Another leader in the electronic payments industry, Mastercard shifted to a profit this quarter, from last year’s same period, or a 26.4% increase. if special items from last year that drove it to a loss were excluded. Net income reported is $349m or $2.67 per share.
Revenue is also higher, albeit only slightly, by 2.7% from last year’s $1.2bn to this period’s $.13bn. Ignoring forex effects, the growth would have been a better 7%. It is at about the same page in terms of number of transactions with Visa, growing at 7.9% for Q2.
Results were affected by lower operating expenses, wherein an almost 36% decline in advertising and marketing expenses was a big contributor.
The company saw a better, though still declining gross dollar volument compared to peer Visa, while purchase volume is also down 0.7%.
CEO Robert Selander was pleased with the results:
“The thoughtful actions we’ve taken to realign our resources and priorities to match customer and local market needs, as well as our sharp focus on expense management, have enabled us to deliver strong operating margin and net income improvements.”
He also commented on the firm’s resiliency and its expected benefits from an “ongoing shift toward electronic payments”.
The entire PDF earnings report can be found HERE.