Dallas-based MoneyGram continues to turn the corner following the loss of the Walmart account last year, as U.S.-to-U.S. transactions declined 2% in 3Q/15, compared to a 40% decline in 4Q/14.
MoneyGram says lower pricing and self-service products are the primary drivers.
Third quarter gross revenues for the Money Transfer business were $326.6 million, compared $314.3 million in the year ago quarter. This represented an increase in revenue of 3.8% on a reported basis and a 9% increase on a constant currency basis as compared to the prior year.
Money transfer revenue from U.S. Outbound and Non-U.S. sends grew 15% on a constant currency basis in the quarter and accounted for 87% of total money transfer revenue.
Self-service money transfer transactions increased 71%, and represented 15% of total money transfer transactions. Self-service money transfer revenue grew 67% over the prior year, and represented 12% of money transfer revenue. Annualizing the third quarter, self-service solutions generate over $160 million of revenue.
moneygram.com attracted more than 230,000 new active customers, a new quarterly record.
Total revenue for the third quarter was $368.6 million, an increase of 8% on a constant currency basis and 3% on a reported basis.
Net income (after tax) for the quarter was $4.9 million, compared to a $3.0 million loss in 3Q/14.
MONEY TRANSFER REVENUES
3Q/14: $314.3 million
4Q/14: $305.7 million
1Q/15: $286.8 million
2Q/15: $316.6 million
3Q/15: $326.6 million
For the full-year 2015, the Company estimates constant currency revenue growth to be approximately flat.
For data, background and forecasts on MoneyGram: Search CardWeb.com’s CardFlash® Library of more than 58,000 archived articles; Access CardWeb.com’s CardData® for current and historical Performance, Portfolios, Profiles, etc. Visit RAM Research® (ramresearch.com) for quarterly and annual forecasts covering more than 150 metrics. [complimentary or deeply discounted access to CardWeb.com subscribers].
Additional database resources include CardWeb.com’s CardExecs® – comings & goings of payments movers & shakers; CardWeb.com’s CardWatch® – ears & eyes on marketing globally (57K items); and CardWeb.com’s CardPixes® – form & function of card design (7K items).