Western Union 2007 Annual Report Download - page 5

Cross-border Remittance Principal (in billions)
Compounded Annual Growth Rate 13%
(Aite Group)
Total Western Union Revenue
OtherInternational Consumer-
to-Consumer Consumer-to-Business
Mexico Consumer-
to-Consumer
Domestic (U.S. ⁄ Canada)
Consumer-to-Consumer
2002 2007
4%
50%
20%
20%
6% 2%
7%
65%
15%
11%
03 04 05 06 07
$369
$228
Our exceptional experience with money transfer is
also opening up the possibility of offering fi nancial
services that go beyond sending and receiving
money. We have partnered with PrimeCredit Limited,
a subsidiary of Standard Chartered Bank PLC, and
have plans to pilot a micro-lending product in 2008.
This involves advancing small value, unsecured loans
to customers, for which Western Union would
neither assume credit risk nor underwrite.
This multichannel approach to money transfer,
along with the development of new technology,
is responsible for our global reach and our presence
in markets where few can gain a foothold. We are
excited about the possibilities that lie ahead and will
continue to do what is necessary to be the driving
force for innovation in our industry.
Delivering strong fi nancial performance
In the face of all this opportunity I want to emphasize
that Western Union is committed to growing profi t-
ably. Our fi nancial performance in 2007 proves
that we have the right strategy and the right priorities
to continue to gain share within this huge and
growing market.
In 2007, Western Union’s revenue grew 10% to
$4.9 billion. Our operating income was $1.3 billion
with a strong operating income margin of 27%. Our
operating cash fl ow was a solid $1.1 billion. We have
a strong balance sheet. Our fi nancial strength allows
us to invest for growth and provide strong returns to
our shareholders.
Redefi ning corporate citizenship
In 2007 we created the Western Union Our World,
Our Family program, which is our most potent
global citizenship initiative. It is driven by a single
purpose — to empower individuals, families and
communities through access to better education
and economic opportunity. We understand that
when communities prosper, everyone prospers, and
we want to take a leading role in turning the dream
of truly global prosperity into a reality. Mercy Corps,
a global humanitarian organization, is our fi rst
partner in the Our World, Our Family program and
we look forward to many more innovative partner-
ships in the future.
Looking toward a bright future
Last year I wrote that my vision for Western Union
was for it to become a leading global fi nancial
services provider. We remain dedicated to this vision
today. Our achievements in 2007 were positive
steps in this direction. As we look to the future, we
have four key strategic priorities. The fi rst priority
is to accelerate growth in the global cash money
transfer business. Our second priority is to expand
and globalize our consumer-to-business segment
through joint ventures, acquisitions and by introduc-
ing Pago Fácil to other Latin American countries.
Third is to expand beyond traditional distribution
channels. We have a good start already with our
existing westernunion.com business and our mobile
money transfer service we plan to pilot shortly.
And our fi nal priority is to develop new products
and services for our target customers, such as the
micro-lending product. Underlying all these priori-
ties is a continuing commitment to profi tability.
With the help of our agents, employees,
management team and board of directors we will
continue down this path toward growing our core
business, introducing new services and emerging
as a global leader in the industry. A special thanks
to each and every one of you for your commitment
to Western Union. We are on the move to make
2008 a great year.
Christina A. Gold
President and CEO
The Western Union Company
3