From a highlight I had earlier done on MoneyGram partnering with a telecommunications company in the country to enable use of money wallets to send and receive money to the diapora among its users following an awaited visit of MoneyGram CEO Pamela Patsey, the partnership is officially underway and MoneyGram will now increase its agent footprint beyond commercial banks.
The money transfer company will today sign a deal with Safaricom to allow Kenyans in the diaspora to send money directly to M-Pesa accounts as opposed to the usual processes that involve paperwork and bank institutions. Safaricom's nearly 22 million users will be able to receive money directly to their mobile money M-Pesa accounts from MoneyGram outlets in 90 countries.
This new relationship with MoneyGram will enable Safaricom to tap into remittances coming in from Kenyans living in other countries.Erick Njuguna former executive at Japanese electronics company Toshiba has also been appointed head of regional operations in East Africa based in Nairobi City which has been selected MoneyGram hub.
The money transfer company expects to grow its earnings across the continent following a previous loss recorded late last year. MoneyGram international Inc Reported third-quarter 2014 operating earnings per share (EPS) of 17 cents.
EPS also witnessed a radical fall from the year-ago quarter figure of 31 cents. The market's negative response was reflected in the 32% fall in the stock price following the earnings release. The cause of deterioration could be blamed on decline in US based money transfer transaction volumes.
Operating net income plunged about 52.8% year over year to about $10 million. Including adjustments, reported net loss rose to $3 million or 5 cents per share against an income of $22.5 million or 31 cents per share in the year-ago quarter.
MoneyGram's total revenue for the quarter was $358 million, down 6.5% from the year-ago period. While fee and other revenues increased 5.5% to $355.2 million, investment revenues stood at $2.8 million, significantly down from $7.2 million in the year-ago period.
MoneyGram is looking to close this gap with the help of telcos across continents for better financial quarters in the market.
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