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MoneyGram's CEO Discusses Q3 2011 Results - Earnings Call Transcript

Revenue in the US to US business accelerated above last quarter’s growth. As we stated previously in the fourth quarter, we will finally lap a $5 for $50 pricing which was implemented last year in 2010.

Our US agent base continues to grow. This week, we were excited to launch our service with QC Holdings in Kansas City. QC will offer MoneyGram money transfer bill payments and money orders in more than 300 locations, and through them we extend our presence with a leading pay-day lender.

Our US outbound business also had another solid quarter, reporting transaction growth of 9%, which was driven by sends to Mexico, where again accelerated our growth to report 13% growth. We are really pleased with especially since the corresponding revenue growth was also double-digit. This is the eighth consecutive quarter of accelerated growth in US to Mexico transactions. In Mexico, we recently signed an agreement with De Banco. This addition provides improved covered in and around Mexico City and many resorts import areas. We continued to improve our network in Mexico which we believe has much to do with our outside market gains we’ve been reporting there.

Sends from the US to other areas in Latin America such as El Salvador, Guatemala and Honduras remain strong. In Latin America, we previously announce the signing of several agreements and are please to share we will be launching next week our service with Banco de Credito in 350 locations.

Intra LAC sends are growing, as migrant consumers seeking work make alternative choices to traditional quarter patterns. US send transactions to non-Latin America markets help to round out a very solid quarter. Transactions sends to Philippines, Ghana, Romania, India, Russia and China among others all delivered very good transaction growth in the third quarter.

Now send transactions originating out of the US remain very healthy, delivering our eighth consecutive quarter of double-digit transaction growth and this despite a weak global economy. Whether it’s been political turmoil in the Middle East and North Africa, or economic and employment challenges across parts of Europe, our team at MoneyGram has navigated these situations well. Our customers have shown incredible resilience, and our business continues to grow at exceptional rate during the tough times. We think we’ve been focusing on the right corridors for growth.

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