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08.11.2022 16:20
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MoneyGram International Reports Third Quarter 2022 Results
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PR Newswire
DALLAS, Nov. 8, 2022
Digital revenue reached an all-time high of $95 million and digital transactions reached 45% of money transfer transactions at the end of the third quarter
Digital transactions increased 39% over the prior year
DALLAS, Nov. 8, 2022 /PRNewswire/ -- MoneyGram International, Inc. (NASDAQ: MGI) today reported financial results for its third quarter ended September 30, 2022.
Third Quarter 2022 Business Highlights
"In the third quarter, we delivered 9% year-over-year revenue growth on a constant currency basis despite continued global macro-economic uncertainty. Growth has been primarily driven by continued demand for our leading mobile app as well as the successful digital partnerships we've built with fintechs around the world," said Alex Holmes, MoneyGram Chairman and CEO.
"Last week, we launched our latest digital offering – the ability for consumers to buy, sell and hold crypto through our app. And just three weeks ago, we announced our new title sponsorship of the Haas F1 Team, which will help amplify our new and innovative financial solutions to the world. As we approach the end of the year and look ahead to 2023, I couldn't be more excited about the momentum in the business."
Money transfer highlights for the quarter include the following:
| • | Total money transfer revenue was $299.1 million, an increase of $2.9 million, or 1% when compared to the same quarter in 2021. While revenues were up slightly, they were still negatively impacted as the dollar continued to strengthen against most major currencies. On a constant currency basis, money transfer revenue was up 7% compared to the prior year period. | |
| | • | Total money transfer transactions grew 6% year-over-year; |
| | • | Total money transfer volume grew 11% on a constant currency basis; |
| | • | Walmart revenue declined to approximately 7% of money transfer revenue. Without the impact of Walmart, the money transfer revenue grew 9% on a constant currency basis. |
| • | MoneyGram Online ("MGO") continued its strong financial performance. | |
| | • | Total MGO money transfer revenue was $52.9 million, representing 13% year-over-year growth; |
| | • | Year-over-year, MGO cross-border online revenue grew 17%, with transactions growing 15%; |
| | • | Active cross-border customer growth continued its strong momentum increasing 11% year-over-year; |
| | • | MGO transactions now account for 25% of total money transfer transactions. |
| • | Total digital, which includes MGO, digital partners and digital receives, continued its robust performance reporting year-over-year transaction growth of 39% in the third quarter | |
| | • | Digital revenue reached an all-time high of $95 million for the third quarter with an impressive 36% year-over-year revenue growth rate; |
| | • | Customers using the mobile MGO App now account for 80% of total MGO transactions and the number of mobile customers grew 16% year-over-year. |
Third Quarter 2022 Financial Results, Year-Over-Year
| • | Total revenue was $330.8 million, an increase of $11.2 million or 3.5%. On a constant currency basis, total revenue increased by $29.4 million or 9%, year-over-year. | |
| | • | Total revenue increased 12% on a constant currency basis excluding Walmart money transfer revenue; |
| | • | Total revenue growth included an increase in investment revenue of 516% or $9.8 million, driven by higher prevailing short-term U.S. interest rates in the quarter. |
| • | Gross profit was $156.2 million an increase of $7.1 million or 5% driven by the continued shift in mix to higher margin MGO business and higher investment income associated with the Financial Paper Products business | |
| • | Total operating expenses were $133.1 million, an increase of $10.8 million or 9% driven by higher marketing expenses, coupled with increased currency conversion charges and FX losses driven by the strengthening dollar against major currencies; | |
| • | Operating Income was $23.1 million, a decrease of $3.7 million driven by higher operating expenses described above and offset slightly by the higher margins from the MGO business and investment income; | |
| • | Net Income was $4.2 million, compared to a $15.6 million Net Loss for the third quarter of 2021 driven by the early extinguishment of debt costs associated with the Company's debt refinancing last year; | |
| • | Fully diluted earnings per share was $0.04; | |
| • | Fully diluted adjusted earnings per share was $0.11; | |
| • | Adjusted EBITDA decreased 3% on a reported basis to $54.8 million due to the dollar strengthening against major currencies, or an increase of 7% on a constant currency basis; | |
| | • | Excluding foreign exchange gains or losses Adjusted EBITDA increased by 11% year-over-year on a constant currency basis. |
Balance Sheet and Liquidity
| • | Cash and cash equivalents were $126.7 million as of September 30, 2022, compared to $117.4 million as of June 30, 2022; |
| • | Third quarter interest expense was $12.2 million, a decrease of $0.8 million year-over-year or a decline of 6%; |
| • | Capital expenditures were $17.8 million, an increase of $7.6 million compared to the third quarter of 2021. |
Recent Merger Updates
MoneyGram and Madison Dearborn Partners, LLC ("MDP") have recently made significant progress toward completing the closing conditions of the previously announced merger transaction. To date, money transmission regulators in 50 U.S. states and territories have provided their approval of or non-objection to, the transaction. Only three state approvals remain, and the parties are in active dialogue with each of these states. In addition, the parties have obtained all but two approvals from its international money transmission regulators, and have received approval from the Financial Conduct Authority (FCA) in the United Kingdom and the National Bank of Belgium where MoneyGram holds its European license.
As previously disclosed, the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 has expired and MoneyGram stockholders have overwhelmingly approved the transaction with over 99% of shareholder votes cast in favor of the merger in May of this year. The parties have also received all required international antitrust and foreign direct investment approvals.
The parties continue to work toward the goal of closing the transactions in the fourth quarter of 2022, subject to customary closing conditions, including receipt of the regulatory approvals described above.
About MoneyGram International, Inc.
MoneyGram International, Inc. (NASDAQ: MGI), a global leader in the evolution of digital P2P payments, delivers innovative financial solutions to connect the world's communities. With a purpose-driven strategy to mobilize the movement of money, a strong culture of fintech innovation, and leading customer-centric capabilities, MoneyGram has grown to serve over 150 million people in the last five years. The Company leverages its modern, mobile, and API-driven platform and collaborates with the world's top brands to serve consumers through its direct-to-consumer digital channel, global retail network, and embedded finance business for enterprise customers. MoneyGram is also a leader in pioneering cross-border payment innovation and blockchain-enabled settlement. For more information, please visit ir.moneygram.com, follow @MoneyGram on social media, and explore the website and mobile app through moneygram.com.
Forward-Looking Statements
This communication contains forward-looking statements which are protected as forward-looking statements under the Private Securities Litigation Reform Act of 1995 that are not limited to historical facts, but reflect MoneyGram's current beliefs, expectations or intentions regarding future events and speak only as of the date they are made. Words such as "may," "might," "will," "could," "should," "would," "expect," "plan," "project," "intend," "anticipate," "believe," "estimate," "predict," "potential," "pursuant," "target," "forecast," "outlook," "continue," "currently," and similar expressions are intended to identify such forward-looking statements. The statements in this communication that are not historical statements are forward-looking statements within the meaning of the federal securities laws. Specific forward-looking statements include, among others, statements regarding the Company's projected results of operations and specific factors expected to impact the Company's results of operations. Forward-looking statements are subject to numerous risks and uncertainties that are difficult to predict and many of which are beyond MoneyGram's control, which could cause actual results to differ materially from the results expressed or implied by the statements.
These risks and uncertainties include, but are not limited to:
| • | the impact of the COVID-19 pandemic or future pandemics on our business, including the potential work stoppages, lockdowns, shelter-in-place, or restricted movement guidelines, service delays and lower consumer and commercial activity; |
| • | our ability to compete effectively; |
| • | our ability to maintain key agent or biller relationships, or a reduction in business or transaction volume from these relationships, including with our largest agent, Walmart, through its introduction of additional competing white label money transfer products or otherwise; |
| • | our ability to continue to grow our Digital Channel, including through our direct-to-consumer digital business, MoneyGram Online; |
| • | a security or privacy breach in systems, networks or databases on which we rely; |
| • | current and proposed regulations addressing consumer privacy and data use and security; |
| • | our ability to manage fraud risks from consumers or agents; |
| • | the ability of us and our agents to comply with U.S. and international laws and regulations; |
| • | litigation and regulatory proceedings involving us or our agents and other commercial relationships, which could result in material settlements, fines or penalties, revocation of required licenses or registrations, termination of contracts, other administrative actions or lawsuits and negative publicity; |
| • | disruptions to our computer systems and data centers and our ability to effectively operate and adapt our technology; |
| • | the ability of us and our agents to maintain adequate banking relationships; |
| • | our ability to successfully develop and timely introduce new and enhanced products and services and our investments in new products, services or infrastructure changes; |
| • | our high degree of leverage and substantial debt service obligations, significant debt covenant requirements and our ability to comply with such requirements; |
| • | our below investment-grade credit rating; Werbung Mehr Nachrichten zur MoneyGram International Aktie kostenlos abonnieren
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