MoneyGram’s Digital Revenue Reaches Record High in Q1 2022

MoneyGram International, one of the leading global financial services providers, reported its financial results for the quarter that ended 31 March 2022 yesterday. During Q1 of 2022, the company’s digital revenue touched an all-time high of $83 million.

MoneyGram’s total revenue for the first quarter of 2022 came in at $307.6 million, which is a slight decrease compared to the same period last year. However, the operating income saw a decent increase as the number reached $17.9 million.

According to MoneyGram, the company’s net income of $5.1 million was driven by solid operating income and a reduction in interest expenses. Diluted earnings per share for the latest quarter came in at $0.05.

"Record-high digital revenue, strong customer retention rates and overall international growth drove strong first-quarter results," said Alex Holmes, the Chairman and CEO of MoneyGram. "Our ability to serve customers directly at scale is enabling the company to navigate continued global volatility, and we're excited to report that the digital transactions now account for over 40% of our money transfer business."

Digital

MoneyGram’s recent results indicate a sharp surge in demand for digital products. The Nasdaq-listed company noted that the total number of digital transactions increased by almost 33% compared to the same period last year. MoneyGram’s cross-border transactions grew by nearly 22% YoY in the first quarter of 2022.

“As recently announced, MoneyGram entered into a definitive agreement under which funds affiliated with Madison Dearborn Partners will acquire all outstanding shares of MoneyGram for $11.00 per share in an all-cash transaction valued at approximately $1.8 billion. The transaction is expected to close in the fourth quarter of 2022, subject to customary closing conditions, including approval by MoneyGram shareholders and receipt of regulatory approvals, including required approvals in various jurisdictions related to money transmitter licenses,” MoneyGram highlighted about the company’s recent updates.