Chris Zeng's questions to Western Union Co (WU) leadership • Q4 2024
Question
Chris Zeng of UBS inquired about Western Union's long-term investment needs and priorities beyond 2025, and how future investments would be funded after the current $150 million expense redeployment program concludes.
Answer
CFO Matt Hagan assured that the company has ample capacity for investment and sees continued opportunities for cost optimization beyond the current program. CEO Devin McGranahan added that ongoing operational efficiency gains will continue to provide funds for reinvestment. Crucially, he highlighted that the final deferred tax payment related to the Tax Act in April 2025 will significantly free up cash flow, enhancing the company's ability to return capital to shareholders and/or pursue inorganic growth opportunities.