Western Union 2015 Annual Report Download - page 162

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Revenues overview
Transaction volume is the primary generator of revenue in our businesses. Transaction fees represent 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, bill payment 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."
We use foreign currency forwards to hedge certain foreign exchange impacts on our forecasted revenues. To the extent these
derivatives are effective in managing our foreign exchange risk, we reflect the hedge impact in revenues in the period the hedged
revenues are recorded.
2015 compared to 2014
During the year ended December 31, 2015 compared to 2014, consolidated revenues decreased 2% primarily due to the
strengthening of the United States dollar compared to foreign currencies, which negatively impacted revenue by 6%, net of the
impact of foreign currency hedges. This decrease was partially offset by transaction growth of 3% in our Consumer-to-Consumer
segment for the year ended December 31, 2015.
Fluctuations in the exchange rate between the United States dollar and other currencies, net of the impact of foreign currency
hedges, resulted in a reduction to revenues for the year ended December 31, 2015 of $322.6 million over the previous year. Foreign
currency hedges benefited revenues by $77.8 million for the year ended December 31, 2015.
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.
Fluctuations in the exchange rate between the United States dollar and other currencies, net of the impact of foreign currency
hedges, resulted in a reduction to revenues for the year ended December 31, 2014 of $157.5 million over the previous year. Foreign
currency hedges benefited revenues by $1.6 million for 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.
201 FORM 10-K
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