* Slashes FY constant currency revenue growth to 1-3 pct
from 8-10 pct
* Wal-Mart U.S. transactions contributed 12 pct to
MoneyGram's 1st-qtr revenue
* MoneyGram says will accelerate cost-reduction program
April 29 MoneyGram International Inc,
the world's second-largest money transfer company, slashed its
forecast for the year on fears of competition from Wal-Mart
The world's largest retailer had said earlier this month it
would launch a money transfer service called
MoneyGram said it expects full-year revenue growth to be in
the range of 1-3 percent on a constant currency basis, down from
its previous forecast of 8-10 percent.
The company, which posted better-than-expected first-quarter
results, said it expects adjusted EBITDA growth of 0-2 percent,
down from 5-7 percent.
MoneyGram, which currently provides money transfer services
for Wal-Mart shoppers, said 12 percent of its total
first-quarter revenue came from transactions at the chain in the
"Due to the limited time the competing product has been in
the market, it is uncertain what the cannibalization effect or
competitive price environment will be for the U.S.-to-U.S.
business," MoneyGram said in its earnings statement on Tuesday.
The company said it had initiated an accelerated
cost-cutting program and would focus on growing its U.S.
outbound money transfer business.
Wal-Mart has said it will not offer the service online or in
its international stores.
MoneyGram said that transfers that originated outside the
United States grew 11 percent in the quarter.
Bigger rival Western Union Co is scheduled to report
results on Thursday.
MoneyGram's share were little changes in premarket trading
on Tuesday. They have fallen 10 percent since Wal-Mart's
announcement to Monday's closing of $13.50.
(Reporting by Tanya Agrawal in Bangalore; Editing by Sriraj