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MoneyGram International Inc. Reports Operating Results (10-Q)
Posted by: gurufocus (IP Logged)
Date: August 9, 2012 03:29PM

MoneyGram International Inc. (MGI) filed Quarterly Report for the period ended 2012-06-30. Moneygram International Inc has a market cap of $930.6 million; its shares were traded at around $16.25 with a P/E ratio of 14.8 and P/S ratio of 0.8.



Highlight of Business Operations:

Fee and Other Revenue — For the three and six months ended June 30, 2012, fee and other revenue growth of $22.6 million and $47.5 million, respectively, was primarily driven by money transfer transaction volume growth, partially offset by a lower euro exchange rate and lower foreign exchange revenue, changes in corridor mix and lower average face value per transaction. Bill payment products primarily saw revenue declines from lower average fees per transaction while money order and official check fee and other revenue decreased due to volume declines. See the “Segment Performance” section for more detailed discussion.

Net investment revenue and margin — As a result of the factors discussed above, net investment revenue decreased $2.4 million, or 42 percent, for the three months ended June 30, 2012, while the net investment margin decreased 0.28 percentage points. For the six months ended June 30, 2012, net investment revenue decreased $3.2 million, or 33 percent, while the net investment margin decreased 0.17 percentage points.

For the three months ended June 30, 2012, EBITDA decreased $50.3 million, or 70 percent, to $21.9 from $72.2 million primarily due to the significant items impacting EBITDA in the table herein. Adjusted EBITDA for the three months ended June 30, 2012 increased $4.3 million, or seven percent, to $68.5 million from $64.2 million, primarily due to money transfer growth, partially offset by the declining euro and lower investment revenue.

For the six months ended June 30, 2012, EBITDA decreased $46.7 million, or 38 percent, to $76.8 from $123.5 million. Adjusted EBITDA for the three months ended June 30, 2012 increased $12.3 million, or 10 percent, to $136.8 million from $124.5 million, primarily due to money transfer growth, partially offset by the declining euro, lower investment revenue, the timing of marketing spend and other investment initiatives.

Global Funds Transfer revenue — Total revenue in the Global Funds Transfer segment consists primarily of fees on money transfers and bill payment transactions. For the three and six months ended June 30, 2012, Global Funds Transfer total revenue increased $24.4 million and $50.8 million, respectively, driven by money transfer volume growth, partially offset by a decline in bill payment revenue. Bill payment fee and other revenue for the three months ended June 30, 2012 decreased $1.5 million due to $1.7 million of lower average fees per transaction, partially offset by volume increases of $0.2 million. For the six months ended June 30, 2012, bill payment fee and other revenue decreased $4.0 million due to lower average fees per transaction of $3.4 million and lower volumes of $0.6 million. Bill Payment revenue from divested businesses was $1.6 million and $3.2 million, respectively, for the three and six months ended June 30, 2011.

Read the The complete Report



Stocks Discussed: MGI,
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