According to the company, its total fee and other revenue during the latest quarter grew by 9% to $314.9m from $290m during the same period last year.
MoneyGram chairman and chief executive officer Pamela Patsley said the firm generated double-digit growth in all major money transfer categories thanks to a steady stream of new, high-quality agents, solid same-store sales improvements and the continued expansion of its self-service products.
"Our revenue growth and disciplined expense management is yielding margin expansion, and we continue to generate strong free cash flow. We are focused on value-creating initiatives and are excited about the prospects for our future," Patsley said.
The payment services provider said that its money transfer fee and other revenue rose by 12% during the first quarter of 2012 and increased by 13% on a constant currency basis.
The company’s net income was $10.3m and EBITDA of $55m, which were impacted by $5.8m of restructuring and reorganization costs, $3.6m of certain legal expenses and $3.5m of stock-based compensation, said MoneyGram.
For the quarter period ended on 31 March 2012, the firm’s adjusted EBITDA grew by 13% to $68.4m from $60.3m during the same quarter of previous fiscal year.
Global Funds Transfer segment’s total revenue increased by 10% to $296.1m from $269.8m during the corresponding period last year, while its operating income stood at $33.3m and operating margin was 11.2%.
During the quarter, Money transfer fee and other revenue rose by 12% to $268.3m against $239.6m in the first quarter of 2011.
For the fiscal year 2012, MoneyGrams’ management expects that its total revenue growth will be 7-9% and adjusted EBITDA growth of 9-11% on a consistent basis with its long-term management targets.
