MoneyGram earned $20.2 million in the fourth quarter
By HANAH CHO
Dallas-based MoneyGram International earned $20.2 million in the fourth quarter but reported a loss for the full year, the money transfer company said Wednesday.
Net income for the three months ending Dec. 31 was boosted by $10 million in gains from the sale of securities previously written down. In contrast, costs related to debt repayment lowered MoneyGram’s net income a year ago to $3.1 million.
On a per-share basis, MoneyGram earned 28 cents per share in the fourth quarter compared with 4 cents a year ago.
For the full year, MoneyGram reported a loss of $49.3 million compared with a loss of $438.8 million in 2011.
Earnings for the year were affected by a $100 million settlement with the federal prosecutors over money transfer fraud schemes carried out by some of its agents as well as by $19.2 million in legal expenses and $19.3 million in restructuring and reorganization costs.
Revenue grew 10 percent in the quarter to $354.4 million.
Money transfer transaction volume rose 14 percent in the quarter from a year ago, boosted by transfers originating abroad and U.S.-to-Mexico transfers.
Shares rose $1.21, or 8.57 percent, to close at $15.33.