Bolstered by efficiency gains and expense-management initiatives, MoneyGram International Inc. on Oct. 28 reported net income of $10 million for the third quarter ended Sept. 30, despite a reduction in revenue.
The Minneapolis-based company reported an $18.3 million deficit during the same period last year. Total revenue for the quarter was down 3.8%, to $292.9 million fro from $304.5 million. The company’s Global Funds Transfer Unit reported revenue of $266.2 million, down 0.1% from $268.1 million.
Funds-transfer transaction volume increased by 9% during the quarter, driven by 16% growth in non-U.S. transfers compared with the same period last year, MoneyGram noted in its earnings release. Funds-transfer fee and other revenue was flat.
Net income for the quarter was affected by $7.2 million of stock-base compensation, $1.8 million of legal accruals primarily related to various stockholder litigation matters, and $1.6 million of restructuring and reorganization costs, the company said.
Among the company’s highlights during the quarter included an agreement with BillingTree to provide same-day cash-payment services at MoneyGram’s agent locations worldwide under the brand name BillingTree PaynCash (see story).
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