MoneyGram may have turned the corner following the loss of the Walmart account as U.S.-to-U.S. transactions declined 37% in Q1, compared to a 40% decline in the fourth quarter. MoneyGram says lower pricing and self-service products in December was the primary driver.
First quarter gross revenues for the Money Transfer business were $286.8 million, compared to $305.7 million in the prior quarter and $326.1 million in the year ago quarter.This represented a decline in revenue of 12% on a reported basis and a 7% decline on a constant currency basis as compared to the prior year.
MoneyGram also announced it has renewed its agreement with TransNetwork to continue offering services at Soriana and Grupo Famsa retail locations in Mexico. The agreement enables consumers to send and receive funds at an estimated 1,200 stores across Mexico.
In regard to the latest earnings MoneyGram says the resilience of its U.S. Outbound and Non-U.S. sends along with our investments in emerging markets and innovative new technologies are successfully positioning MoneyGram for a return to double-digit growth in the fourth quarter.
Excluding U.S.-to-U.S. transactions originated at Walmart, money transfer transactions increased 13% and constant currency revenue growth was 6%. U.S. Outbound transactions grew 15% year-over-year, the 14th consecutive quarter of double-digit growth. Significant increases in sends to Latin America and Africa led to strong results. U.S.-to-Mexico transactions grew 12% and MoneyGram continued to gain share in this important corridor.
Non-U.S. send transactions grew 14%, accelerating from 12% year-over-year growth in the fourth quarter of 2014 led by sends from the Middle East and Western Europe. U.S. Outbound and Non-U.S. sends now represent 86% of money transfer revenue and grew 10% on a constant currency basis in the quarter.
For the full-year 2015, the Company estimates constant currency revenue growth to be approximately flat.
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