MoneyGram has posted a net income of $3.1m for the second quarter of 2016, compared to a net loss of $12.4m in the year ago quarter.
For the quarter ended 30 June 2016, total revenues rose to $383.7m from $358.8m in the corresponding quarter of 2015.
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Operating income for the quarter was $16.2m, an increase of $31.9m from the year ago period.
The company’s adjusted EBITDA for the quarter was $61.2m, an increase of 6% on a reported basis and 7% on a constant currency basis. Adjusted EBITDA margin was 16%.
Money transfer revenue for the quarter was $341.5m, which represents an 8% rise on a reported and constant currency basis.
Money transfer revenue from US Outbound and Non-US sends grew 11% in the quarter on a reported and constant currency basis and accounted for 88% of total money transfer revenue, the company said in its earnings statement.
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By GlobalDataMoneyGram’s digital money transfer revenue grew 17% over the prior year, while digital money transfer transactions increased 9%.
MoneyGram CEO Alex Holmes said: "Economic and geopolitical issues in certain countries accelerated during the quarter and impacted our top-line performance. As a result, we now expect constant currency revenue growth of 7% to 9%, which primarily reflects the ongoing impact of slower growth in these countries. We remain focused on disciplined expense management while continuing to capitalize on profitable growth and expansion initiatives. Therefore we are maintaining our outlook for constant currency adjusted EBITDA growth of 9% to 11%.
“Importantly, our team is hard at work implementing technologies that, combined with our global network, will differentiate the MoneyGram brand. We are energized to gain market share through delivering a superior customer experience."
