Jump to content
PunishmentOfLuxury

MoneyGram Q4 2019 Report

Recommended Posts

http://ir.moneygram.com/news-releases/news-release-details/moneygram-international-reports-fourth-quarter-and-full-year-4

Quote

Revenue was $323.7 million, a decline of 6% from the fourth quarter 2018. Revenue excludes $8.9 million of benefit from Ripple, which will be accounted for as a contra expense rather than revenue based on a recent consultation with the Securities and Exchange Commission.

At the time the Company issued fourth quarter guidance, it assumed Ripple market development fees would be accounted for as revenue, consistent with the third quarter treatment. As a result of the change, the Ripple financial benefit of $8.9 million in the fourth quarter and $2.4 million in the third quarter is now accounted for as offset to operating expenses, in Transaction and Operations Support and is no longer included in revenue.

Global Funds Transfer segment revenue was $299.7 million, down 6% from the fourth quarter of the prior year. Within the segment, money transfer revenue was $285.9 million, a decline of 6%, and bill payment revenue was $13.8 million.

I have no idea what a "contra expense" is.

Share this post


Link to post
Share on other sites
8 minutes ago, PunishmentOfLuxury said:

I hate to say this, but this subsidy paints a picture of ODL not being able to pay its own way (save money for the company that uses it), YET.

There is an interesting analogy - oil consumption subsidies in OPEC countries. Nothing new in this world..


https://www.peio.me/wp-content/uploads/2014/04/Conf5_Hochman-01.10.11.pdf

Edited by Lamberth

Share this post


Link to post
Share on other sites
13 minutes ago, PunishmentOfLuxury said:

I hate to say this, but this subsidy paints a picture of ODL not being able to pay its own way (save money for the company that uses it), YET.

It could but probably it would take way to long to get the network at full speed. So others get the time to catch up.

Share this post


Link to post
Share on other sites
58 minutes ago, opaopa said:

The money Ripple pays Moneygram to subsidize their use of ODL is "contra expense". Its income for Moneygram, but it is used to offset the cost associated with the use of ODL instead of being accounted as revenue.

Are you saying that ripple is paying MG to use odl? Ermm..

So they invested like 50m in MG and on top of that they are paying them to use odl? No way..

Share this post


Link to post
Share on other sites
11 minutes ago, Kiwi said:

Are you saying that ripple is paying MG to use odl? Ermm..

So they invested like 50m in MG and on top of that they are paying them to use odl? No way..

He's referring to that investment, not extra payment.

Share this post


Link to post
Share on other sites

Kinda disappointing but without detailed ODL numbers it's hard to say what's up. Perhaps ODL is making profit but MGI is just in such a deep hole... maybe after some time the tides turn?

edit: Also, MGI still does most of their transactions in traditional ways, right? So the impact of ODL is not very high.

Edited by Skippy

Share this post


Link to post
Share on other sites
Guest

ODL is around 10% of ONE of their corridors.  As I and others have said for a while...   it’s too soon to expect a ODL miracle for MGI.   However, IF they ramp up significantly in more than one corridor,  next quarter should show improvement.

Having said that...   I waa hoping for them to be saying something positive about their ODL experience...   perhaps that will come?

Share this post


Link to post
Share on other sites

Until now Alex Holmes has been talking ODL into the ground (seen from an XRP investor perspective), except on the stage with Brad, but even then. Tons of reservations about early stages, weaving and not wanting to say anything that he can be accounted for, and "we have already very efficient procedures", "this is an experiment" and so on. I don't expect him being any different today. So that's not too encouraging, but if Ripple hadn't had MoneyGram thinks would look much worse.

Edited by Rune66

Share this post


Link to post
Share on other sites
37 minutes ago, Tinyaccount said:

perhaps that will come?

Don’t they still have a call at 9am est? Might get some tidbits in that...I still don’t understand why they had to postpone it from last week though

Share this post


Link to post
Share on other sites
5 hours ago, PunishmentOfLuxury said:

http://ir.moneygram.com/news-releases/news-release-details/moneygram-international-reports-fourth-quarter-and-full-year-4

Revenue was $323.7 million, a decline of 6% from the fourth quarter 2018. Revenue excludes $8.9 million of benefit from Ripple, which will be accounted for as a contra expense rather than revenue based on a recent consultation with the Securities and Exchange Commission.

At the time the Company issued fourth quarter guidance, it assumed Ripple market development fees would be accounted for as revenue, consistent with the third quarter treatment. As a result of the change, the Ripple financial benefit of $8.9 million in the fourth quarter and $2.4 million in the third quarter is now accounted for as offset to operating expenses, in Transaction and Operations Support and is no longer included in revenue.

Global Funds Transfer segment revenue was $299.7 million, down 6% from the fourth quarter of the prior year. Within the segment, money transfer revenue was $285.9 million, a decline of 6%, and bill payment revenue was $13.8 million.

source.gif

Share this post


Link to post
Share on other sites
Guest
6 minutes ago, Ryyy20 said:

Don’t they still have a call at 9am est? Might get some tidbits in that...I still don’t understand why they had to postpone it from last week though

Yeah that’s what I referred to...  dunno the when but knew one would happen.

Maybe the postponement was about the last minute SEC accounting redirect?

Share this post


Link to post
Share on other sites

Here were a couple of comments from the Q&A:

  • Fees are proportional to the amount of volume but they will flatten out (i.e., they are not arithmetic)
  • Will sequentially build into other corridors; doing Australian dollars and Filipino pesos
  • Contract extended to 2023
Edited by ICookinBrine
Additional point

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now

×
×
  • Create New...