Second quarter GAAP earnings per share (EPS) of $0.50, adjusted EPS of $0.51; 23.2% GAAP operating margin, 23.3% adjusted operating margin

Company to provide update on global long-term strategy at investor day on October 20, 2022

2022 financial outlook revised

The Western Union Company (NYSE:WU), a global leader in cross-border, cross-currency money movement and payments, today reported second quarter 2022 financial results and updated its full year financial outlook.

The Company's second quarter revenue of $1.1 billion declined 12% on a reported basis, or 4% on a constant currency basis excluding the contribution from Business Solutions, compared to the prior year period. The suspension of operations in Russia and Belarus negatively impacted revenue by approximately three percentage points, while Argentina inflation benefited revenue by approximately one percentage point. Second quarter revenue was impacted by continued softness in retail money transfer.

GAAP EPS in the second quarter was $0.50, compared to $0.54 in the prior year period. The year-over-year decrease in GAAP EPS was primarily due to a gain on investment sale recognized in the prior year period.

Adjusted EPS in the second quarter was $0.51, compared to $0.48 in the prior year period. Year-over-year growth in adjusted EPS was driven by lower share count and higher operating margin, partially offset by a higher effective tax rate. For a full reconciliation between GAAP and Adjusted EPS, please see the "Adjustment Items" section of this press release.

"Having spent the last six months with my senior leadership team reviewing all aspects of our business, I believe the long-term prospects for the Company remain strong," said Devin McGranahan, President and Chief Executive Officer of Western Union. "We have identified new business opportunities and operational performance improvements, as well as started to create an organizational structure that can drive execution. We are beginning to see the effects of certain operational improvements in second quarter margin results, and I look forward to sharing additional details at our upcoming Investor Day in October."

McGranahan added, "Despite elevated macroeconomic stress and heightened geopolitical uncertainty, revenue growth, while below long-term aspirations, largely performed in-line with expectations during second quarter. We expect that the macroeconomic environment will continue to slow as the year progresses in-line with the current prevailing forecasts. Historically, remittances have been resilient in periods of economic contraction due to their largely nondiscretionary nature; however, portions of our core customer segment may be vulnerable."

CFO Raj Agrawal stated, "I was pleased with our expense management in the quarter, creating capacity, as we begin to shift focus to investing ahead of our updated long-term strategy. We expect to increase investment levels in the second half of the year, which is reflected in our revised adjusted operating margin outlook of between 20% to 21% for 2022, higher than our previous outlook."

Q2 Business Highlights

Consumer-to-Consumer (C2C) revenues declined 9% on a reported basis, or 6% constant currency, while transactions declined 13% compared to the prior year period. As expected, the suspension of operations in Russia and Belarus negatively impacted C2C revenue and transactions, decreasing C2C reported and constant currency revenue by three percentage points and decreasing C2C transactions by eight percentage points in the quarter. Regionally, transaction declines in Europe and CIS, North America, APAC, and MEASA were partially offset by transaction growth in LACA.

Digital money transfer revenues declined 6% on a reported basis, or 3% constant currency, and represented 25% and 33% of total C2C revenues and transactions, respectively. As expected, the suspension of operations in Russia and Belarus negatively impacted digital money transfer revenue and transactions, decreasing reported and constant currency revenue by six percentage points and decreasing transactions by 19 percentage points.

Westernunion.com revenue declined 1% on a reported basis, or grew 1% on a constant currency basis, including cross-border revenue growth of 1%. As expected, the suspension of operations in Russia and Belarus negatively impacted Westernunion.com revenue and transactions, decreasing reported revenue, constant currency revenue, and transactions by two percentage points.

Q2 Financial Highlights

GAAP operating margin in the quarter was 23.2%, compared to 19.8% in the prior year period. The adjusted operating margin was 23.3% compared to 20.2% in the prior year period, with the prior year negatively impacted by 60 basis points from the inclusion of Business Solutions. The increase in adjusted operating margin was primarily due to changes in foreign currency, lower compensation-related expenses, and product mix. For a detailed reconciliation between GAAP and Adjusted operating margin, please see the "Adjustment Items" section of this press release.

The GAAP effective tax rate in the quarter was 17.9%, compared to 14.5% in the prior year period, and the increase was primarily due to the sale of Business Solutions and the Company's decision to suspend its operations in Russia and Belarus. The adjusted effective tax rate was 16.9% in the quarter, compared to 14.2% in the prior year period, primarily due to an increase in the proportion of higher taxed earnings and the effects of changes in U.S. tax rules.

Cash flow from operating activities was $307 million year-to-date, which includes a transition tax payment of $64 million paid in the second quarter. These transition tax payments resulted from United States tax reform legislation enacted in 2017 and stop after 2025. The Company returned $112 million to shareholders in the second quarter, consisting of $91 million in dividends and $21 million of share repurchases.

2022 Outlook

Today, the Company revised its full year 2022 financial outlook, lowering its revenue outlook and raising its operating profit margin outlook for the year based on the timing of expenses, better than expected cost management year-to-date, as well as a softer environment for topline trends. The revised revenue outlook includes a partial year impact related to a key retail agent exiting the category in the Europe and CIS region in the fourth quarter of 2022. A second key retail agent in Europe and CIS will exit the category beginning in the second quarter of 2023. The GAAP revenue outlook was also adjusted to reflect changes in exchange rates. The revised outlook assumes that macroeconomic conditions will continue to soften as the year progresses.

GAAP figures reflect an expected partial year of Business Solutions ownership, including contractual payments to the buyers, representing profits between the first and second closings, associated divestiture and acquisition costs, exit costs, and an estimated pre-tax gain of approximately $270 million for the full year, of which $151 million was recognized year-to-date. The second closing is expected to be completed in the fourth quarter of 2022, subject to regulatory approvals, at which time the remainder of the gain will be recognized subject to regulatory capital adjustments.

Adjusted revenue growth and operating margin exclude contributions from Business Solutions. In addition, adjusted operating margin excludes associated divestiture and acquisition costs, Business Solutions exit costs, and costs related to the exit from Russia and Belarus. The adjusted effective tax rate and EPS exclude the expected gain on sale, divestiture and acquisition costs, Business Solutions exit costs, and exit costs from Russia and Belarus.

Revenue	GAAP: approximately -11% to -13% (previously approximately -9% to -11%) Adjusted (constant currency, excluding the impact of Argentina inflation and proforma for the planned sale of Business Solutions): mid-single digit decline (previously low-single digit decline)
Operating Profit Margin	GAAP and Adjusted: a range of 20% to 21% (previously approximately 20%)
Effective Tax Rate	GAAP: approximately 20% (previously approximately 21%) Adjusted: mid-teens range
EPS	GAAP: $2.18 - $2.28 (previously $2.13 - $2.23) Adjusted: $1.75 - $1.85

Adjustment Items

Adjusted constant currency revenue growth metrics for 2022 exclude contributions from Business Solutions as the Company entered into an agreement to sell the business in 2021 and the first of two closings occurred on March 1, 2022. Adjusted operating profit metrics for 2022 exclude contributions from Business Solutions, acquisition and divestitures costs, Russia and Belarus exit costs, and Business Solutions exit costs. Adjusted tax rate and earnings per share metrics for 2022 periods exclude the following items and the related taxes, as applicable: acquisition and divestiture costs, Russia and Belarus exit costs, Business Solutions exit costs, and gain on the sale of Business Solutions.

Adjusted constant currency revenue growth metrics for 2021 exclude contributions from Business Solutions. Adjusted operating profit metrics for 2021 periods exclude acquisition and divestiture costs. Adjusted tax rate and earnings per share metrics for 2021 periods exclude the following items and the related taxes, as applicable: acquisition and divestiture costs (all quarters), the impact from the gain on an investment sale (second quarter), debt retirement expenses (second quarter), Business Solutions change in permanent reinvestment tax assertion (third quarter), and non-cash expenses associated with the termination of the Company's pension plan (fourth quarter).

Additional Statistics

Additional key statistics for the quarter and historical trends can be found in the supplemental tables included with this press release.

All amounts included in the supplemental tables to this press release are rounded to the nearest tenth of a million, except as otherwise noted. As a result, the percentage changes and margins disclosed herein may not recalculate precisely using the rounded amounts provided.

Non-GAAP Measures

Western Union presents a number of non-GAAP financial measures because management believes that these metrics provide meaningful supplemental information in addition to the GAAP metrics and provide comparability and consistency to prior periods. Constant currency results assume foreign revenues are translated from foreign currencies to the U.S. dollar, net of the effect of foreign currency hedges, at rates consistent with those in the prior year.

Reconciliations of non-GAAP to comparable GAAP measures are available in the accompanying schedules and in the "Investor Relations" section of the Company's website at https://ir.westernunion.com.

Environmental, Social, and Governance (ESG)

Western Union is committed to making a positive impact. For more details on how Western Union is addressing some of the most pressing issues facing society, our shared environment, and our Company, please view our latest ESG report: https://corporate.westernunion.com/esg.

Investor and Analyst Conference Call and Slide Presentation

The Company will host a conference call and webcast, including slides, at 4:30 p.m. ET today.

To listen to the conference call via telephone in the U.S., dial +1 (669) 900-6833 or +1 (253) 215-8782 fifteen minutes prior to the start of the call, followed by the meeting ID, which is 9700 5047 253 and the passcode, which is 008582. To listen to the conference call via telephone outside the U.S., dial the country number from the international directory fifteen minutes prior to the start of the call, followed by the meeting ID, which is 9700 5047 253 and the passcode, which is 008582. Alternatively, you can join by clicking the link here.

The webcast and presentation will be available at https://ir.westernunion.com. Registration for the event is required, so please register at least fifteen minutes prior to the scheduled start time.

A webcast replay will be available at https://ir.westernunion.com.

Please note: All statements made by Western Union officers on this call are the property of Western Union and subject to copyright protection. Other than the replay, Western Union has not authorized, and disclaims responsibility for, any recording, replay or distribution of any transcription of this call.

Safe Harbor Compliance Statement for Forward-Looking Statements

This press release contains certain statements that are forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are not guarantees of future performance and involve certain risks, uncertainties, and assumptions that are difficult to predict. Actual outcomes and results may differ materially from those expressed in, or implied by, our forward-looking statements. Words such as "expects," "intends," "targets," "anticipates," "believes," "estimates," "guides," "provides guidance," "provides outlook," and other similar expressions or future or conditional verbs such as "may," "will," "should," "would," "could," and "might" are intended to identify such forward-looking statements. Readers of this press release of The Western Union Company (the "Company," "Western Union," "we," "our," or "us") should not rely solely on the forward-looking statements and should consider all uncertainties and risks discussed in the Risk Factors section and throughout the Annual Report on Form 10-K for the year ended December 31, 2021. The statements are only as of the date they are made, and the Company undertakes no obligation to update any forward-looking statement.

Possible events or factors that could cause results or performance to differ materially from those expressed in our forward-looking statements include the following: (i) events related to our Business and industry, such as: changes in general economic conditions and economic conditions in the regions and industries in which we operate, including global economic downturns and trade disruptions, or significantly slower growth or declines in the money transfer, payment service, and other markets in which we operate, including downturns or declines related to interruptions in migration patterns or other events, such as public health emergencies, epidemics, or pandemics, such as COVID-19, civil unrest, war, terrorism, natural disasters, or non-performance by our banks, lenders, insurers, or other financial services providers; failure to compete effectively in the money transfer and payment service industry, including among other things, with respect to price, with global and niche or corridor money transfer providers, banks and other money transfer and payment service providers, including digital, mobile and internet-based services, card associations, and card-based payment providers, and with digital currencies and related exchanges and protocols, and other innovations in technology and business models; geopolitical tensions, political conditions and related actions, including trade restrictions and government sanctions, which may adversely affect our business and economic conditions as a whole, including interruptions of United States or other government relations with countries in which we have or are implementing significant business relationships with agents, clients, or other partners; deterioration in customer confidence in our business, or in money transfer and payment service providers generally; failure to maintain our agent network and business relationships under terms consistent with or more advantageous to us than those currently in place; our ability to adopt new technology and develop and gain market acceptance of new and enhanced services in response to changing industry and consumer needs or trends; mergers, acquisitions, and the integration of acquired businesses and technologies into our Company, divestitures, and the failure to realize anticipated financial benefits from these transactions, and events requiring us to write down our goodwill; decisions to change our business mix; changes in, and failure to manage effectively, exposure to foreign exchange rates, including the impact of the regulation of foreign exchange spreads on money transfers and payment transactions; changes in tax laws, or their interpretation, any subsequent regulation, and potential related state income tax impacts, and unfavorable resolution of tax contingencies; any material breach of security, including cybersecurity, or safeguards of or interruptions in any of our systems or those of our vendors or other third parties; cessation of or defects in various services provided to us by third-party vendors; our ability to realize the anticipated benefits from restructuring-related initiatives, which may include decisions to downsize or to transition operating activities from one location to another, and to minimize any disruptions in our workforce that may result from those initiatives; failure to manage credit and fraud risks presented by our agents, clients, and consumers; adverse rating actions by credit rating agencies; our ability to protect our trademarks, patents, copyrights, and other intellectual property rights, and to defend ourselves against potential intellectual property infringement claims; our ability to attract and retain qualified key employees and to manage our workforce successfully; material changes in the market value or liquidity of securities that we hold; restrictions imposed by our debt obligations; (ii) events related to our regulatory and litigation environment, such as: liabilities or loss of business resulting from a failure by us, our agents, or their subagents to comply with laws and regulations and regulatory or judicial interpretations thereof, including laws and regulations designed to protect consumers, or detect and prevent money laundering, terrorist financing, fraud, and other illicit activity; increased costs or loss of business due to regulatory initiatives and changes in laws, regulations and industry practices and standards, including changes in interpretations, in the United States and abroad, affecting us, our agents or their subagents, or the banks with which we or our agents maintain bank accounts needed to provide our services, including related to anti-money laundering regulations, anti-fraud measures, our licensing arrangements, customer due diligence, agent and subagent due diligence, registration and monitoring requirements, consumer protection requirements, remittances, and immigration; liabilities, increased costs or loss of business and unanticipated developments resulting from governmental investigations and consent agreements with or enforcement actions by regulators; liabilities resulting from litigation, including class-action lawsuits and similar matters, and regulatory enforcement actions, including costs, expenses, settlements, and judgments; failure to comply with regulations and evolving industry standards regarding consumer privacy, data use, the transfer of personal data between jurisdictions, and information security, including with respect to the General Data Protection Regulation ("GDPR") in the European Union ("EU") and the California Consumer Privacy Act; failure to comply with the Dodd-Frank Wall Street Reform and Consumer Protection Act (the "Dodd-Frank Act"), as well as regulations issued pursuant to it and the actions of the Consumer Financial Protection Bureau ("CFPB") and similar legislation and regulations enacted by other governmental authorities in the United States and abroad related to consumer protection and derivative transactions; effects of unclaimed property laws or their interpretation or the enforcement thereof; failure to maintain sufficient amounts or types of regulatory capital or other restrictions on the use of our working capital to meet the changing requirements of our regulators worldwide; changes in accounting standards, rules and interpretations, or industry standards affecting our business; (iii) other events, such as catastrophic events; and management's ability to identify and manage these and other risks.

About Western Union

The Western Union Company (NYSE:WU) is a global leader in cross-border, cross-currency money movement and payments. Western Union's platform provides seamless cross-border flows and its leading global financial network bridges more than 200 countries and territories and approximately 130 currencies. We connect consumers, businesses, financial institutions, and governments through one of the world's widest reaching networks, accessing billions of bank accounts, millions of digital wallets and cards, and a substantial global network of retail locations. Western Union connects the world to bring boundless possibilities within reach. For more information, visit www.westernunion.com.

WU-G


THE WESTERN UNION COMPANY
KEY STATISTICS
(Unaudited)

	Notes*	2Q21			3Q21			4Q21			FY2021			1Q22			2Q22			YTD 2Q22
Consolidated Metrics
Consolidated revenues (GAAP) - YoY % change			16	%		2	%		1	%		5	%		(4	)%		(12	)%		(8	)%
Consolidated revenues, constant currency (non-GAAP) - YoY % change	(a)		13	%		2	%		2	%		4	%		(2	)%		(8	)%		(5	)%
Consolidated revenues, constant currency, excluding Business Solutions (non-GAAP) - YoY % Change	(a)		13	%		0	%		1	%		4	%		(1	)%		(4	)%		(3	)%
Consolidated operating margin (GAAP)			19.8	%		24.8	%		24.7	%		22.1	%		20.5	%		23.2	%		21.9	%
Consolidated operating margin, excluding acquisition and divestiture costs, Russia/Belarus exit costs, and Business Solutions exit costs (non-GAAP)	(b)		20.2	%		25.2	%		24.9	%		22.5	%		22.5	%		23.3	%		22.9	%
Consolidated operating margin, excluding acquisition and divestiture costs, Russia/Belarus exit costs, and Business Solutions operating income and exit costs (non-GAAP)⁽¹⁾	(b)		N/A			N/A			N/A			N/A			21.8	%		23.3	%		22.6	%

EBITDA margin (non-GAAP)	(c)		24.1	%		28.8	%		28.4	%		26.3	%		24.6	%		27.2	%		25.9	%

Consumer-to-Consumer (C2C) Segment Metrics
Revenues (GAAP) - YoY % change			15	%		0	%		(1	)%		4	%		(5	)%		(9	)%		(7	)%
Revenues, constant currency (non-GAAP) - YoY % change	(g)		12	%		(1	)%		0	%		3	%		(3	)%		(6	)%		(5	)%

Transactions (in millions)			78.0			76.6			78.3			305.9			69.7			68.2			137.9
Transactions - YoY % change			15	%		(1	)%		0	%		5	%		(4	)%		(13	)%		(9	)%

Total principal ($- billions)		$	27.9		$	27.7		$	27.7		$	109.0		$	24.8		$	24.5		$	49.3
Principal per transaction, as reported - YoY % change			11	%		4	%		4	%		8	%		1	%		0	%		1	%
Principal per transaction, constant currency - YoY % change	(h)		8	%		3	%		4	%		6	%		3	%		4	%		4	%

Cross-border principal, as reported - YoY % change			29	%		4	%		5	%		15	%		(3	)%		(12	)%		(8	)%
Cross-border principal, constant currency - YoY % change	(i)		25	%		3	%		5	%		14	%		(1	)%		(9	)%		(5	)%

Operating margin			20.7	%		24.3	%		24.2	%		22.2	%		20.7	%		22.0	%		21.4	%

Digital money transfer revenues (GAAP) - YoY % change	(hh)		22	%		15	%		13	%		22	%		5	%		(6	)%		(1	)%
Digital money transfer foreign currency translation impact	(k)		(3	)%		(1	)%		(1	)%		(1	)%		1	%		3	%		2	%
Digital money transfer revenues, constant currency (non-GAAP) - YoY % change	(hh)		19	%		14	%		12	%		21	%		6	%		(3	)%		1	%
Digital money transfer transactions - YoY % change			33	%		19	%		17	%		32	%		4	%		(20	)%		(9	)%

westernunion.com revenues (GAAP) - YoY % change	(gg)		18	%		12	%		9	%		18	%		4	%		(1	)%		1	%
westernunion.com foreign currency translation impact	(k)		(3	)%		(1	)%		0	%		(1	)%		1	%		2	%		2	%
westernunion.com revenues, constant currency (non-GAAP) - YoY % change	(gg)		15	%		11	%		9	%		17	%		5	%		1	%		3	%
westernunion.com transactions - YoY % change	(gg)		18	%		9	%		6	%		19	%		0	%		(3	)%		(1	)%

C2C Segment Regional Metrics - YoY % change
NA region revenues (GAAP)	(aa), (bb)		4	%		(2	)%		2	%		1	%		(1	)%		(2	)%		(2	)%
NA region foreign currency translation impact	(k)		0	%		0	%		0	%		0	%		0	%		0	%		0	%
NA region revenues, constant currency (non-GAAP)	(aa), (bb)		4	%		(2	)%		2	%		1	%		(1	)%		(2	)%		(2	)%
NA region transactions	(aa), (bb)		3	%		(5	)%		(2	)%		(1	)%		(6	)%		(6	)%		(6	)%

EU & CIS region revenues (GAAP)	(aa), (cc)		18	%		(3	)%		(8	)%		3	%		(14	)%		(21	)%		(18	)%
EU & CIS region foreign currency translation impact	(k)		(8	)%		(2	)%		1	%		(3	)%		4	%		5	%		5	%
EU & CIS region revenues, constant currency (non-GAAP)	(aa), (cc)		10	%		(5	)%		(7	)%		0	%		(10	)%		(16	)%		(13	)%
EU & CIS region transactions	(aa), (cc)		26	%		3	%		1	%		13	%		(7	)%		(30	)%		(19	)%

MEASA region revenues (GAAP)	(aa), (dd)		19	%		(2	)%		2	%		4	%		2	%		(4	)%		(1	)%
MEASA region foreign currency translation impact	(k)		(1	)%		0	%		0	%		0	%		1	%		1	%		1	%
MEASA region revenues, constant currency (non-GAAP)	(aa), (dd)		18	%		(2	)%		2	%		4	%		3	%		(3	)%		0	%
MEASA region transactions	(aa), (dd)		22	%		2	%		6	%		10	%		5	%		(3	)%		1	%

LACA region revenues (GAAP)	(aa), (ee)		70	%		25	%		8	%		22	%		2	%		2	%		2	%
LACA region foreign currency translation impact	(k)		(2	)%		1	%		4	%		2	%		3	%		2	%		3	%
LACA region revenues, constant currency (non-GAAP)	(aa), (ee)		68	%		26	%		12	%		24	%		5	%		4	%		5	%
LACA region transactions	(aa), (ee)		42	%		10	%		2	%		9	%		2	%		4	%		3	%

APAC region revenues (GAAP)	(aa), (ff)		20	%		1	%		0	%		6	%		(6	)%		(10	)%		(8	)%
APAC region foreign currency translation impact	(k)		(7	)%		(2	)%		0	%		(3	)%		3	%		4	%		4	%
APAC region revenues, constant currency (non-GAAP)	(aa), (ff)		13	%		(1	)%		0	%		3	%		(3	)%		(6	)%		(4	)%
APAC region transactions	(aa), (ff)		3	%		(13	)%		(13	)%		(7	)%		(13	)%		(11	)%		(12	)%

% of C2C Revenue
NA region revenues	(aa), (bb)		37	%		37	%		38	%		37	%		39	%		40	%		39	%
EU & CIS region revenues	(aa), (cc)		33	%		32	%		31	%		32	%		29	%		28	%		29	%
MEASA region revenues	(aa), (dd)		15	%		15	%		15	%		15	%		17	%		16	%		17	%
LACA region revenues	(aa), (ee)		9	%		9	%		9	%		9	%		9	%		10	%		9	%
APAC region revenues	(aa), (ff)		6	%		7	%		7	%		7	%		6	%		6	%		6	%

Digital money transfer revenues	(aa)		24	%		24	%		24	%		24	%		25	%		25	%		25	%

Other (primarily bill payments businesses in Argentina and the United States and money orders)
Revenues (GAAP) - YoY % change			8	%		3	%		5	%		(1	)%		8	%		19	%		14	%
Operating margin			16.2	%		18.3	%		21.3	%		19.6	%		31.7	%		40.1	%		36.1	%

% of Total Company Revenue (GAAP)
Consumer-to-Consumer segment revenues			87	%		86	%		87	%		87	%		86	%		90	%		88	%
Business Solutions segment revenues			8	%		9	%		8	%		8	%		8	%		3	%		6	%
Other revenues			5	%		5	%		5	%		5	%		6	%		7	%		6	%

____________________
(1)		Concurrent with the sale in the first quarter of 2022, the Business Solutions operating income has been excluded. See tickmark (r) below for more information.

*		See the "Notes to Key Statistics" section of the press release for the applicable Note references and the reconciliation of non-GAAP financial measures, unless already reconciled herein.

THE WESTERN UNION COMPANY
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(in millions, except per share amounts)

	Three Months Ended								Six Months Ended
	June 30,								June 30,
	2022			2021			% Change		2022			2021			% Change
Revenues	$	1,138.3		$	1,289.7		(12)	%	$	2,294.0		$	2,499.7		(8)	%
Expenses:
Cost of services		653.0			755.0		(14)	%		1,308.1			1,461.0		(10)	%
Selling, general, and administrative		221.3			279.8		(21)	%		484.4			551.0		(12)	%
Total expenses		874.3			1,034.8		(16)	%		1,792.5			2,012.0		(11)	%
Operating income		264.0			254.9		4	%		501.5			487.7		3	%
Other income/(expense):
Gain on divestiture of business ^(a)		—			—		(b)			151.4			—		(b)
Interest income		1.8			0.3		(b)			2.4			0.7		(b)
Interest expense		(24.8	)		(25.6	)	(3)	%		(49.6	)		(54.0	)	(8)	%
Other income/(expense), net		(4.8	)		30.5		(b)			(7.3	)		28.6		(b)
Total other income/(expense), net		(27.8	)		5.2		(b)			96.9			(24.7	)	(b)
Income before income taxes		236.2			260.1		(9)	%		598.4			463.0		29	%
Provision for income taxes		42.2			37.6		12	%		111.1			58.7		89	%
Net income	$	194.0		$	222.5		(13)	%	$	487.3		$	404.3		21	%
Earnings per share:
Basic	$	0.50		$	0.54		(7)	%	$	1.25		$	0.98		28	%
Diluted	$	0.50		$	0.54		(7)	%	$	1.25		$	0.98		28	%
Weighted-average shares outstanding:
Basic		386.7			409.3					389.9			410.5
Diluted		387.6			411.5					391.0			412.9

____________________
(a)		On March 1, 2022, the Company completed the first close of the sale of its Business Solutions business to Goldfinch Partners LLC and The Baupost Group LLC (collectively, the "Buyer"), and received cash consideration of approximately $910 million, subject to regulatory and working capital adjustments. The first close excluded the operations in the European Union and the United Kingdom. The second closing is expected in the fourth quarter of 2022.

(b)		Calculation not meaningful.

THE WESTERN UNION COMPANY
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(in millions, except per share amounts)

	June 30,			December 31,
	2022			2021
Assets
Cash and cash equivalents	$	1,201.9		$	1,208.3
Settlement assets		3,106.6			2,843.5
Property and equipment, net of accumulated depreciation of $649.1 and $650.4, respectively		115.6			129.4
Goodwill		2,034.6			2,034.6
Other intangible assets, net of accumulated amortization of $727.9 and $731.8, respectively		446.1			417.1
Other assets		1,193.6			737.7
Assets held for sale ^(a)		688.9			1,452.9
Total assets	$	8,787.3		$	8,823.5
Liabilities and stockholders' equity
Liabilities:
Accounts payable and accrued liabilities	$	411.5		$	450.2
Settlement obligations		3,106.6			2,843.5
Income taxes payable		851.6			870.7
Deferred tax liability, net		169.6			203.8
Borrowings		2,695.3			3,008.4
Other liabilities		679.5			269.4
Liabilities associated with assets held for sale ^(a)		424.9			821.9
Total liabilities		8,339.0			8,467.9

Stockholders' equity:
Preferred stock, $1.00 par value; 10 shares authorized; no shares issued		—			—
Common stock, $0.01 par value; 2,000 shares authorized; 386.1 shares and 393.8 shares issued and outstanding as of June 30, 2022 and December 31, 2021, respectively		3.9			3.9
Capital surplus		973.3			941.0
Accumulated deficit		(412.1	)		(537.2	)
Accumulated other comprehensive loss		(116.8	)		(52.1	)
Total stockholders' equity		448.3			355.6
Total liabilities and stockholders' equity	$	8,787.3		$	8,823.5

____________________
(a)		Includes balances associated with the Company's Business Solutions business, which were held for sale as of June 30, 2022 and December 31, 2021. On March 1, 2022, the Company completed the first close of the Business Solutions business, which excluded the operations of the European Union and the United Kingdom, and received the entire cash consideration.

THE WESTERN UNION COMPANY
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(in millions)

	Six Months Ended
	June 30,
	2022			2021
Cash flows from operating activities
Net income	$	487.3		$	404.3
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation		22.6			26.0
Amortization		70.1			83.0
Gain on divestiture of business, excluding transaction costs		(155.8	)		—
Gain on the sale of noncontrolling interest in a private company		—			(47.9	)
Other non-cash items, net		32.8			80.1
Increase/(decrease) in cash, excluding the effects of divestitures, resulting from changes in:
Other assets		(131.2	)		(84.5	)
Accounts payable and accrued liabilities		19.6			(29.8	)
Income taxes payable		(20.5	)		(66.5	)
Other liabilities		(18.1	)		(15.2	)
Net cash provided by operating activities		306.8			349.5
Cash flows from investing activities
Payments for capitalized contract costs		(26.3	)		(82.2	)
Payments for internal use software		(42.7	)		(45.2	)
Purchases of property and equipment		(15.3	)		(17.9	)
Purchases of settlement investments		(495.3	)		(270.5	)
Proceeds from the sale of settlement investments		290.2			539.6
Maturities of settlement investments		84.4			130.9
Proceeds from the sale of noncontrolling interest in a private company		—			50.9
Purchase of noncontrolling interest in stc Bank		—			(200.0	)
Purchases of non-settlement investments		(400.0	)		—
Proceeds from divestiture, net of cash divested		896.4			—
Other investing activities		0.9			(2.9	)
Net cash provided by investing activities		292.3			102.7
Cash flows from financing activities
Cash dividends and dividend equivalents paid		(184.8	)		(193.5	)
Common stock repurchased		(185.5	)		(160.5	)
Net proceeds from/(repayments of) commercial paper		(15.0	)		185.0
Net proceeds from issuance of borrowings		—			891.7
Principal payments on borrowings		(300.0	)		(1,150.0	)
Make-whole premium on early extinguishment of debt		—			(14.3	)
Proceeds from exercise of options		9.4			11.6
Net change in settlement obligations		(112.1	)		(93.1	)
Other financing activities		—			4.0
Net cash used in financing activities		(788.0	)		(519.1	)
Net change in cash and cash equivalents, including settlement, and restricted cash		(188.9	)		(66.9	)
Cash and cash equivalents, including settlement, and restricted cash at beginning of period		2,110.9			2,143.1
Cash and cash equivalents, including settlement, and restricted cash at end of period	$	1,922.0		$	2,076.2

	June 30,
	2022			2021
Reconciliation of balance sheet cash and cash equivalents to cash flows:
Cash and cash equivalents on balance sheet	$	1,201.9		$	1,061.4
Settlement cash and cash equivalents		602.7			1,002.6
Restricted cash in Other assets		40.4			12.2
Cash and cash equivalents included in Assets held for sale		77.0			—
Cash and cash equivalents, including settlement, and restricted cash	$	1,922.0		$	2,076.2

THE WESTERN UNION COMPANY
SUMMARY SEGMENT DATA
(Unaudited)
(in millions)

	Three Months Ended								Six Months Ended
	June 30,								June 30,
	2022			2021			% Change		2022			2021			% Change
Revenues:
Consumer-to-Consumer	$	1,026.9		$	1,127.1		(9)	%	$	2,025.9		$	2,178.0		(7)	%
Business Solutions ^(a)		35.7			99.3		(64)	%		124.8			195.8		(36)	%
Other ^(b)		75.7			63.3		19	%		143.3			125.9		14	%
Total consolidated revenues	$	1,138.3		$	1,289.7		(12)	%	$	2,294.0		$	2,499.7		(8)	%
Segment operating income:
Consumer-to-Consumer	$	225.6		$	233.8		(4)	%	$	432.8		$	439.9		(2)	%
Business Solutions ^(a)		8.3			10.9		(23)	%		35.8			23.5		53	%
Other ^(b)		30.3			10.2		(c)			51.8			24.3		(c)
Total segment operating income		264.2			254.9		4	%		520.4			487.7		7	%
Russia/Belarus exit costs ^(d)		(0.2	)		—		(c)			(11.2	)		—		(c)
Business Solutions exit costs ^(d)		—			—		(c)			(7.7	)		—		(c)
Total consolidated operating income	$	264.0		$	254.9		4	%	$	501.5		$	487.7		3	%
Segment operating income margin
Consumer-to-Consumer		22.0	%		20.7	%	1.3	%		21.4	%		20.2	%	1.2	%
Business Solutions ^(a)		23.5	%		10.9	%	12.6	%		28.7	%		12.0	%	16.7	%
Other ^(b)		40.1	%		16.2	%	23.9	%		36.1	%		19.4	%	16.7	%

____________________
(a)		On August 4, 2021, the Company entered into an agreement to sell its Business Solutions business to the Buyer, which will be completed in two closings, the first which occurred on March 1, 2022, with the second expected in the fourth quarter of 2022. The operations of the Business Solutions business to be sold in the second closing continue to be included in Revenues and Operating income after the first closing. However, between the first and second closing, the Company will pay the Buyer a measure of the profits from these operations, adjusted for other charges, as contractually agreed, and this expense is recognized in Other income/(expense), net in the Condensed Consolidated Statements of Income.

(b)		Other primarily includes the Company's bill payment services which facilitate payments from consumers to businesses and other organizations and the Company's money order services.

(c)		Calculation not meaningful.

(d)		Represents the exit costs incurred in connection with the suspension of operations in Russia and Belarus and the divestiture of the Business Solutions business.

THE WESTERN UNION COMPANY

NOTES TO KEY STATISTICS

(Unaudited)

(in millions, unless indicated otherwise)

Western Union's management believes the non-GAAP financial measures presented provide meaningful supplemental information regarding the Company's operating results to assist management, investors, analysts, and others in understanding the Company's financial results and to better analyze trends in the Company's underlying business because they provide consistency and comparability to prior periods.

A non-GAAP financial measure should not be considered in isolation or as a substitute for the most comparable GAAP financial measure. A non-GAAP financial measure reflects an additional way of viewing aspects of the Company's operations that, when viewed with the Company's GAAP results and the reconciliation to the corresponding GAAP financial measure, provides a more complete understanding of the Company's business. Users of the financial statements are encouraged to review the Company's financial statements and publicly-filed reports in their entirety and not to rely on any single financial measure. A reconciliation of non-GAAP financial measures to the most directly comparable GAAP financial measures is included below, where not previously reconciled above.

		Notes	2Q21			3Q21			4Q21			FY2021			1Q22			2Q22			YTD 2Q22
	Consolidated Metrics
(a)	Revenues (GAAP)		$	1,289.7		$	1,286.3		$	1,284.8		$	5,070.8		$	1,155.7		$	1,138.3		$	2,294.0
	Foreign currency translation impact	(k)		(29.4	)		(2.8	)		14.8			(18.3	)		33.2			42.1			75.3
	Revenues, constant currency (non-GAAP)			1,260.3			1,283.5			1,299.6			5,052.5			1,188.9			1,180.4			2,369.3
	Less Business Solutions revenues, constant currency (non-GAAP)	(j), (r)		(92.1	)		(113.7	)		(109.2	)		(405.9	)		(91.9	)		(40.1	)		(132.0	)
	Revenues, constant currency, excluding Business Solutions (non-GAAP)		$	1,168.2		$	1,169.8		$	1,190.4		$	4,646.6		$	1,097.0		$	1,140.3		$	2,237.3
	Prior year revenues (GAAP)		$	1,114.7		$	1,258.5		$	1,271.8		$	4,835.0		$	1,210.0		$	1,289.7		$	2,499.7
	Less prior year revenues from Business Solutions (GAAP)	(r)		(79.4	)		(89.1	)		(89.2	)		(356.1	)		(96.5	)		(99.3	)		(195.8	)
	Prior year revenues, adjusted, excluding Business Solutions		$	1,035.3		$	1,169.4		$	1,182.6		$	4,478.9		$	1,113.5		$	1,190.4		$	2,303.9
	Revenues (GAAP) - YoY % Change			16	%		2	%		1	%		5	%		(4)	%		(12)	%		(8)	%
	Revenues, constant currency (non-GAAP) - YoY% Change			13	%		2	%		2	%		4	%		(2)	%		(8)	%		(5)	%
	Revenues, constant currency, excluding Business Solutions (non-GAAP) - YoY % Change			13	%		0	%		1	%		4	%		(1)	%		(4)	%		(3)	%

(b)	Operating income (GAAP)		$	254.9		$	318.6		$	316.8		$	1,123.1		$	237.5		$	264.0		$	501.5
	Acquisition and divestiture costs	(m)		5.6			5.5			3.7			15.7			3.3			0.9			4.2
	Russia/Belarus exit costs	(s)		N/A			N/A			N/A			N/A			11.0			0.2			11.2
	Business Solutions exit costs	(s)		N/A			N/A			N/A			N/A			7.7			—			7.7
	Operating income, excluding acquisition and divestiture costs, Russia/Belarus exit costs, and Business Solutions exit costs (non-GAAP)		$	260.5		$	324.1		$	320.5		$	1,138.8		$	259.5		$	265.1		$	524.6
	Less Business Solutions operating income⁽¹⁾	(r)		N/A			N/A			N/A			N/A			(26.5	)		(7.9	)		(34.4	)
	Operating income, excluding acquisition and divestiture costs, Russia/Belarus exit costs, and Business Solutions operating income and exit costs (non-GAAP)		$	260.5		$	324.1		$	320.5		$	1,138.8		$	233.0		$	257.2		$	490.2
	Operating margin (GAAP)			19.8	%		24.8	%		24.7	%		22.1	%		20.5	%		23.2	%		21.9	%
	Operating margin, excluding acquisition and divestiture costs, Russia/Belarus exit costs, and Business Solutions exit costs (non-GAAP)			20.2	%		25.2	%		24.9	%		22.5	%		22.5	%		23.3	%		22.9	%
	Operating margin, excluding acquisition and divestiture costs, Russia/Belarus exit costs, and Business Solutions operating income and exit costs (non-GAAP)⁽¹⁾			N/A			N/A			N/A			N/A			21.8	%		23.3	%		22.6	%

(c)	Operating income (GAAP)		$	254.9		$	318.6		$	316.8		$	1,123.1		$	237.5		$	264.0		$	501.5
	Depreciation and amortization			55.6			51.3			47.9			208.2			46.8			45.9			92.7
	EBITDA (non-GAAP)	(l)	$	310.5		$	369.9		$	364.7		$	1,331.3		$	284.3		$	309.9		$	594.2
	Operating margin (GAAP)			19.8	%		24.8	%		24.7	%		22.1	%		20.5	%		23.2	%		21.9	%
	EBITDA margin (non-GAAP)			24.1	%		28.8	%		28.4	%		26.3	%		24.6	%		27.2	%		25.9	%

(d)	Net income (GAAP)		$	222.5		$	232.7		$	168.8		$	805.8		$	293.3		$	194.0		$	487.3
	Acquisition and divestiture costs	(m)		5.6			5.5			3.7			15.7			3.3			0.9			4.2
	Gain on investment sale	(n)		(47.9	)		—			—			(47.9	)		N/A			N/A			N/A
	Debt extinguishment costs	(o)		14.8			—			—			14.8			N/A			N/A			N/A
	Pension settlement charge	(p)		N/A			N/A			109.8			109.8			N/A			N/A			N/A
	Business Solutions gain	(r)		N/A			N/A			N/A			N/A			(151.4	)		—			(151.4	)
	Business Solutions exit costs	(s)		N/A			N/A			N/A			N/A			7.7			—			7.7
	Russia/Belarus exit costs	(s)		N/A			N/A			N/A			N/A			11.0			0.2			11.2
	Income tax expense from change in permanent reinvestment assertion related to the sale of Business Solutions	(q)		N/A			18.1			(0.2	)		17.9			N/A			N/A			N/A
	Income tax benefit from acquisition and divestiture costs	(m)		(1.3	)		(1.0	)		(0.7	)		(3.2	)		(0.7	)		(0.3	)		(1.0	)
	Income tax expense from the gain on investment sale	(n)		8.3			1.5			1.1			10.9			N/A			N/A			N/A
	Income tax benefit from debt extinguishment costs	(o)		(2.5	)		(0.5	)		(0.2	)		(3.2	)		N/A			N/A			N/A
	Income tax benefit from pension settlement charge	(p)		N/A			N/A			(23.5	)		(23.5	)		N/A			N/A			N/A
	Income tax expense from Business Solutions gain	(r)		N/A			N/A			N/A			N/A			42.0			2.9			44.9
	Income tax benefit from Business Solutions exit costs	(s)		N/A			N/A			N/A			N/A			(1.2	)		(0.2	)		(1.4	)
	Income tax benefit from Russia/Belarus exit costs	(s)		N/A			N/A			N/A			N/A			(1.4	)		(0.4	)		(1.8	)
	Net income, adjusted (non-GAAP)		$	199.5		$	256.3		$	258.8		$	897.1		$	202.6		$	197.1		$	399.7

(e)	Effective tax rate (GAAP)			14	%		20	%		7	%		14	%		19	%		18	%		19	%
	Change in permanent reinvestment assertion related to the sale of Business Solutions	(q)		N/A			(6)	%		0	%		(2)	%		N/A			N/A			N/A
	Acquisition and divestiture costs	(m)		0	%		0	%		0	%		0	%		0	%		0	%		0	%
	Gain on investment sale	(n)		0	%		0	%		(1)	%		0	%		N/A			N/A			N/A
	Debt extinguishment costs	(o)		0	%		0	%		0	%		0	%		N/A			N/A			N/A
	Pension settlement charge	(p)		0	%		0	%		6	%		1	%		N/A			N/A			N/A
	Business Solutions gain	(r)		N/A			N/A			N/A			N/A			(6)	%		(1)	%		(4)	%
	Business Solutions exit costs	(s)		N/A			N/A			N/A			N/A			0	%		0	%		0	%
	Russia/Belarus exit costs	(s)		N/A			N/A			N/A			N/A			0	%		0	%		0	%
	Effective tax rate, adjusted (non-GAAP)			14	%		14	%		12	%		13	%		13	%		17	%		15	%

(f)	Diluted Earnings per Share (GAAP)		$	0.54		$	0.57		$	0.42		$	1.97		$	0.74		$	0.50		$	1.25
	Pretax impacts from the following:
	Acquisition and divestiture costs	(m)		0.01			0.01			0.01			0.03			0.01			—			0.01
	Gain on investment sale	(n)		(0.12	)		—			—			(0.12	)		N/A			N/A			N/A
	Debt extinguishment costs	(o)		0.04			—			—			0.04			N/A			N/A			N/A
	Pension settlement charge	(p)		N/A			N/A			0.27			0.27			N/A			N/A			N/A
	Business Solutions gain	(r)		N/A			N/A			N/A			N/A			(0.38	)		—			(0.39	)
	Business Solutions exit costs	(s)		N/A			N/A			N/A			N/A			0.02			—			0.02
	Russia/Belarus exit costs	(s)		N/A			N/A			N/A			N/A			0.02

Western Union Reports Second Quarter 2022 Results