MasterCard Incorporated has announced its
financial results for the second quarter of 2011 with profits
rising up by 33%.
Worldwide purchase volume during the quarter
was up by 16.3% on a local currency basis in comparison to Q2 2010,
rising up to $608bn. MasterCard’s customers had issued 1.7bn
MasterCard and Maestro branded cards since the end of June
2011.
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MasterCard’s net revenue for Q2 of
2011 rose by 22.1% relative to the same point last year
reaching $1.7bn. The company reports the net revenue growth was
primarily driven by an increase in processed transactions of 17.4%
and in cross border volumes of 19.3%.
MasterCard’s president and CEO, Ajay Banga
claimed that it was increases in volume and processed transactions
that increased financial results for Q2. He said: “While payment
volumes have risen across our base customers, we’re also seeing new
business such as the portfolio conversions of SunTrust and
Sovereign, as well as new processing relationships in the
Netherlands and in Brazil, contributes to growth.”
He went on to say that work has continued
during Q2 in the mobile trade with the availability of Orange and
Barclaycard contactless payment service in the UK.
While total operating expenses for the
period saw a 20.8% increase, total operating income rose by 23.3%
for the year-ago quarter. For the same period, other income was
reported at $7m compared to $4m for the preceding year.
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By GlobalDataFavourable geographic mix of earnings in 2011
among other factors resulted in 31.8% effective tax rate compared
to the 35.7% for the same period last year.
