Western Union 2014 Annual Report Download - page 207

2014 FORM 10-K
69
2013 compared to 2012
Consumer-to-Business revenue increased 1% for the year ended December 31, 2013 compared to the prior year, primarily
due to growth in our United States electronic and international walk-in bill payments, which was positively impacted by increased
pricing in Argentina. These increases were partially offset by the strengthening of the United States dollar against the Argentine
peso, which negatively impacted our Consumer-to-Business revenue growth by approximately 5% for the year ended December 31,
2013, revenue declines in our United States cash-based bill payments, and the passing through to certain billers of some of our
debit card fee savings related to the Durbin Legislation.
Operating income
2014 compared to 2013
Operating income decreased for the year ended December 31, 2014 compared to the previous year. The decrease was primarily
due to higher bank-related fees resulting from changes in funding in our growing United States electronic bill payments as a result
of increased credit card usage from our customers and larger principal transactions, in addition to the items which impacted revenues
described earlier. The change in operating margins in the segment was due to these same factors.
2013 compared to 2012
Operating income and operating margins decreased for the year ended December 31, 2013 compared to the prior year primarily
due to the items which impacted revenues described earlier. Operating income was also impacted by increased bank fees due to
our growing United States electronic services and higher information technology investments, partially offset by costs related to
the renegotiation of a sales and distribution agreement that occurred in the prior year.
Business Solutions
The following table sets forth our Business Solutions segment results of operations for the years ended December 31, 2014,
2013 and 2012.
% Change
Year Ended December 31, 2014 2013
(dollars in millions) 2014 2013 2012 vs. 2013 vs. 2012
Revenues:
Foreign exchange revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 363.1 $ 355.5 $ 332.0 2% 7%
Transaction fees and other revenues. . . . . . . . . . . . . . . . . . . . . 41.5 37.4 35.4 11% 6%
Total revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 404.6 $ 392.9 $ 367.4 3% 7%
Operating loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ (12.1) $ (27.0) $ (54.8) * *
Operating loss margin. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (3)% (7)% (15)%
____________
* Calculation not meaningful.
Revenues
2014 compared to 2013
Business Solutions revenue grew 3% for the year ended December 31, 2014 compared to the prior year due to increased
customer activity, including the increased use of hedging products. Fluctuations in the exchange rate between the United States
dollar and other currencies negatively impacted revenue growth by approximately 1%.