Payment services firm MoneyGram International, Inc. (MGI) Friday reported a profit for the fourth quarter compared to a loss last year, helped by a 6 percent growth in revenues and an income tax benefit. The company also expects a revenue growth of 7 to 9 percent in full year 2012.
In the fourth quarter, the company posted a net income available to stockholders of $3.12 million or $0.04 per share, compared to a loss of $19.44 million or $1.86 per share in the previous year. The company said its recent-quarter results included a negative $0.28 per share impact from the loss on debt extinguishment. The company also recorded an income tax benefit of $21.11 million, compared to an expense of $6.33 million in the year-ago period.
On average, 11 analysts polled by Thomson Reuters expected the company to earn $0.15 per share for the quarter. Analysts' estimates typically exclude special items.
Total revenues for the quarter increased 6 percent to $321.85 million from $303.37 million in the prior-year quarter. Analysts estimated revenues of $324.65 million. Total fee and other revenue increased 7 percent to $318.8 million.
On constant currency and reported basis, money transfer fee and other revenue increased 11 percent from the preceding year. During the quarter, money transfer transaction volumes improved 13 percent over the prior year.
For the full year, net loss available to stockholders was $438.83 million or $9.03 per share, wider than $91.22 million or $8.77 per share in the prior year. Annual revenues improved to $1.25 billion from $1.17 billion a year earlier.
Looking ahead to the full year 2012, the company estimates total revenue growth of 7 to 9 percent and adjusted EBITDA growth of 9 percent to 11 percent, consistent with its long-term management targets.
Adjusted EBITDA for the full year 2011 was $263.67 million.
Pamela Patsley, chairman and chief executive officer of the company said, "We are optimistic about 2012 and while we are mindful of the economic challenges in Europe, our business is geographically diverse. We have great momentum in our money transfer business and continue to leverage the core as we expand into online, account-based, mobile and self-service offerings."
MGI closed Thursday's regular trading at $19.05 on the NYSE.
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