Previous Statements by MGI
» MoneyGram International, Inc. Q1 2010 Earnings Call Transcript
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» MoneyGram International Q3 2009 Earnings Call Transcript
Additionally, I like to note that today's remarks includes certain non-GAAP financial measures including a presentation of EBITDA and adjusted EBITDA. Our earnings release include a full reconciliation of these non-GAAP financial measures to the related GAAP financial measures. And with that, I’ll turn the call over to Pam.Pam Patsley Great. Thanks, Alex. Good morning, everyone. I want to start with a very warm welcome for Jim Shield, our new CFO. Jim joined us a few weeks ago and brings to MoneyGram strategic business leadership and a global perspective gained from his years of experience leading finance functions at some of the world's most successful and regulated brand’s name companies, such as Celanese, Coopers and Lybrand, Qwest and Royal Caribbean. Jim’s robust background also includes extensive experience taking company's public and leading them through financial and operational restructuring, all very relevant for us. Jim is a great addition to the MoneyGram team and I know he's looking forward to meeting all of you over the next weeks and month. As we visit today, seven months ended 2010, I believe we have made steady progress in repositioning the company, where there are challenges broadly from the global economy and specifically new competitive pricing initiatives in the U.S. business, we are focused on the right issues and continue to make the right decisions for long-term growth and value creation. We continue to see positive signs in the global remittance space and we like our competitive position in an industry that still offers tremendous growth potential in our cash-to-cash money transfer business, but also through emerging products. In the quarter, we achieved 7% transaction growth, a slight improvement from the first quarter. Constant currency revenue growth was 3%. The primary difference between transaction and revenue growth is related to the introduction of the $50 price brand. This had a disproportionate effect on our revenue as today about two third of our money transfer transaction originate in the U.S. I see this as a number that confirms our opportunity for future growth.
While we will continue to perform well in the U.S., we want to outgrow if you will, this 65%, 68% number through significant growth in sense originating outside the U.S. This quarter, I'm happy to say that in those markets outside of the U.S., transaction growth was 12% or 16% without pay. And we're very pleased with the associated revenue growth we saw with these results.Europe, particularly France, Italy, Germany and U.K., all delivered good growth in the quarter. Saudi Arabia has exceeded our expectations with triple digit transaction growth and collectively, Latin America outbound has been growing in the high teens. Globally, we are focused on growth in our Western Europe, Russia, Middle East and U.S. outbound market and we're making good progress. In Europe, for example, through PSD, we have many agents in the pipeline and we have already signed and launched SRDMP and its partner by media, a value add services provider for tobacco in news retailers throughout France. This is one of our first large new PSD network signings. And we expect this new network to enable MoneyGram Money Transfer services at more than 2500 tobacco shops across the country. This signing will greatly enhance our coverage throughout France and we look forward to implementing and promoting this new agent. In Russia, we recently signed Sberbank and we're excited to begin the roll out of 7000 locations and ultimately their full network of 10,000 agent locations across the country, this all starting in the fourth quarter. While MoneyGram has an established presence in the commonwealth of independent states or CIS, we have not yet fully tapped into that potential that Russia, the third largest send country in the world can offer our business. Read the rest of this transcript for free on seekingalpha.com