Reuters

(Reuters)

MasterCard Profit Rises on Lower Tax Expense

Features Reuters

MasterCard Inc (MA), the world's No. 2 debit and credit card company, reported a 17 percent rise in quarterly profit as people spent more using its cards and the company paid lower taxes.

Continue Reading Below

MasterCard shares were up about 2 percent at $91.94 in premarket trading.

Income tax expense fell about 22 percent to $320 million in the first quarter ended March 31, the company said on Wednesday.

The decrease was primarily due to the recognition of a discrete U.S. foreign tax credit benefit, a larger repatriation benefit and a more favorable mix of taxable earnings.

"We are managing well, despite a mixed economic environment and challenging currency situation," Chief Executive Ajay Banga said in a statement.

Operating expenses fell about 1 percent to $879 million.

Continue Reading Below

The company's worldwide purchase volume increased 11.8 percent to $783 billion in local currency terms, while its cross-border volumes jumped 19 percent.

Net revenue rose 2.7 percent to $2.23 billion.

The company's net income rose to $1.02 billion, or 89 cents per share, from $870 million, or 73 cents per share, a year earlier.

(Reporting by Neha Dimri in Bengaluru; Editing by Joyjeet Das)