MoneyGram International has registered a net loss of $11.1m in Q2 2021, compared to a net loss of $4.6m in the year-ago period.
The US-based money transfer firm said that the widening losses were the result of an one-time $10.3m debt extinguishment expense associated with the prepayment of $100m of second lien debt.
MoneyGram’s total revenue stood at $329.3m in the quarter ended 30 June 2021, up 18% from $279.8m in the prior year.
This was driven by transfer revenue growth of 20% and transaction growth of 20%.
The firm’s money transfer revenue in the quarter increased to $304.9m from $253.1m in Q2 2020.
Its operating expenses increased 24% to $129.7m from $104.9m over the period.
Adjusted EBITDA declined 3% to $54.8m from $56.4m.
Commenting on the performance, MoneyGram chairman and CEO Alex Holmes said: “Our newly improved capital structure, coupled with our second quarter results, represent a significant milestone on our transformational journey.
“As we enter a new era of growth and improved cash flow, the underlying strength in our business and the execution of our customer-centric strategy highlight the substantial opportunity ahead. I couldn’t be more pleased with our accomplishments in the quarter and I’m extremely excited about the future of the company.”
MoneyGram said that it anticipates the total revenue to be in the range of $323-$333m in Q3 2021 as the business conditions are expected to remain consistent with Q2 2021.
The company also expects the adjusted EBITDA to be in the range of $52-$57m in the next quarter.
In May this year, MoneyGram partnered with cryptocurrency cash exchange Coinme to facilitate the cash funding and payout of digital currency purchases and sales.
This April, the firm joined forces with peer-to-peer (P2P) and business-to-business (B2B) payment firm Sigue to enable the latter’s US clients to access MoneyGram’s domestic and international receive network.
The partnership is the most recent integration in the MoneyGram as a Service business line launched by the company in March this year.