UPDATE 1-MoneyGram profit misses estimates as costs rise

* Q1 EPS $0.14 vs est $0.20

* Expenses rise 8 pct

* Sees 2012 revenue growth of 7 pct to 9 pct

April 26 (Reuters) - Payment services company MoneyGram International Inc posted a lower-than-expected first-quarter profit as higher expenses weighed on the company's results.

The company posted a net income of $10.2 million, or 14 cents per share, compared with $14 million, or a loss of $2.08 per share, a year ago.

Analysts, on an average, had expected the company to earn 20 cents per share, according to Thomson Reuters I/B/E/S.

Total revenue rose to $318 million from $294 million.

Expenses grew 8 percent to $282.1 million.

The company reiterated that it expects total full-year revenue to grow 7 percent to 9 percent.

Shares of the Dallas, Texas-based company closed at $16.20 on Wednesday on the New York Stock Exchange.