MoneyGram International, Inc. (MGI) stock continued the rising trend in the pre-market trading session today on May 10, 2021, after gaining as much as 22.78% at the previous closing followed by the first quarter 2021 financial results. MGI stock price saw a rise of 4.48% to reach $8.39 a share at the time of this writing. Let’s deeply understand the current scenario.
First-quarter financial results:
- MGI stock reported $310.1 million total revenue in the first quarter of 2021 which represents a 7% and 3% YoY increase on reported basis and constant currency basis, respectively. Revenue from the money transfer reached $285.4 million which shows a 12% increase over the year. Investment revenue was reduced by $8.1 million to drop at $2.0 million due to lower prevailing interest rates.Read More
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- Operating expenses bore by MGI stock were totaled $136.4 million which is $13.0 million higher than the same period of the prior year.
- Operating income for the MGI stock reduced by 36% year-over-year to drop at $8.4 million due to lower investment, eliminated Ripple market development fees, and severance cost.
- MoneyGram stock suffered a net loss of $15.4 million in the reported quarter representing an improvement of $6.1 million over the year.
- MGI stock suffered $0.19 diluted loss per share and $0.06 diluted adjusted loss per share.
- Adjusted EBITDA for MGI stock was $49.9 million in Q1 2020 which shows a 3% reduction as compared to the same period of previous year.
Balance Sheet:
As of March 31, 2021, MoneyGram had cash and cash equivalents of $152.8 million as compared to $131.0 million cash and cash equivalents at the same date of the previous year. Capital expenditures were $11.2 million and interest expense were $22.3 million in the first quarter of 2021.
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Financial Guidance for Q2 2021:
Total revenue for the MoneyGram was projected based on money transfer business, in the range of $315 to $325 million. Furthermore, adjusted EBITDA is projected in the range of $50 to $55 million by the MGI stock.
MGI stock Digital Growth:
MGI stock digital along with MGOshowed 86% transaction growth over the year in the first quarter of 2021. Digital revenue increased by 77% over the year in the reported quarter and transaction growth of 47% was seen in the digital partnerships. The accelerating digital transactions represented 32% of money transfer transactions by the end of Q1 2021.
Conclusion:
So far so good for MGI stock as far as market sentiment is concerned. First-quarter results of the MGI stock were strong and MoneyGram’s online direct-to-consumer channel achieved all-time high results in terms of revenue, transactions, and customer growth. The management is looking forward to refinancing its debt and speedy digital transformation of MGI stock.In short, MGI can be a good bet for long-term investors.
