Western Union Company (WU) has reported a 12.92 percent fall in profit for the quarter ended Mar. 31, 2017. The company has earned $161.70 million, or $0.33 a share in the quarter, compared with $185.70 million, or $0.37 a share for the same period last year.

Revenue during the quarter went up marginally by 0.36 percent to $1,302.40 million from $1,297.70 million in the previous year period. Gross margin for the quarter contracted 140 basis points over the previous year period to 38.54 percent. Total expenses were 81.61 percent of quarterly revenues, up from 80.07 percent for the same period last year. That has resulted in a contraction of 154 basis points in operating margin to 18.39 percent.

Operating income for the quarter was $239.50 million, compared with $258.60 million in the previous year period.

However, the adjusted EBITDA for the quarter stood at $320.20 million compared with $324.20 million in the prior year period. At the same time, adjusted EBITDA margin contracted 40 basis points in the quarter to 24.59 percent from 24.98 percent in the last year period.

"We are pleased with the start to the year, as our money transfer business delivered solid performance, led by digital," said president and chief executive officer Hikmet Ersek. "Westernunion.com money transfer transactions increased 27 percent, and our consumer bill payments business produced very good growth." "We also further expanded our digital network. We now have online transaction sites in 40 countries, including across the European Union, and mobile apps in 18 markets, allowing consumers to send to over 200 countries and territories around the world," Ersek added.

For financial year 2017, the company forecasts operating income to grow at 18 percent. The company forecasts adjusted operating income to grow at 20 percent. The company expects diluted earnings per share to be in the range of $1.48 to $1.60. The company expects diluted earnings per share to be in the range of $1.63 to $1.75 on adjusted basis.

The company has spent $50.60 million cash to meet investing activities during the quarter as against cash outgo of $63.30 million in the last year period.

Cash flow from financing activities was $410.10 million for the quarter as against cash outgo of $305.30 million in the last year period.

Cash and cash equivalents stood at $1,323.30 million as on Mar. 31, 2017, up 14.08 percent or $163.30 million from $1,160 million on Mar. 31, 2016.

Debt moves up
Western Union Co has witnessed an increase in total debt over the last one year. It stood at $3,490.90 million as on Mar. 31, 2017, up 8.22 percent or $265.20 million from $3,225.70 million on Mar. 31, 2016. Total debt was 36.80 percent of total assets as on Mar. 31, 2017, compared with 34.25 percent on Mar. 31, 2016. Debt to equity ratio was at 4.65 as on Mar. 31, 2017, up from 2.60 as on Mar. 31, 2016. Interest coverage ratio improved to 7.65 for the quarter from 6.39 for the same period last year.