Western Union 2013 Annual Report Download - page 177

2013 FORM 10-K
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Revenue generated from transactions initiated at westernunion.com increased for the year ended December 31, 2013 compared
to the prior year due to strong transaction growth, partially offset by price reductions.
Foreign exchange revenues for the year ended December 31, 2013 compared to the prior year were impacted primarily by
price reductions in certain corridors, partially offset by an increase in cross-border principal sent of 4%.
Fluctuations in the exchange rate between the United States dollar and other currencies have resulted in a reduction to transaction
fees and foreign exchange revenues for the year ended December 31, 2013 of $29.6 million over the same period in the previous
year, net of foreign currency hedges, that would not have occurred had there been constant currency rates.
2012 compared to 2011
For the year ended December 31, 2012 compared to the prior year, Consumer-to-Consumer money transfer revenue declined
1%, due to the strengthening of the United States dollar compared to most other foreign currencies, which negatively impacted
revenue, and slight price reductions, partially offset by transaction growth of 2%. The strengthening of the United States dollar
compared to most other foreign currencies negatively impacted our revenue growth by approximately 2% for the year ended
December 31, 2012.
Revenue in our Europe and CIS region decreased 6% compared to the prior year on a transaction decline of 1%. The
strengthening of the United States dollar compared to most other foreign currencies and price reductions negatively impacted
revenues for the year ended December 31, 2012. The region was also impacted by continued economic softness in Southern Europe
and increased competition in Russia.
The North America region experienced a revenue decline of 3% on a transaction decline of 1% for the year ended December
31, 2012 compared to the prior year. Our Mexico business declined primarily due to changes to our compliance related practices
as a result of our agreement and settlement with the State of Arizona and changes to our business model and price reductions.
These compliance changes, primarily related to our Vigo and Orlandi Valuta brands, have resulted in the loss of over 7,000 agent
locations in Mexico. Our domestic business (transactions between and within the United States and Canada) experienced an increase
in revenues on transaction growth, primarily in lower principal bands which generate lower revenues per transaction. Our United
States outbound business experienced revenue and transaction declines, in part due to changes in our compliance related practices
as a result of our agreement and settlement with the State of Arizona and changes to our business model, primarily for our Vigo
brand to Latin America, and price reductions.
Revenue in our Middle East and Africa, APAC, and LACA regions increased in the year ended December 31, 2012 compared
to the prior year in all three regions due to transaction growth, partially offset by slight price reductions. Revenue in our Middle
East and Africa and LACA regions was also negatively impacted by the strengthening of the United States dollar compared to
most other foreign currencies. Revenue in our LACA region was positively impacted by geographic and product mix in the year
ended December 31, 2012 compared to the prior year, partially offset by a loss in revenue due to changes to our compliance related
practices as a result of our agreement and settlement with the State of Arizona and changes to our business model, primarily related
to our Vigo brand. The Gulf States, primarily Saudi Arabia, and India displayed revenue growth, but China revenue declined.
Revenue generated from transactions initiated at westernunion.com increased for the year ended December 31, 2012 compared to
the prior year due to strong transaction growth.
Foreign exchange revenues were materially consistent for the year ended December 31, 2012 compared to the prior year.
Fluctuations in the exchange rate between the United States dollar and other currencies resulted in a reduction to transaction
fees and foreign exchange revenues for the year ended December 31, 2012 of $77.6 million over the prior year, net of foreign
currency hedges, that would not have occurred had there been constant currency rates.