MoneyGram revenue jumped by 18% in Q2 as demand rose
MoneyGram, the global payment company, had a relatively strong quarter as demand for its solutions rose. The firm released its quarterly results on Thursday as the earnings season continued.
MoneyGram strong growth
In a report, MoneyGram said that its total revenue rose by 18% to $329.3 million in the second quarter. This made it one of its best quarters on record.
This growth happened as the total cross-border money transfer volume rose by 41%. Its number of active customers also rose to a record high. Further, its digital business did well, with its revenue representing about 33% of all transactions it handled in the quarter. In a statement, Alex Holmes said:
“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.”
MoneyGram expects that its business will continue doing well in the third quarter. It attributed this to the strong business environment, its digital growth, and its ongoing relationship with Walmart. It expects its revenue to be between $323 million and $333 million. Additionally, also sees its earnings before interest, tax, depreciation, and amortization (EBITDA) being between $52 and $57 million.
MoneyGram published its quarterly results at a time when there are rumours about its future. Two weeks ago, Bloomberg reported that Advent, a private equity firm, was considering buying the firm. The story was then updated to add Stellar Development Fund (SDF) was also in talks to buy the company.
Since MoneyGram is valued at more than $1 billion, the acquisition will likely be in the range of more than $1.2 billion. MoneyGram was also targeted by Ant Financial a few years ago. The offer was rejected by US authorities.