- Money transfer transaction volume excluding bill payment increased 6 percent, and money transfer fee and other revenue increased 3 percent versus prior year. On a constant currency basis, money transfer fee and other revenue excluding bill payment increased 5 percent versus prior year.
- Global agent locations reached 186,000, an increase of 15 percent over prior year.
- Adjusted EBITDA in the quarter was
$66.6 million versus$75.7 million in the prior year, primarily driven by a$15.8 million decrease in net investment income in the third quarter of 2009. - Net loss for the quarter was
$18.3 million and EBITDA was$29.3 million . Both EBITDA and net loss were impacted by$37.4 million of significant items in the quarter. These items include a$16.5 million legal accrual for a patent lawsuit; a$6.0 million legal accrual for settlement with the FTC;$9.2 million of stock-based compensation and executive severance;$8.4 million in impairment charges and$2.7 million of net securities gains. - Total revenue in the third quarter was
$304.5 million , roughly unchanged from$305.0 million in the same period last year. Third quarter 2008 total revenue included net securities losses of$13.3 million and investment revenue that was$25.4 million more favorable compared with 2009. - Year-to-date total revenue in 2009 was
$875.5 million , up from$608.1 million in the first three quarters of 2008. Year-to-date total revenue in 2008 included net securities losses of$350.8 million and investment revenue that was$101.3 million more favorable compared with 2009.
Liquidity
The Company ended the third quarter with assets in excess of payment service obligations of
Market Development
In the third quarter of 2009, the Company continued its focus on expanding its agent network. For example,
- Expanded its agreement with
Carrefour , the world’s second largest retailer, to add money transfer services to 22Carrefour hypermarkets throughoutRomania . - Renewed a multi-year agreement with Itau Unibanco, Brazil’s largest private-sector bank, and added 1,000
MoneyGram agent locations to the bank's existingMoneyGram network of nearly 5,000 branches. - Signed CUNA Strategic Services in the U.S., to provide 7,900 credit unions with turnkey access to MoneyGram’s global money transfer and bill payment services.
- Added 2,600
Union Bank of India locations through the Company’s largest super agent,UAE Exchange Financial Services . - Added Citi Personal Loans and Citi Mortgage to the Company’s growing list of clients offering customers the convenience of walk-in bill payment services.
- Expanded MoneyGram’s successful prepaid business with the addition of First Data, Metavante and TxVia, providing consumers with more convenient options to add funds to their re-loadable prepaid cards in
MoneyGram's agent locations in the U.S.
Global Funds Transfer Results
Total revenue for the Global Funds Transfer segment rose to $285.0 million in the third quarter of 2009 from $279.5 million in the same period last year. Segment results were impacted by a 6 percent increase in money transfer transaction volume excluding bill payment, partially offset by currency valuation changes and a decline in average money transfer fees. The segment reported operating income of $13.7 million, and an operating margin of 4.8 percent in the third quarter. Both operating income and margin were impacted by $27.1 million of the significant items discussed above. Adjusted margin was 14.3 percent.
Money transfer transaction volume excluding bill payment increased 6 percent and revenue increased 3 percent to $235.2 million in the third quarter of 2009 from $228.0 million in the third quarter of 2008. On a constant currency basis, money transfer revenue excluding bill payment improved 5 percent.
Money transfer transaction volume including bill payment was up 4 percent and revenue improved by 2 percent to $266.5 million in the third quarter of 2009 from $260.0 million in the third quarter of 2008. On a constant currency basis, money transfer revenue including bill payment improved 4 percent.
In the third quarter, money transfer transactions excluding bill payment originating in the United States and Canada increased 9 percent. Including bill payment, transactions increased 4 percent in the quarter from the prior year. Transactions originating outside of North America increased 8 percent from the prior year. Spain’s economic downturn continues to impact the Company’s international transaction growth. Excluding Spain, transactions originating outside of North America increased 17 percent from the prior year.
MoneyGram’s transaction volume to Mexico decreased 10 percent in the quarter. However, the Company continued to see positive growth in its domestic U.S. business, and throughout much of Latin America and Canada.
Payment Systems Results
Payment Systems total revenue declined to $18.5 million in the third quarter of 2009 from $25.5 million in the third quarter of 2008. Net revenue in 2009 reflects investment revenue of $5.1 million and a net securities gain of $2.1 million, while 2008 net revenue reflects $26.8 million of investment revenue and $11.2 million in net securities losses and $10.6 million in commission expense. The segment reported operating income of $7.0 million in the third quarter of 2009, up from $1.9 million in the third quarter of 2008. Operating margin improved to 38.0 percent in the third quarter of 2009 from 7.6 percent in the comparable period last year.
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