The Western Union Company (NYSE:WU) Q4 2014 Earnings Conference Call - Final Transcript
Feb 10, 2015 • 04:30 pm ET
Good afternoon and welcome to the Western Union Fourth Quarter 2014 Earnings Conference Call. All participants will be in a listen-only mode. [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference over to Mike Salop, Senior Vice President of Investor Relations. Please go ahead.
Thank you and good afternoon everyone. On today's call Hikmet Ersek, Western Union's President and Chief Executive Officer, and Raj Agrawal, Executive Vice President and Chief Financial Officer, will discuss the Company's 2014 fourth quarter and full year results and outlook for 2015. And then we will take your questions. The Slides that accompany this call and webcast can be found at westernunion.com under the Investor Relations tab and will remain available after the call. Additional operational statistics have been provided in supplemental tables with our press release.
Today's call is being recorded and our comments include forward-looking statements. Please refer to the cautionary language in the earnings release and in Western Union's filings with the Securities and Exchange Commission including the 2013 Form 10-K for additional information concerning factors that could cause actual results to differ materially from the forward-looking statements. During the call, we will discuss some items that do not conform to Generally Accepted Accounting Principles. We have reconciled those items to the most comparable GAAP measures on our website, westernunion.com, under the Investor Relations section. All statements made by Western Union officers on this call are the property of The Western Union Company and subject to copyright protection. Other than the replay noted in our press release, Western Union has not authorized and disclaims responsibility for any recording, replay or distribution of any transcription of this call. I would now like to turn the call over to Hikmet Ersek.
Thank you, Mike and good afternoon everyone. Overall I am pleased with our 2014 results, especially with profitability earnings and earnings per share which exceed our expectations. In consumer money transfer revenues increased 3% in constant currency term as the actions we implemented in late 2012 and early 2013 helped return this business to positive revenue growth. Online again led the way with westernunion.com consumer money transfer revenues increasing 28% for the year. Western Union Business Solutions revenue increased 4% in constant currency in 2014.
The business experienced good improvement in the fourth quarter after being negatively impacted in the middle of the year by a lack of foreign exchange volatility. And the consumer bill payment business produced strong constant currency growth with US electronic bill pay again posting solid results. While we continue to make investments in our compliance capabilities across the businesses. We were able to deliver operating profit -- operating margin improvement in 2014. Efficiency initiative helped us increase the profit margin and earnings per share for the year increased 11% to $1.59. Our business also continued to generate great cash flow, with approximately a $1 billion from operating activities in 2014 and we remain committed to return significant free cash flow to