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Western Union Q3 2009 Earnings Call Transcript
Author: 123jump.com Staff
123jump.com
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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Okay. As far as mobile goes, given further developments in Kenya, are you getting any better feel for what the economic model for the mobile business is going to look like?

Christina A. Gold

What we''re seeing right now is a little bit higher average send, it''s at about $74, I think, when we talked to you a few months back it was in the $50s, so we''re seeing that. In terms of margins, they are -- it is margin supportive, I think, we are learning a lot about mobile. We don’t have the definitive answer because there are very few markets we can send to.

The other thing is really, one other things that we''re seeing is particularly as we look at our UAE, Singapore and some of the other markets to the Philippines, is how do you get customers acceptance of using that method of distribution or that channel also send money because there''s still a very strong preference to the cash.

So I think that these are things we''re learning but its margin supportive. But over the long-term, I think we feel very good about the metrics but it''s still early days yet as we learn about this industry.

Robert Napoli - Piper Jaffray

Thank you. And last question, just on the prepaid business. Are you anticipating rolling like a cash reloadable card out into the retail market and compete with other brands out there like a Green Dot or NetSpend or a Blackhawk?

Christina A. Gold

Yeah. Well, we''re looking at all kinds of alternatives in terms of prepaid and I think one of the things right now is we''re trying to maximize on the 8 million Gold card consumers that are in our network to see what the advantages of us being able to move them on to a prepaid and get the positive in terms of the positive margin dynamics in that group. But we will look at all different opportunities as we expand our prepaid offerings.

Robert Napoli - Piper Jaffray

Thank you.

Christina A. Gold

Thank you.

Mike Salop

Operator, it''s almost the bottom of the hour, so we''ll take one more question.

Operator

Thank you. Our final question will come from the line of Darrin Peller with Barclays Capital. Please proceed.

Darrin Peller - Barclays Capital

Thanks, guys. Real quickly. Can you just give us some idea for transaction trends within some of your key corridors throughout quarter maybe focus on September versus the rest of the quarter?

Christina A. Gold
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