MoneyGram Stock Skyrocket on Triple-Digit Percentage Growth
MoneyGram stock price soared more than 20% after reporting triple-digit percentage transaction volume growth in October, marking the tenth consecutive month of increase. The robust growth in cross broader payments is helping in beating revenue and earnings estimates.
The company says a strong retention rate along with pandemic-related distancing policies is backing its financial performance. Product innovation as well as investments in direct-to-consumer digital businesses are adding to volume growth.
MoneyGram stock soared almost 257% since the beginning of this year, reversing almost all the losses that it had incurred between 2018 to the end of 2019. Shares of payment transfer company are down only 5% in the past five years.
Robust October performance indicates a strong start to Q4
MoneyGram has reported a 150% year over year increase in its direct-to-consumer digital business for October. The October transaction volume grew 221% from the past period.
“These results continue to demonstrate our ability to capture share as we strengthen our market position due to the success of our customer-led digital transformation,”
says chairman and CEO Alex Holmes.
The company says mobile transactions accounted for 85% of digital transactions. MoneyGram permits users to transfer money from mobile app to bank account. The company claims investments in digital transition enabled it to build a modern, mobile, and customer-centric organization.
Moreover, digital transactions are less costly, helping in generating healthy profits. Its third-quarter operating income grew 123% and Adjusted EBITDA soared 33% year-over-year.
MoneyGram stock has more upside
Although MoneyGram is among the best performers since the beginning of this year, the shares are likely to extend momentum on the heels of consumers move towards online platforms and mobile apps for payment transfers.
In addition, lockdowns in the European Union and increasing virus infections across the United States will force people to stay at home and use online platforms for payment transactions.