MasterCard Reports Double-Digit Growth in Transactions in 4Q

MasterCard Reports Double-Digit Growth in Transactions in 4QMasterCard’s fourth-quarter earnings topped Wall Street estimates with more consumers choosing plastic over cash, but the payments processing giant also warned of easing revenue growth this year from global economic slowdowns.
MasterCard, the second largest payments network after Visa, saw an increase in processed transactions of 20 percent, to 9.2 billion, and a 14 percent increase in gross dollar volume, on a local currency basis, to $986 billion.
Worldwide purchase volume during the fourth quarter was up 13 percent on a local currency basis, compared to the fourth quarter of 2011, to $727 billion.
As of December 31, 2012, MasterCard’s customers had issued 1.9 billion MasterCard and Maestro-branded cards.
MasterCard said its profit increased to $605 million, or $4.86 a share, up from $19 million, or 15 cents a share, a year earlier.
The company said its profit increased 18 percent in the forth quarter if you exclude a litigation charge of $495 million taken in the fourth quarter of 2011.
“There is going to be uncertainty in Europe and the U.S. could well be on a path for a slow recovery, but fiscal policy discussions and circumstances have not been completely resolved,” Chief Executive Ajay Banga said on a conference call. “They could affect consumer confidence further.”
MasterCard expects net revenue growth in the first half of 2013 to be below the 10.7 percent currency-adjusted rate recorded in the second half of 2012.
“We are pleased with our fourth-quarter results, which saw double-digit growth in net revenue, cross-border volume and processed transactions,” Banga said in a statement. “We are gaining traction in our U.S. credit business with some recent wins, continuing to experience momentum in our mobile initiatives around the world, and securing important business in emerging markets like Africa and Brazil.”

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