Business Wire | May 4, 2021 04:05PM EDT

Western Union Reports First Quarter Results

May 04, 2021

DENVER--(BUSINESS WIRE)--May 04, 2021--The Western Union Company (NYSE: WU), a global leader in cross-border, cross-currency money movement and payments, today reported first quarter financial results and updated its 2021 financial outlook, which includes a $0.06 increase in the GAAP EPS range primarily from the sale of an investment in the second quarter of 2021.

The Company's first quarter revenue of $1.2 billion increased 2% on both a reported and constant currency basis compared to the prior year period, including a 1% benefit from inflation in Argentina. The increase in revenue was led by strength in digital money transfer which grew 45% to a new quarterly high of $242 million.

EPS in the first quarter was $0.44. GAAP EPS in the prior year period was $0.42, which included costs related to the Company's restructuring program that was completed in the fourth quarter of 2020, while adjusted EPS was $0.44. EPS in the current period benefitted from revenue growth, a lower effective tax rate, and share repurchases, offset by increased investments in strategic initiatives and marketing and compensation-related expenses.

President and CEO Hikmet Ersek said, "2021 is an important year for Western Union and we got off to a healthy start led by the continued strong growth of our market-leading digital business that generated over $240 million of revenue in the first quarter, putting us on track to exceed $1 billion of digital revenue this year. While additional waves of COVID-19 continue to affect countries around the world, we are optimistic that conditions may continue to improve over the year, supporting the momentum of our business and allowing us to achieve our 2021 financial outlook."

Ersek added, "Our growth strategy has positioned us well for today's dynamic environment and to lead the digital transformation of cross-border, Consumer-to-Consumer payments, and also leverage our capabilities in the rapidly growing cross-border payments market across different use cases. We remain focused on executing, evolving, and investing behind our strategy to ensure that we can capitalize on these exciting growth opportunities and develop an ecosystem of services centered around cross-border financial transactions."

CFO Raj Agrawal stated, "We are encouraged by our first quarter performance that puts us on track to achieve our 2021 financial outlook. Our digital consumer business maintained the elevated levels of growth that we saw last year, while trends for our retail consumer business and Business Solutions segment improved sequentially. We also delivered operating margin of 19%, despite making significant investments in initiatives that were delayed in 2020 due to the effects of COVID-19, and we resumed returning cash to investors through share repurchases. Given our solid start to the year, we are affirming our revenue and operating margin financial outlook and raising our GAAP EPS financial outlook for 2021."

Q1 Business Highlights

* Consumer-to-Consumer (C2C) transactions increased 9% in the quarter, while revenues increased 4% on a reported basis, or 2% constant currency. Within the C2C segment, cross-border money transfer revenues grew 6% partially offset by declines in domestic money transfers. Transaction growth was led by Europe and CIS, U.S. outbound, and the Middle East, partially offset by declines in U.S. domestic money transfer and Latin America and the Caribbean.

* Digital money transfer revenues increased 45% on a reported basis, or 44% constant currency, and represented 23% and 34% of total C2C revenues and transactions, respectively. Digital money transfer reached new quarterly highs for principal and revenues. Westernunion.com revenue grew 38% on a reported basis, or 37% constant currency, including cross-border revenue growth of 49%.

* Westernunion.com average monthly active users for the first quarter increased 46% year-over-year. Westernunion.com was the most downloaded mobile app among peer money transfer companies during the first quarter, according to data provided by mobile app marketing firm Sensor Tower1.

* Western Union Business Solutions revenues declined 2% on a reported basis, or 8% constant currency, and continued to improve sequentially, with declines due to lower hedging activity and the ongoing impact of COVID-19 on certain segment verticals. Other revenues, which consists primarily of retail bill payments in the U.S. and Argentina and money orders, declined 18% due to the ongoing impact of COVID-19 and the depreciation of the Argentine peso. Business Solutions and Other represented 8% and 5% of total Company revenue, respectively.

Q1 Financial Highlights

* The operating margin in the quarter was 19.2%. Prior year period GAAP operating margin was 19.6% and included approximately $11 million of restructuring expenses, while adjusted operating margin was 20.5%. The decrease in operating margin was driven by higher investments in strategic initiatives and marketing and compensation-related expenses, partially offset by changes in foreign exchange.

* The effective tax rate in the quarter was 10.4%. In the prior year period, both the GAAP and adjusted effective tax rates were 12.5%. The decrease in the Company's effective tax rate was primarily due to changes in composition between higher-taxed and lower-taxed foreign earnings and an increase in discrete tax benefits.

* Cash flow from operating activities for the quarter was $176 million. The Company returned $172 million to shareholders in the first quarter consisting of $97 million in dividends and $75 million of share repurchases.

________________^1 Data obtained from Sensor Tower App Install Market Share Report

2021 Outlook

The Company today reaffirmed its 2021 financial outlook for revenue growth and operating margin and increased the GAAP EPS outlook by $0.06 reflecting the impact of two items realized in the second quarter of 2021 including the sale of an investment, partially offset by expenses related to the early retirement of the Company's notes due in 2022. Excluding the impact of these two items, the 2021 EPS outlook is unchanged. The outlook provided today assumes no material worsening in current global macro-economic conditions or the COVID-19 pandemic:

Revenue GAAP: mid-to-high single digit increase

Constant currency: mid-single digit increase, excluding Argentina inflation impact

Operating Profit Margin Approximately 21.5%

Effective Tax Rate (GAAP Mid-teens rangeand Adjusted)

EPS (GAAP) In a range of $2.06 - $2.16

EPS (Adjusted) In a range of $2.00 - $2.10

Adjustment Items

Adjusted tax rate and earnings per share metrics for 2021 periods exclude two items realized in the second quarter of 2021 including the impact from the sale of an investment and expenses related to the early retirement of the Company's notes due in 2022, net of related taxes, as applicable.

Adjusted operating profit, tax rate, and earnings per share metrics for 2020 periods exclude restructuring expenses and acquisition and divestiture costs, net of related taxes, as applicable.

Although the Company has previously incurred and can reasonably be expected to incur restructuring costs in the future, these expenses were specific to the implementation of a global strategy initiative and the Company has therefore provided adjusted financial results that exclude these expenses.

Additional Statistics

Additional key statistics for the quarter and historical trends can be found in the supplemental tables included with this press release.

All amounts included in the supplemental tables to this press release are rounded to the nearest tenth of a million, except as otherwise noted. As a result, the percentage changes and margins disclosed herein may not recalculate precisely using the rounded amounts provided.

Non-GAAP Measures

Western Union presents a number of non-GAAP financial measures because management believes that these metrics provide meaningful supplemental information in addition to the GAAP metrics and provide comparability and consistency to prior periods. Constant currency results assume foreign revenues are translated from foreign currencies to the U.S. dollar, net of the effect of foreign currency hedges, at rates consistent with those in the prior year.

Reconciliations of non-GAAP to comparable GAAP measures are available in the accompanying schedules and in the "Investor Relations" section of the Company's website at https://ir.westernunion.com.

Investor and Analyst Conference Call and Slide Presentation

The Company will host a conference call and webcast, including slides, at 4:30 p.m. Eastern Time today. To listen to the conference call via telephone, dial +1 (888) 317-6003 (U.S.) or +1 (412) 317-6061 (outside the U.S.) ten minutes prior to the start of the call. The pass code is 0142810.

The conference call and accompanying slides will be available via webcast at https://ir.westernunion.com. Registration for the event is required, so please register at least five minutes prior to the scheduled start time.

A webcast replay will be available at https://ir.westernunion.com.

Please note: All statements made by Western Union officers on this call are the property of Western Union and subject to copyright protection. Other than the replay, Western Union has not authorized, and disclaims responsibility for, any recording, replay or distribution of any transcription of this call.

Safe Harbor Compliance Statement for Forward-Looking Statements

This press release contains certain statements that are forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are not guarantees of future performance and involve certain risks, uncertainties, and assumptions that are difficult to predict. Actual outcomes and results may differ materially from those expressed in, or implied by, our forward-looking statements. Words such as "expects," "intends," "targets," "anticipates," "believes," "estimates," "guides," "provides guidance," "provides outlook," and other similar expressions or future or conditional verbs such as "may," "will," "should," "would," "could," and "might" are intended to identify such forward-looking statements. Readers of this press release of The Western Union Company (the "Company," "Western Union," "we," "our," or "us") should not rely solely on the forward-looking statements and should consider all uncertainties and risks discussed in the Risk Factors section and throughout the Annual Report on Form 10-K for the year ended December 31, 2020. The statements are only as of the date they are made, and the Company undertakes no obligation to update any forward-looking statement.

Possible events or factors that could cause results or performance to differ materially from those expressed in our forward-looking statements include the following: (i) events related to our business and industry, such as: changes in general economic conditions and economic conditions in the regions and industries in which we operate, including global economic downturns and trade disruptions, or significantly slower growth or declines in the money transfer, payment service, and other markets in which we operate, including downturns or declines related to interruptions in migration patterns or other events, such as public health emergencies, epidemics, or pandemics such as COVID-19, civil unrest, war, terrorism, or natural disasters, or non-performance by our banks, lenders, insurers, or other financial services providers; failure to compete effectively in the money transfer and payment service industry, including among other things, with respect to price, with global and niche or corridor money transfer providers, banks and other money transfer and payment service providers, including digital, mobile and internet-based services, card associations, and card-based payment providers, and with digital currencies and related protocols, and other innovations in technology and business models; political conditions and related actions, including trade restrictions and government sanctions, in the United States and abroad, which may adversely affect our business and economic conditions as a whole, including interruptions of United States or other government relations with countries in which we have or are implementing significant business relationships with agents, clients, or other partners; deterioration in customer confidence in our business, or in money transfer and payment service providers generally; failure to maintain our agent network and business relationships under terms consistent with or more advantageous to us than those currently in place; our ability to adopt new technology and develop and gain market acceptance of new and enhanced services in response to changing industry and consumer needs or trends; changes in, and failure to manage effectively, exposure to foreign exchange rates, including the impact of the regulation of foreign exchange spreads on money transfers and payment transactions; any material breach of security, including cybersecurity, or safeguards of or interruptions in any of our systems or those of our vendors or other third parties; cessation of or defects in various services provided to us by third-party vendors; mergers, acquisitions, and the integration of acquired businesses and technologies into our Company, divestitures, and the failure to realize anticipated financial benefits from these transactions, and events requiring us to write down our goodwill; decisions to change our business mix; our ability to realize the anticipated benefits from restructuring-related initiatives, which may include decisions to downsize or to transition operating activities from one location to another, and to minimize any disruptions in our workforce that may result from those initiatives; failure to manage credit and fraud risks presented by our agents, clients, and consumers; changes in tax laws or their interpretation, any subsequent regulation, and potential related state income tax impacts, and unfavorable resolution of tax contingencies; adverse rating actions by credit rating agencies; our ability to protect our trademarks, patents, copyrights, and other intellectual property rights and to defend ourselves against potential intellectual property infringement claims; our ability to attract and retain qualified key employees and to manage our workforce successfully; material changes in the market value or liquidity of securities that we hold; restrictions imposed by our debt obligations; (ii) events related to our regulatory and litigation environment, such as: liabilities or loss of business resulting from a failure by us, our agents, or their subagents to comply with laws and regulations and regulatory or judicial interpretations thereof, including laws and regulations designed to protect consumers, or detect and prevent money laundering, terrorist financing, fraud, and other illicit activity; increased costs, operational burden or loss of business due to regulatory initiatives and changes in laws, including changes in interpretations, resulting in increasing regulations and industry practices and standards in the United States and abroad, affecting us, our agents, or their subagents, our external business partners such as financial institutions, or the banks with which we or our agents maintain bank accounts needed to provide our services, including related to anti-money laundering regulations, anti-fraud measures, our licensing arrangements, customer due diligence, agent and subagent due diligence, registration and monitoring requirements, consumer protection requirements, remittances, and immigration; liabilities, increased costs or loss of business and unanticipated developments resulting from governmental investigations and consent agreements with or enforcement actions by regulators; liabilities resulting from litigation, including class-action lawsuits and similar matters, and regulatory enforcement actions, including costs, expenses, settlements, and judgments; failure to comply with regulations and evolving industry standards regarding consumer privacy, data use, the transfer of personal data between jurisdictions, and information security, including with respect to the General Data Protection Regulation in the European Union and the California Consumer Privacy Act; failure to comply with the Dodd-Frank Wall Street Reform and Consumer Protection Act, as well as regulations issued pursuant to it and the actions of the Consumer Financial Protection Bureau and similar legislation and regulations enacted by other governmental authorities in the United States and abroad related to consumer protection and derivative transactions; effects of unclaimed property laws or their interpretation or the enforcement thereof; failure to maintain sufficient amounts or types of regulatory capital or other restrictions on the use of our working capital to meet the changing requirements of our regulators worldwide; changes in accounting standards, rules and interpretations, or industry standards affecting our business; and (iii) other events, such as: catastrophic events; and management's ability to identify and manage these and other risks.

About Western Union

The Western Union Company (NYSE: WU) is a global leader in cross-border, cross-currency money movement and payments. Western Union's platform provides seamless cross-border flows and its leading global financial network bridges more than 200 countries and territories and over 130 currencies. We connect businesses, financial institutions, governments, and consumers through one of the world's widest reaching networks, accessing billions of bank accounts, millions of digital wallets and cards, and over half a million retail locations. Western Union connects the world to bring boundless possibilities within reach. For more information, visit www.westernunion.com.

WU-G

THE WESTERN UNION COMPANY

KEY STATISTICS

(Unaudited)



Notes* 1Q20 2Q20 3Q20 4Q20 FY2020 1Q21

Consolidated MetricsConsolidated revenues (11 ) % (17 ) % (4 ) % (3 ) % (9 ) % 2 %(GAAP) - YoY % changeConsolidated revenues(non-GAAP, constantcurrency and (a) (1 ) % (11 ) % (1 ) % (1 ) % (3 ) % 2 %excluding Speedpayand Paymap) - YoY %changeConsolidated 19.6 % 19.9 % 22.7 % 17.9 % 20.0 % 19.2 %operating margin(GAAP)Consolidatedoperating margin,excludingrestructuring-related (b) 20.5 % 20.4 % 23.5 % 18.8 % 20.8 % 19.2 %expenses andacquisition anddivestiture costs(non-GAAP)

EBITDA margin (c) 24.5 % 25.0 % 27.0 % 22.3 % 24.7 % 23.7 %(non-GAAP)

Consumer-to-Consumer (C2C) Segment MetricsRevenues (GAAP) - YoY (4 ) % (12 ) % (1 ) % 0 % (4 ) % 4 %% changeRevenues (non-GAAP, (e) (3 ) % (11 ) % 0 % 0 % (3 ) % 2 %constant currency) -YoY % change

Transactions (in 66.8 68.0 77.3 78.4 290.5 73.0 millions)Transactions - YoY % (3 ) % (8 ) % 6 % 6 % 0 % 9 %change

Total principal ($- $ 20.6 $ 21.9 $ 26.9 $ 26.7 $ 96.1 $ 25.7 billions)Principal pertransaction, as 2 % 7 % 13 % 14 % 9 % 15 %reported - YoY %changePrincipal pertransaction (constant (f) 4 % 9 % 14 % 13 % 10 % 12 %currency) - YoY %change

Cross-borderprincipal, as 0 % 1 % 23 % 24 % 12 % 28 %reported - YoY %changeCross-borderprincipal (constant (g) 2 % 3 % 24 % 23 % 13 % 26 %currency) - YoY %change

Operating margin 20.7 % 21.8 % 24.6 % 20.5 % 21.9 % 19.6 %



Digital moneytransfer revenues 21 % 48 % 45 % 36 % 38 % 45 %(GAAP) - YoY % change^(1)Digital moneytransfer foreign (j) 1 % 2 % 1 % (1 ) % 0 % (1 ) %currency translationimpactDigital moneytransfer revenues 22 % 50 % 46 % 35 % 38 % 44 %(non-GAAP, constantcurrency) - YoY %change ^(1)Digital money 42 % 96 % 96 % 83 % 81 % 77 %transfer transactions- YoY % change

westernunion.com (gg) 13 % 33 % 33 % 27 % 27 % 38 %revenues (GAAP) - YoY% changewesternunion.com (j) 1 % 1 % (1 ) % (1 ) % 0 % (1 ) %foreign currencytranslation impactwesternunion.comrevenues (non-GAAP, (gg) 14 % 34 % 32 % 26 % 27 % 37 %constant currency) -YoY % changewesternunion.com (gg) 15 % 50 % 53 % 56 % 44 % 55 %transactions - YoY %change

C2C Segment Regional Metrics - YoY %changeNA region revenues (aa), (2 ) % (6 ) % 0 % (3 ) % (3 ) % 0 %(GAAP) (bb)

NA region foreign (j) 0 % 1 % 1 % 0 % 0 % 1 %currency translationimpactNA region revenues (aa), (2 ) % (5 ) % 1 % (3 ) % (3 ) % 1 %(non-GAAP, constant (bb)currency)NA region (aa), (5 ) % (7 ) % 1 % (1 ) % (3 ) % 1 %transactions (bb)



EU & CIS region (aa), (5 ) % (10 ) % 3 % 3 % (2 ) % 8 %revenues (GAAP) (cc)

EU & CIS region (j) 0 % 1 % (2 ) % (3 ) % (1 ) % (4 ) %foreign currencytranslation impactEU & CIS region (aa), (5 ) % (9 ) % 1 % 0 % (3 ) % 4 %revenues (non-GAAP, (cc)constant currency)EU & CIS region (aa), 1 % 4 % 24 % 23 % 13 % 28 %transactions (cc)



MEASA region revenues (aa), 3 % (13 ) % 2 % 1 % (2 ) % 1 %(GAAP) (dd)

MEASA region foreign (j) 0 % 1 % 0 % (1 ) % 0 % (1 ) %currency translationimpactMEASA region revenues (aa), 3 % (12 ) % 2 % 0 % (2 ) % 0 %(non-GAAP, constant (dd)currency)MEASA region (aa), 1 % (1 ) % 15 % 12 % 7 % 13 %transactions (dd)



LACA region revenues (aa), (11 ) % (45 ) % (21 ) % (9 ) % (22 ) % 3 %(GAAP) (ee)

LACA region foreign (j) 8 % 10 % 13 % 11 % 11 % 5 %currency translationimpactLACA region revenues (aa), (3 ) % (35 ) % (8 ) % 2 % (11 ) % 8 %(non-GAAP, constant (ee)currency)LACA region (aa), (5 ) % (41 ) % (21 ) % (13 ) % (20 ) % (8 ) %transactions (ee)



APAC region revenues (aa), (10 ) % (14 ) % 4 % 8 % (3 ) % 9 %(GAAP) (ff)

APAC region foreign (j) 1 % 1 % 1 % (2 ) % 0 % (6 ) %currency translationimpactAPAC region revenues (aa), (9 ) % (13 ) % 5 % 6 % (3 ) % 3 %(non-GAAP, constant (ff)currency)APAC region (aa), (14 ) % (18 ) % (6 ) % (3 ) % (10 ) % (2 ) %transactions (ff)



% of C2C Revenue

(aa), 38 % 41 % 38 % 37 % 38 % 37 %NA region revenues (bb)

EU & CIS region (aa), 31 % 32 % 33 % 33 % 33 % 33 %revenues (cc)

(aa), 16 % 15 % 16 % 15 % 15 % 16 %MEASA region revenues (dd)

(aa), 9 % 6 % 7 % 8 % 8 % 8 %LACA region revenues (ee)

(aa), 6 % 6 % 6 % 7 % 6 % 6 %APAC region revenues (ff)



Digital money (aa) 16 % 22 % 21 % 21 % 20 % 23 %transfer revenues

Business Solutions Segment MetricsRevenues (GAAP) - YoY 3 % (17 ) % (11 ) % (8 ) % (8 ) % (2 ) %% changeRevenues (non-GAAP, (h) 5 % (15 ) % (13 ) % (11 ) % (8 ) % (8 ) %constant currency) -YoY % changeOperating margin 14.1 % 1.6 % 10.5 % (0.2 ) % 6.9 % 13.1 %



Other (primarily billpayments businesses in Argentina and theUnited States andmoney orders)Revenues (GAAP) - YoY (59 ) % (56 ) % (33 ) % (29 ) % (48 ) % (18 ) %% changeOperating margin 26.1 % 21.9 % 20.0 % 15.8 % 21.2 % 22.6 %



% of Total CompanyRevenue (GAAP)Consumer-to-Consumer 85 % 88 % 88 % 88 % 87 % 87 %segment revenuesBusiness Solutions 8 % 7 % 7 % 7 % 8 % 8 %segment revenuesOther revenues 7 % 5 % 5 % 5 % 5 % 5 %

________________(1)

Represents revenue from transactions conducted and funded through westernunion.com and transactions initiated on internet and mobile applications hosted by the Company's third-party white label or co-branded digital partners.

*

See the "Notes to Key Statistics" section of the press release for the applicable Note references and the reconciliation of non-GAAP financial measures, unless already reconciled herein.

________________ Represents revenue from transactions conducted and funded through(1) westernunion.com and transactions initiated on internet and mobile applications hosted by the Company's third-party white label or co-branded digital partners.

See the "Notes to Key Statistics" section of the press release for the* applicable Note references and the reconciliation of non-GAAP financial measures, unless already reconciled herein.

THE WESTERN UNION COMPANYCONDENSED CONSOLIDATED STATEMENTS OF INCOME(Unaudited)(in millions, except per share amounts)Three Months Ended

March 31,

2021

2020

% Change

Revenues$1,210.0

$1,190.0

2

%

Expenses:Cost of services706.0

683.4

3

%

Selling, general, and administrative271.2

273.4

(1

)

%

Total operating expenses (a)977.2

956.8

2

%

Operating income232.8

233.2

0

%

Other income/(expense):Interest income0.4

1.6

(75

)

%

Interest expense(28.4

)

(32.9

)

(14

)

%

Other expense, net(1.9

)

-

(b)

Total other expense, net(29.9

)

(31.3

)

(4

)

%

Income before income taxes202.9

201.9

0

%

Provision for income taxes21.1

25.2

(17

)

%

Net income$181.8

$176.7

3

%

Earnings per share:Basic$0.44

$0.43

2

%

Diluted$0.44

$0.42

5

%

Weighted-average shares outstanding:Basic411.7

414.3

Diluted414.3

418.3

THE WESTERN UNION COMPANYCONDENSED CONSOLIDATED STATEMENTS OF INCOME(Unaudited)(in millions, except per share amounts) Three Months Ended

March 31,

2021 2020 % Change

Revenues $ 1,210.0 $ 1,190.0 2 %

Expenses: Cost of services 706.0 683.4 3 %

Selling, general, and administrative 271.2 273.4 (1 ) %

Total operating expenses ^(a) 977.2 956.8 2 %

Operating income 232.8 233.2 0 %

Other income/(expense): Interest income 0.4 1.6 (75 ) %

Interest expense (28.4 ) (32.9 ) (14 ) %

Other expense, net (1.9 ) - ^(b)

Total other expense, net (29.9 ) (31.3 ) (4 ) %

Income before income taxes 202.9 201.9 0 %

Provision for income taxes 21.1 25.2 (17 ) %

Net income $ 181.8 $ 176.7 3 %

Earnings per share: Basic $ 0.44 $ 0.43 2 %

Diluted $ 0.44 $ 0.42 5 %

Weighted-average shares outstanding: Basic 411.7 414.3

Diluted 414.3 418.3

________________(a)

For the three months ended March 31, 2020, the Company incurred $10.5 million related to its restructuring plan, with a majority related to consulting service fees, severance and other costs, of which $0.9 million and $9.6 million were included in Cost of services and Selling, general, and administrative, respectively.

(b)

Calculation not meaningful.

________________ For the three months ended March 31, 2020, the Company incurred $10.5 million related to its restructuring plan, with a majority related to consulting(a) service fees, severance and other costs, of which $0.9 million and $9.6 million were included in Cost of services and Selling, general, and administrative, respectively.

(b) Calculation not meaningful.

THE WESTERN UNION COMPANY

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

(in millions, except per share amounts)

March 31,

December 31,

2021

2020

AssetsCash and cash equivalents$1,502.6

$1,428.2

Settlement assets3,638.2

3,821.4

Property and equipment, net of accumulated depreciation of $665.7 and $659.9, respectively144.9

150.4

Goodwill2,566.6

2,566.6

Other intangible assets, net of accumulated amortization of $1,064.7 and $1,044.6, respectively523.0

505.0

Other assets905.7

1,024.7

Total assets$9,281.0

$9,496.3

Liabilities and stockholders' equityLiabilities:Accounts payable and accrued liabilities$513.3

$500.9

Settlement obligations3,638.2

3,821.4

Income taxes payable933.1

928.9

Deferred tax liability, net187.2

188.9

Borrowings3,230.5

3,067.2

Other liabilities559.9

802.4

Total liabilities9,062.2

9,309.7

Stockholders' equity:Preferred stock, $1.00 par value; 10 shares authorized; no shares issued-

-

Common stock, $0.01 par value; 2,000 shares authorized; 409.8 shares and 411.2 shares issued and outstanding as of March 31, 2021 and December 31, 2020, respectively4.1

4.1

Capital surplus904.0

885.1

Accumulated deficit(548.2

)

(543.1

)

Accumulated other comprehensive loss(141.1

)

(159.5

)

Total stockholders' equity218.8

186.6

Total liabilities and stockholders' equity$9,281.0

$9,496.3

THE WESTERN UNION COMPANY

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

(in millions, except per share amounts)



March 31, December 31,

2021 2020

AssetsCash and cash equivalents $ 1,502.6 $ 1,428.2

Settlement assets 3,638.2 3,821.4

Property and equipment, net of accumulated 144.9 150.4 depreciation of $665.7 and $659.9, respectivelyGoodwill 2,566.6 2,566.6

Other intangible assets, net of accumulated 523.0 505.0 amortization of $1,064.7 and $1,044.6, respectivelyOther assets 905.7 1,024.7

Total assets $ 9,281.0 $ 9,496.3

Liabilities and stockholders' equityLiabilities:Accounts payable and accrued liabilities $ 513.3 $ 500.9

Settlement obligations 3,638.2 3,821.4

Income taxes payable 933.1 928.9

Deferred tax liability, net 187.2 188.9

Borrowings 3,230.5 3,067.2

Other liabilities 559.9 802.4

Total liabilities 9,062.2 9,309.7

Stockholders' equity:Preferred stock, $1.00 par value; 10 shares - - authorized; no shares issuedCommon stock, $0.01 par value; 2,000 sharesauthorized; 409.8 shares and 411.2 shares issued 4.1 4.1 and outstanding as of March 31, 2021 and December31, 2020, respectivelyCapital surplus 904.0 885.1

Accumulated deficit (548.2 ) (543.1 )

Accumulated other comprehensive loss (141.1 ) (159.5 )

Total stockholders' equity 218.8 186.6

Total liabilities and stockholders' equity $ 9,281.0 $ 9,496.3

THE WESTERN UNION COMPANY

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

(in millions)

Three Months Ended

March 31,

2021

2020

Cash flows from operating activitiesNet income$181.8

$176.7

Adjustments to reconcile net income to net cash provided by operating activities:Depreciation12.8

16.5

Amortization40.6

41.7

Other non-cash items, net30.3

20.8

Increase/(decrease) in cash, resulting from changes in:Other assets(46.9

)

(23.1

)

Accounts payable and accrued liabilities(35.8

)

(109.3

)

Income taxes payable5.5

(2.8

)

Other liabilities(12.5

)

(8.1

)

Net cash provided by operating activities175.8

112.4

Cash flows from investing activitiesPayments for capitalized contract costs(78.3

)

(21.5

)

Payments for internal use software(9.9

)

(7.9

)

Purchases of property and equipment(8.7

)

(6.3

)

Proceeds from the sale of former corporate headquarters-

44.2

Purchases of non-settlement related investments(0.9

)

-

Proceeds from maturity of non-settlement related investments0.5

0.3

Other investing activities1.1

-

Net cash (used in)/provided by investing activities(96.2

)

8.8

Cash flows from financing activitiesCash dividends and dividend equivalents paid(96.7

)

(92.4

)

Common stock repurchased(84.5

)

(237.1

)

Net repayments of commercial paper(80.0

)

(160.0

)

Net proceeds from issuance of borrowings892.6

-

Principal payments on borrowings(650.0

)

-

Proceeds from exercise of options8.1

1.0

Other financing activities0.1

(0.7

)

Net cash used in financing activities(10.4

)

(489.2

)

Net change in cash, cash equivalents, and restricted cash69.2

(368.0

)

Cash, cash equivalents, and restricted cash at beginning of period1,447.4

1,456.8

Cash, cash equivalents, and restricted cash at end of period (a)$1,516.6

$1,088.8

THE WESTERN UNION COMPANY

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

(in millions)



Three Months Ended

March 31,

2021 2020

Cash flows from operating activitiesNet income $ 181.8 $ 176.7

Adjustments to reconcile net income to net cashprovided by operating activities:Depreciation 12.8 16.5

Amortization 40.6 41.7

Other non-cash items, net 30.3 20.8

Increase/(decrease) in cash, resulting from changesin:Other assets (46.9 ) (23.1 )

Accounts payable and accrued liabilities (35.8 ) (109.3 )

Income taxes payable 5.5 (2.8 )

Other liabilities (12.5 ) (8.1 )

Net cash provided by operating activities 175.8 112.4

Cash flows from investing activitiesPayments for capitalized contract costs (78.3 ) (21.5 )

Payments for internal use software (9.9 ) (7.9 )

Purchases of property and equipment (8.7 ) (6.3 )

Proceeds from the sale of former corporate - 44.2 headquartersPurchases of non-settlement related investments (0.9 ) -

Proceeds from maturity of non-settlement related 0.5 0.3 investmentsOther investing activities 1.1 -

Net cash (used in)/provided by investing activities (96.2 ) 8.8

Cash flows from financing activitiesCash dividends and dividend equivalents paid (96.7 ) (92.4 )

Common stock repurchased (84.5 ) (237.1 )

Net repayments of commercial paper (80.0 ) (160.0 )

Net proceeds from issuance of borrowings 892.6 -

Principal payments on borrowings (650.0 ) -

Proceeds from exercise of options 8.1 1.0

Other financing activities 0.1 (0.7 )

Net cash used in financing activities (10.4 ) (489.2 )

Net change in cash, cash equivalents, and 69.2 (368.0 )restricted cashCash, cash equivalents, and restricted cash at 1,447.4 1,456.8 beginning of periodCash, cash equivalents, and restricted cash at end $ 1,516.6 $ 1,088.8 of period ^(a)________________(a)As of March 31, 2021 and 2020 the Company had $14.0 million and $16.0 million, respectively, of restricted cash.________________(a) As of March 31, 2021 and 2020 the Company had $14.0 million and $16.0 million, respectively, of restricted cash. THE WESTERN UNION COMPANY

SUMMARY SEGMENT DATA

(Unaudited)

(in millions)

Three Months Ended

March 31,

2021

2020

% Change

Revenues:Consumer-to-Consumer$1,050.9

$1,015.4

4

%

Business Solutions96.5

98.4

(2

)

%

Other (a)62.6

76.2

(18

)

%

Total consolidated revenues$1,210.0

$1,190.0

2

%

Segment operating income:Consumer-to-Consumer$206.1

$209.9

(2

)

%

Business Solutions12.6

13.9

(9

)

%

Other (a)14.1

19.9

(29

)

%

Total segment operating income232.8

243.7

(4

)

%

Restructuring-related expenses (b)-

(10.5

)

(c)Total consolidated operating income$232.8

$233.2

0

%

Segment operating income marginConsumer-to-Consumer19.6

%

20.7

%

(1.1

)

%

Business Solutions13.1

%

14.1

%

(1.0

)

%

Other (a)22.6

%

26.1

%

(3.5

)

%

THE WESTERN UNION COMPANY

SUMMARY SEGMENT DATA

(Unaudited)

(in millions)



Three Months Ended

March 31,

2021 2020 % Change

Revenues:Consumer-to-Consumer $ 1,050.9 $ 1,015.4 4 %

Business Solutions 96.5 98.4 (2 ) %

Other ^(a) 62.6 76.2 (18 ) %

Total consolidated revenues $ 1,210.0 $ 1,190.0 2 %

Segment operating income:Consumer-to-Consumer $ 206.1 $ 209.9 (2 ) %

Business Solutions 12.6 13.9 (9 ) %

Other ^(a) 14.1 19.9 (29 ) %

Total segment operating income 232.8 243.7 (4 ) %

Restructuring-related expenses ^(b) - (10.5 ) ^(c)

Total consolidated operating income $ 232.8 $ 233.2 0 %

Segment operating income marginConsumer-to-Consumer 19.6 % 20.7 % (1.1 ) %

Business Solutions 13.1 % 14.1 % (1.0 ) %

Other ^(a) 22.6 % 26.1 % (3.5 ) %

________________(a)

Other primarily includes the Company's bill payment services which facilitate payments from consumers to businesses and other organizations and the Company's money order services.(b)

Restructuring-related expenses have been excluded from the measurement of segment operating income provided to the chief operating decision maker for purposes of assessing segment performance and decision making with respect to resource allocation.(c)

Calculation not meaningful. THE WESTERN UNION COMPANY NOTES TO KEY STATISTICS (in millions, unless indicated otherwise) (Unaudited)

Western Union's management believes the non-GAAP financial measures presented provide meaningful supplemental information regarding the Company's operating results to assist management, investors, analysts, and others in understanding the Company's financial results and to better analyze trends in the Company's underlying business because they provide consistency and comparability to prior periods.

A non-GAAP financial measure should not be considered in isolation or as a substitute for the most comparable GAAP financial measure. A non-GAAP financial measure reflects an additional way of viewing aspects of the Company's operations that, when viewed with the Company's GAAP results and the reconciliation to the corresponding GAAP financial measure, provide a more complete understanding of the Company's business. Users of the financial statements are encouraged to review the Company's financial statements and publicly-filed reports in their entirety and not to rely on any single financial measure. A reconciliation of non-GAAP financial measures to the most directly comparable GAAP financial measures is included below, where not previously reconciled above.

________________(a) Other primarily includes the Company's bill payment services which facilitate payments from consumers to businesses and other organizations and the Company's money order services. Restructuring-related expenses have been excluded from the measurement of(b) segment operating income provided to the chief operating decision maker for purposes of assessing segment performance and decision making with respect to resource allocation.(c) Calculation not meaningful.

THE WESTERN UNION COMPANY NOTES TO KEY STATISTICS (in millions, unless indicated otherwise) (Unaudited)

Western Union's management believes the non-GAAP financial measures presented provide meaningful supplemental information regarding the Company's operating results to assist management, investors, analysts, and others in understanding the Company's financial results and to better analyze trends in the Company's underlying business because they provide consistency and comparability to prior periods.

A non-GAAP financial measure should not be considered in isolation or as a substitute for the most comparable GAAP financial measure. A non-GAAP financial measure reflects an additional way of viewing aspects of the Company's operations that, when viewed with the Company's GAAP results and the reconciliation to the corresponding GAAP financial measure, provide a more complete understanding of the Company's business. Users of the financial statements are encouraged to review the Company's financial statements and publicly-filed reports in their entirety and not to rely on any single financial measure. A reconciliation of non-GAAP financial measures to the most directly comparable GAAP financial measures is included below, where not previously reconciled above.

Three Months Ended March 31, 2021

Income Provision Diluted Notes Revenues Operating Before for Net Income Earnings Income Income Income per Taxes Taxes Share

(in millions,except pershareamounts)Reported 1,210.0 232.8 202.9 21.1 181.8 0.44results $ $ $ $ $ $(GAAP)Foreigncurrency (j) (0.9 )translationimpactRevenues,constant 1,209.1 currency $adjusted(non-GAAP) Three Months Ended March 31, 2020

Income Provision Diluted Notes Revenues Operating Before for Net Income Earnings Income Income Income per Taxes Taxes Share

(in millions,except pershareamounts)Reported 1,190.0 233.2 201.9 25.2 176.7 0.42results $ $ $ $ $ $(GAAP)Restructuringrelated (m) - 10.5 10.5 1.3 9.2 0.02expenses andrelated taxbenefitAdjusted 1,190.0 243.7 212.4 26.5 185.9 0.44results $ $ $ $ $ $(non-GAAP) Quarter overquarter 2 % 0 % 0 % (17 )% 3 % 5 %growth/(decline)(GAAP)Quarter overquarter 2 % (4 ) % (5 ) % (19 )% (2 ) % 0 %growth/(decline)(non-GAAP) THE WESTERN UNION COMPANY

NOTES TO KEY STATISTICS

(in millions, unless indicated otherwise)

(Unaudited)

Notes

1Q20

2Q20

3Q20

4Q20

FY2020

1Q21

Consolidated Metrics(a)

Revenues (GAAP)$

1,190.0

$

1,114.7

$

1,258.5

$

1,271.8

$

4,835.0

$

1,210.0

Foreign currency translation impact(j)

47.3

46.4

41.1

22.4

157.2

(0.9

)

Revenues (non-GAAP, constant currency)$

1,237.3

$

1,161.1

$

1,299.6

$

1,294.2

$

4,992.2

$

1,209.1

Prior year revenues (GAAP)$

1,337.0

$

1,340.5

$

1,306.9

$

1,307.7

$

5,292.1

$

1,190.0

Less prior year revenues from Speedpay and Paymap divestitures(k)

(91.9

)

(38.8

)

N/A

N/A

(130.7

)

N/A

Prior year revenues, adjusted for divestitures (non-GAAP)$

1,245.1

$

1,301.7

$

1,306.9

$

1,307.7

$

5,161.4

$

1,190.0

Revenues (GAAP) - YoY % Change(11

)

%

(17

)

%

(4

)

%

(3

)

%

(9

)

%

2

%

Revenues, constant currency and adjusted for divestitures (non-GAAP) - YoY % Change(1

)

%

(11

)

%

(1

)

%

(1

)

%

(3

)

%

2

%

(b)

Operating income (GAAP)$

233.2

$

221.8

$

285.2

$

227.1

$

967.3

$

232.8

Restructuring-related expenses(m)

10.5

5.2

9.1

12.0

36.8

N/A

Acquisition and divestiture costs(n)

-

0.7

1.5

0.3

2.5

N/A

Operating income, adjusted (non-GAAP)$

243.7

$

227.7

$

295.8

$

239.4

$

1,006.6

$

232.8

Operating margin (GAAP)19.6

%

19.9

%

22.7

%

17.9

%

20.0

%

19.2

%

Operating margin, adjusted (non-GAAP)20.5

%

20.4

%

23.5

%

18.8

%

20.8

%

19.2

%

(c)

Operating income (GAAP)$

233.2

$

221.8

$

285.2

$

227.1

$

967.3

$

232.8

Depreciation and amortization58.2

57.1

54.2

56.1

225.6

53.4

EBITDA (non-GAAP)(l)

$

291.4

$

278.9

$

339.4

$

283.2

$

1,192.9

$

286.2

Operating margin (GAAP)19.6

%

19.9

%

22.7

%

17.9

%

20.0

%

19.2

%

EBITDA margin (non-GAAP)24.5

%

25.0

%

27.0

%

22.3

%

24.7

%

23.7

%

(d)

Effective tax rate (GAAP)13

%

16

%

12

%

11

%

13

%

10

%

Impact from restructuring-related expenses(m)

0

%

0

%

1

%

1

%

0

%

N/A

Impact from acquisition and divestiture costs(n)

0

%

0

%

0

%

0

%

0

%

N/A

Effective tax rate, adjusted (non-GAAP)13

%

16

%

13

%

12

%

13

%

10

%

C2C Segment Metrics(e)

Revenues (GAAP)$

1,015.4

$

976.6

$

1,106.5

$

1,121.5

$

4,220.0

$

1,050.9

Foreign currency translation impact(j)

12.9

18.4

11.1

(1.2

)

41.2

(11.1

)

Revenues (non-GAAP, constant currency)$

1,028.3

$

995.0

$

1,117.6

$

1,120.3

$

4,261.2

$

1,039.8

Prior year revenues (GAAP)$

1,056.9

$

1,112.9

$

1,113.0

$

1,125.0

$

4,407.8

$

1,015.4

Revenues (GAAP) - YoY % change(4

)

%

(12

)

%

(1

)

%

0

%

(4

)

%

4

%

Revenues (non-GAAP, constant currency) - YoY % change(3

)

%

(11

)

%

0

%

0

%

(3

)

%

2

%

(f)

Principal per transaction, as reported ($- dollars)$

308

$

322

$

348

$

341

$

331

$

353

Foreign currency translation impact ($- dollars)(j)

5

7

1

(2

)

2

(7

)

Principal per transaction (constant currency) ($- dollars)$

313

$

329

$

349

$

339

$

333

$

346

Prior year principal per transaction, as reported ($- dollars)$

302

$

303

$

307

$

300

$

303

$

308

Principal per transaction, as reported - YoY % change2

%

7

%

13

%

14

%

9

%

15

%

Principal per transaction (constant currency) - YoY % change4

%

9

%

14

%

13

%

10

%

12

%

(g)

Cross-border principal, as reported ($- billions)$

19.1

$

20.7

$

25.5

$

25.3

$

90.6

$

24.5

Foreign currency translation impact ($- billions)(j)

0.3

0.4

-

(0.1

)

0.6

(0.5

)

Cross-border principal (constant currency) ($- billions)$

19.4

$

21.1

$

25.5

$

25.2

$

91.2

$

24.0

Prior year cross-border principal, as reported ($- billions)$

19.1

$

20.5

$

20.6

$

20.5

$

80.7

$

19.1

Cross-border principal, as reported - YoY % change0

%

1

%

23

%

24

%

12

%

28

%

Cross-border principal (constant currency) - YoY % change2

%

3

%

24

%

23

%

13

%

26

%

Business Solutions Segment Metrics(h)

Revenues (GAAP)$

98.4

$

79.4

$

89.1

$

89.2

$

356.1

$

96.5

Foreign currency translation impact(j)

2.2

2.0

(1.9

)

(2.4

)

(0.1

)

(5.6

)

Revenues (non-GAAP, constant currency)$

100.6

$

81.4

$

87.2

$

86.8

$

356.0

$

90.9

Prior year revenues (GAAP)$

95.6

$

95.6

$

100.6

$

97.0

$

388.8

$

98.4

Revenues (GAAP) - YoY % change3

%

(17

)

%

(11

)

%

(8

)

%

(8

)

%

(2

)

%

Revenues (non-GAAP, constant currency) - YoY % change5

%

(15

)

%

(13

)

%

(11

)

%

(8

)

%

(8

)

%

(i)

Operating income/(loss) (GAAP)$

13.9

$

1.3

$

9.4

$

(0.2

)

$

24.4

$

12.6

Depreciation and amortization9.4

9.3

9.3

8.1

36.1

6.9

EBITDA (non-GAAP)(l)

$

23.3

$

10.6

$

18.7

$

7.9

$

60.5

$

19.5

Operating income margin (GAAP)14.1

%

1.6

%

10.5

%

(0.2

)

%

6.9

%

13.1

%

EBITDA margin (non-GAAP)23.7

%

13.2

%

21.1

%

8.8

%

17.0

%

20.2

%

THE WESTERN UNION COMPANY

NOTES TO KEY STATISTICS

(in millions, unless indicated otherwise)

(Unaudited)



Notes 1Q20 2Q20 3Q20 4Q20 FY2020 1Q21

Consolidated Metrics(a) Revenues (GAAP) $ 1,190.0 $ 1,114.7 $ 1,258.5 $ 1,271.8 $ 4,835.0 $ 1,210.0

Foreign currency (j) 47.3 46.4 41.1 22.4 157.2 (0.9 ) translation impact Revenues (non-GAAP, $ 1,237.3 $ 1,161.1 $ 1,299.6 $ 1,294.2 $ 4,992.2 $ 1,209.1 constant currency) Prior year revenues $ 1,337.0 $ 1,340.5 $ 1,306.9 $ 1,307.7 $ 5,292.1 $ 1,190.0 (GAAP) Less prior year revenues from (k) (91.9 ) (38.8 ) N/A N/A (130.7 ) N/A Speedpay and Paymap divestitures Prior year revenues, adjusted for $ 1,245.1 $ 1,301.7 $ 1,306.9 $ 1,307.7 $ 5,161.4 $ 1,190.0 divestitures (non-GAAP) Revenues (GAAP) - YoY (11 ) % (17 ) % (4 ) % (3 ) % (9 ) % 2 % % Change Revenues, constant currency and adjusted (1 ) % (11 ) % (1 ) % (1 ) % (3 ) % 2 % for divestitures (non-GAAP) - YoY % Change

(b) Operating income $ 233.2 $ 221.8 $ 285.2 $ 227.1 $ 967.3 $ 232.8 (GAAP) Restructuring-related (m) 10.5 5.2 9.1 12.0 36.8 N/A expenses Acquisition and (n) - 0.7 1.5 0.3 2.5 N/A divestiture costs Operating income, $ 243.7 $ 227.7 $ 295.8 $ 239.4 $ 1,006.6 $ 232.8 adjusted (non-GAAP) Operating margin 19.6 % 19.9 % 22.7 % 17.9 % 20.0 % 19.2 % (GAAP) Operating margin, 20.5 % 20.4 % 23.5 % 18.8 % 20.8 % 19.2 % adjusted (non-GAAP)

(c) Operating income $ 233.2 $ 221.8 $ 285.2 $ 227.1 $ 967.3 $ 232.8 (GAAP) Depreciation and 58.2 57.1 54.2 56.1 225.6 53.4 amortization EBITDA (non-GAAP) (l) $ 291.4 $ 278.9 $ 339.4 $ 283.2 $ 1,192.9 $ 286.2

Operating margin 19.6 % 19.9 % 22.7 % 17.9 % 20.0 % 19.2 % (GAAP) EBITDA margin 24.5 % 25.0 % 27.0 % 22.3 % 24.7 % 23.7 % (non-GAAP)

(d) Effective tax rate 13 % 16 % 12 % 11 % 13 % 10 % (GAAP) Impact from (m) 0 % 0 % 1 % 1 % 0 % N/A restructuring-related expenses Impact from (n) 0 % 0 % 0 % 0 % 0 % N/A acquisition and divestiture costs Effective tax rate, 13 % 16 % 13 % 12 % 13 % 10 % adjusted (non-GAAP)

C2C Segment Metrics

(e) Revenues (GAAP) $ 1,015.4 $ 976.6 $ 1,106.5 $ 1,121.5 $ 4,220.0 $ 1,050.9

Foreign currency (j) 12.9 18.4 11.1 (1.2 ) 41.2 (11.1 ) translation impact Revenues (non-GAAP, $ 1,028.3 $ 995.0 $ 1,117.6 $ 1,120.3 $ 4,261.2 $ 1,039.8 constant currency) Prior year revenues $ 1,056.9 $ 1,112.9 $ 1,113.0 $ 1,125.0 $ 4,407.8 $ 1,015.4 (GAAP) Revenues (GAAP) - YoY (4 ) % (12 ) % (1 ) % 0 % (4 ) % 4 % % change Revenues (non-GAAP, (3 ) % (11 ) % 0 % 0 % (3 ) % 2 % constant currency) - YoY % change

(f) Principal per $ 308 $ 322 $ 348 $ 341 $ 331 $ 353 transaction, as reported ($- dollars) Foreign currency (j) 5 7 1 (2 ) 2 (7 ) translation impact ($- dollars) Principal per transaction (constant $ 313 $ 329 $ 349 $ 339 $ 333 $ 346 currency) ($- dollars) Prior year principal $ 302 $ 303 $ 307 $ 300 $ 303 $ 308 per transaction, as reported ($- dollars) Principal per transaction, as 2 % 7 % 13 % 14 % 9 % 15 % reported - YoY % change Principal per transaction (constant 4 % 9 % 14 % 13 % 10 % 12 % currency) - YoY % change

Cross-border(g) principal, as $ 19.1 $ 20.7 $ 25.5 $ 25.3 $ 90.6 $ 24.5 reported ($- billions) Foreign currency (j) 0.3 0.4 - (0.1 ) 0.6 (0.5 ) translation impact ($- billions) Cross-border principal (constant $ 19.4 $ 21.1 $ 25.5 $ 25.2 $ 91.2 $ 24.0 currency) ($- billions) Prior year cross-border $ 19.1 $ 20.5 $ 20.6 $ 20.5 $ 80.7 $ 19.1 principal, as reported ($- billions) Cross-border principal, as 0 % 1 % 23 % 24 % 12 % 28 % reported - YoY % change Cross-border principal (constant 2 % 3 % 24 % 23 % 13 % 26 % currency) - YoY % change

Business Solutions Segment Metrics(h) Revenues (GAAP) $ 98.4 $ 79.4 $ 89.1 $ 89.2 $ 356.1 $ 96.5

Foreign currency (j) 2.2 2.0 (1.9 ) (2.4 ) (0.1 ) (5.6 ) translation impact Revenues (non-GAAP, $ 100.6 $ 81.4 $ 87.2 $ 86.8 $ 356.0 $ 90.9 constant currency) Prior year revenues $ 95.6 $ 95.6 $ 100.6 $ 97.0 $ 388.8 $ 98.4 (GAAP) Revenues (GAAP) - YoY 3 % (17 ) % (11 ) % (8 ) % (8 ) % (2 ) % % change Revenues (non-GAAP, 5 % (15 ) % (13 ) % (11 ) % (8 ) % (8 ) % constant currency) - YoY % change

(i) Operating income/ $ 13.9 $ 1.3 $ 9.4 $ (0.2 ) $ 24.4 $ 12.6 (loss) (GAAP) Depreciation and 9.4 9.3 9.3 8.1 36.1 6.9 amortization EBITDA (non-GAAP) (l) $ 23.3 $ 10.6 $ 18.7 $ 7.9 $ 60.5 $ 19.5

Operating income 14.1 % 1.6 % 10.5 % (0.2 ) % 6.9 % 13.1 % margin (GAAP) EBITDA margin 23.7 % 13.2 % 21.1 % 8.8 % 17.0 % 20.2 % (non-GAAP) THE WESTERN UNION COMPANY

NOTES TO KEY STATISTICS

(in millions, unless indicated otherwise)

(Unaudited)

2021 Consolidated Outlook MetricsRangeEarnings per share (GAAP) ($- dollars)$2.06

$2.16

Impact from the net gain on an investment sale and debt extinguishment costs ($- dollars)(o), (p)(0.06

)

(0.06

)

Earnings per share, adjusted, excluding the net gain on an investment sale and debt extinguishment costs (non-GAAP) ($- dollars)$2.00

$2.10

THE WESTERN UNION COMPANY

NOTES TO KEY STATISTICS

(in millions, unless indicated otherwise)

(Unaudited)



2021 Consolidated Outlook Metrics RangeEarnings per share (GAAP) ($- dollars) $ 2.06 $ 2.16

Impact from the net gain on an investment sale (o), (0.06 ) (0.06 )and debt extinguishment costs ($- dollars) (p)Earnings per share, adjusted, excluding the net 2.00 2.10 gain on an investment sale and debt $ $extinguishment costs (non-GAAP) ($- dollars) THE WESTERN UNION COMPANYNOTES TO KEY STATISTICS(in millions, unless indicated otherwise)(Unaudited)Non-GAAP related notes:(j)

Represents the impact from the fluctuation in exchange rates between all foreign currency denominated amounts and the United States dollar. Constant currency results exclude any benefit or loss caused by foreign exchange fluctuations between foreign currencies and the United States dollar, net of foreign currency hedges, which would not have occurred if there had been a constant exchange rate. The Company believes that this measure provides management and investors with information about revenue results and trends that eliminates currency volatility while increasing the comparability of the Company's underlying results and trends.

(k)

On May 9, 2019, the Company completed the sale of its United States electronic bill payments business known as "Speedpay" to ACI Worldwide Corp. and ACW Worldwide, Inc. ("ACI") for approximately $750 million in cash. In addition, on May 6, 2019, the Company completed the sale of Paymap Inc. ("Paymap"), which provides electronic mortgage bill payment services, for contingent consideration and immaterial cash proceeds received at closing. Both Speedpay and Paymap were included as a component of "Other" in the Company's segment reporting. 2019 revenues have been adjusted to exclude the carved out financial information for Speedpay and Paymap to compare the year-over-year revenue change. These financial measures are non-GAAP measures and should not be considered a substitute for the GAAP measures. The Company has included this information because management believes that presenting these measures as adjusted to exclude divestitures will provide investors with a more meaningful comparison of results within the periods presented.

(l)

Earnings before Interest, Taxes, Depreciation, and Amortization ("EBITDA") results from taking operating income and adjusting for depreciation and amortization expenses. EBITDA results provide an additional performance measurement calculation which helps neutralize the operating income effect of assets acquired in prior periods.

(m)

Represents impact from expenses incurred in connection with an overall restructuring plan, approved by the Board of Directors on August 1, 2019, to improve the Company's business processes and cost structure by reducing headcount and consolidating various facilities. While certain of these expenses are identifiable to the Company's business segments, primarily to the Company's Consumer-to-Consumer segment, they have been excluded from the measurement of segment operating income provided to the Chief Operating Decision Maker for purposes of assessing segment performance and decision making with respect to resource allocation. These expenses are therefore excluded from the Company's segment operating income results. While these expenses are specific to this initiative, the types of expenses related to this initiative are similar to expenses that the Company has previously incurred and can reasonably be expected to incur in the future. The Company believes that, by excluding the effects of these charges that can impact operating trends, management and investors are provided with a measure that increases the comparability of the Company's underlying operating results. As of December 31, 2020, all expenses associated with this plan have been incurred.

(n)

Represents the impact from expenses incurred in connection with the Company's acquisition and divestiture activity. The Company's acquisition and divestiture costs incurred in the first quarter of 2021 were not material. The Company believes that, by excluding the effects of these charges that can impact operating trends, management and investors are provided with a measure that increases the comparability of the Company's underlying operating results.

(o)

On April 12, 2021, the Company sold a substantial majority of the shares it held as a minority investor in a private company for cash proceeds of $50.9 million. As a result, the Company recorded a pre-tax gain of approximately $48 million to Other income/(expense), net, in the second quarter of 2021. The Company's 2021 earnings per share outlook has been adjusted to exclude the estimated after-tax gain on this transaction. Management believes that presenting the Company's 2021 earnings per share outlook as adjusted to exclude this gain will provide investors with a more meaningful comparison of results with the historical periods presented.

(p)

On April 1, 2021, the Company repaid $500 million of aggregate principal amount of 3.6% unsecured notes due in 2022 and incurred approximately $14.8 million of costs, excluding accrued interest, in connection with the repayment. The cost associated with the repayment was recorded to Other income/(expense), net, in the second quarter of 2021. The Company's 2021 earnings per share outlook has been adjusted to exclude the estimated after-tax costs of this repayment. Management believes that presenting the Company's 2021 earnings per share outlook as adjusted to exclude these costs will provide investors with a more meaningful comparison of results with the historical periods presented.

Other notes:

(aa)

Geographic split for transactions and revenue, including transactions initiated digitally, as earlier defined, is determined entirely based upon the region where the money transfer is initiated.

(bb)

Represents the North America (United States and Canada) ("NA") region of the Company's Consumer-to-Consumer segment.

(cc)

Represents the Europe and the Russia/Commonwealth of Independent States ("EU & CIS") region of the Company's Consumer-to-Consumer segment.

(dd)

Represents the Middle East, Africa, and South Asia ("MEASA") region of the Company's Consumer-to-Consumer segment, including India and certain South Asian countries, which consist of Bangladesh, Bhutan, Maldives, Nepal, and Sri Lanka.

(ee)

Represents the Latin America and the Caribbean ("LACA") region of the Company's Consumer-to-Consumer segment, including Mexico.

(ff)

Represents the East Asia and Oceania ("APAC") region of the Company's Consumer-to-Consumer segment.

(gg)

Represents transactions conducted and funded through websites and mobile applications marketed under the Company's brands ("westernunion.com").

View source version on businesswire.com: https://www.businesswire.com/news/home/20210504005431/en/

CONTACT: Media Relations: Pia De Lima +1(954) 260-5732 Pia.DeLima@westernunion.com Investor Relations: Brendan Metrano +1(720) 332-8089 Brendan.Metrano@westernunion.com