Money transfer giant Moneygram International Inc (NASDAQ:MGI) saw its stock make considerable gains this past after the company released its third-quarter results. The MoneyGram stock rallied strongly and gained as much as 15% on Friday following the release of the earnings following market closure on Thursday. In this regard, it should also be noted that over the course of the past two months, the stock has gained 100%.

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Third Quarter Earnings

In order to understand the rally in the MoneyGram stock on Friday, it is necessary to take a closer look at the third-quarter earnings announced by the company. The overall revenues generated by the company did not change much year on year, however, the revenues from money transfer activities shot up 5%.

It is a significant development considering the fact that money transfer is the core business of the company. On the other hand, the adjusted earnings per share stood at $0.16, which reflects a considerable improvement from the $0.03 adjusted earnings in the year-ago period.

It surpassed the analysts’ projections of adjusted earnings per share of $0.07 as well. Online transactions grew handsomely as well to generate growth of 111% year on year and the revenues shot up by as much as 114%.

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The company’s performance in the third quarter is an indication that the coronavirus pandemic has in fact managed to provide a boost to MoneyGram. It is believed that the short term boost provided to the company’s businesses might actually be a permanent state of affairs.

Online Transactions Boost

The biggest takeaway from the company’s earnings report was the stupendous growth recorded in the online transaction through its direct to consumer offerings. According to revelations made by MoneyGram, digital transactions made up as much as 27% of all the money transfer activity that took place in the third quarter.

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The Chief Executive Officer of the company, Alex Holmes spoke about the ‘amazing performance’ of MoneyGram’s digital business. He stated that the direct to consumer offering, MoneyGram Online has proven to be a major driver for the addition of new customers.

While the growth in the digital business was commendable, Holmes also added that the third quarter also saw some recovery in its traditional walk-in offerings.

Recently, the company extended its collaboration with retail giant Walmart as well and the relationship is going to last up until 2024. MoneyGram services will now be available at 4700 Walmart stores in Puerto Rico and the United States. It will also be available online. 

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