MoneyGram International Inc. posted a narrower third-quarter loss thanks to stronger revenue than analysts expected.

The second-largest U.S. money-transfer service behind Western Union Co. has been expanding its network by signing agreements with banks and retailers.

MoneyGram said its loss narrowed to $18.3 million, or 60 cents a share, from $38.6 million, or 80 cents a share, a year earlier. The latest results included $22.5 million in legal costs. Revenue fell 0.2%, to $304.5 million. Global funds transfer revenue rose 2% on growth of 6% in transaction volume.

Two weeks ago MoneyGram said it would pay $18 million to settle charges that it allowed its money-transfer system to be used by telemarketing scammers who bilked Americans out of tens of millions of dollars. The Federal Trade Commission alleged that MoneyGram agents assisted fraudulent telemarketers who fooled American consumers into wiring more than $84 million to locations in the United States and Canada.

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