MoneyGram has reported a net loss of $3.3 million in the second quarter of 2009. The net loss included a pre-tax $12 million legal accrual and a pre-tax increase in the provision for loss of $9 million. The loss compares with net income of $15.2 million in the second quarter of 2008. Revenue totaled $291.2 million in the second quarter 2009 as compared with revenue of $286.1 million a year earlier. Year-to-date total revenue in 2009 was $571.1 million compared with $303.2 million in the first half of 2008. Revenue in the first half of 2008 was adversely impacted by net securities losses of $337.6 million.
Total fee and other revenue in the quarter was $278.5 million down from $281.9 million in the second quarter of 2008. Money transfer fee and other revenue was $249.7 million in the second quarter of 2009, versus $254.7 million in the second quarter of 2008. The current quarter results were impacted by a lower euro rate, and a decline in money transfer average principal, partially offset by an increase in money transfer transaction volume.
Anthony Ryan, president and CEO, MoneyGram, said: “In the quarter, we entered the mobile money transfer business through an agreement with Affinity Global Services, and we expanded our MoneyGram Rewards loyalty program in France, Germany and Spain.”
Pamela Patsley, executive chairman of MoneyGram, said: “During the quarter, we expanded our distribution in all corners of the world, increased our global agent network by 15 percent over the prior year, and we ended the quarter with unrestricted assets of $386.9 million at June 30, 2009.”
