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Western Union Q3 2009 Earnings Call Transcript
Author: 123jump.com Staff
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Last Update: 3:20 AM ET October 30 2009

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The Western Union Company third quarter revenues fell 5% to $1.31 billion and net income fell 25% to $181 million or 26 cents a share.


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For the Mexico business, I think we''re looking at it in terms of, I think, the real issue for that will be a lot related to the U.S. economy and the level of unemployment. We do feel that that''s a key indicator that is impacting that business.

Tien-Tsin Huang - J.P. Morgan

Okay. Last one from me, Scott, maybe just a housekeeping question. How big was the integration and acquisition expense of Custom House in the third quarter?

Scott T. Scheirman

You know, the loss for Custom House was about $5 million in the quarter on $8 million of revenue and the majority of the $5 million loss was related to both integration cost but also deal cost as you pay attorneys and accountants and so forth to close the deal.

Tien-Tsin Huang - J.P. Morgan

All right. So that should ease or improve as we exit the year, correct?

Scott T. Scheirman

Yeah. It should ease, one of the opportunities we see with Custom House in the B2B space and we used the word game changer before, last quarter when we announced it but we believe there''s opportunities to invest behind that business to grow it. And to put it in context, we think the B2B space, the size of that revenue market is equal to or greater than the size of C2C revenue market and we''ve grown that to over a $4 billion business 17% share. So we think Custom House is a good investment opportunity for us to drive investment behind as we moved forward.

Tien-Tsin Huang - J.P. Morgan

Okay. Thank you.

Scott T. Scheirman

Thanks, Tien-Tsin.

Christina A. Gold

Thanks.

Operator

And our next question will come from the line of James Kissane with Banc of America/Merrill Lynch. Please proceed.

James Kissane - Banc of America/Merrill Lynch

Thanks. Scott, you mentioned that a $100 million of CapEx this year, is that the number we should be thinking about long-term, is that the normalized level?

Scott T. Scheirman
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