David Togut: I appreciate the call-out on Europe and CIS, which you’ve talked about previously, the loss of some large European agents besides the, say, Russia and Belarus headwinds. If we strip those out and think about Europe and CIS on a go-forward basis, perhaps normalize in mid-2023, early 2024, what does the transaction and revenue dynamics look like in such a large international region for you? You’re the largest really outside of the U.S.
Devin McGranahan: So let me start, David, great to have you on the call. Thank you. And I’ll let Matt pick up. We have a varying landscape in Europe. And so if you look at a country like Spain, we have a very strong performance there. Mainly because of the corridors out of Spain go to loco where we have strong market and strong brand. If you look at Central Europe to Africa that’s been under pressure from competitive forces and for migratory results almost the entire year. So on a kind of country by country and quarter-by-quarter basis, we have a high degree of variability in Europe. If you strip out the impact of Russia, Belarus, and eventually impact of losing those 2 large agents, I believe we’re approaching kind of flattish overall transaction trajectories.
As Matt said, the back half of the year strength and growth of transactions and the beginning of the growth in returning to revenue neutrality, given the size and the competitive nature of the region. But again, it’s highly variable by country and by corridor segment. I don’t know if you want to
Matthew Cagwin: Just to build on what Devin has talked about. I mean, I think you can get these numbers out there. But our overall transaction growth, including Russia, Belarus, is down 31% this quarter. That’s an improvement of 1% versus last quarter, and it’s a couple of hundred basis point improvement from the first half of the year. When you strip out Russia, Belarus, it actually got worse by about 100 basis points quarter-over-quarter, but that’s because we lost an agent and about half of our decline this quarter was due to losing the agent. That’s how you can think about the core business itself, is it starting to trend towards the right direction, making pretty meaningful improvement in the first half with the headwind we have on the lost agent here in Q4.
David Togut: And just as a follow-up, when do you fully anniversary the loss of the second European agent?
Devin McGranahan: The second agent is in the middle of next year.
Devin McGranahan: Yes, the anniversary of it is in the middle of ’24. The agent loss isn’t going to happen until middle of this year, sometime.
Operator: Our next question comes to us from Ramsey El-Assal from Barclays. Please ask your question.
Ramsey El-Assal: I wanted to ask you about the owned concept retail locations and just whether we should sort of think of your efforts there as the beginning of a longer-term shift to a more direct distribution model. I guess the question is sort of when you look out 5 years or so, should we expect there to be a great deal more direct distribution at some point, maybe even the majority of the distribution?
