Western union, one of the biggest digital platforms for the money movement worldwide, is likely to utilize opportunities arising from the coronavirus crisis to buy weaker competitors, according to its leader.

I'm quite energetic in the m&a front side, hikmet ersek said in a job interview. our budget is more preferable than just about any competitors. we have an excellent cashflow place also through covid-19, many rivals battle.

Second-quarter profits circulated last week revealed denver, colorado-based western union had $1.2bn of money on its balance sheet at the end of june. pre-tax profits for the quarter came in at $193m, down 74 percent 12 months on 12 months. it was partially as a result of the coronavirus crisis as well as because the second quarter of 2019 included a large gain on a secured asset sale.

Mr ersek declined to touch upon june reports of a potential quote by western union for rival moneygram but said any future deals would have to provide cost synergies and match its electronic method.

Building web resources to contend with electronic players such revolut and remitly assisted west union to contain its second-quarter revenue autumn to 17 per cent, even while the pandemic drove men and women far from its actual internet sites in post offices, stores and company centres around the world and struck migrants earnings.

The marketplace happens to be extremely diverse, within the last four to five many years, there are plenty fintech companies, said mr ersek, that is temporarily operating the organization from their native austria. in past times, everyone discussed western union and moneygram [merging], now people mention western union as well as others.

Western union presently has 12 percent to 13 % share of the market of the $600bn-a-year international remittances marketplace. when we acquire another competitor, possibly we are 13 per cent, 14 %. we dont believe its issue of [an purchase] becoming huge.

The companys market price is all about $9.6bn, while moneygrams is about $220m.

Global dealmaking dropped to its most affordable level in a decade in the first 50 % of the entire year, amid uncertainty towards fallout from pandemic. in present months bankers have reported resurgent interest among consumers to check out deals, even while the number of instances of covid-19 continues to surge in countries including the us.

Mr ersek, having run west union for ten years, said he would perhaps not wait for a vaccine to follow acquisitions. it takes some time until we have a vaccine, i do believe the individuals are going to live with it, he said.

The world bank predicts that global remittances market will shrink by 20 per cent this season, the sharpest fall in recent record, as migrants with falling wages deliver less overall residence. within the longer term, mr ersek argues that migration wont stop whilst the pandemic curtails worldwide travel.

Showing too little presence for months ahead, western unions leader informed investors last week however give no guidance the companys performance throughout the sleep of 2020. im however unsure if you have an extra trend coming, a third revolution coming, he stated. thats the big question.