt: We believe all regions will benefit from our improved technology enabled experiences, but one I'd like to highlight today is our European region Ricky.

Devin B. McGranahan: Recall that this region has had multiple external forces working against it over the last several years, including our decision to exit our business in Russia and Belarus and The Loss of Meaningful Revenue at Two Large European Agencies. In addition, Europe is a very competitive part of the world, with strong competitors in both the retail and the digital channels. Over the last 18 months, we have been focused on our European operations with the launch of our new digital go-to-market strategy.

Matt: Recall that this region has had multiple external forces working against it over the last several years, including our decision to exit our business in Russia and Belarus.

Matt: And the loss of meaningful revenue at two large European agents in.

In addition, Europe is a very competitive part of the world with strong competitors in both the retail and the digital channels.

Matt: Over the last 18 months, we have been focused on our European operations with the launch of our new digital go to market strategy. The.

Devin B. McGranahan: The expansion of our controlled distribution strategy, the improvement of our value proposition, including dynamic pricing, the launch of our new loyalty program, and the expansion of our product portfolio to include foreign exchange services, are all beginning to pay off.

Matt: The expansion of our controlled distribution strategy the improvement of our value proposition, including dynamic pricing the launch of our new loyalty program and the expansion of our product portfolio to include foreign exchange services.

Matt: These efforts are beginning to pay off.

Devin B. McGranahan: In the first quarter, our European region grew transactions at a 5% year-over-year growth rate, a marked improvement from the double-digit declines of recent years, and the first quarter of 5% plus transaction growth since the fourth quarter of 2019. This improvement was accomplished while absorbing the loss of counter service at one of our largest agents in France, which discontinued their FLA support, supported remittance offering in the fourth quarter of last year. While this agent loss will continue to be a headwind for the coming quarters, the European team did a great job of navigating the situation by extending the contract length by almost nine months and executing on a remediation plan, which included building up an independent agent network that now totals over 1500 locations, launching both a digital and kiosk solution for our partner to replace their counter service and expanding the capabilities of our branded digital offering across the country, in the past, we might have chalked up this agent departure to the quote unquote market decline of retail in the European region and left it at that.

Matt: In the first quarter, our European region grew transactions at a 5% year over year growth rate a market improvement from the double digit declines in recent years.

Matt: In the first quarter, a 5% plus transaction growth since the fourth quarter of 2019.

Matt: This improvement was accomplished while absorbing the loss of counter service at one of our largest agents in France, which discontinued their <unk> support.

Matt: Supported remittance offering in the fourth quarter of last year.

Matt: While this agent loss will continue to be a headwind for the coming quarters. The European team did a great job of navigating the situation by extending the contract length by almost nine months in executing on our remediation plan, which included building up an independent agent network.

Matt: That now totals over 500 locations.

Launching both a digital and kiosks solution for our partner to replace their counter service and expanding the capabilities of our branded digital offering across the country.

Matt: In the past we might have chalked up this agent departure to the quote unquote market decline of retail in the European region and left it at that instead, we viewed it as an opportunity to do the very type of problem solving required to hold our market position to improve the.

Devin B. McGranahan: Instead, we viewed it as an opportunity to do the very type of problem-solving required to hold our market position, to improve the experience for our customers, to assist and support our agent partners, and to mitigate the long-term impact of this action on the underlying health of our business. And because of those decisions, we are now seeing better outcomes than our original projections.

Matt: Experience for our customers.

Matt: To assist and support our agent partner and to mitigate the long term impact of this action on the underlying health of our business and because of those decisions. We are now seeing better outcomes than our original projections.

Matt: I would now like to spend a minute discussing our consumer services segment.

Devin B. McGranahan: I would now like to spend a minute discussing our consumer services segment. In previous calls, we have talked about how retail money order and bill payment have been the largest two businesses within consumer services and the biggest drivers of growth over the last couple of years. We have also made it a goal to grow this segment of our business by double digits annually for the foreseeable future.

Matt: In previous calls we have talked about how retail money order and bill payment had been the largest two businesses within consumer services and the biggest drivers of growth over the last couple of years.

Matt: We have also made it a goal to grow this segment of our business double digits annually for the foreseeable future.

Devin B. McGranahan: While we do expect Retail Money Order and bill payments to continue to grow, we believe the majority of the future incremental growth within consumer services will come from products and services we have launched in the last 18 months or are planning to launch in the near future, services like prepaid debit cards, foreign exchange, and the ancillary revenue streams associated with our digital wallet. Within the last two weeks, we launched our second digital wallet-based experience in Latin America with the launch of our digital wallet in Brazil.

Matt: While we do expect retail money order and bill payments to continue to grow we believe the majority of the future incremental growth within consumer services will come from products and services. We have launched in the last 18 months or are planning to launch in the near future.

Matt: Services like prepaid debit cards.

Matt: Foreign exchange and the ancillary revenue streams associated with our digital wallets.

Matt: Within the last two weeks, we have launched our second digital wallet based experience in Latin America with the launch of our digital wallet in Brazil.

Devin B. McGranahan: This is in addition to the wallet we launched in Argentina under our Pago Facil brand late last year. While both are still early in their evolution, they provide us with a platform to assist our customers with their daily needs, including bill payments, savings, money transfer, both domestic and cross-border, as well as access to point-of-sale payment solutions. Brazil is a unique market for us and one we believe will make for an interesting wallet launch.

Matt: This is in addition to the wallet, we launched in Argentina under our Pago fifth seal brand like late last year.

Matt: While both are still early in their evolution, they provide us with a platform to assist our customers with their daily needs, including Bill payments savings.

Matt: Money transfer, both domestic and cross border as well as access to point of sale payment solutions.

Matt: Brazil is a unique market for us and one we believe will make for an interesting wallet launch.

Devin B. McGranahan: It is a country where we have a large-owned distribution network, where the market is roughly 50-50 split between send and receive, and it is one of the few countries in the world where our digital business is larger than our retail business on a transaction basis. We believe that these characteristics give us the ability to work on the retail-to-digital escalator, provide unique marketing opportunities, and accelerate our ramp based on our learnings from our recent Argentinian launch late last year.

Matt: It is a country, where we have a large owned distribution network, where the market is roughly 50 50 split between send and receive and it is one of the few countries in the world, where our digital business is larger than our retail business on a transaction basis.

Matt: We believe that these characteristics give us the ability to work on the retail the digital escalator provide unique marketing opportunities and accelerate our ramp based on our learnings from our recent Argentinean launch late last year.

Devin B. McGranahan: In Argentina, we have successfully onboarded close to 100,000 wallet-based customers now, and I am pleased to see that 38% of all funds deposited into the wallet this quarter came from redirects of inbound remittances. In the most recent month, 35% of our active monthly users did a bill payment transaction. 28% either put cash in or took cash out at one of our retail locations. And our banking partner, Santander, funded 3,000 loans to our customers during the first quarter. A quarter in which we were recognized by Santander with their personal loan award as one of their largest loan originators.

In Argentina, we have successfully on boarded close to 100000 wallet based customers now and I am pleased to see that 38% of all funds in to the wallet. This quarter came from redirects of inbound remittances.

Matt: And the most recent month, 35% of our active monthly users did a bill payment transaction.

Matt: 8% either put cash in or took cash out at one of our retail locations and our banking partner Santander funded 3000 loans to our customers during the first quarter a quarter in which we were recognized by Santander with their personal loan award as one of their largest loan.

Matt: <unk>.

Devin B. McGranahan: We believe this type of wallet-based relationship with our customers will make for a more engaged experience, create a two-sided network, drive affinity for our brand, and ultimately help us improve retention while also driving long-term sustainable and profitable revenue growth in our core business. Finally, I'd like to highlight a new strategic partnership. Earlier this month, we began the launch of our strategic relationship with Swiss Post, one of the most respected brands in Switzerland. This is a new long-term partnership for Western Union, and we are excited to bring Western Union services to over 700 new Swiss Post locations across the country.

Matt: We believe this type of wallet based relationship.

Matt: To our customers will make for a more engaged experience create a two sided network drive affinity to our brand and ultimately help us improve retention, while also driving long term sustainable and profitable revenue growth in our core business.

Matt: Finally, I'd like to highlight a new strategic partnership earlier. This month, we began the launch of our strategic relationship with the Swiss post one of the most risk back did brands in Switzerland.

Matt: This is a new long term partnership for Western Union and we are excited to bring Western Union services to over 700, new Swiss post locations across the country.

Matt: Looking ahead, we remain optimistic about our strategic direction and the progress we are making we are pleased with the change in the underlying trajectory of our business driven by improved transaction trends across both our digital and retail businesses, while continuing to deliver topline improving topline financial.

Devin B. McGranahan: We remain optimistic about our strategic direction and the progress we are making. We are pleased with the change in the underlying trajectory of our business, driven by improved transaction trends across both our digital and retail businesses, while continuing to deliver improving top-line financial results and ongoing strong cash flow. I remain confident that we have the right strategy, the right capabilities, the right team, and the right mindset to achieve our Evolve 2025 goal. Thank you for joining us on the call today. I will now turn the call over to Matt to discuss our financial results in more detail.

As art and ongoing strong cash flow I remain confident that we have the right strategy the right capabilities, the right team and the right mindset to achieve our evolve 2025 goals.

Matt: Thank you for joining the call today I will now turn the call over to Matt to discuss our financial results in more detail.

Matthew Cagwin: Thank you, Devin, and good afternoon, everyone. I'm excited to be here today to walk you through our 2024 first quarter results and our Improved Financial Outlook. I would like to start off by saying how pleased we are with our revenue performance in the first quarter, with adjusted revenue up 3% year over year to $1,050,000,000. Results benefited from the ongoing progress of our evolved 2025 strategy, as well as revenue from Iraq. Please note that there was a positive calendar impact from leap year in the first quarter.

Matt: Thank you Devin and good afternoon, everyone I'm excited to be here today to walk you through our 2024 first quarter results.

Matt: And our improved financial outlook.

Matt: I would like to start off by saying how pleased we are with our revenue performance in the first quarter with adjusted revenue up 3% year on year over year to $1.050 billion.

Matt: <unk> benefited from ongoing progress progress of our evolve 2025 strategy as well as revenue from Iraq.

Matt: Please note that there was a positive calendar impact from leap year and the first quarter.

Matt: Okay.

Matthew Cagwin: Consumer money transfer transactions grew 6% in the quarter, led by continued momentum in our branded digital business, growth in our digital white label business, and continued stabilization of our retail transactions. Adjusted operating margin was 19.7% compared to 25 20.5% last year, with the decrease primarily related to incremental marketing spend. Adjusted EPS was $0.45 vs. $0.43 last year, with the current period benefiting from a lower share count partially offset by higher adjusted tax rates.

Consumer money transfer transactions grew 6% in the quarter led by continued momentum in our branded digital business.

Matt: Growth in our digital White label business and continued stabilization of our retail transactions.

Matt: Adjusted operating margin was 19, 7% compared to 25, 25% last year with the decrease primarily related to incremental marketing spend.

Matt: Adjusted EPS was <unk> 45 versus 43 since last year with the current period benefiting from lower share count, partially offset by higher adjusted tax rate.

Matthew Cagwin: Now turning to our CMT business, revenue grew 3% on an adjusted basis, with transaction growth of 6%. Excluding our domestic money transfer businesses, revenue and transaction growth would have been one percentage point higher. As a reminder, our domestic money transfer business, globally, now represents 4% of total CMT revenue. Moving to our branded digital business, revenue in the first quarter was up 9% with transaction growth of 13%. We are pleased with the accelerated revenue growth, which is showing positive momentum. As expected, the spread between transaction and revenue growth rates declined to 400 basis points in the first quarter, compared to a double-digit spread in the prior year period.

Matt: Now turning to our CMT business revenue grew 3% on an adjusted basis with transaction growth of 6%.

Matt: Excluding our domestic money transfer businesses revenue and transaction growth would have been one percentage point higher.

Matt: As a reminder, our domestic money transfer business.

Matt: Globally. It now represents 4% of total CMT revenue.

Matt: Yeah.

Matt: Moving to our branded digital business revenue in the first quarter was up 9% with transaction growth of 13%.

We are pleased with the accelerated revenue growth, which is showing positive momentum.

Matt: As expected the spread between transaction and revenue growth rates declined to 400 basis points in the first quarter compared to double digit spread in the prior year period.

Matthew Cagwin: We expect us to continue to bounce around a little in the coming quarters, but we believe that we can exit 2024 at around 400 basis points. Now turning to our regional view, we saw quarter-over-quarter revenue improvements in almost all regions, leading the way were our largest two regions, North America and Europe. As you may remember, we launched our new branded digital go-to-market strategy in North America in the third quarter of 2022.

Matt: We expect this to continue to bounce around a little in the coming quarters, but we believe that we can exit 2024 at around 400 basis points.

Matt: Now turning to our regional view, we saw quarter over quarter revenue improvements in almost all regions.

Matt: Leading the way, where our largest two regions North America and Europe.

Matt: As you May remember, we launched our new branded digital go to market strategy in North America in the third quarter of 2022 and.

Matthew Cagwin: And we continue to see momentum in this region with solid transaction growth and sequential revenue acceleration of almost 500 basis points. We also see send amounts with North America principal per transaction up 1% year-over-year, which is further proof of our customers' ability to navigate the high inflationary environment that they have experienced in recent years. I'm highlighting North America, but we are also seeing positive trends in other parts of the world and are excited about the progress we're making globally.

Matt: And we continue to see momentum in this region with solid transaction growth and sequential revenue acceleration of almost 500 basis points.

Matt: We were at we also see send amounts with North America principal per transaction up 1% year over year, which is further proof of our customers' ability to navigate the high inflationary environment that they have experienced in recent years.

Matt: I'm highlighting North America, but we are also seeing positive trends in other parts of the world and are excited about the progress we're making globally.

Matthew Cagwin: Now moving to our retail business. As Devin mentioned earlier, we have maintained stable transaction trends for the third consecutive quarter as we continue to deploy operational improvements and optimize our network. We are also seeing transaction stability or growth in three of our five regions and continue to work to enhance our agent and customer experience while improving our value proposition in the marketplace. Europe and CIS led the improvement in retail transaction trends in the first quarter, with transactions growing mid-single digits.

Matt: Now moving to our retail business as Devin mentioned earlier, we have maintained stable transaction trends for the third consecutive quarter as we continue to deploy operational improvements and optimize our network.

Matt: We're also seeing transactions stability or growth in three of our five regions and continue to work to enhance our agent and customer experience, while improving our value proposition in the marketplace.

Matt: Europe and Cif led the improvement in retail transaction trends in the first quarter with transactions growing mid single digit.

Matthew Cagwin: We're seeing strength across a number of markets, led by Spain, which was fueled by strong growth and transactions at Western Union's owned and concept stores. Now moving to our consumer services segment, which represented 8% of the company's revenue in the quarter. As a reminder, consumer services is mostly comprised of bill payment revenue in the United States and Argentina and retail money order in the U.S.

Matt: We're seeing strength across a number of markets led by Spain, which was fueled by strong growth in transactions at western unions owned and concept stores.

Matt: Yeah.

Matt: Now moving to our consumer services segment, which represented 8% of the company's revenue in the quarter.

Matt: As a reminder, consumer services, mostly comprised of bill payment revenue in the United States, and Argentina, and retail money order in the U S.

Matthew Cagwin: Adjusted revenue in the first quarter was up 8%, benefiting from the strength of our retail money order business, as well as new services we continue to introduce to our customers. As we ramp up these initiatives, we believe that we can grow consumer services in the double-digit range going forward. As Devin mentioned, we expect most of our incremental growth to come from new or expanded products such as our wallet, prepaid card, lending partnerships, and foreign exchange.

Matt: Adjusted revenue in the first quarter was up 8% benefiting from the strength of our retail money order business as well as new services, we continue to introduce to our customers.

Matt: We ramp up these initiatives, we believe that we can grow consumer services and the double digit range going forward.

Matt: As Devin mentioned, we expect most of our incremental growth to come from new or expanded products, such as our wallet prepaid card lending partnerships and foreign exchange.

Matthew Cagwin: Now, switching briefly to our cost redeployment program, we continue to make progress on our five-year, $150 million expense redeployment program that we announced during our investor day 18 months ago. In the first quarter, we incurred $14 million in redeployment costs as we continue to reinvest in efficiencies and manage our cost structure. So far this year, we have taken actions that we expect to free up over $35 million in 2024. This is in addition to the $50 million we freed up in 2023.

Matt: Now switching briefly to our cost redeployment program, we continue to make progress on our five year $150 million expense redeployment program that we announced during our Investor day 18 months ago.

Matt: In the first quarter, we incurred $14 million and redeployment costs as we continue to reinvest in efficiencies and manage our cost structure.

Matt: So far this year, we have taken actions, which we expect to free up over $35 million. In 2024. This is in addition to the $50 million, we freed up in 2023.

Matt: We are now a little over a year into our five year commitment and have accomplished more than 50% of our investor day goal.

Matthew Cagwin: We are now a little over a year into our five-year commitment and have accomplished more than 50% of our Investor Day goal. After being at Western Union for almost two years, I am even more confident that we have meaningful opportunities left to improve both efficiency and effectiveness. Now turning to our cash flow and balance sheet. Year-to-date, we have generated $94 million in operating cash flows compared to $137 million in the prior period. The year-over-year change in operating cash flows was largely driven by the timing of payments and the change in settlement assets associated with our float portfolio.

Matt: After being a western union for almost two years I am even more confident that we have meaningful opportunity left to improve both efficiency and effectiveness.

Matt: Now turning to our cash flow and balance sheet year.

Year to date, we have generated $94 million in operating cash flows compared to $137 million in the prior period.

Matt: The year over year change in operating cash flows was largely driven by timing of payments.

Matt: And the change in settlement assets associated our float portfolio.

Matthew Cagwin: We expect full-year free cash flow to be roughly the same as our net income when you exclude the unusual tax payments that we anticipate this year. Capital expenditures were $35 million in the first quarter and were approximately 40% lower than the first quarter of last year as we have remained vigilant on investing in the right areas and shifting our agents from large upfront signing bonuses to a performance-driven commission structure. We continue to maintain a strong balance sheet with cash and cash equivalents of $1.1 billion and debt of $2.5 billion. Our leverage ratios remain strong, and we're at 2.5x and 1.4x on a gross and net basis, which we believe provides us with ample flexibility for potential M&A while maintaining our investment-grade credit rating.

Matt: We expect full year free cash flow to be roughly the same as our net income when you exclude the unusual tax payments that we anticipate this year.

Matt: Capital expenditures were $35 million in the first quarter and were approximately 40% lower than the first quarter of last year. As we have been remained vigilant on investing in the right areas and shifting our agents from large upfront signing bonuses to performance driven commission structures.

Matt: We continue to maintain a strong balance sheet with cash and cash equivalents of $1 1 billion.

Matt: And debt of $2 5 billion.

Matt: Our leverage ratios remained strong and we're at two five times and one four times on a gross and net basis.

Which we believe provides us with ample flexibility for potential M&A, while maintaining our investment grade credit rating.

Matthew Cagwin: Now moving to our outlook. Today, based on our performance in the first quarter and our confidence for the remainder of the year, we are raising our 2024 revenue and EPS outlook. This outlook assumes no material changes in macroeconomic conditions.

Matt: Now moving to our outlook today based on our performance in the first quarter and our confidence for the remainder of the year, we are raising our 2020 for revenue and EPS outlook.

Matt: This outlook assumes no material changes in macroeconomic conditions.

Matthew Cagwin: We now expect adjusted revenue to be in the range of $4,150,000,000 to $4,225,000,000, or a $37.5 million increase above the midpoint of our previous outlook. Adjusted operating margins have remained unchanged and are expected to be in the range of 19 to 21 percent. And lastly, Adjusted EPS is now expected to be in the range of $1.70 to $1.80, or a five percent improvement in our previous outlook. As a reminder, our 2024 second quarter growth rate will be lower sequentially, as we have benefited from leap year in the first quarter of this year and our second quarter last year had a large benefit from Iraq.

Matt: We now expect adjusted revenue to be in the range of $4 billion $150 million to $4 $225 million or a 37 $5 million increase above the midpoint of our previous outlook.

Matt: Adjusted operating margins outlook has remained unchanged and is expected to be in the range of 19% to 21%.

Matt: And lastly, adjusted EPS is now expected to be in the range of $1 70 to $1 80, or a five cent improvement in our previous outlook.

Matt: As a reminder, our 2024 second quarter growth rate will be lower sequentially.

Matt: As we have benefited from leap year in the first quarter of this year and our second quarter last year had a large benefit from Iraq.

Matthew Cagwin: The situation in Iraq has continued to be fluid, but we have solved some of our operational issues, which we believe will enable us to be around the upper end of our estimate for Iraq of fifty to a hundred million dollars this year.

Matt: The situation in Iraq is continue to be fluid, but we have solved some of our operational issues, which we believe will enable us to be around the upper end of our estimate for Iraq, a $50 million to $100 million this year.

Operator: To recap, we are off to a great start, and we are confident in the trends that we are seeing in the first few months of the year, as well as the progress we are making towards our Evolve 2025 strategy. Thank you for joining our call today. And operator, we're ready to take questions. We will pause momentarily to compile the Q&A roster. As a reminder, each person is allowed one question.

Matt: To recap we are off to a great start and we are confident in the trends that we're seeing in the first few months of the year.

Matt: As well as the progress, we're making towards our evolve 2025 strategy. Thank you for joining our call today and operator, we're ready to take questions.

Operator: We will pause momentarily to compile the Q&A roster. As a reminder, each person is allowed one question with one follow-up question. All participants will be in listen-only mode. Our first question comes to us from Tin Chin Wong from J.P. Morgan. Please ask your question.

We will pause momentarily to compile the Q&A roster as a reminder, each person is allowed one question with one follow up question.

All participants will be in listen only mode.

Speaker Change: Our first question comes to us from Tien Tsin Huang from Jpmorgan. Please ask your question.

Tin Chin Wong: Thanks, hope you can hear me. Good results here. I think maybe just a simple question on the revenue raised and The Outlook. Can you go into a little bit more detail on what the factors are and the contributions from either consumer services or the core money transfer side? Thanks.

Matt: Yes.

Speaker Change: Can you hear me.

Speaker Change: Good results here I think maybe just a simple question on the revenue raise.

Speaker Change: And the outlook can you go into a bit more detail on.

Speaker Change: What the factors are in the contributions from other consumer services with our core money transfer side. Thanks.

Speaker Change: Pay attention. Thanks for joining the call today, we saw really good performance in Q1 from really three different areas.

Matthew Cagwin: Thanks for joining the call today. We saw a really good performance in Q1 from really three different areas. We look at our over-delivering Q1 being split basically around half to two-thirds being tied to Iraq relative to what we initially thought, about one third tied to our branded digital business coming a little bit stronger than we thought, and then a little bit in our consumer services.

Speaker Change: We look at our over delivery in Q1 being split basically around.

Speaker Change: Around half the two thirds being tied to Iraq relative to what we had initially thought about one third tied to our branded digital business coming a little bit stronger than we thought and then a little bit in our consumer services business.

Tin Chin Wong: Got it. So spread across all those three. And then, just as you mentioned, you'll see some volatility in the revenue transaction growth spread in the branded digital business. Can you maybe explain what's happening there? Are you taking some pricing actions in some places? What's driving the volatility is my question.

Speaker Change: Got it so spread across all those three and then just the I think you mentioned you will see some volatility in the <unk>.

Speaker Change: And the revenue transaction growth spread and the branded digital business can you maybe explain.

Speaker Change: What's happening there are you doing some taking some pricing actions that some places what's driving the volatility is my question.

Matthew Cagwin: As you as you may remember

Speaker Change: As you May remember, we launched our go to market strategy different points throughout the year last year and the year before those things sunset is going to make it move around a little bit as well is we're constantly monitoring the market and making adjustments as well as.

Matthew Cagwin: As you may remember, we launched our go-to-market strategy at different points throughout the year, last year, and the year before. As those things sunset, it's going to make it move around a little bit, as well as we're constantly monitoring the market and making adjustments, as well as we see mixed shifts between geographies. We've seen really strong performance in Q1 this year, which had a little bit higher RPT. As we continue to make advancements in other parts of the world, that mixed difference can make it bounce around. So multiple things can make it bounce around.

Speaker Change: As we see mix shifts between geographies, we've seen really strong performance in Q1, this year, which had a little bit higher RPT.

Speaker Change: As we continue to make advanced auto parts of the world that mix difference could make it bounce around so multiple things can make it bounce around.

Timothy Edward Chiodo: Our next question comes to us from Timothy Chiodo from Credit Suisse. Please ask your question. Great, thank you very much. I wanted to see if you could expand a little bit on Bond.

Our next question comes to Us from Timothy Chiodo from Credit Suisse. Please ask your question.

Timothy Edward Chiodo: Great. Thank you very much I wanted to see if you could expand a little bit of bond. Some of your expanded relationship with visa you recently put out the press release talking about the visa direct capability and the expansion of some new markets there and while we're at it on the topic of visa, it's been about a year or so now there hasn't been a ton of updates I was wondering if you could.

Timothy Edward Chiodo: Our next question comes to us from Timothy Chiodo from Credit Suisse. Please ask your question. Great, thank you very much. I wanted to see if you could.

Timothy Edward Chiodo: Give us a status report on visa plus and and how that rollout is going over.

Timothy Edward Chiodo: Over the past year or so.

Devin B. McGranahan: So, thanks for the questions. The last one's the easiest.

So thanks for the questions.

Timothy Edward Chiodo: The last one is the easiest as you remember and recall visa plus as a wallet to wallet.

Devin B. McGranahan: As you remember and recall, Visa Plus is a wallet-to-wallet-based rail. Given that we have not yet launched our wallet in the U.S., there is no activity to update on Visa Plus. With regard to the broader Visa relationship, we are pleased with the progress we are making. We continue to find opportunities using Visa Direct to move money around the world, and we are expanding our issuing capabilities in partnership with Visa, including our new wallet in Brazil, as well as the prepaid card in the U.S. that we launched a couple of quarters ago, and our digital wallet and banking experiences in Europe.

<unk> rail given that we have not yet launched our wallet in the U S. There is no activity to update on visa plus.

Timothy Edward Chiodo: With regard to the broader visa relationship and we are pleased with the progress we are making we continue to find opportunities using visa direct.

Timothy Edward Chiodo: To move money around the world and we are expanding our issuing capabilities.

Timothy Edward Chiodo: In partnership with visa, including our new wallet in Brazil, as well as the prepaid card in the U S that we had launched a couple of quarters ago, and our digital wallet and banking experiences in Europe.

William Alfred Nance: Our next question comes to us from Will Nance of Goldman Sachs. Please ask your question.

Speaker Change: Thank you very much.

Speaker Change: Our next question comes to US from will Nance from Goldman Sachs. Please ask your question.

William Alfred Nance: Hey, guys, appreciate you taking the question. I just want to give you a couple of updates on some of the kind of tech initiatives that are maybe live on one market and live in another market. And I just thought it might be a good time to spend some time on some of the technology initiatives that you have that maybe are less visible to the customer. You know, you've mentioned a couple of things that are or have been pushed out to every market.

William Alfred Nance: Hey, guys I appreciate you taking the question.

William Alfred Nance: There are a couple of updates on some of the kind of tech initiatives that were made to live in one market and live in another market and I just thought it might be a good time to spend some time on some of the technology initiatives that you have that maybe are less visible to the customer.

William Alfred Nance: Mentioned, a couple of things that are have been pushed out to every market and just wondering if you could kind of.

William Alfred Nance: And just wondering if you could kind of update us on sort of the tech stack initiatives and kind of simplification of your internal infrastructure and, you know, what that has done to kind of the ease of deployment of some of these new products and features, you know, across every geography globally. It sounds like, you know, you've been able to do that on some of the more recent product launches.

William Alfred Nance: Update us on sort of the tech stack initiatives kind of simplification of your MBR internal infrastructure and what that has done to kind of the <unk>.

William Alfred Nance: He is a deployment.

William Alfred Nance: These new products and features.

William Alfred Nance: Every geography globally, it sounds like you've been able to do that on some of our recent product launches.

William Alfred Nance: Okay.

Devin B. McGranahan: Hey, well, thanks for the question. I would lump our tech, and I'll call it tech infrastructure, into three components. And I think we're making progress on all three. One is the processing capabilities, which I highlighted here, which is our core processing platform and our core settlement platform. We are nearing the end of a multi-year journey to migrate those platforms into the cloud. And I anticipate, you know, before the end of the year, we will have our processing platform there. And we have a few countries left to do on our settlement platform, but we are nearing the end of that journey as well.

Speaker Change: Hey, well thanks for the question I would lump R Tech and I'll call It tech infrastructure.

Into three components.

Speaker Change: And I think we're making progress on all three one is the processing capabilities.

Speaker Change: Which I highlighted here, which is our core processing platform or car settlement platform. We are nearing the end of a multi multiyear journey to migrate those platforms into the cloud and I anticipate before the end of the year, we will have our processing platform there and we have a few countries left to do on our.

Speaker Change: Settlement platform, but we are nearing the end of that journey as well so our core money movement capabilities will be fully cloud enabled which enables us to then obviously move quicker around the world.

Devin B. McGranahan: So our core money movement capabilities will be fully cloud enabled, which enables us to then obviously move quicker around the world and enables us to leverage those services in a much easier way than when they were mainframe based here in the U.S. The second part, which I also highlighted in the call, is the technology investments we're making to create the ability to manage our business from a customer standpoint and not from a transaction standpoint.

Speaker Change: And enables us to leverage those services at a much easier way than when they were mainframe based here in the U S.

Speaker Change: The second part, which I also highlighted on the call is the technology investments, we're making to create the ability to manage our business from a customer standpoint, and not from a transaction standpoint, so given the history of Western Union and the history and our retail business many of our core processing platforms, our risk decision.

Devin B. McGranahan: So given the history of Western Union and the history of our retail business, many of our core processing platforms, our risk decision systems, our customer interaction modules, were all based on transactions. In fact, we use something called the MTCN to delineate a transaction.

Speaker Change: Systems, our customer interaction modules were all based on transactions in fact, we use something called the Mtc and to delineate a transaction. We are migrating many of those systems and many of the processes to be customer centric and I talked about our universal customer I'd as the indicator that we.

Devin B. McGranahan: We are migrating many of those systems and many of the processes to be customer-centric, and I talked about our universal customer ID as the indicator that we will use to manage our infrastructure instead of the transaction code. The third is the infrastructure investments that we put in place underlying our core platforms, both on the retail side and the digital side. We've been modernizing those platforms. We have our next-generation digital platform. I'll probably be directionally correct, but exactly wrong in about 12 or 13 countries.

Speaker Change: We will use to manage our infrastructure instead of the transaction code.

Speaker Change: The third is the infrastructure investments that we put in place underlying our core platforms. Both on the retail side and the digital side, we've been modernizing those platforms. We have our next generation digital platform I'll, probably be directionally, correct, but exactly wrong in about 12 or 13 countries. We continue to update.

Devin B. McGranahan: We continue to update our point of sale platform with many of the things I highlighted on this call to improve ease of use, speed, and obviously customer and agent experience. We will continue to do that for some real period of time. We see ongoing opportunities to update those front-end platforms, both to improve customer experience but also to make them more seamless and easy to deliver around the globe.

Speaker Change: Our point of sale platform with many of the things I highlighted on this call to improve ease of use speed and obviously customer and agent experience. We will continue to be doing that for some real period of time, we see ongoing opportunities to update those front end platforms, both to improve customer experience, but also to make.

Speaker Change: They're more seamless and easy to deliver around the globe.

William Alfred Nance: Got it. It's super helpful. Appreciate all the detail there. And then maybe just a follow-up question on Iraq, and maybe looking for a little bit more detail on how much that affected, I may have missed it, how much that impacted the quarter, this quarter, and then sounds like you're talking about sort of the higher end. Just how do you have the previous range that you gave? How are you kind of thinking about that over the course of the year? Hey, well, thanks for the question. So this quarter was about.

Speaker Change: Got it Super helpful. I appreciate all the detail there and then maybe just a follow up question on Iraq and.

Speaker Change: Maybe looking for a little bit more detail on.

Speaker Change: I just want to how much that impact I mean, how much that impacted the quarter. This quarter, and then sounds like youre talking about sort of a higher end just out of your previous range that you gave how are we thinking about that over the course of the year, Hey, well. Thanks for the question.

Speaker Change: So this quarter was about a 4%.

Matthew Cagwin: Hey Will, thanks for the question. So this quarter was about a 4% improvement in revenue as a result of IRAC year-over-year, and then, as I talked about in the prepared remarks, we do expect to be around the upper end of our previous guide of 50 to 100 million dollars for the full year.

Speaker Change: <unk> to revenues, a result of Iraq year over year and that is what I talked about in the prepared remarks is we do expect to be around the upper end of our previous guide of $50 million to $100 million for the full year.

Andrew Garth Schmidt: Our next question comes to us from Andrew Schmidt from Citi. Please ask your question.

Speaker Change: Our next question comes to Us from Andrew Schmidt from Citi. Please ask your question.

Andrew Garth Schmidt: Hey Devin. Hey Matt.

Andrew Garth Schmidt: Hey, Kevin Hey, Matt Thanks for taking my questions good to see the progress here.

Andrew Garth Schmidt: Thanks for taking my questions. Good to see the progress here. I want to start with digital.

Andrew Garth Schmidt: I wanted to start with digital second quarter, we've seen kind of this low teens transaction growth rate, which is which is good to see.

Devin B. McGranahan: Second quarter, we've seen kind of this low team transaction growth rate, which is good to see. Maybe talk about just the sustainability of that as you start to lap tougher comps. Obviously, second quarter does have a little bit of a, you know, one day less in terms of just the lack of leap year benefit. But anything else to call out there from a, from my perspective, would be helpful.

Andrew Garth Schmidt: Maybe talk about just the sustainability of that as you start to lap tougher comps, obviously second quarter.

Andrew Garth Schmidt: Does have a little bit of that one day less in terms of just the lack of the leap year benefit, but anything else to call out there from a trend perspective would be helpful. Thanks a lot.

Devin B. McGranahan: Thanks a lot.

Devin B. McGranahan: Hey, thanks for the question. You know, when we launched Evolve 2025, we did a lot of work both around the macro market and also what we thought was Western Union's potential within that market. And we remain firmly of the belief that being able to grow our digital business double digits in transactions and in revenue is an achievable goal as part of our Evolve 2025 strategy. We've now had three quarters in a row of double digit, four quarters in a row of double digit transaction growth, which I think begins to speak to the sustainability given we launched this program back in August and September of 2022.

Speaker Change: Thanks for the question.

Speaker Change: We launched evolve 2025, we had done a lot of work both around the macro market, but also what we thought was western union's potential within that market and we remain firmly of the belief that being able to grow our digital business double digits in transactions and revenue is and achieved.

Speaker Change: We'll go as part of our evolved 2025 strategy. We've now had three quarters in a row of double digit four quarters in a row of double digit transaction growth, which I think begins to speak to the sustainability. Given we launched this program back in August September of 2022.

Devin B. McGranahan: We continue to see opportunities both in different parts of the world as well as in our own experience to ensure that we can continue to deliver and meet our Evolve 2025 goals. So I remain very confident.

We continue to see opportunities both in different parts of the world as well as in our own experience to ensure that we can continue to deliver and meet our of all of 2025 goals.

Speaker Change: So I remain very confident.

Devin B. McGranahan: Perfect. Very clear. Thank you for that, Devin.

Speaker Change: Perfect very clear thank you for that Devin and then maybe switch gears to the retail side.

Andrew Garth Schmidt: And then maybe I will switch gears to the retail side. It sounds like transactions ex-Iraq continue to improve. Perhaps you could put a finer point on that. And then I think that, you know, one of the bigger questions we get is when you start to lap these promotions in the second quarter here, can that spread also start to narrow, or will more promotions be necessary to kind of drive growth there? Maybe you talk about what you're seeing in the market from a promotional and competitive intensity perspective there as well. Both are responsible helpful.

Speaker Change: It sounds like transactions ex Iraq continued to improve perhaps you could put a finer point on that.

Devin B. McGranahan: And then I think one of the bigger questions. We get is when you start to lap these promotions in the second quarter here.

Devin B. McGranahan: Spread also start to narrow or will more promotions to be necessary to kind of drive growth. There maybe you could talk about what youre seeing in the market.

Devin B. McGranahan: Promotional competitive intensity perspective, there as well both those fronts really helpful. Thanks a lot.

Matthew Cagwin: Thanks a lot.

Matthew Cagwin: Hey Andrew, thanks for the question. Similar to Devin's answer on digital, we've now had three quarters of flattish growth for our retail business. IRAC isn't very material to the overall transaction count, so it doesn't make a major difference between the two.

Devin B. McGranahan: Andrew Thanks for the question similar to Devins answer on digital we've now had three quarters of flattish growth for our retail business.

Speaker Change: Iraq is not very material to the overall transaction count so it doesn't make a major difference between the two.

Matthew Cagwin: We feel good about it. We feel like our goal when we talked back on October 22 was to get back to stability, having three quarters in a row. It's the first time we've had three quarters in a row. 5, 7 years. It's been a long time.

Speaker Change: We feel good about it we feel like our goal when we talked back in October 22 was to get back to stability, having three quarters in a row first time, we've had three quarters in a row.

Speaker Change: Five seven years, it's been a long time.

Matthew Cagwin: And we still feel like there's a lot more opportunity for us to work with our partners. The technology Devin talked about during the prepared remarks, the only one that's really largely rolled out is the one-step refund. We still have tons of room on our new debit solutions we're rolling out, the quick resend, and Remember Me. So we feel like there's a lot more runway ahead of us on this. It may bounce around from quarter to quarter as we're rolling those things out, but we think there's a lot

Speaker Change: And we still feel there's a lot more opportunity we have to work with our partners the technology Devin talked about during the prepared remarks.

Speaker Change: The only one that's really largely rolled out as the ones that refund, we still have tons of room on our new debit solutions, we're rolling around rolling out the <unk>.

Speaker Change: Resend. The remember me. So we feel that there is a lot more runway ahead of us on this it may bounce around from quarter to quarter as we're rolling those things out, but we think theres a lot of opportunity.

Vasundhara Govil: Our next question comes to us from Vasundhara Govil from KBW. Please ask your question.

Speaker Change: Our next question comes to us from vessel <unk> from <unk>. Please ask your question.

Vasundhara Govil: Hi, thanks for taking my question. I guess the first one I had was on agent renewal activity. Devin, as you guys have sort of done all this work and improved the new, you know, functionality that's available on the platform, to what degree has that changed the conversation you're having with agents? And is it resulting in better economic terms or longer-term contracts as you go into these negotiations?

Vessel: Hi, Thanks for taking my question.

The first one I had was on agent in new win activity.

Vessel: Devin as you guys are sort of done all this work and improve the functionality thats available on the platform to what degree has that changed the conversation you were having with agents and is it resulting in better economic times are longer term contracts as you go into these negotiations is.

Devin B. McGranahan: That's a great question. A great question, Vasu.

That's a great question Great question Vasu, Thanks for joining the call today.

Devin B. McGranahan: Thanks for joining the call today. Part of how we have been able to transition from the large upfront signing bonus that we historically have been offering to a much more performance-oriented structure is the confidence that the agents have now in the transaction trends that they're seeing in their own agent offices. So as they see us improve performance, they realize they can, in fact, make more money than under the more fixed type structures that existed before.

Speaker Change: Part of how we have been able to transition from the large upfront signing bonus is that we historically have been offering to a much more performance oriented structure.

Vasu: Is the confidence that the agents have now in the transaction trends that they're seeing in their own agent offices.

Vasu: So as they see us improved performance they realize they in fact can make more money than potentially under the more fixed type structures that existed before so our improved transaction performance is translating into our ability to change the terms and nature of the conversation with some of our largest and most important age.

Devin B. McGranahan: So our improved transaction performance is translating into our ability to change the terms and nature of the conversation with some of our largest and most important agents. We continue to believe we are a partner-driven business. The other thing that I think has changed for them is our recommitment to the retail business in general, our willingness to invest in our point of sale, our willingness to. We rolled out our loyalty program with the explicit recognition of agents participating in it and rewarding them for that, but also making it truly, this time, a retail and digital loyalty program, not largely just a digital loyalty program. So agents see those kinds of actions and behaviors, and we've gotten a very good response from the majority around the world.

Vasu: We continue to believe we are a partner driven business. Our agents are exceptionally important to us. The other thing that I think has changed for them.

Vasu: As our recommitment to the retail business in general our willingness to invest in our point of sale or willingness we rolled out our loyalty program with the explicit recognition of agents participating in it and rewarding them for that but also making it truly this time, a retail and digital loyalty program not largely just a digital.

Vasu: The loyalty program, So agency those kinds of actions and behaviors and we've gotten very good response from the majority around the world.

Vasundhara Govil: Thank you for that color. And a quick one for you.

Speaker Change: Thank you for that color and a quick one for you Matt.

Vasundhara Govil: I was, I wanted to ask about the margin cadence for the year. I know that moves around a ton and you guys are keeping some flexibility for investments, but if you could help us think through, you know, any meaningful differences that we should be modeling quarter to quarter.

I wanted to ask about the margin cadence for the year I know that moved around a ton and you guys are keeping some flexibility for investment, but if you could help us think to.

Matt: Any meaningful differences that we should be modeling quarter to quarter.

Matthew Cagwin: Yeah, so similar to the past two years, it will bounce around as we have investment opportunities. It's hard to give you any given quarter, but we are committed to the 19 and 21 percent margin for the full year. This quarter came in solid at 19.6. It's hard to give you one particular item on that.

Matt: Yes.

Matt: Similar to past two years, it will bounce around as we have investment opportunities.

Matt: It's hard to give you any given quarter, but we are committed to the 19 and 21% margin for the full year. This quarter came in solid at 19 six.

Matt: It's hard to give you any one particular item on that.

Our next question comes to Us from Ken such housekeeping from Autonomous Please ask your question.

Kenneth Christopher Suchoski: Our next question comes to us from Ken Suchoski from Autonomous. Please ask your question.

Kenneth Christopher Suchoski: Hey, good afternoon, everyone. Thanks for taking the questions here. Can you just unpack the drivers behind that spread narrowing in the digital branding business? I'm curious what you guys are seeing when you look at the data, whether it's by geography or cohort, or any other factors that you evaluate?

Yeah.

Ken: Hey, good afternoon, everyone. Thanks for taking the questions here.

Ken: Can you just unpack.

Ken: The drivers behind that spread narrowing in the digital branded business I'm curious what you guys are seeing when you look at the data, whether it's by geography or cohort.

Ken: Any other factors that you evaluate it.

Speaker Change: Hey, Ken Thanks for joining the call I think we have been met.

Ken: Messaging for a couple of quarters now that the spread would close and it would close based on how we rolled out the program and so as we continue to lap the.

Matthew Cagwin: couple of quarters now that the spread would close and it would close based on how we rolled out the program and so as we continue to lap the rollout of the program and we talked about historically how we did that by region US first in Europe and kind of rest of the world finishing with Australia sometime in the mid to late summer of 2023 that as we lapped those rollouts you would see the spread start to close that accelerated a bit more than we probably anticipated in the first quarter and that's driven by improving transaction trends and a bit of retention for those cohorts of customers that have come under this program which has accelerated the closure of that revenue which I think are positive

Ken: The rollout of the program and we talked about historically, how we did that by region U S. First in Europe, and kind of rest of the world, finishing with Australia. Some time in mid to late summer of 2023.

Ken: And that as we lapped those rollouts you would see the spreads start to close.

Ken: That accelerated a bit more than we probably anticipated in the first quarter and thats driven by improving transaction trends and a bit of retention for those cohorts of customers that have come under this program, which has accelerated the closure of that revenue, which I think are positive.

Kenneth Christopher Suchoski: Okay, great. And then I guess just a question on the physical retail spread. You know, when we try to do some macro math, assuming, you know, call it 40, 45 million of IRAC revenue contribution, a similar kind of principle per transaction for that business, you know, it looks like the physical retail, revenue per transaction ex-IRAC, jumps up quite a bit quarter over quarter. And so I'm just wondering if that's, you know, if that's what you're seeing and also what's driving that quarter over quarter increase.

Speaker Change: Okay, Great and then I guess just a question on the on the physical retail.

Spread.

Speaker Change: When we try to do some macro math, assuming call it 40% or $45 million.

Speaker Change: Iraq revenue contribution is similar.

Speaker Change: Principal per transaction for that business.

Speaker Change: Like the physical retail.

Revenue per transaction ex Iraq jumped up quite a bit quarter over quarter and so I'm. Just wondering if that's if that's what you're seeing and also what's driving that quarter over quarter increase.

Matthew Cagwin: Yeah, so, Ken, thanks for joining the call. We're not having a major change in our retail RPTs. I think you're probably using too low of an RPT for Iraq. We've talked previously on calls that our yield and RPT for Iraq are higher than the average business. The principal amounts are larger. They're more C to B type transactions. So you have to anticipate more than the average for the company, call it almost double the RRPT for Iraq, and you'll get to a hopefully that'll get you to a number that's not a major change for our retail business. I think the other thing you can do is

Speaker Change: Yes, so can think and thanks for joining the call we're not having a major change in our retail Rpt's I think youre using probably too low of an RPT for Iraq. We've talked previously on calls that are our yield and RPT for Iraq is higher than the average business. The principal amounts are larger there.

Speaker Change: More <unk> type transactions. So you can anticipate more more than the average for the company call it almost more double.

Our RPT for Iraq, and Youll get to hopefully that'll get you to a number that's not a major change for our retail business.

Speaker Change: Other thing can you might be seeing is.

Matthew Cagwin: I think the other thing, Ken, you might be seeing is there are some mixed shifts in the business, which we highlighted, particularly on the retail side. The strength in Europe has been good, with nearly mid-single-digit transaction growth. In general, RPTs are higher in Europe than they are in some other parts of the world. And so you're probably seeing some mixed shifts in some of those calculations as well. But we're really pleased that that gap has closed by 300 basis points.

Speaker Change: There are some mix shifts in the business, which we highlighted particularly on the retail side the strength in Europe.

Speaker Change: <unk>.

Speaker Change: Has been good with nearly mid single digit transaction growth and general Rpt's are higher in Europe than they are in some other parts of the world.

Speaker Change: And so youre seeing some mix shift in some of those calculations, probably as well, but we're really pleased that that gap has.

Speaker Change: <unk>.

Speaker Change: By 300 basis points.

Jason Kupferberg: Our next question comes to us from Jason Kupferberg from Bank of America. Please ask your question.

Speaker Change: As well.

Our next question comes to Us from Jason Kupferberg from Bank of America. Please ask your question.

Jason Kupferberg: It was your answer to Tingen's question in terms of the source of the upside in the quarter, but just wanted to check that for the year. Thanks.

Jason Kupferberg: Hey, Thank you guys just a follow up on Iraq, just to make sure I've got the math.

Jason Kupferberg: Math right I think you said it contributed four points of growth in the quarter. So I guess thats about 40 million and I think you said you are tracking to a call it $100 million level for the year. So how should we think about kind of a base case for the quarterly cadence.

Matthew Cagwin: I also, in my prepared remarks, said that some of our – we've solved some of the operational issues for Iraq, which is why we're flagging it will be around the upper end of the range now because there are some things we've not solved. To think about what Iraq could be going forward, I'm going to give you a very wide range because it's still a fluid market, but think about somewhere in that $10 million to $30 million range per quarter for the rest of the year. Okay, okay. That's helpful.

Jason Kupferberg: From here and then just how much of the full year revenue guidance raise is coming from Iraq, but would it be kind of half. The two thirds I think that was your answer to <unk> question in terms of the source of upside in the quarter, but just wanted to check that for the year. Thanks, Hey, Jason Thanks for joining the call today.

Jason Kupferberg: To your first question.

Jason Kupferberg: Your math, a little bit different on the estimating what Q1 was its 4% contributing 4% growth there wasn't about last year's wells, we disclose is around $25 million last year. So the numbers somewhere a little bit more than the low end of our range with Kevin for the full year.

Jason Kupferberg: I also in my prepared remarks said that some of our resolve some of the operational issues for Iraq, which is why we're flagging it will be around the upper end of the range now.

Jason Kupferberg: There are some things we've not solved.

To best way to think about what Iraq could be going forward I'm going to give you a very wide range, because it's still a fluid market, but the thing about somewhere in that $10 million to $30 million range per quarter for the rest of the year.

Jason Kupferberg: And then just coming back to the raise, though, I think the raise is driven by confidence in the underlying trends and revenue. As Matt said, Iraq remains volatile, and there's still issues to be resolved. But we see strength in our underlying core business, which gives us confidence in that raise without having to rely on some outsized performance from Iraq. Yeah, thanks for that. And then just in terms of the digital revenue growth trend, obviously, a nice improvement there to 9% in the quarter.

Okay. Okay. That's helpful. And then just coming back to the to the raise though I think.

Jason Kupferberg: The raise is driven by the confidence in the underlying trends in revenue as Matt said, Iraq remains volatile there are still issues to be resolved.

But we see strength in our underlying core business, which gives us confidence in that race without having to rely on some outsized performance from Iraq.

Speaker Change: Understood. Thanks.

Speaker Change: Thanks for that and then just in terms of the digital revenue growth trend, obviously nice improvement there to 9% in the quarter. How do you see that trending during the balance of the year I mean, I know the year over year comps start to flip around and get tougher but.

Jason Kupferberg: How do you see that trending during the balance of the year? I mean, I know the year-over-year comp starts to flip around and get tougher, but do you think we'll exit the year double digit plus or want to get a sense of that? Thanks. Yeah, so we still are.

Speaker Change: Do you think we exit the year double digit plus or wanted to get a sense of that thanks.

Speaker Change: Yes. So we still are believing that we can get to be a double digit grower.

Matthew Cagwin: Yeah, so we still are believing that we can get to be a double-digit grower. Q1, as I mentioned in the prepared remarks, had the extra day for leap year. So I think that we will continue to bounce around the high single-digit to low double-digit range. We have a lot more work to do, but

Speaker Change: Q1, as I mentioned in the prepared remarks had a extra day for leap year.

Speaker Change: So I think that we will continue to bounce around the high single digit to low double digit range of our optimism but.

Speaker Change: Lot more work to do.

Speaker Change: Our next question comes to Us from Bryan Keane from Deutsche Bank. Please ask your question.

Bryan Connell Keane: Our next question comes to us from Bryan Keane from Deutsche Bank. Please ask your question.

Bryan Connell Keane: Hi, thanks for taking my question. Just hoping you could flush out the new loyalty program and its potential improved or seen improvement in the retail business and how that could have a factor going forward to sustainable growth in retail.

Bryan Connell Keane: Hi, Thanks for taking my question, just hoping you could flush out the new loyalty program and its potential.

Bryan Connell Keane: Improved.

Bryan Connell Keane: <unk> seen an improvement in the retail business and how that could have.

Bryan Connell Keane: A factor going forward to sustainable growth in retail.

Devin B. McGranahan: Thank you for the question. We're excited about the new loyalty program. As you know, from our Evolve 2025 strategy outline, improving retention across our business is one of the key drivers of long-term sustainable growth, particularly in retail. And so we are focused on recognizing our customers at every point of interaction and then, for our best customers, rewarding them for their loyalty over time. Our prior loyalty program was not terribly effective in the retail environment. It was exceptionally hard both for agents to administer and for customers to redeem.

Speaker Change: Thank you for the question. We're excited about the new loyalty program as you know from our evolve 2025 strategy outlying improving retention across our business as one of the key drivers of long term sustainable growth, particularly in retail.

Speaker Change: And so we are focused on recognizing our customers at every point of interaction and then for our best customers rewarding them for their loyalty over time, our prior retail our prior loyalty program was not terribly effective in the retail environment and was exceptionally hard both for agents to administer and for custom.

<unk> to redeem it required a code in and a special.

Devin B. McGranahan: It required code and a special sequence of actions in order to do that. We've actually changed the program. It's now customer-based, regardless of channel. It will allow a customer to earn a reward after five transactions and to seamlessly redeem that reward on any transaction, whether that is online or at a retail location. And we're providing incentives over time to our agents to participate and help us grow that program and, obviously, loyalty with our retail customers.

Speaker Change: Sequence of actions in order to do that we've actually changed the program, it's now customer based rigs.

Speaker Change: Regardless of channel it will allow a customer to earn a reward after five transactions and to seamlessly redeem that will reward on any transaction, whether that is online or at a retail location and we're providing incentives over time to our agents to participate and help us grow that.

Speaker Change: Ram and obviously loyalty with our retail customers.

Bryan Connell Keane: Got it. And just a follow-up question I had thinking about the spread. But I want to think about the spread ex-Iraq. So maybe you could just give us the numbers ex-Iraq on the spread. And did that close at all from last quarter? It seemed like it was a pretty similar gap there between revenue and transactions.

Speaker Change: Got it and just a follow up question I had and thinking about the spread.

Speaker Change: But I wanted to think about the spread ex Iraq. So maybe you can just give us the numbers ex Iraq on the spread and did that close at all from last quarter. It seemed like it was pretty similar.

Speaker Change: GAAP there between revenue and transaction.

Matthew Cagwin: The digital business closing spread that Devin talked about has no IRAC in it; IRAC's all within the non-digital business. So yes, it closed without a. Our next question comes to us from Ramsey L. Assal from Barclays. Please ask your question.

Speaker Change: The digital business closing spread that Devin talked about has no Iraq, Iraq, all with the non digital business.

Speaker Change: So yes, it close without it.

Speaker Change: Our next question comes to Us from Ramsey El <unk> from Barclays. Please ask your question.

Ramsey Clark El: Ramsey, there. We'll go to the next question from James Faucette from Morgan Stanley. Please ask your question.

Speaker Change: Okay.

Ramsey there.

Thanks.

Ramsey Clark El: We will go to the next question from James Faucette from Morgan Stanley. Please ask your question.

James Eugene Faucette: Great, thank you very much. I wanted to ask just a couple of quick follow-up questions first, so I just put them both out there simultaneously.

Ramsey Clark El: Okay.

James Eugene Faucette: Alright. Thank you very much wanted to ask just a couple of quick follow up questions first.

James Eugene Faucette: Just put them both out there simultaneously.

James Eugene Faucette: First on Iraq: the message is clear for this year. But how and when will we have visibility into how much of that quarterly cadence could carry into next year? And what are the key factors in determining that? And then, obviously, your expected growth for multiple years in consumer services is quite compelling, but I'm wondering how we should think about the evolution of profitability and how closely that may track consumer services and the profitability of those services. Thanks.

James Eugene Faucette: On Iraq.

James Eugene Faucette: The message is clear for this year, how and when will we have visibility into how much of kind of that quarterly cadence could carry into next year and what are the key factors in determining that and then obviously your expected growth for multiple years in consumer services as is.

James Eugene Faucette: Quite compelling, but I'm wondering how we should think about the evolution of profitability and how closely that may track consumer services and the profitability of those services. Thanks.

James Eugene Faucette: Hey James. Thanks for joining the call today. I'll tackle the first question on that on the IRAC side.

James Eugene Faucette: Hey, James Thanks for joining the call today.

James Eugene Faucette: Ill tackle the first question on that on the Iraq side.

Matthew Cagwin: We think it's a fluid market, so it's hard for me to tell you what's going to happen in Q1 of 2025, but we have now made some meaningful progress to stabilize some of the operational issues. It's come down to a more repeatable amount over the last couple months. So we feel optimistic this thing could last a while. That's why we've rolled it into our guide and didn't overly emphasize it in our prepared remarks today. So we do view it as, hopefully, a sustainable part of our business in that range of $10 million to $30 million a quarter.

We think it's a fluid market. So it's hard for me to tell you what's going to happen in Q1 of 2025.

Speaker Change: But we have now made meaningful progress to stabilize some of the operational issues, it's come down to a more repeatable.

Speaker Change: Over the last couple of months.

Speaker Change: So we feel optimistic this thing could last a while and that's why we've rolled that into our guide and.

Speaker Change: Didn't overly emphasized in our prepared remarks today.

Speaker Change: So we do view it as hopefully a sustainable part of our business in that range of $10 million to $30 million a quarter.

Matthew Cagwin: The second question with regard to consumer services is, as you saw in the prepared remarks and on the slides, there is a wide range of products and services that we are working to deliver with varying margin profiles. We remain committed to growing consumer services at margins that are consistent with the overall company, if not better. So we do not expect consumer services to be margin dilutive over time, and we are hoping, particularly for some of the higher-value products and services like debit interchange and prepaid cards, as well as some of our investments that are coming to fruition around foreign exchange could yield better margins than our core transactional business in some cases.

Speaker Change: On the second question with regard to consumer services as you saw in the prepared remarks and on the slides, there's a wide range of products and services that we are working to deliver with.

With varying margin profiles.

Speaker Change: We remain committed to grow consumer services at.

Speaker Change: At margins that are consistent with the overall company if not better. So we do not expect consumer services to be margin dilutive over time, and we are hoping particularly for some of the higher value products and services like debit interchange in the prepaid cards.

Speaker Change: As well as some of our investments that are coming to fruition around.

Speaker Change: Foreign exchange could yield better margins than our core transactional business in some cases.

James Eugene Faucette: Wow, I appreciate that. Thanks to both of you.

Speaker Change: Well I appreciate that thanks to both of you.

Speaker Change: Thanks for joining.

Operator: There are no additional questions in the queue at this time. Thank you for joining the Western Union First Quarter 2024 conference call. We hope you have a great day.

Speaker Change: There are no additional questions in the queue at this time.

Speaker Change: Thank you for joining the Western Union first quarter 2024 conference call. We hope you have a great day.

Speaker Change: Okay.

Speaker Change: Okay.

Speaker Change:

Speaker Change: Okay.

Okay.

Yeah.

Speaker Change: Thank you.

Speaker Change: Okay.

Okay.

Speaker Change: <unk>.

Speaker Change: Yeah.

Speaker Change: Okay.

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Okay.

Speaker Change: Goodbye.