Business

Saturday 22 July 2017

Profits at Western Union jump to €28.9m

Money transfer revenues increased by 2pc year on year. File photo: PA
Money transfer revenues increased by 2pc year on year. File photo: PA

Gordon Deegan

Pre-tax profits at the Dublin-based unit of Western Union last year increased by 18pc to $33m (€28.9m).

The jump in profits followed revenues increasing from $747m to $761.3m in the 12 months to the end of December last.

Numbers employed at the Clonskeagh offices last year decreased from 440 to 426, with staff costs totalling $52m.

The staff costs included a restructuring charge of $1.4m. The company last year paid out €20m in dividends and this followed a dividend payout in 2015 of $10m.

According to the directors' report, money transfer revenues increased by 2pc year on year, primarily as a result of a 5pc increase in transaction volumes.

The report adds: "Locations grew by 1pc net of 6,000 agent de-registrations in the year. The revenue per transaction has declined from $19.76 to $19.29.

The company recorded 38,724,000 transactions in 2016 compared to 37,013,000 in 2015 - an increase of 1,7111 or 5pc.

The directors report that administrative costs decreased from $75.29m to $70.63m, primarily driven by ongoing cost-reduction activities and the strengthening US dollar.

The directors also state that they continued implementing additional initiatives to improve productivity and reduce costs.

On the firm's future developments, the directors state that "the company is aiming to grow its business by focusing on increasing the number of productive new locations, de-registering non-productive locations whilst also investigating new initiatives to enhance its existing services and to provide its customers with access to an expanding portfolio of payment services".

At the end of December last, the firm's shareholder funds stood at $76.3m, that included $54.6m in accumulated profits.

The firm's cash decreased sharply from $102m to $22m.

A breakdown of the numbers employed show that the largest number are employed in compliance at 138 with 130 in sales followed by 45 in finance; 33 in marketing; 29 in legal; 17 in human resources; 21 in operations and 13 in other.

The profit last year takes account of non-cash depreciation costs of $1.49m. Remuneration to directors last year declined from $1.62m to $1.4m.

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