Global money transfer firm MoneyGram posted second-quarter results with total revenue of $329.3 million, a sign that its digital-first efforts paid off as online transactions led the way in most parts of the world.
MoneyGram CEO and Chairman Alex Holmes said on an earnings call on Friday (July 30) that its boost in digital — accounting for 33 percent of all money transfers — got a leg up from the lockdowns, but was also part of a planned pivot the company had already been implementing.
Cross-border transfer volume surged 41 percent as consumers’ habits adopted over the pandemic continue to remain part of daily life in a world that had been increasingly moving toward digital-first even before COVID-19 became a worldwide threat. MoneyGram’s digital-first focus helped boost total revenue 18 percent, with a 20 percent increase in both money transfer revenues and transactions.
“MoneyGram online delivered record highs for customers, transactions, volume and revenue,” Holmes told analysts and investors on the company’s conference call. “In the second quarter, digital partnerships also continued to accelerate, and transactions received digitally reached record highs [and] now account for 33 percent of all money transfer transactions,” up from 31 percent in Q1 and just 13 percent in 2019, Holmes added.
When asked for his insight concerning reports that the company might be acquired by Stellar Development, Holmes was evasive. “I don’t really feel like shopping the company or taking it private right now is really the right thing to do,” he said, adding that there is always something new happening at MoneyGram and that the company has created a tremendous amount of value in a very short period of time.
The takeover interest from Stellar Development Foundation and private equity firm Advent International last week gave an 11 percent boost to MoneyGram’s share price, extending a 12-month rally of more than 250 percent.
This is not the first time MoneyGram has been the subject of takeover talk, as similar approaches were reported by China’s Ant Group in 2017 as well as by Western Union last year.
International cash switch agency MoneyGram posted second-quarter outcomes with complete income of $329.3 million, an indication that its digital-first efforts paid off as on-line transactions led the way in which in most elements of the world.
MoneyGram CEO and Chairman Alex Holmes mentioned on an earnings name on Friday (July 30) that its increase in digital — accounting for 33 p.c of all cash transfers — bought a leg up from the lockdowns, however was additionally a part of a deliberate pivot the corporate had already been implementing.
Cross-border switch quantity surged 41 p.c as shoppers’ habits adopted over the pandemic proceed to stay a part of day by day life in a world that had been more and more transferring towards digital-first even earlier than COVID-19 grew to become a worldwide menace. MoneyGram’s digital-first focus helped increase complete income 18 p.c, with a 20 p.c improve in each cash switch revenues and transactions.
“MoneyGram on-line delivered file highs for purchasers, transactions, quantity and income,” Holmes informed analysts and traders on the corporate’s convention name. “Within the second quarter, digital partnerships additionally continued to speed up, and transactions acquired digitally reached file highs [and] now account for 33 p.c of all cash switch transactions,” up from 31 p.c in Q1 and simply 13 p.c in 2019, Holmes added.
When requested for his perception regarding experiences that the corporate may be acquired by Stellar Growth, Holmes was evasive. “I do not actually really feel like buying the corporate or taking it non-public proper now’s actually the suitable factor to do,” he mentioned, including that there’s all the time one thing new taking place at MoneyGram and that the corporate has created an incredible quantity of worth in a really brief time period.
The takeover curiosity from Stellar Growth Basis and personal fairness agency Creation Worldwide final week gave an 11 p.c increase to MoneyGram’s share worth, extending a 12-month rally of greater than 250 p.c.
This isn’t the primary time MoneyGram has been the topic of takeover discuss, as comparable approaches had been reported by China’s Ant Group in 2017 in addition to by Western Union final 12 months.