Business

MoneyGram International Inc (NASDAQ: MGI) Announces 18% Revenue Growth in Second Quarter

MoneyGram International Inc (NASDAQ: MGI) recently reported financial results for 2Q2021. In the report, the company announced revenue growth of 18% in the quarter.

Growing online activity

According to Alex Holmes, MoneyGram Chairman and C.E.O., the company delivered strong top and bottom-line financial performance in the second quarter. The 18% revenue growth was driven by a record number of online transactions and customers. He added that the company exited its D.P.A. and significantly reduced its cost of capital through the combination of their efficient equity offering and successful execution of their debt refinancing.

Holmes said that its newly improved capital structure, coupled with its second-quarter results, represents a significant milestone on its transformational journey. As the company enters a new era of growth and improved cash flow, the substantial opportunity ahead will be highlighted by its strength in its business and the execution of its customer-centric strategy. He added that he was delighted with the company’s accomplishments and was extremely excited about its future.

Anticipating the third quarter

MoneyGram expects business conditions in the third quarter to stay consistent with the second quarter taking into account normal seasonality, ongoing digital growth uncertainties around the pandemic, and potential impact from a full quarter of Walmart’s marketplace expansion. Considering all these factors, the company expects the total revenue to range from $323 million to $333 million.

Consistent with the revenue outlook, MoneyGram expects Adjusted EBITDA to range from $52 to $57 million. This range considers all the revenue trends described above while considering no benefit from the one-time F.X. gain reported last year, which were $8.9 and $6.3 million respectively in 3Q2021.

MoneyGram is one of the pioneers in the digital P2P payments evolution. With a purpose-driven strategy to mobilize the movement of money, their leading customer-centric capabilities, and a strong culture of fintech evolution. The company has grown to serve over 150 million people globally over the last half a decade. MoneyGram also leverages its modern mobile, API-driven platform and collaborates with global brands to serve its customers through its direct-to-consumer digital business, MoneyGram Online (M.G.O.), global retail network, and emerging embedded finance for enterprise customers.

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