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Western union austria vogla broke6/7/2023 ![]() Further, several places have again begun to implement lockdown restrictions due to the resurging of Covid-19 cases. ![]() Notably, the WU’s total transaction volumes for the first nine months have increased 7% y-o-y – lower than the pre-Covid-19 levels. While the growth in digital money transfer transactions (up 38% for the first nine months) has supported the top-line, it has not been able to offset the drop in offline volumes. That said, the transaction volumes at the offline retail locations are still suffering due to the slow pace of economic recovery. We do believe that a full recovery is possible over the next 1.5-2 years, once the transaction volumes recover to the pre-Covid-19 levels. Returning to the pre-Covid level means that WU stock will have to increase by 67% from here. This slow recovery has made investors positively cautious about WU stock. Further, the street is expecting WU to report total revenues of around $1.29 billion in the fourth quarter, taking the full-year figure to $5.08 billion – approximately 4% below the 2019 figure. The company has posted mixed results in the recently released third-quarter results, topping the earnings consensus and missing the revenue expectations. This was due to a marginal decrease in the consumer-to-consumer transaction volumes. While The Western Union Company’s revenues for the first six months of 2021 increased 8% y-o-y, the growth slowed down in the third quarter – Q3 revenues gained just 2% y-o-y. The accelerated Covid-19 vaccination program and lifting of lockdown restrictions in the year have benefited the economic activity, but the recovery is slow. ![]() The stock has lost around 9% from the March lows of 2020, compared to the S&P 500 which has more than doubled (up 110%) during this period. It saw its stock trading approximately at $28 in February 2020 just before the outbreak of the pandemic and is still 40% below that level. The company is a market leader in cross-border money movement and payment services. The Western Union Company stock (NYSE: WU) currently trades at close to $17 per share, around 40% below its pre-Covid-19 peak.
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