MoneyGram International Inc. ( MGI ) announced a
strategic alliance with Dollar General in order to expand its money
transfer network in the US. Dollar General is a leading retail
brand that operates as a chain of convenience and low-priced
products stores across the US.
Accordingly, MoneyGram added 10,000 locations of Dollar General,
thereby strengthening its money transfer network by over 50,000
locations in the US. Through these locations, the company offers
money remittances to over 197 countries and territories.
The latest addition of Dollar General has also helped MoneyGram
achieve a milestone of 310,000 global agent locations, surging 16%
in a year's time. Growth was primarily driven by additions in
Russia, Africa and Portugal, among others. The company successfully
procured about 43,000 agent locations in 2012. MoneyGram's agents
primarily include retailers, international post offices and
Money Transfer Biz Reflects Growth
MoneyGram continues to bolster its position as one of the
leading money transfer companies in the world by constantly
expanding its payment network via alliances. The effects of its
consistent growth strategies were also visible in the company's
recently announced fourth-quarter 2012 results.
MoneyGram earned 27 cents per share in the fourth quarter of
2012, which came in a penny higher than the Zacks Consensus
Estimate. However, reported earnings soared from the year-ago
quarter's earnings of 4 cents a share.
Higher money transfer transaction volumes as well as higher fee
and other revenues drove the top line that grew 10.1%, while lower
interest expenses helped the bottom line and free cash flow.
However, lower investment income along with higher operating and
commission expenses deteriorated the margins.
Simultaneously, MoneyGram is also enhancing its brand awareness
by developing user-friendly payment solutions that suit the new
market trends. In this regard, the company offers various
self-service products such as mobile, kiosk and online money
transfer payment processes. These efforts are not only creating
demand for the global remittances but also boosting the company's
MoneyGram carries a Zacks Rank #3 (Hold). Other strong
performers in the financial sector include Financial
Engines Inc. ( FNGN ),
Fleetcor Tech Inc. ( FLT ) and Bank
of Montreal ( BMO ), all of which
carry a Zacks Rank #1 (Strong Buy).BANK MONTREAL (BMO): Free Stock Analysis ReportFLEETCOR TECH (FLT): Free Stock Analysis ReportFINANCIAL ENGIN (FNGN): Free Stock Analysis
ReportMONEYGRAM INTL (MGI): Free Stock Analysis
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