After repositioning its U.S. to U.S. business following the loss of the Walmart account MoneyGram continues to turn the corner in the fourth quarter (4Q/15).
MoneyGram total revenues climbed 7.8% year-on-year (YOY) to $376.7 million. However, net income fell sharply by 75.2% YOY to $2.6 million.
MoneyGram notes it posted double-digit transaction growth in U.S. Outbound and Non-U.S. sends and returned to positive transaction growth in U.S. sends for the fourth quarter.
For 4Q/15, money transfer transactions grew 10% in the fourth quarter. Money transfer revenue was $332.7 million, representing 9% growth on a reported basis and 13% growth on a constant currency (FX) basis compared to the prior year.
Non-U.S. send transactions grew 15% led by sends
from Europe and emerging markets. U.S. Outbound transactions grew 10% led by sends to Latin America and Africa. U.S.-to-U.S. transactions grew 1% versus a decline of 2% in the third quarter.
Money transfer revenue from U.S. Outbound and Non-U.S. sends grew 12% on a constant currency basis in the quarter and accounted for 87% of total money transfer revenue.
Digital/Self-Service money transfer revenue grew 48% over the prior year, and represented 12% of money transfer revenue. Annualizing the fourth quarter, Digital/Self-Service solutions generate over $163 million of revenue.
MONEY TRANSFER REVENUES
4Q/14: $305.7 million
1Q/15: $286.8 million
2Q/15: $316.6 million
3Q/15: $326.6 million
4Q/15: $332.7 million
For the full-year 2016, the Company estimates constant currency revenue and Adjusted EBITDA growth of 8% to 10% Company estimates constant currency revenue growth to be approximately flat.
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