Moneygram International (MGI) swung to a net profit for the quarter ended Mar. 31, 2017. The company has made a net profit of $8.80 million, or $ 0.13 a share in the quarter, against a net loss of $4.20 million, or $0.07 a share in the last year period. On the other hand, adjusted net income for the quarter stood at $17 million, or $0.26 a share compared with $10.70 million or $0.17 a share, a year ago.
Revenue during the quarter went down marginally by 0.26 percent to $386.10 million from $387.10 million in the previous year period. Total expenses were 94.28 percent of quarterly revenues, up from 94.03 percent for the same period last year. That has resulted in a contraction of 24 basis points in operating margin to 5.72 percent.
Operating income for the quarter was $22.10 million, compared with $23.10 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $66.30 million compared with $69.80 million in the prior year period. At the same time, adjusted EBITDA margin contracted 86 basis points in the quarter to 17.17 percent from 18.03 percent in the last year period.
"Revenue growth in the first quarter was flat as economic and geopolitical challenges in certain markets continue to hamper our top-line performance. Our commitment to growing profitability, however, led to improvement in both net income and earnings per share, despite the significant one-time foreign currency gain in the year-ago period," said Alex Holmes, MoneyGram's chief executive officer.
Operating cash flow turns negativeMoneygram International has spent $9.60 million cash to meet operating activities during the quarter as against cash inflow of $0.10 million in the last year period. The company has spent $18.60 million cash to meet investing activities during the quarter as against cash outgo of $18 million in the last year period.
The company has spent $1.60 million cash to carry out financing activities during the quarter as against cash outgo of $5.10 million in the last year period.
Cash and cash equivalents stood at stood at $127.40 million as at Mar. 31, 2017.
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