Western Union 2014 Annual Report Download - page 198

2014 FORM 10-K
60
Revenues overview
Transaction volume is the primary generator of revenue in our businesses. Transaction fees are fees that consumers pay when
they send money or make payments. Consumer-to-Consumer transaction fees generally vary according to the principal amount of
the money transfer and the locations from and to which the funds are sent and received. Additionally, in certain consumer money
transfer and Business Solutions transactions involving different send and receive currencies, we generate foreign exchange revenues
based on the difference between the exchange rate set by us to the consumer or business and the rate at which we or our agents
are able to acquire the currency. In our Consumer-to-Consumer business, foreign exchange revenue is primarily driven by
international Consumer-to-Consumer cross-currency transactions. The significant majority of transaction fees and foreign exchange
revenues were contributed by our Consumer-to-Consumer segment for all periods presented, which is discussed in greater detail
in "Segment Discussion."
2014 compared to 2013
During the year ended December 31, 2014 compared to 2013, consolidated revenues increased 1% primarily due to 5%
transaction growth in our Consumer-to-Consumer segment. Fluctuations in the exchange rate between the United States dollar
and other currencies, net of the impact of foreign currency hedges, negatively impacted consolidated revenue growth by
approximately 3% in the year ended December 31, 2014.
Foreign exchange revenues increased for the year ended December 31, 2014 compared to 2013 primarily due to increased
amounts of cross-border principal sent in our Consumer-to-Consumer segment, increases in our retail walk-in foreign exchange
services due to our acquisition of the Brazilian foreign exchange operations of Fitta DTVM S.A and Fitta Turismo Ltd ("Fitta")
in the first quarter of 2014, and growth in our Business Solutions segment.
Fluctuations in the exchange rate between the United States dollar and other currencies, net of the impact of foreign currency
hedges, have resulted in a reduction to revenues for the year ended December 31, 2014 of $157.5 million over the previous year.
2013 compared to 2012
Consolidated revenue decreased 2% during the year ended December 31, 2013 compared to 2012. This decrease was caused
by our Consumer-to-Consumer segment, primarily due to price reductions in key corridors and the impact of compliance related
actions in various corridors, partially offset by Consumer-to-Consumer transaction growth. The strengthening of the United States
dollar compared to most other foreign currencies negatively impacted revenue growth by approximately 1% in the year ended
December 31, 2013.
Foreign exchange revenues increased for the year ended December 31, 2013 compared to 2012 primarily due to growth in
our Business Solutions segment and increased amounts of cross-border principal sent in our Consumer-to-Consumer segment,
partially offset by price reductions in certain corridors in our Consumer-to-Consumer segment.
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 $70.3 million over the previous year, net of foreign
currency hedges, that would not have occurred had there been constant currency rates.