Western Union Earnings Fall 16 Percent

Net income fell to $216.3 million, or 28 cents per share, from $258.1 million, or 34 cents per share, during the same quarter a year ago.

Western Union incurred a compensation-related expense of $22 million, or 2 cents per share. Certain stock options and awards granted to current Western Union employees prior to the spinoff from First Data vested when that company was acquired by a private equity group last month.

Analysts polled by Thomson Financial, on average, forecast earnings of 28 cents per share on revenue of $1.25 billion in the quarter. Analysts do not always include one-time charges in their earnings estimates.

Western Union's total revenue increased 10 percent year-over-year to $1.26 billion.

Western Union was spun off from First Data last year. In addition to the extra compensation costs, Western Union's interest expense has increased due to the spinoff, further crimping net income.

Earnings were also hurt as the costs of providing services increased 15 percent to $722.2 million, from $626 million.