MoneyGram International Reports Second Quarter 2016 Financial Results

7/31/16

MoneyGram (NASDAQ: MGI) reported financial results for its second quarter ended June 30, 2016.

Second Quarter Financial Results

  • Total revenue for the quarter was $383.7 million, an increase of 7% on a reported and constant currency basis.
  • Net income for the quarter was $3.1 million, an increase of $15.5 million, and EBITDA was $50.1 million, an increase of $34.1 million.
  • Operating income for the quarter was $16.2 million, an increase of $31.9 million.
  • Adjusted EBITDA for the quarter was $61.2 million, an increase of 6% on a reported basis and 7% on a constant currency basis. Adjusted EBITDA margin was 16.0%.
  • Diluted earnings per share for the quarter was $0.05. Adjusted diluted earnings per share was $0.15.
  • Year-to-date Adjusted Free Cash Flow was $52.8 million.

"MoneyGram performed well in the second quarter with solid improvements to key financial metrics as the global nature of our business enabled us to deliver bottom-line growth within our expectations," said Alex Holmes, MoneyGram's chief executive officer. "Economic and geopolitical issues in certain countries accelerated during the quarter and impacted our top-line performance. As a result, we now expect constant currency revenue growth of 7% to 9%, which primarily reflects the ongoing impact of slower growth in these countries. We remain focused on disciplined expense management while continuing to capitalize on profitable growth and expansion initiatives. Therefore we are maintaining our outlook for constant currency adjusted EBITDA growth of 9% to 11%. Importantly, our team is hard at work implementing technologies that, combined with our global network, will differentiate the MoneyGram brand. We are energized to gain market share through delivering a superior customer experience."

Second Quarter Money Transfer Highlights

  • Money transfer revenue for the quarter was $341.5 million, representing an 8% increase on a reported and constant currency basis.
  • Money transfer revenue growth reflects the continued strength in the Company's Non-U.S. and U.S. Outbound sends in the second quarter:
    • Non-U.S. revenue grew 11% on a reported basis and 12% on a constant currency basis led byWestern Europe and Africa.
    • U.S. Outbound revenue grew 10% on a reported and constant currency basis led by sends to Latin America and Africa.
    • U.S. to U.S. revenue declined 5% on a reported and constant currency basis primarily due to lower volume of transactions under $200.
  • Money transfer revenue from U.S. Outbound and Non-U.S. sends grew 11% in the quarter on a reported and constant currency basis and accounted for 88% of total money transfer revenue.
  • Digital money transfer revenue grew 17% over the prior year, and represented 13% of total money transfer revenue.
  • Digital money transfer transactions increased 9%, and represented 15% of total money transfer transactions.
  • moneygram.com attracted more than 214,000 new active customers.

Full Year 2016 Outlook

For the full year 2016, the Company now expects 7%-9% constant currency revenue growth. The Company's outlook for constant currency adjusted EBITDA growth of 9%-11% is unchanged.

About MoneyGram International, Inc.

MoneyGram is a global provider of innovative money transfer and payment services and is recognized worldwide as a financial connection to friends and family. Whether online, or through a mobile device, at a kiosk or in a local store, we connect consumers any way that is convenient for them. We also provide bill payment services, issue money orders and process official checks in select markets. More information about MoneyGram International, Inc. is available at moneygram.com.