MoneyGram Stock Falls Despite Better Q4 Results on Ripple's Investment

Moneygram stock is trading lower this morning despite MoneyGram International Inc (NASDAQ:MGI) reporting a better-than-expected Q4 financial report.

Over the past few years, blockchain company Ripple has signed a range of important partnerships, and one of its most important ones is with money transfer giant MoneyGram. Recently, MoneyGram released its financial results for the fourth quarter, and from the perspective of Ripple, it makes for interesting reading.

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The earnings report revealed that in the fourth quarter, Moneygram International received as much as $11.3 million from Ripple. In the quarter before that, it received $2.4 million. In 2019, MoneyGram reported a decline in revenue, but these contributions from Ripple helped offset its operating expenses to some extent.

Ripple entered into this strategic partnership with MoneyGram back in June 2019, and at the time, it made an equity investment of $30 million in the company.

The fourth-quarter financial results revealed that MoneyGram had managed to surpass expectations and managed to generate revenue of as much as $323 million for the quarter.

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The company went on to reveal that its partnership with Ripple has now expanded quite considerably from 2019.

Moneygram stock is down 14% at $2.21.

At this point in time, Ripple owns as much as 9.95% of the outstanding common stock in MoneyGram. The money transfer giant has also embarked on a major digital transformation as it aims to regain much of the market share that it has lost to new-age remittance companies.

The digital initiatives seem to have paid dividends, and the MoneyGram Online transactions have soared by as much as 39% year-on-year. The Chief Executive Officer of the company, Alex Holmes, said as much: