MoneyGram plunges after big Q1 miss; FY18 declines expected

|About: MoneyGram International, Inc. (MGI)|By:, SA News Editor

MoneyGram ((MGI -10.6%)) estimates FY2018 constant currency revenue will decline 4%-6% and adjusted EBITDA (constant currency basis) will decline 8%-10%.

The money transfer service incurred $7.3M of expenses this quarter for its digital transformation initiative, which is expected to cost $15M for the entire program.

Q1 income tax expense jumped to  $14.8M compared from $2.5M a year ago due mostly to the impact of US tax reform legislation enacted in December and the non-deductibility of certain expenses.

MGI Chairman and CEO Alex Holmes says implementing new compliance standards above and beyond current legal requirements is expected to adversely affect transactions and revenue this year.

Previously: MoneyGram misses by $0.11, misses on revenue (May 7)

Source: Press Release

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