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TheStreet Open House

MoneyGram International Reports Second Quarter 2013 Financial Results

Stocks in this article: MGI

MoneyGram International, Inc. (NASDAQ:MGI), a leading global payment services company, reported financial results for the second quarter, which ended June 30, 2013. Total revenue of $365.1 million increased 11 percent on both a reported and constant currency basis.

  • Money transfer revenue increased 13 percent over the prior year on both a reported and constant currency basis.
  • Money transfer transaction volume increased 14 percent over the prior year, led by:
    • 19 percent growth in U.S. outbound sends on the strength of U.S.-to-Mexico corridor
    • 16 percent growth in sends originated outside of the U.S.
    • 8 percent growth in U.S.-to-U.S. transactions.
  • Global agent locations increased 15 percent over the prior year to 327,000.
  • Self-service and new channel money transfer revenue grew 24 percent in the quarter, representing 6 percent of money transfer revenue.
  • MoneyGram Online money transfer and bill payment transaction volume was up 51 percent and revenue increased 15 percent over the prior year.
  • The Company reported EBITDA of $64.7 million, which was impacted by:
    • $3.3 million of stock-based and contingent performance compensation
    • $1.5 million of severance and related costs
    • $0.8 million of legal expenses related to certain ongoing matters.
  • Adjusted EBITDA for the second quarter was $70.3 million, up 3 percent on a reported and constant currency basis. In the quarter, adjusted EBITDA margin was 19.3 percent, down from 20.7 percent compared to the same period last year due to an increase in commission expense and compliance costs.
  • Diluted income per common share was $0.27, including a negative $0.03 per share impact from stock-based and contingent performance compensation, a negative $0.01 per share impact from severance and related costs and a negative $0.01 per share impact from legal expenses related to certain ongoing matters.

"We delivered a great quarter as we once again achieved double-digit growth in money transfer transaction volume and constant currency revenue from the momentum of agent activation, brand awareness and continued product innovation. Our growth outpaced the market and we posted our strongest US outbound transaction growth in more than five years,” said Pamela H. Patsley, chairman and chief executive officer. “With our strong free cash flow generation, we continue to make investments in IT, compliance and products that enhance our operations and provide increased convenience and service to our customers. These investments not only enhance our competitive service offering but also serve to strategically position MoneyGram for the future.”

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