Home / News / Company news / MasterCard revenues disappoint analysts frame_main_breadcrumb_about frame_main_breadcrumb_contact    
18 AUGUST 2016
This is the site of Card & Payments World, the well respected international newsletter providing in depth information on mobile, card and online payments and this is our daily news and resource site for subscribers who also receive 11 printed newsletters a year and three glossy magazines.

More than just a technology title. Read more

PDF Print
Friday, 31 July 2015 13:59
MasterCard revenues disappoint analysts
Despite offering more rebates and incentives

MasterCard Inc has reported lower-than-expected quarterly revenue as the company offered more rebates and incentives to win new and renewed deals.

Shares of MasterCard, which operates the world's second largest payment network, fell about 3 percent in premarket trading on Wednesday.
The company paid $940 million in rebates and incentives in the second quarter, up 21 percent from a year earlier. Client incentives accounted for nearly 28 percent of MasterCard's gross revenue in the second quarter, way above Visa's 16 percent.

MasterCard's cross-border volumes - the value of transactions made by card holders outside the card-issuer's country - jumped by 17%.

The company's net income fell to $921 million in the quarter ended June 30 from $931 million, a year earlier, due to a $44 million after-tax charge related to a UK merchant litigation settlement. However, earnings rose on a per-share basis to 81 cents from 80 cents.

Excluding the charge, MasterCard earned 85 cents per share.

Net revenue rose 0.9 percent to $2.39 billion.

Up to Tuesday's close, the stock had risen 10.5% this year, while Visa's shares had risen 14%.
We get the inside stories on payments that you won't find anywhere else. To read them: