Money transfer firm Western Union has registered a decrease in revenue in Q1 2020 and said that negative trends will be the most significant in Q2.
The firm’s revenues in the three-month period ended 31 March 2020 were $1.2bn on a reported basis, down 11% from a year ago.
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Consumer-to-Consumer (C2C) unit revenues on a reported basis as transactions dipped 3%. C2C revenues accounted for 85% of the firm’s total revenue in Q1.
On a constant currency basis, C2C revenues dropped 3%. The decrease was said to be the COVID-19 crisis which affected transactions originated in Europe, the US, and Asia Pacific.
On the bright side, Q1 digital money transfer revenues surged 21% on a reported basis, or 22% on a constant currency basis.
Western Union Business Solutions revenues rose 3% on a reported basis and 5% on a constant currency basis.
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By GlobalDataThe rise in constant currency revenue was due to strong performance in foreign exchange hedging, the company noted.
Other revenues, which mainly include US and Argentina bill payment operations, plunged 59%.
The slump was driven by the sale of the Speedpay and Paymap businesses and the Argentine peso depreciation.
Western Union president and CEO Hikmet Ersek said: “Over the long-term we are confident that our resilient fundamentals, strong financial position, and sound strategy will enable us to expand our unique global money transfer and payment ecosystem to existing and new customer segments.”
