MoneyGram 2013 Annual Report Download - page 22

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Table of Contents
If we fail to successfully develop and timely introduce new and enhanced products and services or if we make substantial investments in an
unsuccessful new product, service or infrastructure change, our business, prospects, financial condition and results of operations could be
adversely affected.
Our future growth will depend, in part, on our ability to continue to develop and successfully introduce new and enhanced methods of providing
money transfer, bill payment, money order, official check and related services that keep pace with competitive introductions, technological
changes and the demands and preferences of our agents, financial institution customers and consumers. If alternative payment mechanisms
become widely substituted for our current products and services, and we do not develop and offer similar alternative payment mechanisms
successfully and on a timely basis, our business and prospects could be adversely affected. We may make future investments or enter into
strategic alliances to develop new technologies and services or to implement infrastructure changes to further our strategic objectives, strengthen
our existing businesses and remain competitive. Such investments and strategic alliances, however, are inherently risky, and we cannot guarantee
that such investments or strategic alliances will be successful. If such investments and strategic alliances are not successful, they could have a
material adverse effect on our business, financial condition and results of operations.
There are a number of risks associated with our international sales and operations that could adversely affect our business.
We provide money transfer services between and among more than 200
countries and territories and continue to expand in various international
markets. Our ability to grow in international markets and our future results could be harmed by a number of factors, including:
In particular, a portion of our revenue is generated in currencies other than the U.S. dollar. As a result, we are subject to risks associated with
changes in the value of our revenues denominated in foreign currencies. Fluctuations in foreign currency exchange rates could adversely affect
our financial condition. See “ Enterprise Risk Management—Foreign Currency Risk ” in Item 7A of this Annual Report on Form 10-
K for more
information.
If we are unable to adequately protect our brand and the intellectual property rights related to our existing and any new or enhanced
products and services, or if we infringe on the rights of others, our business, prospects, financial condition and results of operations could be
adversely affected.
The MoneyGram brand is important to our business. We utilize trademark registrations in various countries and other tools to protect our brand.
Our business would be harmed if we were unable to adequately protect our brand and the value of our brand was to decrease as a result.
20
•
changes in political and economic conditions and potential instability in certain regions, including in particular the recent civil unrest,
terrorism and political turmoil in Africa, the Middle East and other regions;
•
restrictions on money transfers to, from and between certain countries;
•
money control and repatriation issues;
•
changes in regulatory requirements or in foreign policy, including the adoption of domestic or foreign laws, regulations and interpretations
detrimental to our business;
•
possible increased costs and additional regulatory burdens imposed on our business;
•
the implementation of U.S. sanctions, resulting in bank closures in certain countries and the ultimate freezing of our assets;
•
burdens of complying with a wide variety of laws and regulations;
•
possible fraud or theft losses, and lack of compliance by international representatives in foreign legal jurisdictions where collection and
legal enforcement may be difficult or costly;
•
reduced protection of our intellectual property rights;
•
unfavorable tax rules or trade barriers;
•
inability to secure, train or monitor international agents; and
•
failure to successfully manage our exposure to foreign currency exchange rates, in particular with respect to the euro.