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MoneyGram International, Inc. (MGI) CEO Alex Holmes on Q4 2020 Results - Earnings Call Transcript


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https://seekingalpha.com/article/4408010-moneygram-international-inc-mgi-ceo-alex-holmes-on-q4-2020-results-earnings-call-transcript

 

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...we are not planning for any Ripple incentives in the first quarter. We continue to monitor the SEC case closely and due to the uncertainties that have arisen since the filing of that suit, we have suspended trading on the Ripple platform. As we have stated in the past, this has no impact on our customers nor on our ongoing cross-border transaction capabilities. However, it will be a significant difference when compared to the first quarter of 2021...

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...In the first quarter of last year, MoneyGram generated a net EBITDA benefit of $12.1 million from the Ripple market development fees. The combined impact of Ripple and lower investment returns create a $17 million EBITDA headwind...

 

From the Q&A on Ripple w/ Alex Holmes and executives

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...we have been doing obviously quite a lot with Ripple on the ODL platform, really over the past 18 months leading into December. In December, as we kind of got into early December we paused our activities on the ODL platform and really just have not found a way to get back into that yet given a variety of different factors. What has been some of the changes and decisions that the exchanges have made in the U.S. and others obviously concern the question that it continues to be open around that case. I certainly hope that they are successful in their efforts with the SEC and that things go in the direction that they want. I would say that right now we are pausing those activities just more for, I think, with the abundance of caution really then with any other concerns about it...

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...So, the other important thing, I guess to keep in mind just on the expense front is that because of the goofy accounting treatment, as I like to say, associated with Ripple, which was treated as a what do we call it, a negative….A contract expense. Yes, it’s very formal. And so that will obviously to the extent there isn’t any of that flowing through that will be – obviously look like the T&O line is artificially shifting the other direction....

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...I think one of the exchanges, for example, coin based, right, you can’t trade XRP on the exchange anymore. One of the things that you have to do to make the ODO flows work is actually put your fiat currency through an exchange, right? I mean, you have to be able to exchange the XRP coin back into fiat on one end or the other. So it’s not – I mean, it’s not every exchange. It’s not a complete withdrawal. But in a couple of places where we had those relationships, they have changed their policies around it. And it’s really for the same thing, right? I mean, no one wants to inadvertently get caught up in a question that the SEC has raised around, is it a security or not? I don’t have an answer to that question....

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...I mean, the SEC has their allegations, they have yet to be proven. And I think Ripple, as they have stated publicly, they believe they have strong arguments there, right. So that being said, we’ve had a great relationship with Ripple, and it would be great to continue to partner with them...

 

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...on Ripple, no. It was – and is effectively a contract oriented with growth. It is a multiyear contract, and there is time left on that contract. And it really is around partnership, right? So it’s based on countries and markets and volume and a variety of things that drive those incentives. So no, there is no loss of those incentives, and those still exist. And so it’s really just more of a delay. And if and when we’re able to reengage, then they are there to do. And obviously, there is ongoing dialogue with Ripple, just in terms of, is there something we can do and what is it and where and how do we do those types of things. So those conversations will continue. And again, just reemphasizing the point, we’re talking about not planning for anything in the first quarter...

 

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https://seekingalpha.com/article/4408010-moneygram-international-inc-mgi-ceo-alex-holmes-on-q4-2020-results-earnings-call-transcript     From the Q&A on Ripple w/ Alex Holmes an

https://fintechnews.sg/48827/payments/blockchain-firm-lightnet-expands-payout-services-across-se-asia-with-moneygram/

8 hours ago, pointbreak said:

There were some quotes from Alex in the earnings call related to MoneyGram's commitment to digitalization of payments and their continued effort to partner with products and company's which meet those digital requirements.  This looks like a step in that direction, especially with Ripple on the sidelines.

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