Wed | Jul 18, 2018

MasterCard profit and sales top estimates

Published:Friday | July 29, 2016 | 12:00 AM

MasterCard stock rose on Thursday after the credit and debit card payment processor posted stronger results than analysts expected.

MasterCard said its net income edged up to US$983 million, or 89 cents per share, in the second quarter. Excluding one-time costs and gains the company earned 96 cents per share. Its revenue rose 13 per cent to US$2.69 billion.

Analysts expected Master-Card to report a profit of 90 cents per share on US$2.6 billion in revenue, according to Zacks Investment Research.

The Purchase, a New York company, said it processed 14 per cent more transactions than it did a year ago. MasterCard said it is also expanding into other types of payments: earlier this month, it agreed to buy a 92 per cent stake in Britain?s VocaLink Holdings for about US$920 million.

MasterCard said VocaLink's technology allows for direct credit and debit payments between bank accounts and faster payments over mobile phones and the internet. It also runs a network of ATMs in the United Kingdom.

MasterCard shares have slipped about two per cent this year while the Standard & Poor's 500 index has risen six per cent.