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The company’s adjusted EBITDA came in at $68.7 million, up 5% on a reported basis and 8% on a constant currency basis.
Total operating expenses increased 4.9% year over year to $356.9 million.
Segment Details
In the Global Funds Transfer segment, money transfer revenues increased 4% on a reported basis and 5% on a constant currency basis to $339.6 million. Non-U.S. revenues climbed 4% on a reported basis and 6% on a constant currency led primarily by Europe but offset by headwinds in the Middle East and parts of Africa. U.S. Outbound revenue grew 8% on both reported and constant currency basis led by sends to Latin America, parts of Asia and Africa.
Digital money transfer transactions, which increased 4% year on year, represented 15% of the total money transfer transaction. Digital money transfer revenues, which grew 12% year on year, accounted for 13% of the total money transfer revenue. The results reflect greater adoption of its new moneygram.com.
The Financial Paper Products segment reported total revenue of $18.9 million, up 7.4% year over year due to a 24% increase in official check revenues. Adjusted operating margin improved 450 basis points from the year-ago quarter to 23.8%.
Liquidity
As of Sep 30, 2016 MoneyGram had cash and cash equivalents of $173.1 million, down 9.7% from $164.5 million at year-end 2015. The company’s total assets declined 2% to $4.4 billion from $4.5 billion at year-end 2015. The company exited the third quarter with $937.3 million of outstanding debt, down 0.6% from $942.6 million at year-end 2015.
Year-to-date adjusted free cash flow was $83.6 million, reflecting an increase of $103.6 million from the prior-year period.
Full-Year Outlook
For 2016, the company's expected constant currency revenue growth of 7–9% and constant currency adjusted EBITDA growth of 9–11% are unchanged.
The bottom line at American Express Co. (AXP - Free Report) , MasterCard Incorporated (MA - Free Report) and Visa Inc. (V - Free Report) beat their respective Zacks Consensus Estimate for the quarter ending as of Sep 30, 2016.
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