As part of its growth strategy to align with post offices,MoneyGram International Inc. (MGI) has renewed its contract with Canada Post and added bill payment services to its product offerings. Canada Post is the largest retail network in Canada.
The alliance between MoneyGram and Canada Post dates back to 2002, when Canada Post started offering core MoneyGram services at its post offices and retail locations. The renewal comes with the addition of emergency next day bill payment service.
Last month, MoneyGram partnered with Al Barid Bank, the banking subsidiary of Morocco Post to add 1,800 locations in Morocco. With this partnership, Al Barid Bank becomes MoneyGram’s largest agent in the country.
Apart from international alliances, Moneygram also expanded regionally in the U.S. Recently, the company also announced its alliance with two of the leading financial service center agents – North Carolina-based Friendly Check and RiteCheck – in order to expand its money transfer and bill payment opportunities across the US.
Alliances with leading brands not only offer a great operating experience but also strengthen MoneyGram’s competitive advantage in the regions.
MoneyGram’s first quarter loss escalated from the Zacks Consensus Estimate, driven by higher operating expenses and lower-than-expected revenue.
The Zacks Consensus Estimate for second-quarter 2011 is 2 cents per share. For full years 2011 and 2012, the Zacks Consensus Estimates are, respectively, 11 cents per share and 13 cents per share.
MoneyGram remains focused on generating cash to pay down debt, expanding its agent network along with generating cost efficiencies and improving the customer experience. For this, the company continues to capture operating efficiencies as it seeks to create profitable, sustainable growth and long-term shareholder value in the future.
We maintain our long-term “Neutral” recommendation on MoneyGram. The quantitative Zacks #3 Rank (short term Hold rating) for the company indicates no clear directional pressure on the stock over the near term.
Headquartered in Minneapolis, Minnesota, MoneyGram International Inc., through its subsidiaries, provides payment services worldwide. It competes with Western Union Co. (WU).
