The Western Union Co.’s net income fell 14 percent in the first three months of the year, as the payments company’s revenue declined on lower transaction fees.
The company said Tuesday that the revenue drop was primarily due to pricing investments and compliance-related charges for its consumer-to-consumer segment. But Western Union added that it expects transaction trends in the segment to improve sequentially through the remainder of the year, reflecting an expansion of the company’s agent network and the rollout of more online features.
“As we stated in February, we expect 2013 to be a transitional year as we implement key strategic actions, but we remain confident these actions will drive revenue and profit growth in 2014 and beyond,” president and CEO Hikmet Ersek said in a statement.
For the three months ended March 31, Western Union reported net income of $212 million, or 37 cents per share, compared with net income of $247.3 million, or 40 cents per share, a year earlier.
Revenue fell 5 percent to $1.33 billion. Transaction fees, which provide the bulk of revenue, were down 6 percent from a year ago.
Analysts’ consensus forecast called for earnings of 32 cents per share on $1.35 billion in revenue, according to FactSet.
Western Union reiterated its outlook for the year, which calls for earnings per share to range from $1.33 to $1.43. Wall Street is expecting $1.42 per share.
Western Union rose 17 cents to close at $14.81.