Business Action Group
Credit and debit cards in the world
Master Card, the second largest network of credit and debit cards in the world, on Tuesday reported a 31% growth in second quarter profit on lower costs and increased consumer spending.
The firm posted net income of 458 million, or $ 3.49 per share.
That compares with a profit of 349 million, or $ 2.67 per share, in the second quarter last year.
On average analysts expected earnings report MasterCard 33.33 per share, according to Reuters Thomson I / B / E / S.
The company partly attributed its results to spending on their cards, particularly outside the United States.
The gross dollar volume of MasterCard transactions processed increased by about 8.5% overall over the previous year to 656 000 million. But the expansion in gross dollar volume in the United States remained stable at U.S. $ 244.000 million.
MasterCard said that more consumers had resumed travel – spending money – to other countries. Its international volumes rose by 15.2% over the previous year.
Revenue rose 6.7% to 1.370 million, slightly below analysts’ average expectations.
MasterCard cut costs by 10.4% to $ 648 million the previous year. The company said it paid less in wages and compensation, after firing employees during 2009.
On Monday MasterCard shares closed down 3.6% to 202.52 dollars on Tuesday fell 0.17% after opening.