MoneyGram International has posted a net loss available to common shareholders of $25.8m, or $0.31 per share for the second quarter ended June 30, 2010, compared with a loss of $33m, or$0.40 per share share last year.
In the second quarter, MoneyGram implemented the first phase of a global initiative to realign its management and operations with the changing global market and streamline operations. The company recorded $1.9m of costs in the second quarter of 2010 related to this first phase. The company anticipates incurring $45m to $50m of cash outlays in future phases to generate annual pre-tax cost savings of $25m to $30m when fully implemented in 2012.
Total revenue in the second quarter declined 3% to $283.62m, compared with $291.2m in the same period last year. Total fee and other revenue declined slightly to $277.6m, from $278.5m in the same period last year. Total revenue in 2010 reflects investment revenue and net securities gains that were $6.7m less than second quarter 2009.
Money transfer transaction volume increased 7% and money transfer fee and other revenue increased 2% in the second quarter of 2010 versus prior year. On a constant currency basis, money transfer fee and other revenue increased 3% versus prior year.
Pamela Patsley, chairman and CEO of MoneyGram, said: “To further strengthen our business we continued to de-lever by paying down $60m of debt in the quarter. We also continued to enhance our competitive posture through the formal launch of our restructuring initiative that will accelerate our cost reduction efforts, better positioning us for enhanced productivity and customer focus.
“The actions we are taking will allow us to expand rapidly and profitably into new markets and corridors, invest in innovative product offerings, and focus on growth in our core money transfer business.”