UPDATE 1-MoneyGram posts loss on providing for legal costs
July 26 (Reuters) - Payment services company MoneyGram International Inc posted a quarterly loss on legal expenses and restructuring costs but maintained its revenue forecast for the year.
The company said it set aside $30 million for a possible resolution of an investigation regarding, among other things, its anti-money laundering program from 2004 to 2009.
It also proposed a $10 million settlement last week of a shareholder lawsuit in connection with a recapitalization agreement it entered into last year.
The recapitalization deal involved affiliates of private equity firm Thomas H. Lee Partners and Goldman Sachs.
MoneyGram, which has a market value of about $915 million, continues to expect revenue to grow 7 percent to 9 percent in the year.
MoneyGram, which has 284,000 global money transfer agent locations in 196 countries and territories, posted a second quarter net loss available to stock holders of $25.1 million, or 35 cents per share, compared with a net loss of $438.3 million, or $10.97 cents per share, last year.
Total revenue rose more than 6 percent to $330 million. Money transfer transaction volume increased 13 percent in the quarter.
Larger rival Western Union Co posted a higher quarterly profit and raised its full-year profit forecast on a one-time tax gain on Tuesday.
The company's shares closed at $15.83 on Wednesday on the New York Stock Exchange.
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