Western Union 2015 Annual Report Download - page 169

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Foreign exchange revenues increased 6% for the year ended December 31, 2015 compared to the prior year, primarily due to
increases in foreign exchange spreads, which were largely offset by corresponding reductions in transaction fees in certain corridors.
We have historically implemented and will likely continue to implement price reductions from time to time in response to
competition and other factors. Price reductions generally reduce margins and adversely affect financial results in the short term
and may also adversely affect financial results in the long term if transaction volumes do not increase sufficiently. Consumer-to-
Consumer net pricing changes had a minimal impact on our revenue for the year ended December 31, 2015.
2014 compared to 2013
For the year ended December 31, 2014 compared to the prior year, Consumer-to-Consumer money transfer revenue increased
1%, driven by strong results in westernunion.com. Revenue increased primarily due to transaction growth of 5%, partially offset
by price reductions and geographic and product mix. For 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, negatively impacted revenue
by 2%.
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 $80.7 million over the previous year. Foreign
currency hedges benefited revenues by $1.6 million for the year ended December 31, 2014.
Our Europe and CIS region experienced flat revenue on transaction growth of 9% for the year ended December 31, 2014
compared to the prior year. Revenue was negatively impacted by geographic and product mix and price reductions. Russia
experienced strong transaction growth for most of the year but such growth moderated significantly toward the end of 2014; Russia
typically generates lower revenue per transaction than the average in this region.
Our North America region experienced revenue growth of 1%, on transaction growth of 3% for the year ended December 31,
2014 compared to the prior year. The increase in revenue primarily resulted from transaction growth in our United States outbound
and Mexico corridors and was offset by declines in our domestic money transfer services. Our domestic money transfer services
in the United States were negatively impacted by declines in higher principal band transactions, which generate higher revenue
per transaction, primarily due to competitive prices in the retail money transfer market.
Our Middle East and Africa region experienced revenue growth of 2%, on transaction growth of 3% for the year ended
December 31, 2014 compared to the prior year. This increase was primarily driven by growth in the United Arab Emirates and
Saudi Arabia, partially offset by declines in several African countries, including Libya.
Our APAC region experienced flat revenue on transaction growth of 1% for the year ended December 31, 2014 compared to
the prior year. The differential between the revenue and transaction change was primarily due to fluctuations in the exchange rate
between the United States dollar and other foreign currencies in the region, net of the impact of foreign currency hedges, partially
offset by geographic and product mix.
Our LACA region experienced decreased revenue of 6%, and transaction growth of 3% for the year ended December 31, 2014
compared to the prior year. Revenue was negatively impacted by fluctuations in the exchange rate between the United States dollar
and the Argentine peso and other foreign currencies in the region and by government imposed restrictions on the market in Venezuela.
Westernunion.com experienced revenue growth of 28% for the year ended December 31, 2014 compared to the prior year,
on transaction growth of 39%.
Foreign exchange revenues increased 2% for the year ended December 31, 2014 compared to the previous year, primarily
due to a 5% increase in cross-border principal.
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