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

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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.

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Asheesh Birla, Ripple employee, weighs in: https://twitter.com/ashgoblue/status/1232480844847017985

I would suggest reading about preferred and common stocks. That will help answer your question. Please, get out of the mindset of a company looking to sell at X price like a day trader in his 40s does

Where did Moneygram mention they don't expect ODL volume to increase throughout 2020?  Everything Alex and Ripple have said and indicated thus far has suggested we should see incredible growth in ODL

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
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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.

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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..

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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
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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?

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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
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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.

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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?

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