Western Union (NYSE: WU) reported Q2 EPS of $0.48, $0.01 better than the analyst estimate of $0.47. Revenue for the quarter came in at $1.3 billion versus the consensus estimate of $1.26 billion.

President and CEO Hikmet Ersek said, “Our second quarter results put us on track to achieve our 2021 adjusted financial outlook with strong top-line trends bolstered by continued growth in our digital business, which we expect will generate over $1 billion in revenue this year, and sequential improvement in our retail business. As we look toward the second half of 2021, while we recognize potential risks remain, we are optimistic that the business will continue to deliver solid top-line growth.”

Ersek added, “With the planned sale of Western Union Business Solutions, we will be fully focused on increasing our penetration of the global cross-border consumer payments market, expanding our open platform strategy, which enables us to serve multiple customer segments and use cases, including through digital partnerships with financial institutions, telecoms, and technology companies, and increasing our total addressable market through a Western Union-branded ecosystem strategy. As the foundation of our strategy, we will continue to leverage our scalable, global platform, which is rooted in industry-leading network and compliance capabilities and our trusted brand.”

CFO Raj Agrawal stated, “We’re pleased with the momentum of our business as revenues grew 16%. Additionally, we generated adjusted margins of over 20% while continuing to make strategic investments. Year-to-date, we have generated strong operating cash flow of nearly $350 million and have returned more than $340 million to shareholders through a combination of dividends and share repurchases. Based on our continued progress, we are affirming key aspects of our financial outlook and adjusted metrics for 2021 today.”

GUIDANCE:

The Company today reaffirmed its 2021 financial outlook for revenue growth and its remaining metrics on an adjusted basis. The Company’s full year GAAP financial outlook was updated to reflect the impact associated with the planned termination of the Company’s pension plan and acquisition and divestiture costs associated with the planned sale of Western Union Business Solutions. The Company’s frozen pension plan was overfunded by more than $35 million as of June 30, 2021, which prompted the Company to explore options related to its termination. The pension plan termination, which is expected to occur in the fourth quarter of 2021, will result in a non-cash expense of approximately $110 million on a pre-tax basis recorded to Other Expense, reducing GAAP EPS by approximately $0.22 as the Company accelerates the recognition of accumulated other comprehensive losses associated with the plan.

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