Reuters logo
UPDATE 1-MoneyGram posts loss on providing for legal costs
July 26, 2012 / 12:06 PM / 5 years ago

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.

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below