MasterCard Reports Profit, Sales Growth
January 29 2016 - 09:03AM
Dow Jones News
By Chelsey Dulaney
Payment-card network MasterCard Inc. on Friday reported an 11%
increase in fourth-quarter profit, as its revenue and volumes
rose.
Shares ticked up 0.7% to $84 a share in premarket trading
The Purchase, N.Y.-based company's results recently have been
pressured across the world from a strong U.S. dollar, particularly
when compared with the euro and the Brazilian real. Slower growth
in emerging markets and worsening economic conditions in Venezuela
have also impacted results.
"Entering 2016, while uncertainty in the global economy
persists, the fundamentals of our business and our approach remain
unchange," said Chief Executive Ajay Banga in a news release.
For the period ended Dec. 31, the company posted earnings of
$890 million, or 79 cents a share, compared with $801 million, or
69 cents a share, a year earlier.
Revenue grew 4.4% to $2.52 billion, or 9% excluding currency
impacts. Analysts had projected 69 cents a share in profit and
$2.55 billion in revenue, according to Thomson Reuters.
The company said an increase in rebates and incentives ate into
revenue, while acquisitions added 2 percentage points to revenue
growth.
Like rival Visa Inc., MasterCard processes electronic payments
on its network, but doesn't collect interest or set interest
rates.
In the latest quarter, purchase volume grew 12%, on a
constant-currency basis, to $883 billion. Both processed
transactions and cross-border volumes grew 12%.
Gross dollar volume grew 12%, in terms of local currency, to
$1.2 trillion.
Write to Chelsey Dulaney at Chelsey.Dulaney@wsj.com
(END) Dow Jones Newswires
January 29, 2016 08:48 ET (13:48 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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