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Higher Volume Fails To Help MoneyGram

American Banker | Friday, February 5, 2010

MoneyGram International Inc. said earnings fell in the fourth quarter despite increased transfer volume in several crucial regions.

Its money transfer revenue in the fourth quarter rose 6%, to $230.6 million compared with a year earlier, the Minneapolis company said Thursday. Transfers from the U.S. to regions other than Mexico rose 7%, and transfers from outside the U.S. rose 13%. Over the full year, MoneyGram paid $186.9 million of outstanding debt, covering 19% of its total debt.

MoneyGram said its fourth-quarter revenue declined 7%, to $296.4 million from a year earlier. Its net income dropped 77%, to $28.1 million. Full-year revenue rose 2%, to $1.1 billion from the previous year, and net income rose to $18.3 million from a loss of $261.4 million.

"During the quarter, we increased our money transfer revenue, grew our global agent network and launched new products and services," Pamela H. Patsley, MoneyGram's chairman and chief executive, said in a press release. "Despite the challenging economic environment, MoneyGram delivered solid financial results from our core money transfer business in the quarter and for the full year."

MoneyGram also announced Thursday that PropertyBridge Inc., its subsidiary that provides payments services to the multifamily housing industry, has signed on to provide its platform to the property management clients of Bank of America Corp.'s Merrill Lynch.

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