Western Union Reports First Quarter Results

  Western Union Reports First Quarter Results

                Revenue $1.3 Billion, Earnings per Share $0.37

   $260 Million Returned to Shareholders through Repurchases and Dividends

                  2013 Full Year Financial Outlook Affirmed

Business Wire

ENGLEWOOD, Colo. -- April 30, 2013

The Western Union Company (NYSE: WU) today reported financial results for the
2013 first quarter. The Company also affirmed its full year financial outlook
provided on February 12, 2013.

“The first quarter provided signs that we are making progress with our
strategies to strengthen consumer money transfer, increase customers and usage
in business-to-business, and generate and deploy strong cash flow for our
shareholders,” said President and Chief Executive Officer Hikmet Ersek. “Our
strategic pricing investments in consumer money transfer are working,
electronic channels continue to expand at a robust pace, and Business
Solutions delivered solid results. As we stated in February, we expect 2013 to
be a transitional year as we implement key strategic actions, but we remain
confident these actions will drive revenue and profit growth in 2014 and
beyond.”

In the first quarter revenues declined 5%, or 4% on a constant currency basis.
The revenue decline was primarily driven by the Consumer-to-Consumer (C2C)
segment, which was impacted by pricing investments and compliance related
changes. C2C revenues declined 7%, including a negative 2% impact from the
Vigo and Orlandi Valuta brands and a negative 1% impact from currency.

Total C2C transactions decreased 2%, primarily due to the impact of compliance
related changes implemented in the third quarter of 2012 that affected the
Vigo and Orlandi Valuta brands. Western Union branded C2C transactions
increased 2%. Pricing investments in key corridors increased transaction
growth as anticipated; however, these benefits were partially offset by the
impact of compliance related actions in various corridors, softness in certain
markets, and challenging prior year comparisons. The Company expects C2C
transaction trends to improve sequentially throughout the remainder of 2013,
driven by increased traction from the pricing investments, the rollout of
added capabilities in the online business, and expansion of the agent network.

Consumer-to-Business (C2B) revenues declined 1%, including a negative 4%
impact from currency. Western Union Business Solutions revenues increased 7%,
with no impact from currency translation.

GAAP operating margin was 22.4%, which compares to 23.9% in the first quarter
of 2012. The Company expects 2013 full year operating margins of approximately
20%, but the first quarter margin benefited from the timing of certain
expenses. Earnings per share of $0.37 compares to $0.40 in the prior year
period.

Progress on 2013 Key Strategies

Strengthen consumer money transfer

The increased pricing investments intended to regain customer momentum are
meeting the Company’s transaction volume objectives. In the fourth quarter of
2012, approximately 50% of the planned pricing investments for the year were
initiated in select corridors. In the first quarter total C2C transactions
increased in the low teens in these corridors. By the end of the first
quarter, approximately 75% of the planned pricing investments for the year had
been initiated.

Pricing investments in Mexico are delivering targeted results, and the Company
also signed new agents to expand its network in the country. Western Union
branded transactions in Mexico increased 9% in the first quarter, which
compares to a 2% growth rate in the fourth quarter, despite softness in the
overall Mexico remittance market.

Electronic channels continued to expand, with revenue growth of 18% in the
quarter. Westernunion.com online money transfer transactions increased 60%,
and transactions from account based money transfer through banks increased
45%.

Increase customers and usage in business-to-business

Enhanced go-to-market processes and execution are aiding Western Union
Business Solutions growth. In the first quarter, the 7% revenue increase in
business-to-business was driven by incremental customer hedging activity and
the addition of the Travelex Global Business Payments (TGBP) business in
France, which was acquired in the second quarter of 2012. New products and
services continue to be introduced, including cash management tools for small
and medium-sized business clients and currency options in the U.K.

Generate and deploy strong cash flow for shareholders

Cash flow from operating activities was $237 million in the quarter. The
Company returned $260 million to shareholders, consisting of $190 million of
share repurchases and $70 million of dividends.

The Company expects to generate cash flow from operating activities of
approximately $900 million in 2013, or approximately $1 billion excluding
final tax payments related to the agreement announced with the Internal
Revenue Service in December 2011 (IRS Agreement). Full year share repurchases
and dividends are expected to total approximately $700 million, which
represents approximately 8% of current market capitalization.

2013 Full Year Outlook

The Company affirms its full year outlook for 2013 provided on February 12:

Revenue and C2C Transactions

  *Low single digit constant currency revenue declines
  *Consumer money transfer pricing investments of approximately $300 million,
    or 5% of total Company revenue, are reflected in the outlook
  *Mid to high single digit Western Union brand C2C transaction increases
  *Overall C2C transaction growth approximately 2 percentage points lower
    than the Western Union brand due to declines from Vigo and Orlandi Valuta
    resulting from compliance related actions

Operating Margins

  *GAAP operating margin of approximately 20%
  *EBITDA margin of approximately 24.5%

Tax Rate

  *Effective tax rate of approximately 15%

Earnings per Share

  *GAAP EPS in a range of $1.33 to $1.43

Cash Flow

  *Cash flow from operating activities of approximately $900 million, or
    approximately $1 billion excluding anticipated final tax payments of
    approximately $100 million relating to the IRS Agreement.

Additional Statistics

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

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. These non-GAAP financial measures include
revenue change constant currency adjusted; 2013 EBITDA margin outlook; 2013
operating cash flow outlook IRS Agreement adjusted; and additional measures
found in the supplemental schedule included with this press release.

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 http://ir.westernunion.com.

EBITDA

Earnings before Interest, Taxes, Depreciation and Amortization (EBITDA)
results from taking operating income and adjusting for depreciation and
amortization expenses. EBITDA results provide an additional performance
measurement calculation which helps neutralize the operating income effect of
assets acquired in prior periods.

Currency

Constant currency results assume foreign revenues and expenses 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. Constant
currency results also assume any benefit or loss caused by foreign exchange
fluctuations between foreign currencies and the U.S. dollar, net of the effect
of foreign currency hedges, would have been consistent with the prior year.
Additionally, the measurement assumes the impact of fluctuations in foreign
currency derivatives not designated as hedges and the portion of fair value
that is excluded from the measure of effectiveness for those contracts
designated as hedges is consistent with the prior year.

Investor and Analyst Conference Call and Slide Presentation

The Company will host a conference call and webcast, including slides, at 4:30
p.m. Eastern Time today. To listen to the conference call via telephone, dial
1 (888) 317-6003 (U.S.) or +1 (412) 317-6061 (outside the U.S.) ten minutes
prior to the start of the call. The pass code is 5745293.

The conference call and accompanying slides will be available via webcast at
http://ir.westernunion.com. Registration for the event is required, so please
register at least five minutes prior to the scheduled start time.

A replay of the call will be available approximately one hour after the call
ends through May 14, 2013, at 1 (877) 344-7529 (U.S.) or +1 (412) 317-0088
(outside the U.S.). The pass code is 5745293. A webcast replay will be
available at http://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,” “anticipates,”
“believes,” “estimates,” “guides,” “provides guidance,” “provides outlook” and
other similar expressions or future or conditional verbs such as “will,”
“should,” “would” and “could” are intended to identify such forward-looking
statements. Readers of this press release by 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
Form10-K for the year ended December31, 2012. 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:
deterioration in consumers' and clients' confidence in our business, or in
money transfer and payment service providers generally; changes in general
economic conditions and economic conditions in the regions and industries in
which we operate, including global economic and trade downturns and financial
market disruptions; political conditions and related actions in the United
States and abroad which may adversely affect our business and economic
conditions as a whole; failure to compete effectively in the money transfer
and payment service industry with respect to global and niche or corridor
money transfer providers, banks and other money transfer and payment service
providers, including telecommunications providers, card associations,
card-based payment providers and electronic and Internet providers; the
pricing of our services and any pricing reductions, and their impact on our
consumers and our financial results; our ability to adapt technology in
response to changing industry and consumer needs or trends; our failure to
develop and introduce new services and enhancements, and gain market
acceptance of such services; 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;
interruptions of United States government relations with countries in which we
have or are implementing significant business relationships with agents or
clients; changes in immigration laws, interruptions in immigration patterns
and other factors related to migrants; mergers, acquisitions and integration
of acquired businesses and technologies into our Company, including Travelex
Global Business Payments, and the realization of anticipated financial
benefits from these acquisitions, and events requiring us to write down our
goodwill; decisions to change our business mix; failure to manage credit and
fraud risks presented by our agents, clients and consumers or non-performance
by our banks, lenders, other financial services providers or insurers; adverse
movements and volatility in capital markets and other events which affect our
liquidity, the liquidity of our agents or clients, or the value of, or our
ability to recover our investments or amounts payable to us; any material
breach of security or safeguards of or interruptions in any of our systems;
our ability to attract and retain qualified key employees and to manage our
workforce successfully; our ability to maintain our agent network and business
relationships under terms consistent with or more advantageous to us than
those currently in place; adverse rating actions by credit rating agencies;
our ability to realize the anticipated benefits from productivity and
cost-savings and other 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; our ability to protect our brands and our other intellectual
property rights; our failure to manage the potential both for patent
protection and patent liability in the context of a rapidly developing legal
framework for intellectual property protection; changes in tax laws and
unfavorable resolution of tax contingencies; cessation of or defects in
various services provided to us by third-party vendors; material changes in
the market value or liquidity of securities that we hold; restrictions imposed
by our debt obligations; significantly slower growth or declines in the money
transfer, payment service, and other markets in which we operate; and changes
in industry standards affecting our business; (ii) events related to our
regulatory and litigation environment, such as: the failure by us, our agents
or their subagents to comply with laws and regulations, including regulatory
or judicial interpretations thereof, designed to detect and prevent money
laundering, terrorist financing, fraud and other illicit activity, and
increased costs or loss of business associated with compliance with those laws
and regulations; changes in United States or foreign laws, rules and
regulations including the Internal Revenue Code, governmental or judicial
interpretations thereof and industry practices and standards, including the
impact of the Foreign Account Tax Compliance provisions of the Hiring
Incentives to Restore Employment Act; liabilities resulting from a failure of
our agents or their subagents to comply with laws and regulations; increased
costs or loss of business due to regulatory initiatives and changes in laws,
regulations and industry practices and standards affecting us, our agents, or
their subagents; liabilities and unanticipated developments resulting from
governmental investigations and consent agreements with, or enforcement
actions by, regulators, including those associated with compliance with,
failure to comply with, or extension of, the settlement agreement with the
State of Arizona; the impact on our business from the Dodd-Frank Wall Street
Reform and Consumer Protection Act, the rules promulgated there-under, and the
actions of the Consumer Financial Protection Bureau; liabilities resulting
from litigation, including class-action lawsuits and similar matters,
including costs, expenses, settlements and judgments; failure to comply with
regulations regarding consumer privacy and data use and security; effects of
unclaimed property laws; failure to maintain sufficient amounts or types of
regulatory capital to meet the changing requirements of our regulators
worldwide; and changes in accounting standards, rules and interpretations; and
(iii) other events, such as: adverse tax consequences from our spin-off from
First Data Corporation; 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 leader in global payment services.
Together with its Vigo, Orlandi Valuta, Pago Facil and Western Union Business
Solutions branded payment services, Western Union provides consumers and
businesses with fast, reliable and convenient ways to send and receive money
around the world, to send payments and to purchase money orders. As of March
31, 2013, the Western Union, Vigo and Orlandi Valuta branded services were
offered through a combined network of approximately 515,000 agent locations in
200 countries and territories. In 2012, The Western Union Company completed
231 million consumer-to-consumer transactions worldwide, moving $79 billion of
principal between consumers, and 432 million business payments. For more
information, visit www.westernunion.com.

                                                                                                  
THE WESTERN UNION COMPANY
KEY STATISTICS
(Unaudited)

                           Notes*     1Q12           2Q12           3Q12           4Q12           FY2012         1Q13
                                                                                                                 
Consolidated Metrics
  Consolidated
  revenues (GAAP) -                   9       %     4       %      1       %     0       %     3       %     (5      )%
  YoY % change
  Consolidated
  revenues (constant       a          9       %     7       %     3       %     0       %     5       %     (4      )%
  currency) - YoY %
  change
  Agent locations                     495,000        510,000        510,000        510,000        510,000        515,000
                                                                                                                 
Consumer-to-Consumer
(C2C) Segment
  Revenues (GAAP) -                   4       %     0       %     (4      )%     (2      )%     (1      )%     (7      )%
  YoY % change
  Revenues (constant
  currency) - YoY %        c          5       %     3       %     (1      )%     (2      )%     1       %     (6      )%
  change
  Operating margin                    27.7    %     28.5    %     29.4    %     25.0    %     27.6    %     25.4    %
                                                                                                                 
  Transactions (in                    56.37          58.49          57.47          58.65          230.98         55.44
  millions)
  Transactions - YoY%                 7       %     4       %     0       %     (1      )%     2       %     (2      )%
  change
                                                                                                                 
  Total principal ($ -                19.5           20.1           19.7           20.0           79.3           18.9
  billions)
  Principal per
  transaction ($ -                    346            344            342            341            343            341
  dollars)
  Principal per
  transaction - YoY %                 (4      )%     (6      )%     (6      )%     (2      )%     (5      )%     (1      )%
  change
  Principal per
  transaction              d          (3      )%     (3      )%     (3      )%     (2      )%     (3      )%     (1      )%
  (constant currency)
  - YoY % change
                                                                                                                 
  Cross-border
  principal ($ -                      17.5           18.2           17.6           18.0           71.3           16.9
  billions)
  Cross-border
  principal - YoY %                   2       %     (2      )%     (7      )%     (3      )%     (3      )%     (3      )%
  change
  Cross-border
  principal (constant      e          3       %     1       %     (4      )%     (2      )%     0       %     (3      )%
  currency) - YoY %
  change
                                                                                                                 
  Europe and CIS
  region revenues -        l, m       0       %     (8      )%     (9      )%     (5      )%     (6      )%     (6      )%
  YoY % change
  Europe and CIS
  region transactions      l, m       1       %     (2      )%     (3      )%     0       %     (1      )%     (1      )%
  - YoY % change
                                                                                                                 
  North America region
  revenues - YoY %         l, n       5       %     0       %     (8      )%     (9      )%     (3      )%     (15     )%
  change
  North America region
  transactions - YoY %     l, n       6       %     2       %     (5      )%     (6      )%     (1      )%     (7      )%
  change
                                                                                                                 
  Middle East and
  Africa region            l, o       6       %     3       %     0       %     3       %     3       %     0       %
  revenues - YoY %
  change
  Middle East and
  Africa region            l, o       9       %     9       %     4       %     6       %     7       %      4       %
  transactions - YoY %
  change
                                                                                                                 
  APAC region revenues     l, p       7       %     4       %     1       %     0       %     3       %     (5      )%
  - YoY % change
  APAC region
  transactions - YoY %     l, p       6       %     5       %     2       %     0       %     3       %     0       %
  change
                                                                                                                 
  LACA region revenues     l, q       2       %     5       %     4       %     2       %     3       %     (7      )%
  - YoY % change
  LACA region
  transactions - YoY %     l, q       8       %     5       %     (2      )%     (5      )%     1       %     (10     )%
  change
                                                                                                                 
  westernunion.com
  region revenues -        l, r       39      %     23      %      22      %      16      %     24      %     13      %
  YoY % change
  westernunion.com
  region transactions      l, r       41      %     35      %     40      %      46      %     41      %     60      %
  - YoY % change
                                                                                                                 
  International
  revenues - YoY %         s          4       %     (1      )%     (2      )%     1       %     0       %     (2      )%
  change
  International
  transactions - YoY %     s          7       %     5       %     2       %     3       %     4       %     1       %
  change
  International
  revenues - % of C2C      s          69      %     69      %     71      %     73      %     71      %     72      %
  segment revenues
                                                                                                                 
  United States
  originated revenues      t          6       %     1       %     (6      )%     (11     )%     (3      )%     (17     )%
  - YoY % change
  United States
  originated               t          6       %     2       %     (4      )%     (5      )%     0       %     (5      )%
  transactions - YoY %
  change
  United States
  originated revenues      t          31      %     31      %     29      %     27      %     29      %     28      %
  - % of C2C segment
  revenues
                                                                                                                 
  Electronic channels
  revenues - YoY %         u          38      %     26      %     25      %     22      %     27      %     18      %
  change
                                                                                                                 
Consumer-to-Business
(C2B) Segment
  Revenues (GAAP) -                   1       %     (3      )%     (5      )%     (1      )%     (2      )%     (1      )%
  YoY % change
  Revenues (constant
  currency) - YoY %        f          3       %     0       %     (2      )%     2       %     1       %     3       %
  change
  Operating margin                    26.5    %     22.4    %     25.3    %     17.0    %     22.8    %     24.7    %
                                                                                                                 
Business Solutions
(B2B) Segment
  Revenues (GAAP) -                   **             **             **             **             **             7       %
  YoY % change
  Revenues (constant
  currency) - YoY %        g          **             **             **             **             **             7       %
  change
  Operating margin                    (17.0   )%     (15.7   )%     (7.9    )%     (19.4   )%     (14.9   )%     (6.7    )%
  Depreciation and                    15.2           15.4           17.4           17.7           65.7           15.3
  amortization
  TGBP integration         v          6.4            14.5           10.3           11.6           42.8           3.9
  expense
                                                                                                                 
% of Total Company
Revenue
  Consumer-to-Consumer                81      %     81      %     81      %     81      %     81      %     79      %
  segment revenues
  Consumer-to-Business                11      %     11      %     10      %     11      %     11      %     12      %
  segment revenues
  Business Solutions                  6       %     6       %     7       %     6       %     6       %     7       %
  segment revenues
  Consumer-to-Consumer
  region revenues:
  Europe and CIS           l, m       22      %     22      %     22      %     22      %     22      %     21      %
  revenues
  North America            l, n       21      %     21      %     20      %     19      %     20      %     19      %
  revenues
  Middle East and          l, o       15      %     15      %     15      %     16      %     15      %     16      %
  Africa revenues
  APAC revenues            l, p       12      %     12      %     12      %     12      %     12      %     12      %
  LACA revenues            l, q       9       %     9       %     9       %     9       %     9       %     8       %
  westernunion.com         l, r       2       %     2       %     3       %     3       %     3       %     3       %
  revenues
  Electronic channels      u          3       %     3       %     4       %     4       %     4       %     4       %
  revenues
  Prepaid revenues         w          1       %     1       %     1       %     1       %     1       %     1       %
  Marketing expense        x          3.8     %     3.7     %     4.2     %     5.1     %     4.2     %     3.9     %
                                                                                                                 

* See page 13 of the press release for the applicable Note references and the
reconciliation of non-GAAP financial measures.

** Calculation of growth percentage is not meaningful due to the impact of the
TGBP acquisition in November 2011.

                                                            
THE WESTERN UNION COMPANY
CONDENSEDCONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(in millions, except per share amounts)
                                                                   
                                   Three Months Ended

                                   March 31,
                                   2013            2012            % Change 
Revenues:
     Transaction fees              $ 978.0         $ 1,040.9       (6       )%
     Foreign exchange revenues       312.4           322.6         (3       )%
     Other revenues                 35.0          29.9         17       %
Total revenues                       1,325.4         1,393.4       (5       )%
                                                                   
Expenses:
     Cost of services                759.4           783.0         (3       )%
     Selling, general and           269.1         277.9        (3       )%
     administrative
Total expenses                      1,028.5       1,060.9      (3       )%
                                                                   
Operating income                     296.9           332.5         (11      )%
                                                                   
Other income/(expense):
     Interest income                 0.4             1.5           (73      )%
     Interest expense                (48.9   )       (44.4   )     10       %
     Derivative gains, net           0.5             1.6           (69      )%
     Other income/(expense),        1.3           (1.1    )     (a)
     net
Total other expense, net            (46.7   )      (42.4   )     10       %
                                                                   
Income before income taxes           250.2           290.1         (14      )%
Provision for income taxes          38.2          42.8         (11      )%
                                                                   
Net income                         $ 212.0        $ 247.3        (14      )%
                                                                   
Earnings per share:
     Basic                         $ 0.37          $ 0.40          (8       )%
     Diluted                       $ 0.37          $ 0.40          (8       )%
                                                                   
Weighted-average shares
outstanding:
     Basic                           567.6           619.1
     Diluted                         569.7           621.9
                                                                   
Cash dividends declared per        $ 0.125         $ 0.10          25       %
common share
                                                                   
__________
(a)  Calculation not
     meaningful.
                                                                   

                                                             
THE WESTERN UNION COMPANY
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(in millions, except per share amounts)
                                                                  
                                                                  
                                                                  
                                              March 31,           December 31,
                                              2013                2012
Assets
Cash and cash equivalents (a)                 $  1,417.1          $  1,776.5
Settlement assets                                3,319.2             3,114.6
Property and equipment, net of
accumulated depreciation of
    $402.2 and $384.5, respectively              198.7               196.1
Goodwill                                         3,178.5             3,179.7
Other intangible assets, net of
accumulated amortization of
    $562.3 and $519.7, respectively              863.3               878.9
Other assets                                    384.9             319.9   
Total assets                                  $  9,361.7         $  9,465.7 
                                                                  
Liabilities and Stockholders' Equity
Liabilities:
    Accounts payable and accrued              $  524.2            $  556.2
    liabilities
    Settlement obligations                       3,319.2             3,114.6
    Income taxes payable                         228.5               218.3
    Deferred tax liability, net                  354.0               352.1
    Borrowings                                   3,726.8             4,029.2
    Other liabilities                           291.4             254.7   
Total liabilities                                8,444.1             8,525.1
                                                                  
Stockholders' equity:
    Preferred stock, $1.00 par value;
    10 shares authorized;
    no shares issued                             —                   —
    Common stock, $0.01 par value;
    2,000 shares authorized;
    559.4 shares and 572.1 shares
    issued and outstanding as of
    March 31, 2013 and December 31,              5.6                 5.7
    2012, respectively
    Capital surplus                              342.9               332.8
    Retained earnings                            702.8               754.7
    Accumulated other comprehensive             (133.7   )         (152.6  )
    loss
Total stockholders' equity                      917.6             940.6   
Total liabilities and stockholders'           $  9,361.7         $  9,465.7 
equity
                                                                  
__________
(a) Approximately $870 million was held by entities outside of the United
    States as of March 31, 2013.
    

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

                                                   March 31,
                                                   2013            2012
                                                                   
Cash Flows From Operating Activities
Net income                                         $ 212.0         $ 247.3
Adjustments to reconcile net income to net
cash provided by operating activities:
    Depreciation                                     15.4            15.3
    Amortization                                     47.5            48.6
    Other non-cash items, net                        9.3             1.6
    Increase/(decrease) in cash, excluding the
    effects of acquisitions, resulting from
    changes in:
             Other assets                            (10.4   )       (10.1   )
             Accounts payable and accrued            (36.1   )       (35.7   )
             liabilities
             Income taxes payable (a)                7.3             (40.1   )
             Other liabilities                      (7.7    )      (11.9   )
Net cash provided by operating activities            237.3           215.0
                                                                   
Cash Flows From Investing Activities
Capitalization of contract costs                     (11.8   )       (55.8   )
Capitalization of purchased and developed            (8.8    )       (5.8    )
software
Purchases of property and equipment                 (17.3   )      (14.2   )
Net cash used in investing activities                (37.9   )       (75.8   )
                                                                   
Cash Flows From Financing Activities
Proceeds from exercise of options                    1.7             41.2
Cash dividends paid                                  (70.3   )       (61.6   )
Common stock repurchased                             (190.2  )       (146.8  )
Net proceeds from commercial paper                   —               53.0
Principal payments on borrowings                    (300.0  )      —       
Net cash used in financing activities               (558.8  )      (114.2  )
                                                                   
Net change in cash and cash equivalents              (359.4  )       25.0
Cash and cash equivalents at beginning of           1,776.5       1,370.9 
period
Cash and cash equivalents at end of period         $ 1,417.1      $ 1,395.9 

__________
      The Company made tax payments of approximately $65 million in the first
      quarter of 2012 due to the December 2011 agreement with the United
(a)  States Internal Revenue Services ("IRS") resolving substantially all of
      the issues related to the restructuring of our international operations
      in 2003 ("IRS Agreement").
      


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

                                    March 31,
                                    2013             2012             % Change
Revenues:
      Consumer-to-Consumer
      (C2C):
             Transaction fees       $ 809.6          $ 872.0          (7    )%
             Foreign exchange         225.6            239.4          (6    )%
             revenues
             Other revenues          15.0           13.2          14    %
      Total                           1,050.2          1,124.6        (7    )%
      Consumer-to-Consumer:
                                                                      
      Consumer-to-Business
      (C2B):
             Transaction fees         145.8            147.7          (1    )%
             Foreign exchange        7.9            7.4           7     %
             and other revenues
      Total                           153.7            155.1          (1    )%
      Consumer-to-Business:
                                                                      
      Business Solutions (B2B):
             Foreign exchange         84.0             80.1           5     %
             revenues
             Transaction fees        8.8            6.8           29    %
             and other revenues
      Total Business Solutions:       92.8             86.9           7     %
                                                                      
      Other:
             Total revenues           28.7             26.8           7     %
                                                    
Total consolidated revenues         $ 1,325.4       $ 1,393.4       (5    )%
                                                                      
Operating income/(loss):
      Consumer-to-Consumer          $ 267.1          $ 311.3          (14   )%
      Consumer-to-Business            37.9             41.1           (8    )%
      Business Solutions (a)          (6.2    )        (14.8   )      (b)
      Other                          (1.9    )       (5.1    )      (b)
Total consolidated operating        $ 296.9         $ 332.5         (11   )%
income
                                                                      
                                                                      
Operating income/(loss) margin:
      Consumer-to-Consumer            25.4    %        27.7    %      (2.3  )%
      Consumer-to-Business            24.7    %        26.5    %      (1.8  )%
      Business Solutions              (6.7    )%       (17.0   )%     10.3  %
Total consolidated operating          22.4    %        23.9    %      (1.5  )%
income margin
                                                                      
Depreciation and amortization:
      Consumer-to-Consumer          $ 41.9           $ 42.8           (2    )%
      Consumer-to-Business            3.8              3.9            (3    )%
      Business Solutions              15.3             15.2           1     %
      Other                          1.9            2.0           (5    )%
Total consolidated depreciation     $ 62.9          $ 63.9          (2    )%
and amortization

__________
      Business Solutions operating loss includes TGBP integration expense of
(a)  $3.9 million and $6.4 million for the three months ended March 31, 2013
      and 2012, respectively.
(b)   Calculation not meaningful.
                                                        

THE WESTERN UNION COMPANY
NOTES TO KEY STATISTICS
(in millions, unless indicated otherwise)
(Unaudited)
                                                                                                   
                                                                                                                  
                                                                                                                  
Western Union's management believes the non-GAAP financial measures presented provide meaningful supplemental information
regarding our operating results to assist management, investors, analysts, and others in understanding our financial results
and to better analyze trends in our 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 our operations that, when viewed with
our GAAP results and the reconciliation to the corresponding GAAP financial measure, provide a more complete understanding of
our business. Users of the financial statements are encouraged to review our 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.
                                                                                                                  
All adjusted year-over-year changes were calculated using prior year reported amounts, unless indicated otherwise.
                                                                                                                  
                                                                                                                  
                                                                                                                  
                             1Q12            2Q12            3Q12            4Q12            FY2012          1Q13
    Consolidated Metrics
(a)    Revenues, as          $ 1,393.4        $ 1,425.1        $ 1,421.6        $ 1,424.7        $ 5,664.8        $ 1,325.4
       reported (GAAP)
       Foreign currency
       translation            8.1            34.6           37.7           13.4           93.8           12.3    
       impact (h)
       Revenues,
       constant currency     $ 1,401.5       $ 1,459.7       $ 1,459.3       $ 1,438.1       $ 5,758.6       $ 1,337.7 
       adjusted
       Prior year
       revenues, as          $ 1,283.0        $ 1,366.3        $ 1,410.8        $ 1,431.3        $ 5,491.4        $ 1,393.4
       reported (GAAP)
       Pro forma prior
       year revenues,        $ 1,338.0        $ 1,426.0        $ 1,474.8        $ 1,456.2        $ 5,695.0          N/A
       TGBP adjusted (i)
       Revenue change,
       as reported             9       %       4       %       1       %       0       %       3       %       (5      )%
       (GAAP)
       Revenue change,
       constant currency       9       %       7       %       3       %       0       %       5       %       (4      )%
       adjusted
       Pro forma revenue
       change, TGBP            4       %       0       %       (4      )%       (2      )%       (1      )%       N/A
       adjusted
       Pro forma revenue
       change, TGBP and        5       %       2       %       (1      )%       (1      )%       1       %       N/A
       constant currency
       adjusted
                                                                                                                  
       Operating income,
(b)    as reported           $ 332.5          $ 345.9          $ 365.6          $ 286.0          $ 1,330.0        $ 296.9
       (GAAP)
       Reversal of
       depreciation and       63.9           59.0           61.2           62.0           246.1          62.9    
       amortization (j)
       EBITDA (j)            $ 396.4         $ 404.9         $ 426.8         $ 348.0         $ 1,576.1       $ 359.8   
       Operating income
       margin, as              23.9    %       24.3    %       25.7    %       20.1    %       23.5    %       22.4    %
       reported (GAAP)
       EBITDA margin           28.4    %       28.4    %       30.0    %       24.4    %       27.8    %       27.1    %
                                                                                                                  
                                                                                                                  
    Consumer-to-Consumer
    Segment
(c)    Revenues, as          $ 1,124.6        $ 1,155.0        $ 1,151.5        $ 1,153.2        $ 4,584.3        $ 1,050.2
       reported (GAAP)
       Foreign currency
       translation            5.2            30.1           32.8           9.5            77.6           6.1     
       impact (h)
       Revenues,
       constant currency     $ 1,129.8       $ 1,185.1       $ 1,184.3       $ 1,162.7       $ 4,661.9       $ 1,056.3 
       adjusted
       Prior year
       revenues, as          $ 1,078.1        $ 1,155.1        $ 1,193.3        $ 1,181.9        $ 4,608.4        $ 1,124.6
       reported (GAAP)
       Revenue change,
       as reported             4       %       0       %       (4      )%       (2      )%       (1      )%       (7      )%
       (GAAP)
       Revenue change,
       constant currency       5       %       3       %       (1      )%       (2      )%       1       %       (6      )%
       adjusted
                                                                                                                  
       Principal per
(d)    transaction, as       $ 346            $ 344            $ 342            $ 341            $ 343            $ 341
       reported ($ -
       dollars)
       Foreign currency
       translation            3              11             12             2              8              —       
       impact (h) ($ -
       dollars)
       Principal per
       transaction,
       constant currency     $ 349           $ 355           $ 354           $ 343           $ 351           $ 341     
       adjusted ($ -
       dollars)
       Prior year
       principal per
       transaction, as       $ 360            $ 365            $ 366            $ 349            $ 360            $ 346
       reported ($ -
       dollars)
       Principal per
       transaction             (4      )%       (6      )%       (6      )%       (2      )%       (5      )%       (1      )%
       change, as
       reported
       Principal per
       transaction             (3      )%       (3      )%       (3      )%       (2      )%       (3      )%       (1      )%
       change, constant
       currency adjusted
                                                                                                                  
       Cross-border
(e)    principal, as         $ 17.5           $ 18.2           $ 17.6           $ 18.0           $ 71.3           $ 16.9
       reported ($ -
       billions)
       Foreign currency
       translation            0.2            0.6            0.7            0.1            1.6            0.1     
       impact (h) ($ -
       billions)
       Cross-border
       principal,
       constant currency     $ 17.7          $ 18.8          $ 18.3          $ 18.1          $ 72.9          $ 17.0    
       adjusted ($ -
       billions)
       Prior year
       cross-border
       principal, as         $ 17.1           $ 18.6           $ 19.0           $ 18.5           $ 73.2           $ 17.5
       reported ($ -
       billions)
       Cross-border
       principal change,       2       %       (2      )%       (7      )%       (3      )%       (3      )%       (3      )%
       as reported
       Cross-border
       principal change,       3       %       1       %       (4      )%       (2      )%       0       %       (3      )%
       constant currency
       adjusted
                                                                                                                  
                                                                                                                  
    Consumer-to-Business
    Segment
           Revenues, as
(f)        reported          $ 155.1          $ 149.4          $ 147.3          $ 152.1          $ 603.9          $ 153.7
           (GAAP)
           Foreign
           currency           2.9            3.5            4.2            4.9            15.5           5.9     
           translation
           impact (h)
           Revenues,
           constant          $ 158.0         $ 152.9         $ 151.5         $ 157.0         $ 619.4         $ 159.6   
           currency
           adjusted
           Prior year
           revenues, as      $ 153.2          $ 153.5          $ 155.3          $ 153.9          $ 615.9          $ 155.1
           reported
           (GAAP)
           Revenue
           change, as          1       %       (3      )%       (5      )%       (1      )%       (2      )%       (1      )%
           reported
           (GAAP)
           Revenue
           change,
           constant            3       %       0       %       (2      )%       2       %       1       %       3       %
           currency
           adjusted
                                                                                                                  
    Business Solutions
    Segment
           Revenues, as
(g)        reported          $ 86.9           $ 92.5           $ 95.4           $ 92.6           $ 367.4          $ 92.8
           (GAAP)
           Foreign
           currency           (0.1    )       0.9            0.6            (1.0    )       0.4            0.2     
           translation
           impact (h)
           Revenues,
           constant          $ 86.8          $ 93.4          $ 96.0          $ 91.6          $ 367.8         $ 93.0    
           currency
           adjusted
           Prior year
           revenues, as      $ 27.9           $ 31.4           $ 33.6           $ 68.2           $ 161.1          $ 86.9
           reported
           (GAAP)
           Pro forma
           prior year
           revenues,         $ 82.9           $ 91.1           $ 97.6           $ 93.1           $ 364.7            N/A
           TGBP adjusted
           (i)
           Revenue
           change, as        **               **               **               **               **                 7       %
           reported
           (GAAP)
           Revenue
           change,
           constant          **               **               **               **               **                 7       %
           currency
           adjusted
           Pro forma
           revenue             5       %        2       %       (2      )%       (1      )%       1       %       N/A
           change, TGBP
           adjusted
           Pro forma
           revenue
           change, TGBP        4       %        4       %       0       %       (2      )%       2       %       N/A
           and constant
           currency
           adjusted
                                                                                                                  
    2013 Outlook Metrics
           Operating
           income margin       20.0    %
           (GAAP)
           Depreciation
           and                4.5     %
           amortization
           impact
           EBITDA margin      24.5    %
           (j)
                                                                                                                  
           Operating
           cash flow         $ 900
           (GAAP)
           Payments on
           IRS Agreement      100     
           (k)
           Operating
           cash flow,        $ 1,000   
           IRS Agreement
           adjusted
                                                                                                                  

Non-GAAP related notes:
        Represents the impact from the fluctuation in exchange rates between
        all foreign currency denominated amounts and the United States dollar.
(h)   Constant currency results exclude any benefit or loss caused by
        foreign exchange fluctuations between foreign currencies and the
        United States dollar, net of foreign currency hedges, which would not
        have occurred if there had been a constant exchange rate.
        
        Represents the pro forma incremental impact of Travelex Global
        Business Payments ("TGBP") on Consolidated and Business Solutions
        segment revenues. Pro forma revenues presents the results of
        operations of the Company and its Business Solutions segment as they
        may have appeared had the acquisition of TGBP occurred as of January
(i)     1, 2011. The pro forma information is provided for illustrative
        purposes only and does not purport to present what the actual results
        of operations would have been had the acquisition actually occurred on
        the date indicated. The results of operations for TGBP have been
        included in Consolidated and Business Solutions segment revenues from
        November 7, 2011, the date of acquisition.
        
        Earnings before Interest, Taxes, Depreciation and Amortization
(j)     (EBITDA) results from taking operating income and adjusting for
        depreciation and amortization expenses.
        
        Represents the remaining tax payments of approximately $100 million
(k)     the Company expects to make due to the December 2011 agreement with
        the IRS resolving substantially all of the issues related to the
        restructuring of our international operations in 2003.
        
Other notes:
        
        Geographic split is determined based upon the region where the money
        transfer is initiated and the region where the money transfer is paid.
        For transactions originated and paid in different regions, the Company
        splits the transaction count and revenue between the two regions, with
(l)     each region receiving 50%. For money transfers initiated and paid in
        the same region, 100% of the revenue and transactions are attributed
        to that region. For money transfers initiated through the Company’s
        websites (“westernunion.com”), 100% of the revenue and transactions
        are attributed to that business.
        
(m)     Represents the Europe and the Commonwealth of Independent States
        ("CIS") region of our Consumer-to-Consumer segment.
        
(n)     Represents the North America region of our Consumer-to-Consumer
        segment, including the United States, Mexico, and Canada.
        
(o)     Represents the Middle East and Africa region of our
        Consumer-to-Consumer segment.
        
(p)     Represents the Asia Pacific ("APAC") region of our
        Consumer-to-Consumer segment, including India, China, and South Asia.
        
(q)     Represents the Latin America and the Caribbean ("LACA") region of our
        Consumer-to-Consumer segment.
        
        Represents transactions initiated on westernunion.com which are
(r)     primarily paid out at Western Union agent locations in the respective
        regions.
        
        Represents transactions between and within foreign countries
(s)     (including Canada and Mexico). Excludes all transactions originated in
        the United States.
        
(t)     Represents transactions originated in the United States, including
        intra-country transactions.
        
        Represents revenue generated from electronic channels, which include
(u)     westernunion.com, account based money transfer and mobile money
        transfer (included in the various segments).
        
        TGBP integration expense consists primarily of severance and other
        benefits, retention, direct and incremental expense consisting of
        facility relocation, consolidation and closures; IT systems
(v)     integration; amortization of a transitional trademark license; and
        other expenses such as training, travel and professional fees.
        Integration expense does not include costs related to the completion
        of the TGBP acquisition.
        
(w)     Represents revenue from prepaid services. This revenue is included
        within Other.
        
        Marketing expense includes advertising, events, costs to administer
(x)     loyalty programs, and the cost of employees dedicated to marketing
        activities.

WU-F, WU-G

Contact:

Western Union
Media
Dan Diaz, 720-332-5564
daniel.diaz@westernunion.com
or
Investors
Mike Salop, 720-332-8276
mike.salop@westernunion.com