Western Union’s Q4 2011 Results

Last year was a good year for the company despite challenges due to European financial crisis, higher global unemployment as well as Arab Spring. Company’s revenue grew in each area. However business problems in China, Russia and Mexico and slowdown in Southern part of Europe affected revenue trends.

C2C business of the company in the Middle East, South Asia, Europe and Africa increased transactions by 3 percent and revenue by 2 percent. The rate of revenue growth was down marginally from the 3rd quarter mainly due to currency as well as additional problems in Italy, Southern part of Europe and Russia.

Over and above the economic condition in Southern Europe, new rules in Italy are also affecting the business. Other big markets in Europe, for example Germany, France and the U.K. stalled well, as well as the Gulf States provided excellent growth.

In India, income growth remained robust at 12 percent and deal growth enhanced to 15 percent. In Americas region, income grew 3 percent. Mexico income decreased by 1 percent. Mexico business is impacted by continuous compliance procedures linked to southwest border agreement. During 2012, the company will evolve practices as well as business model concerning Mexico.

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Leo Pierson

About Leo Pierson

Former partner in a real estate management firm, Leo, has been active in the market for the last 8 years. Ex-blogger on penny stocks, now focused on long term growth stocks, Leo provides valuable market snapshots each day as part of our editorial team.

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