MoneyGram 2009 Annual Report Download - page 40

Table of Contents
severance and related costs and $7.7 million of transaction costs related to the recapitalization in addition to other net corporate costs of
$9.3 million not allocated to the segments. Following is a reconciliation of segment operating income to the consolidated operating
results:
Table 5 — Segment Information
YEAR ENDED DECEMBER 31, 2009 2008 2007
(Amounts in thousands)
Operating income:
Global Funds Transfer $ 85,047 $ 139,428 $ 127,308
Financial Paper Products 27,372 30,169 93,283
Other (4,316) (19,883) (11,374)
Total segment operating income 108,103 149,714 209,217
Net securities gains (losses) 7,790 (340,688) (1,189,756)
Interest expense (107,911) (95,020) (11,055)
Debt extinguishment loss — (1,499) —
Valuation loss on embedded derivatives — (16,030) —
Other unallocated (30,304) (33,668) (1,673)
Loss from continuing operations before income taxes $ (22,322) $ (337,191) $ (993,267)
Table 6 — Global Funds Transfer Segment
2009 2008
vs. vs.
YEAR ENDED DECEMBER 31, 2009 2008 2007 2008 2007
(Amounts in thousands)
Money transfer revenue:
Fee and other revenue $ 893,076 $ 870,074 $ 731,390 3% 19%
Investment revenue 163 1,873 5,190 (91)% (64)%
Total money transfer revenue 893,239 871,947 736,580 2% 18%
Bill payment revenue:
Fee and other revenue 134,535 141,169 122,087 (5)% 16%
Investment revenue 76 38 35 100% 9%
Total bill payment revenue 134,611 141,207 122,122 (5)% 16%
Total Global Funds Transfer revenue:
Fee and other revenue 1,027,611 1,011,243 853,477 2% 18%
Investment revenue 239 1,911 5,225 (87)% (63)%
Total Global Funds Transfer revenue 1,027,850 1,013,154 858,702 1% 18%
Commissions expense (488,116) (491,932) (399,081) 1% (23)%
Net revenue $ 539,734 $ 521,222 $ 459,621 4% 13%
Operating income $ 85,047 $ 139,428 $ 127,308 (39)% 10%
Operating margin 8.3% 13.8% 14.8%
2009 Compared to 2008
Total revenue for the Global Funds Transfer segment consists primarily of fees on money transfers and bill payment transactions. For
2009, Global Funds Transfer total revenue increased $14.7 million, or 1 percent, due primarily to money transfer fee revenue growth,
partially offset by lower bill payment revenue and lower investment revenue.
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