Green Dot profits more than doubled to $8 million in the second quarter as revenues rose slightly and expenses ticked down.
The prepaid card issuer is seeking to rebound after discontinuing its popular MoneyPak product amid concerns that the offering was ripe for exploitation by fraudsters. MoneyPak was relaunched in April 2016 and is now available at more than 17,000 locations, according to the company.
Green Dot, of Pasadena, Calif., reported Thursday that 4.28 million of the company's cards were active at the end of the second quarter, which was down from 4.80 million a year earlier. But the purchase volume on Green Dot cards increased by nearly 1% to $3.86 billion.
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The prepaid card issuer issued conflicting statements in recent weeks as customers complained that they were unable to access their funds.
June 1 -
Steve Streit retained his board seat Monday, but lost two allies, as a large shareholder indicated that it will continue pushing for his ouster.
May 23 -
Despite having fewer prepaid cards in the market, Green Dot delivered a first quarter that exceeded its executives' expectations with $78.3 million in adjusted earnings.
May 4
Total operating revenues rose by 1.9% year over year, to $173.5 million. Total operating expenses fell by 1.7%. Net income rose by $4.5 million from a year earlier.
"In the second quarter we experienced improving revenue from our legacy portfolio and superior unit economics from new card products," Chief Executive Steve Streit said in a press release.
Green Dot also raised its guidance for full-year revenue, a metric that is not calculated using generally accepted accounting principles. The new guidance provides for total operating revenues in the range of $708 million to $713 million, an increase of $3 million from the earlier projection.
