MoneyGram International Inc. on Oct. 27 reported solid third-quarter earnings growth, with a 58% increase in net income to $15.8 million from $10 million during the same period last year. Revenue increased 9.9%, to $321.9 million from $292.9 million.
The Minneapolis-based funds-transfer provider’s global funds-transfer revenue increased 12.3%, to $298.9 million from $266.2 million.
Bill-payment revenue decreased 9.3% to $28.3 million from $31.2 million. The segment’s margin was affected negatively by increased marketing spend and lower operating income, the company said in a press release.
Funds-transfer fee and other revenue increased 15.1%, to $270.4 million from $235 million.
MoneyGram’s total agent locations increased 23.7%, to 256,000 from 207,000 last year.
MoneyGram highlighted its expansion efforts, with the addition of five national postal networks, including in India, Lebanon, the Netherlands, Iceland and Togo.
The company also added its funds-transfer services to CashEdge Inc., Cumberland Farms and AccountNow. Cumberland Farms is the first customer to launch the MoneyGramXpress service, which enables customers to purchase prepackaged funds transfers and redeem them online or by telephone.
AccountNow announced Oct. 26 that it will be the first U.S.-based prepaid card program to provide MoneyGram’s funds-transfer products as an online agent. The deal will enable AccountNow customers to use their prepaid cards to send money in 10 minutes to any MoneyGram location from AccountNow’s website, the company said in a press release.
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