MasterCard Inc, the world’s second-largest credit and debit card network, reported a 21 percent rise in quarterly profit as consumers spent more with their cards and revenue rose faster than expenses.
Cardholders made $629 billion of purchases worldwide during the quarter, up 17 percent from a year earlier, the company said.
Card payments outside the United States grew 20.6 percent, based on local currencies, compared with 14 percent growth in the United States.
The number of transactions processed increased 29 percent 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 $682 million, or $5.36 a share, compared with $562 million, or $4.29 a share, a year earlier, the Purchase, New York-based company reported on Wednesday.
Analysts on average had expected $5.30 a share, according to Thomson Reuters I/B/E/S.
Net revenue, adjusted for an acquisition, grew faster than expenses, rising 16 percent while operating expenses increased 9 percent.
Shares of MasterCard were down 2.1 percent at $446.30 in premarket trading. At Tuesday’s close, the stock was up 22 percent 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.
Guidelines: Please keep your comments smart and civil. Don't attack other readers personally, and keep your language decent. Comments that violate these standards, or our privacy statement or visitor's agreement, are subject to being removed and commenters are subject to being banned. To post comments, you must be a registered user on toledoblade.com. To find out more, please visit the FAQ.