MoneyGram (NASDAQ:MGI), a leading global money transfer and payment services company, today reported financial results for its first quarter ended March 31, 2014.
- Total revenue was $374.9 million, an increase over the prior year of 10 percent on a reported basis and 9 percent in constant currency.
- Money transfer revenue increased to $326.1 million, representing growth of 11 percent over the prior year on a reported basis and 10 percent in constant currency.
- Money transfer transactions increased 12 percent over the prior year, led by:
- 18 percent growth in U.S. outbound sends, including 31 percent growth in U.S. to Mexico
- 11 percent growth in sends originated outside of the U.S.
- 7 percent growth in U.S.-to-U.S. sends.
- Global agent locations increased 6 percent over the prior year to 339,000.
- Self-service money transfer revenue grew 35 percent in the quarter and represented 7 percent of money transfer revenue.
- MoneyGram Online money transfer and bill payment transaction volume increased 36 percent and revenue was up 26 percent over the prior year.
- The Company reported EBITDA of $61.9 million, and pre-tax income of $27.3 million which were impacted by:
- $7.1 million of expenses related to the compliance enhancement program
- $3.5 million of stock-based and contingent performance compensation expense
- $3.1 million of expenses related to reorganization and restructuring costs
- $1.1 million of expenses related to capital transaction costs
- $0.8 million of expenses related to direct monitor costs
- $0.4 million of legal expenses related to certain matters.
- Adjusted EBITDA for the first quarter was $77.9 million, up 8 percent on a reported basis and 6 percent on a constant currency basis. In the quarter, adjusted EBITDA margin was 20.8 percent, down from 21.2 percent in the prior year.
- Diluted earnings per common share was $0.54. Adjusted diluted earnings per share was $0.37.
- Adjusted free cash flow for the quarter was $46.7 million, up 42 percent from $32.8 million in the prior year.
“We had another great quarter, posting our twelfth consecutive quarter of double-digit money transfer constant currency revenue growth and 42 percent growth in adjusted free cash flow. Money transfer transaction growth was impressive at 12% as U.S. outbound transactions continued their rapid pace and sends outside of the U.S. growth accelerated sequentially. I am also proud of the consistently robust self-service business with 54% transaction growth and 35% revenue growth in the quarter,” said Pamela H. Patsley, MoneyGram’s Chairman and CEO. “We are executing extremely well in a dynamic industry, building relevant products with a strong brand that is trusted by agents and consumers around the world. We remain focused on our long term goal of $2 billion in annual revenue in 2017, with 15 to 20 percent of money transfer revenue generated from self-service products."
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