Analyst Note| Brett Horn, CFA |
Western Union finished the year roughly in line with our expectations. The company continued to experience some drag from the pandemic, but the effect appears to be waning. We will maintain our $24 fair value estimate and wide moat rating.
Overall revenue declined 3% year over year, or 1% on a constant-currency basis. The core money transfer segment largely repeated its third-quarter results, with revenue flat on a constant-currency basis, and transactions increasing 6% year over year. The mix shift toward digital transactions with lower price points appears to have limited the revenue impact. But results in the company’s smaller segments were a bit better.