Western Union reported third-quarter softness in the U.S. retail money transfer business during an earnings conference call with analysts Tuesday, blaming a slowdown in the economic recovery and sluggish migrant labor demand. The company’s revenue edged up 2% to $1.29 billion and net income rose 2% to $233 million.
On questioning from analysts, Chief Financial Officer Raj Agrawal noted that the company has engaged in “price optimization” to maximize cash flow in that segment because it “has been in decline for several years” and is now just 4% of revenue.
Still, he carved out the new Walmart situation, saying “we’re seeing some good traction there. The business is continuing to gain traction every month since we’ve launched it and we think it’s going to be a bigger contributor next year,” Agrawal said during the call, answering a question about Walmart.