Moneygram International Incorporated (MGI)

[FollowMyNIL]

Food for thought, https://finance.yahoo.com/news/edited-transcript-wu-earnings-conference-071931688.html


The next question comes from Darrin Peller of Wolfe Research.

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Darrin David Peller, Wolfe Research, LLC - MD & Senior Analyst [18]

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Can you hear me okay?

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Rajesh K. Agrawal, The Western Union Company - CFO [19]

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Yes. Yes.

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Darrin David Peller, Wolfe Research, LLC - MD & Senior Analyst [20]

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Great. When we look through 2020 and into '21, the competitive dynamics in the landscape is probably going to shift a lot. And so you, hopefully, will be doing a lot more digital, and that's good for growth. We'll see how it plays out on revenue yields and margins, but positions you well. I think there's also potentially maybe more competition on digital than retail, but there may be some very large retail competitors who may not exist or could be challenged through this given liquidity positions that they have versus you guys. Can you touch on your positioning to maybe take share through this from a competitive standpoint versus, especially, on the retail side?

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Hikmet Ersek, The Western Union Company - President, CEO & Director [21]

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Sure. Let me take that, Raj. As you know, we are both in home offices. So we have to coordinate that answer side. Look, Darrin, I think that, first of all, on the digital success, that's going to continue to happen, I believe especially the combination of our digital network globally and the efforts we put behind that on our payout network and also in real-time payout, that's huge. And we believe we are gaining market share here. I think even though we have a huge base here, we are gaining market share compared with competitors. I think some of the competition on the retail money transfer, we are always looking at the environment. As you know, our capital allocation has not changed. We're going to continue to invest in our business.

We also look at for if there are any synergies or bigger acquisition opportunities, we will definitely look if it fits with our strategy and if it has a good return. The environment is definitely something we continue to look at that. And -- but also we -- most important thing also that we're going to return share -- return cash back to our shareholders via dividend. So this will continue to happen. And if there is any opportunity that fits in with our strategy, is it in digital side or in the retail side, we will look at it, definitely.

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Rajesh K. Agrawal, The Western Union Company - CFO [22]

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And Darrin, the other thing on the digital side is that the thing that other competitors don't have as much as we do is a great retail network, which, when you combine that with our digital capabilities, it really is a unique offering. And even in this environment, the retail payout capability is highly sought after and -- but then we're also expanding into the other digital account payouts. So it's different from the rest of the competition.