MoneyGram reports flat revenue, still on track for Ant deal
MoneyGram’s total revenue declined slightly during the second quarter to $410 million, resulting in flat growth compared to the previous quarter based on constant currency, the Dallas-based company announced Monday.
Net income was $6.2 million, up $3.1 million from the same quarter a year earlier, reflecting lower operating expenses.
MoneyGram’s digital money transfer revenue grew 10%, driven by higher online transaction volume, and digital channels overall accounted for 15% of revenue during the quarter ended June 30, 2017, according to a press release.
MoneyGram’s CEO Alex Holmes indicated the company’s plan to be acquired by China’s Ant Financial for $1.2 billion is still on track, despite questions some U.S. lawmakers recently raised about the risks of foreign companies investing in U.S.-based financial services.
“We are excited about our pending transaction with Ant Financial which will strengthen MoneyGram’s business, increase U.S. jobs, promote financial inclusion by helping more customers access innovative, secure and reliable financial connections, and deliver value to all of our stakeholders,” Holmes said in the press release.
Holmes noted that MoneyGram continues to work with the Committee on Foreign Investment in the United States, or CFIUS, “and various other regulatory agencies” to clear the sale, which it expects will be finalized by the end of this year.