After forging new partnerships, MoneyGram International Inc.'s revenue rose 11%, to $365.1 million, in the second quarter from a year earlier.
We delivered a great quarter as we once again achieved double-digit growth in money transfer transaction volume and constant currency revenue from the momentum of agent activation, brand awareness and continued product innovation, says Pamela Patsley, chairman and chief executive officer, in the July 25 earnings call.
Over the prior year, money transfer revenue increased 13%. Money transfer transaction volume also increased, rising 14%, due in part to U.S. outbound transfers jumping 19%, transfers originating outside the U.S. growing 16% and U.S.-to-U.S. transactions up 8%.
Our growth outpaced the market and we posted our strongest U.S. outbound transaction growth in more than five years," Patsley says. "With our strong free cash flow generation, we continue to make investments in IT, compliance and products that enhance our operations and provide increased convenience and service to our customers.
MoneyGram online bill payment and money transfer transaction volume increased 51%. "About 70% of online business is new," says Alex Holmes, MoneyGram's chief financial officer and executive vice president.
The company also reported a 15% increase in the number of global agent locations over the prior year. MoneyGram now has 327,000 agent locations.
PayPal created a new service with MoneyGram this quarter, allowing PayPal users to withdraw funds from their accounts at any MoneyGram location in the U.S.
MoneyGram also signed an agreement with DeviceFidelity this quarter. The relationship allows DeviceFidelitys moneto mobile wallet users to send funds to any MoneyGram location using a mobile device.
MoneyGram expanded relationships in Turkey, China, Dubai, Africa, Yemen, Croatia, Australia and New Zealand. It also expanded in Mexico, in part because of its acquisition of Latino Services, a former MoneyGram agent that specializes in remittances from the U.S. to Mexico and Latin America.