MasterCard's Profit, Revenue Beat Estimates; Shares Rise

Earnings Reuters

MasterCard credit cards are seen in this illustrative photograph taken in London December 8, 2010. Hackers have crashed the website of credit card firm MasterCard in apparent retaliation for its blocking of donations to the Wikileaks website it was ... reported on Wednesday. REUTERS/Jonathan Bainbridge (BRITAIN - Tags: BUSINESS IMAGES OF THE DAY) (Reuters)

MasterCard Inc, the world's second-largest payments network, reported higher-than-expected quarterly profit and revenue as people spent more using credit and debit cards.

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MasterCard's net income rose 12.7 percent to $1.08 billion, or $1.00 per share, in the first quarter ended March 31, from $959 million, or 86 cents per share, a year earlier.

On an adjusted basis, the company earned $1.01 per share, beating the average analyst estimate of 95 cents, according to Thomson Reuters I/B/E/S.

The Purchase, New York-based company's total revenue rose 11.8 percent to $2.73 billion, beating the average estimate of $2.65 billion. (

MasterCard's shares were up 1.4 percent at $117.99 in premarket trading.

MasterCard and bigger rival Visa Inc generate revenue by facilitating credit- and debit-card transactions and their fortunes are closely tied to the health of the economy and consumer spending.

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Economic data in the past few months has been largely positive - the labor market has improved, while average wages are also up.

MasterCard, which processes more than 65,000 transactions a minute, said adjusted gross dollar volumes rose 8 percent to $1.18 trillion in the quarter on a local currency basis.

The United States, the company's largest market, accounted for about 32 percent of the total gross dollar volumes.

Cross-border volumes - the value of transactions made by card holders abroad - increased 13 percent on a local currency basis.

Total costs rose to $1.23 billion from $1.09 billion a year earlier as advertising and marketing spend increased. (Reporting by Nikhil Subba in Bengaluru; Editing by Sai Sachin Ravikumar and Saumyadeb Chakrabarty)

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