MoneyGram Q1 Profit Down

(RTTNews) - MoneyGram International,Inc. (MGI) reported that its first-quarter net income declined to $7.1 million from $8.8 million for first quarter 2017. Earnings per share was $0.11 compared to diluted earnings per share of $0.13 in the first quarter 2017. Adjusted diluted earnings per share was $0.15

Total revenue of $380.0 million declined 2% on a reported basis and 5% on a constant currency basis compared to first quarter 2017.

Analysts polled by Thomson Reuters expected the company to report earnings of $0.26 per share and revenues of $386.32 million. Analysts' estimates typically exclude special items.

Money transfer revenue was $336.6 million, representing a decrease of 1% on a reported basis and a decrease of 6% on a constant currency basis as compared to first quarter 2017.

In the first quarter of 2018, the company initiated a restructuring and reorganization program as part of its Digital Transformation initiative. The company incurred $7.3 million of expenses in the quarter, and expects the full cost of the program to be approximately $15 million. This program reflects the alignment of the organization with the delivery of new digital touch-points for customers and agents, and the maturity of the company's global agent model. The company expects efficiencies that will result in $30 million of expense reductions in 2018 and, upon completion, $45 million on an annualized basis.

The company estimates full year 2018 constant currency revenue to decline between 4% and 6%. Adjusted EBITDA on a constant currency basis is expected to decline between 8% and 10%.