MoneyGram International

As MGI continued its digital-first strategy, the company's digital revenue increased 32% in 2023, and contributed to 38% of total money transfer revenue. However, revenue from the company's retail channel contracted about 4.3% in 2023, which weighed on its operating performance. Adjusted EBITDA margin expanded marginally to 14.5% in 2023, from 13.3% in 2022 because MGI implemented cost saving programs, partially offset by higher marketing spend and investments to drive digital growth. The stable outlook over the next 12 months indicates our expectation for EBITDA cash interest coverage of 2.0x-3.0x, debt to EBITDA above 5.0x, and no new compliance deficiencies. Our outlook also considers MGI's existing market position in global money transfer services, its financial sponsor ownership, adequate liquidity, and

...We expect MoneyGram International Inc. (MGI)'s adjusted EBITDA to grow mid- to high-single digits in 2024 driven by strong digital revenue growth and slight margin expansion. For year-end 2023, MGI's total revenue increased by 10.4% year over year to around $1,446 million, primarily owing to strong digital revenue growth in the Global Funds Transfer (GFT) segment as well as higher investment revenue in the Financial Paper Products (FPP) segment due to higher benchmark rates. As MGI continued its digital-first strategy, the company's digital revenue increased 32% in 2023, and contributed to 38% of total money transfer revenue. However, revenue from the company's retail channel contracted about 4.3% in 2023, which weighed on its operating performance. Adjusted EBITDA margin expanded marginally to 14.5% in 2023, from 13.3% in 2022 because MGI implemented cost saving programs, partially offset by higher marketing spend and investments to drive digital growth. We expect MGI to operate with leverage...

Full Report