MasterCard Profit, Revenue Tops Expectations
October 28 2016 - 9:10AM
Dow Jones News
MasterCard Inc. profit grew 21% in the latest period, as card
companies have been trying to attract new customers and increase
transactions.
Results easily beat Wall Street's expectations, and shares rose
1.9% to $105.61 in premarket trading.
Purchase, N.Y.-based MasterCard said transactions rose 18%
during the quarter as cross-border volumes climbed 12%. Those
factors were partly offset by higher rebates and incentives.
MasterCard is expanding from traditional physical credit and
debit cards as its customers move to digital formats. MasterCard is
expanding its digital payment platform, Masterpass, to let shoppers
use the service on their mobile phones at store checkout terminals,
a rival service to Apple Inc.'s Apple Pay and a number of other
mobile-payment products.
Like its main rival Visa Inc., MasterCard charges fees to
financial institutions for transactions that travel over their
networks. Visa on Monday said earnings rose on growth in payments
volume and processed transactions.
In all, MasterCard reported a profit of $1.18 billion, or $1.08
a share, up from $977 million, or 86 cents, a year prior. Revenue
rose 14% to $2.88 billion. Analysts polled by Thomson Reuters
expected 98 cents in per-share profit on $2.75 billion in
sales.
Write to Joshua Jamerson at joshua.jamerson@wsj.com
(END) Dow Jones Newswires
October 28, 2016 08:55 ET (12:55 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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