MoneyGram narrows 3Q loss, but misses Street view

MoneyGram narrows 3rd-quarter loss as sales rise, but misses Street view; shares fall

• On 12:48 pm EDT, Friday October 30, 2009

MINNEAPOLIS (AP) -- MoneyGram International Inc. said Friday its third-quarter loss narrowed as sales rose.

The money transfer company, based in Minneapolis, lost $49.2 million, or 60 cents per share, in the quarter that ended Sept. 30. That compares with a year-earlier loss of $66.1 million, or 80 cents per share.

The company said results were dragged down by $37.4 million in one-time costs for a patent lawsuit, a legal settlement with the Federal Trade Commission, stock-based compensation and severance costs, asset write-downs and securities gains.

Analysts polled by Thomson Reuters expected 4 cents per share in profit, excluding one-time items.

Revenue rose 7.4 percent to $175.7 million from $163.6 million, as the number of money transfers and fees collected increased. Analysts had expected $291.5 million in revenue.

MoneyGram shares fell 14 cents, or 4.5 percent, to $2.99 in afternoon trading.