(RTTNews) -  Money transfer and bill payment services provider Western Union Co. (WU: News ) on Tuesday reported a 25% decline in profit for the third quarter from last year on lower revenues and a charge related to an anticipatory regulatory settlement. Excluding items, earnings per share for the quarter beat analysts' consensus estimate by a penny. For fiscal 2009, Western Union narrowed its earnings and revenue outlook to the higher end of the prior expectations, excluding the impact of the settlement accrual.

Third Quarter Results

The Englewood, Colorado-based company reported net income for the third quarter of $181 million, or $0.26 per share, down from $240.8 million, or $0.33 per share, in the year-ago period.

During the quarter, the company recorded a pre-tax accrual of $71 million related to an anticipated regulatory settlement that includes resolution of all outstanding legal issues and claims with the state of Arizona, as well as a multi-state agreement to fund a not-for-profit organization.

Excluding the regulatory settlement accrual, adjusted net income for the latest quarter was $234.9 million, or $0.33 per share. On average, twenty four analysts polled by Thomson Reuters expected the company to report earnings of $0.32 per share for the quarter. Analysts' estimates typically exclude special items.

Western Union's global consolidated revenues for the quarter decreased 5% to $1.31 billion from $1.38 billion in the same quarter last year, but topped analysts' consensus revenue estimate of $1.28 billion. Revenues were down 2% from last year on a constant currency basis.

Transaction fees for the quarter totaled $1.04 billion, down 5% from $1.10 billion in the prior-year quarter. Foreign exchange revenue was $237.6 million, down slightly from $238.7 million in the year-ago period. Commission and other revenues declined 9% to $36.5 million from $40.1 million a year ago.
Commenting on the results, Christina Gold, president and chief executive officer of Western Union said, "We were pleased to see consistency in transaction and revenue trends relative to the prior quarter. Our geographically diverse portfolio delivered 3% growth in consumer-to-consumer transactions, as strength in key international markets offset softness in other countries. We also achieved our 2009 goal of surpassing 400,000 agent locations."

Peer Performance

Among Western Union's peers, New York-based American Express Co. (AXP: News ) is scheduled to announce financial results for the third quarter on October 22, 2009. Analysts expect the company to report earnings of $0.37 per share for the quarter on revenues of $5.90 billion.

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