By Chelsey Dulaney
MasterCard Inc. reported a stronger-than-expected 17% jump in
first-quarter profit as the credit-card company posted higher
purchase volumes and lowered its operating expenses.
Shares of MasterCard, up 25% in the past year, gained 1.7% in
premarket trading.
Revenue for the quarter, meanwhile, came in slightly below Wall
Street expectations.
The results come as the picture has brightened somewhat for U.S.
consumers, while global economic uncertainties are heightened by a
strengthening dollar and falling oil prices.
"We are managing well, despite a mixed economic environment and
challenging currency situation," said Chief Executive Ajay Banga in
an news release.
In the latest quarter, purchase volume rose 12%, in terms of
local currency, to $783 billion.
Processed transactions rose 12% to 11 billion, while
cross-border volumes grew 19%. MasterCard said gross dollar volume
rose 12% to $1.1 trillion on a local-currency basis, though
increase in rebates and incentives partially offset this
growth.
In all, the company posted earnings of $1 billion, or 89 cents a
share, up from $870 million, or 73 cents a share, in the prior-year
period.
Revenue rose 2.7% to $2.23 billion.
Analysts had projected 80 cents a share in profit and $2.28
billion in revenue, according to Thomson Reuters.
A 1% drop in operating expenses, helped by currency hedging,
boosted the bottom line.
The company has looked to expand into markets dominated by rival
Visa Inc and in November announced plans to launch a debit-card
service in Canada this year. Visa is scheduled to report results
Thursday.
Write to Chelsey Dulaney at Chelsey.Dulaney@wsj.com
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