Bolstered by improved operating efficiencies and increased funds-transfer activity, MoneyGram International Inc. on Feb. 4 reported net income of $16.2 million for the quarter ended Dec. 31, up 105% from $7.9 million during the same period the previous year. Revenue was up 2.6%, to $303.4 million from $295.6 million.
Company profits during the quarter were affected by $5.9 million of stock-based compensation, $16.4 million of a reversal of a patent-lawsuit accrual and $2.3 million of restructuring and reorganization costs, the Minneapolis-based company noted in a news release announcing earnings. A $3.6 million write-off of deferred financing costs and debt discount related to a $75 million debt prepayment also affected profitability.
Revenue performance reflected investment revenue that was $1.2 million less than a year earlier, MoneyGram said.
Global funds-transfer segment revenue rose 4.9%, to $276.7 million from $263.8 million. Within that segment, funds-transfer revenue totaled $246.2 million, up 6.7% from $230.7 million. Bill-payment revenue fell 8.2%, to $30.4 million from $33.1 million, affected primarily bye softness in the traditional auto-loan and credit card payment categories, Pamela Patsley, MoneyGram chairman and chief executive, noted during a Feb. 4 conference call to discuss earnings.
The 227,000 MoneyGram agent locations represented a 19% increase from a year earlier, MoneyGram said.
Earlier this week, MoneyGram and Visa Inc. expanded their relationship by enabling U.S. consumers to send funds to Visa cardholders in Mexico through MoneyGram retail locations (
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