MasterCard profit rises 31 percent

[MNeagle]

Reuters) - MasterCard Inc (MA.N), the world's second-largest credit- and debit-card processing network, said its second-quarter profit rose 31 percent, beating expectations as the company reined in expenses and consumers slowly resumed spending and traveling abroad.

The Purchase, New York-based company reported net income of $458 million, or $3.49 per share on Tuesday.

That compared with $349 million, or $2.67 per share, in the year-earlier period.

Analysts on average had expected MasterCard to post a profit of $3.33 per share, according to Thomson Reuters I/B/E/S.

The company attributed its results in part to an increase in spending on its cards, especially outside of the United States. The gross dollar volume of the transactions MasterCard processed rose about 8.5 percent globally from the year earlier, to $656 billion. But growth in U.S. gross dollar volume was flat at $244 billion.

MasterCard also said more consumers have resumed traveling - and spending money - abroad. Its cross-border volumes increased 15.2 percent from a year earlier.

Revenues rose 6.7 percent to $1.37 billion, slightly below analysts' average expectations.

MasterCard cut expenses by 10.4 percent, to $648 million, from a year earlier. The company said it paid less in salaries and severance this quarter, after laying off employees during 2009.

MasterCard shares closed down 3.6 percent at $202.52 on Monday. They initially rose about 2 percent in premarket trading Tuesday before falling back to flat levels.

link (http://www.reuters.com/article/idUSTRE6722BP20100803?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+reuters%2FbusinessNews+%28New s+%2F+US+%2F+Business+News%29)

[k-os]

This could be because people are charging necessities more these days (charging electricity, mortgage payments, etc. on credit cards). Come to think of it, that's probably why the recession/depression hasn't hit as hard as it seems like it would. When the majority of people default on their credit card bills entirely, and stop using credit cards on a daily basis, we're all going to feel this depression more.

[joe_momma]

US credit use was flat YoY.

MC saw growth because the rest of the world increased their use (roughly 2/3 of all of its transactions were outside the US).

One wonders when MC will move its corporate headquarters overseas to beat the 0bama tax increases.

[Carbon]

US credit use was flat YoY.

MC saw growth because the rest of the world increased their use (roughly 2/3 of all of its transactions were outside the US).

One wonders when MC will move its corporate headquarters overseas to beat the 0bama tax increases.




... and get a cheaper labor force to boot.

In fact, what incentives does any Global corp have to stay in the US today?

[Phoenix]

Record defaults and charge-offs, and yet, their profit still continues? I guess we're seeing what a SCAM credit cards really are!

[Twisted Titan]

Their profit is actually infinity on top of infinity because all that are doing is rearanging numbers on a computer screen

Less the cost for the fabrication of a plastic card.


T

[Glass]

I'm looking forward to the day when their profits plunge 100%. That'll be the day.....