MasterCard profit rises 21pc, beats estimates
NEW YORK, May 2 – MasterCard Inc, the world’s second-largest credit and debit card network, reported a 21 per cent rise in quarterly profit as consumers spent more with their cards and revenue rose faster than expenses.
Cardholders made US$629 billion (RM1.91 billion) of purchases worldwide during the quarter, up 17 per cent from a year earlier, the company said.
Card payments outside the United States grew 20.6 per cent, based on local currencies, compared with 14 per cent growth in the United States.
The number of transactions processed increased 29 per cent to 7.7 billion, the fastest rate of growth since MasterCard went public in 2006. The increase reflects, in part, the increasing movement of consumers globally to making payments electronically instead of with paper currency.
Net income was US$682 million, or US$5.36 a share, compared with US$562 million, or US$4.29 a share, a year earlier, the Purchase, New York-based company reported today.
Analysts on average had expected US$5.30 a share, according to Thomson Reuters I/B/E/S.
Net revenue, adjusted for an acquisition, grew faster than expenses, rising 16 per cent while operating expenses increased 9 per cent.
Shares of MasterCard were down 2.1 per cent at US$446.30 in premarket trading. At yesterday’s close, the stock was up 22 per cent this year.
Visa Inc, MasterCard’s larger rival in card payment processing networks, is scheduled to report its quarterly results following the close of New York Stock Exchange trading. – Reuters