MoneyGram 4Q net income rises; plans restructuring
DALLAS (AP) — MoneyGram International Inc. said Tuesday that its fourth-quarter net income rose 16 percent as customers sent more money through the cash transfer service. The company also announced organizational and executive changes to cut costs and increase revenue.
The company said Chief Financial Officer W. Alexander Holmes will add the role of chief operating officer to his responsibilities, effective immediately. He will also keep his title as executive vice president.
As part of its changes, Chief Compliance Officer Phyllis Skene-Stimac joined the executive committee and will report directly to CEO Pamela Patsley.
The company said it will invest more money in its compliance and anti-fraud programs. It also plans to increase revenue from its website, mobile and kiosk products. MoneyGram said that it spend about $30 million and $40 million over the next two years as it restructures its business.
MoneyGram's net income rose to $23.4 million, or 33 cents per share, in the three months ending Dec. 31. That compares with $20.2 million, or 28 cents per share, in the same quarter a year before.
Revenue rose 9 percent to $385.8 million from $354.4 million.
Analysts expected earnings of 35 cents per share and revenue of $388.2 million.
Its full-year results also missed Wall Street expectations.
Shares of MoneyGram, which is based in Dallas, slipped 19 cents, or 1 percent, to $18.42 in afternoon trading Tuesday.