MasterCard Incorporated has reported an
increase of 23.6% year-on-year in its net income, reaching in $562m
in the network’s Q1 2011 results.
Net revenue grew 14.8% during the same period
to $1.5bn. MasterCard claims foreign currency fluctuations had
“essentially no impact” and instead growth was driven by the impact
of a 12.8% increase in gross dollar volume on a local currency
basis to $728bn, an 18.5% increase in cross-border payment volumes
and pricing changes of around 5%.
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MasterCard’s worldwide purchase volume during
Q1 2011 was up 12.9% to $545bn on a local currency basis when
compared to the same point last year. The number of processed
transactions grew to 6bn, up 11.1%, from Q1 2010.
As of 31 March 2011, 1.7bn MasterCard and
Maestro-branded cards were in issuance.
“We had a strong start to 2011 despite the
hardships experienced by many consumers and businesses due to
natural disasters and political turmoil in several markets,” said
Ajay Banga, MasterCard’s president and CEO
“Our solid volume and processed transaction
growth helped to drive a double-digit revenue increase. This growth
is reflective of the strong fundamentals and global nature of our
business.
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By GlobalDataMartina Hund-Mejan, MasterCard’s CFO wrote via
the network’s blog that while the company is cautiously optimistic
following its Q1 2011 results, 2011 will not be without its
challenges.
“We are keeping an eye on the ongoing
political upheaval in the Middle East and the implications of
Japan’s tragic earthquake and tsunami on our business,” writes
Hung-Mejan.
“In the US, concerns remain about housing
prices, unemployment and rising prices in food and gas, and while
we did not see a negative impact in Q1, it may have negative
impacts on discretionary spending in the longer-term.”
She goes on to say that MasterCard’s efforts
to delay or change the Federal Reserve’s proposal to cap
interchange fees continue as it is believed consumers will feel the
burden of the Fed’s “interference” in the balance of costs
paid.
