MoneyGram 2008 Annual Report Download - page 17

Table of Contents
• We may be unable to borrow from financial institutions or institutional investors on favorable terms which could adversely impact
our ability to pursue our growth strategy and fund key strategic initiatives, such as product development and acquisitions.
If current levels of market disruption and volatility continue or worsen, there can be no assurance we will not experience an adverse
effect, which may be material, on our ability to access capital and on our business, financial condition and results of operations.
A sustained weakness in economic conditions, in both the United States and global markets, could adversely affect our business,
financial condition and results of operations.
Our money transfer business relies in part on the number and size of consumer transactions as well as international migration patterns.
Consumer transactions and migration patterns are affected by, among other things, the availability of job opportunities and overall
economic conditions. Our customers tend to have job opportunities in industries such as construction, manufacturing and retail that may
be more significantly impacted by deteriorating economic conditions than other industries. This may result in reduced job opportunities
for our customers in the United States or other countries that are important to our business which could adversely affect our results of
operations.
Our agents or billers may have reduced sales or business as a result of a deterioration in economic conditions. As a result, our agents
could reduce their numbers of locations or hours of operation, or cease doing business altogether. Our billers may have fewer customers
making payments to them, particularly billers in those industries that may be more affected by an economic downturn such as the
automobile, mortgage and retail industries.
If general market softness in the United States or other national economies important to the Company's business were to continue for an
extended period of time or deteriorate further, the Company's results of operations could be adversely impacted. Additionally, if our
consumer transactions decline or migration patterns shift due to deteriorating economic conditions, we may be unable to timely and
effectively reduce our operating costs or take other actions in response which could adversely affect our results of operations.
A material slow down or complete disruption in international migration patterns could adversely affect our business, financial
condition and results of operations.
The money transfer business relies in part on migration patterns, as individuals move from their native countries to countries with greater
economic opportunities or a more stable political environment. A significant portion of money transfer transactions are initiated by
immigrants or refugees sending money back to their native countries. Changes in immigration laws that discourage international
migration and political or other events (such as war, terrorism or health emergencies) that make it more difficult for individuals to migrate
or work abroad could adversely affect our money transfer remittance volume or growth rate. The continued deterioration in global
economic conditions could reduce economic opportunities for migrant workers and result in reduced or disrupted international migration
patterns. Reduced or disrupted international migration patterns, particularly in the United States or Europe, are likely to reduce money
transfer transaction volumes and therefore have an adverse effect on our results of operations.
If we lose key customers or are unable to maintain our Global Funds Transfer agent or biller networks, our business and results of
operations could be adversely affected.
Revenue from our money transfer and urgent bill payment services is derived from transactions conducted through our retail agent and
biller networks. The reputational damage to our brand as a result of the events leading to the Capital Transaction may make it harder for
us to retain existing agents or billers or to develop new agent or biller relationships. Many of our high volume agents are in the check
cashing industry. There are risks associated with the check cashing industry that could cause this agent base to decline. We may not be
able to retain all of our current retail agents or billers for other reasons, as the competition for retail agents and billers is intense. If agents
or billers decide to leave our agent network, or if we are unable to add new agents or billers to our network, our revenue would decline.
14