Double-digit growth in funds-transfer revenue, transaction volume and agent locations helped create a significant boost in MoneyGram International Inc. second-quarter net income
The Minneapolis-based funds-transfer provider’s net income rose by 288%, to $26.4 million from $6.8 million during the same period last year. Revenue increased 9% to $310 million from $283.9 million.
Funds-transfer transaction volume rose 15% during the quarter, driven by 18% growth to transfers that stayed within the U.S., according to MoneyGram, which did not provide actual transfer totals.
“I’ve said that our focus needed to be on improving top-line growth, and we are achieving our expectations in this area,” Pamela Patsley, chairman and CEO of MoneyGram, said in a press release.
MoneyGram will continue to reinvest its core business, Patsley added. “These investments are focused on increasing the strength of our global brand and enhancing our core infrastructure and global operations,” she said.
MoneyGram highlighted its expansion efforts in countries such as China, Ivory Coast and India.
The company expanded a relationship with the Bank of China and added services in provinces in the country’s northeast section. The bank now has more than 7,000 active MoneyGram locations.
In Ivory Coast, MoneyGram reopened some 350 locations that temporary closed because of political issues within the country. The majority of transaction volume came from France, the company said in the release.
MoneyGram added some 138 locations at Bharti Wal-Mart and Bharti Retail stores in India.
The company’s funds-transfer revenue increased 15.1% during the quarter, to $256.1 million from $222.5 million. Bill-payment revenue decreased 11.1%, to $27.5 million from $31 million.
MoneyGram’s total agent locations increased 20.1%, to 244,000 from 203,000.
