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Western Union Falls Most Ever After Forecast Cut: Denver Mover

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Oct. 31 (Bloomberg) -- Western Union Co., the world’s biggest money-transfer business, plunged the most since its 2006 spinoff from First Data Corp. after cutting its full-year profit forecast for 2013.

Western Union dropped 29 percent to $12.73 today in New York and has declined 30 percent this year, compared with a 12 percent gain for the Standard & Poor’s 500 Index.

Operating income could fall 10 percent to 15 percent next year from 2012 levels as a result of initiatives geared toward adding customers, investing in digital technology and cutting costs, the Englewood, Colorado-based company said yesterday in a statement. Third-quarter net income, excluding integration expenses, was 46 cents per share, 1 cent higher than the average estimate of 28 analysts surveyed by Bloomberg.

“Our sharply lower 2013 and 2014 revenue and earnings-per-share estimates reflect management’s decision to reduce price in key corridors in an effort to regain share,” Andrew Jeffrey, an analyst at SunTrust Banks Inc., said today in a note as he downgraded Western Union to neutral from buy. “Some competitive pressure is coming from new entrants, while much is likely from traditional participants.”

To contact the reporter on this story: Laura Marcinek in New York at lmarcinek3@bloomberg.net

To contact the editor responsible for this story: David Scheer at dscheer@bloomberg.net

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