Western Union Reports Decline in Earnings Due to Spin-Off

DENVER – Western Union, the world’s largest money transmitter spun off last year from First data Corp., said yesterday that net income for its fourth quarter declined by 7%, to $217.2 million, or 28 cents a share, mostly because of higher corporate overhead and interest costs related to the September spin-off. The company reported an increase of $9 million in fourth quarter expenses due to the spin-off. Still, the payments giant, which operates at more than 300,000 agents around the world, reported a 10% rise in revenues, to $1.17 billion for the fourth quarter. For the full year, revenues grew 12% to $4.47 billion, while net income declined 1% to $914 million, or $1.21 a share, from 2005. Financial results include those for Vigo International, the money transfer company that provides low-cost remittances for the World Council of CUs which Western Union acquired last year.