Western Union 2015 Annual Report Download - page 168

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We provide domestic money transfer services (transactions between and within the United States and Canada), which are
included in North America and westernunion.com in the tables above. These services represented approximately 8% of our
consolidated revenue for each of the years ended December 31, 2015, 2014, and 2013.
Our consumers transferred $81.6 billion, $85.4 billion, and $82.0 billion in Consumer-to-Consumer principal for the years
ended December 31, 2015, 2014 and 2013, respectively, of which $73.6 billion, $77.2 billion, and $73.9 billion related to cross-
border principal, for the same corresponding periods described above.
Revenues
2015 compared to 2014
Consumer-to-Consumer money transfer revenue decreased 3% for the year ended December 31, 2015 compared to the prior
year. The strengthening of the United States dollar compared to foreign currencies, net of the impact of foreign currency hedges,
negatively impacted revenue by 6% for the year ended December 31, 2015. This decline was partially offset by transaction growth
of 3%.
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 $256.0 million over the previous year. Foreign
currency hedges benefited revenues by $77.8 million for the year ended December 31, 2015.
Our Europe and CIS region experienced decreased revenue of 9% for the year ended December 31, 2015 compared to the
prior year and transaction growth of 1%. Fluctuations in the exchange rate between the United States dollar and the euro and other
currencies, net of the impact of foreign currency hedges, negatively impacted revenue by 10% for the year ended December 31,
2015. Transaction declines in Russia also contributed to the decrease in revenue.
Our North America region experienced decreased revenue of 1% for the year ended December 31, 2015 compared to the prior
year and transaction growth of 4%. The decrease in revenue was primarily due to declines in our retail domestic money transfer
services in the United States, which moderated in the second half of 2015, and fluctuations in the exchange rate between the United
States dollar and other currencies, net of the impact of foreign currency hedges, which negatively impacted revenue by 1% for the
year ended December 31, 2015. Our retail domestic money transfer revenues were negatively impacted by pricing actions taken
by competitors in the retail money transfer market and subsequent pricing reductions we implemented beginning in the second
quarter of 2015. These declines were partially offset by transaction growth in our United States outbound services, including our
United States to Mexico and Latin America corridors.
Our Middle East and Africa region experienced decreased revenue of 4% for the year ended December 31, 2015 compared
to the prior year, on decreased transactions of 1%. Fluctuations in the exchange rate between the United States dollar and other
currencies negatively impacted revenue by 5% for the year ended December 31, 2015. Transaction declines in several African
countries also contributed to the decrease in revenue, partially offset by strength in Saudi Arabia and the United Arab Emirates.
Our APAC region experienced decreased revenue of 6% for the year ended December 31, 2015 compared to the prior year,
on decreased transactions of 4%. Fluctuations in the exchange rate between the United States dollar and other currencies, net of
the impact of foreign currency hedges, negatively impacted revenue by 5% for the year ended December 31, 2015. Transaction
declines in the Philippines and other Asian inbound markets also contributed to the decrease in revenue, partially offset by growth
in Japan.
Our LACA region experienced revenue growth of 2% for the year ended December 31, 2015 compared to prior year, on
transaction growth of 7%. The region experienced growth from transactions originated in the United States, as discussed above.
The region was also positively impacted by geographic and product mix for the year ended December 31, 2015. Fluctuations in
the exchange rate between the United States dollar and other currencies negatively impacted revenue by 7% for the year ended
December 31, 2015.
Westernunion.com experienced revenue growth of 21% for the year ended December 31, 2015 compared to the prior year on
transaction growth of 26%. Fluctuations in the exchange rate between the United States dollar and other currencies negatively
impacted revenue by 5% for the year ended December 31, 2015.
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