July 26 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
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
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.