On Thursday, MasterCard released its quarterly financial statements, which showed better than expected results. The American Multinational Financial Services Corporation reported a profit of $1.02 Billion or $0.87 per share, an increase in profit levels by 15.5% for the quarter ending in September. The stock value of MasterCard was also on the up by 6.5% at around $81 in early morning trading on Thursday and went up as high as $81.69. This rise in stock value represents the confidence that investors have in the directorship of MasterCard and their optimism that it will continue to grow and outperform all expectations in the future as well.
MasterCard’s performance has topped the expectations that had been made by various experienced analysts from all over the globe. The double digit increase was not only observed in the profit levels, but also revenue and payment volume levels, hence delivering strong results in a mixed economic environment. Revenue stood at a staggering $2.5 Billion, an increase by 13%. This financial performance by MasterCard shows the confidence consumers have in their current economy, which seems to be strong and stable which in return is driving consumer spending. With an increase in Consumer Spending, the demand for both credit cards and debit cards increases. Hence the payment volumes also increases as consumers spend more to make purchases.
MasterCard, which happens to be an international services corporation, is a popular choice among customers when it comes to purchasing a debit card or a credit card. The company reported that the purchase volume was up by 11% to $843 Billion and the cross border volume increased by 15%. The transactions that were made through MasterCard cards were up by 10 % to around $11billion. Gross Dollar volume stood at $1.2 trillion, which again represents a 12 % increase. These results show that earnings have certainly improved for MasterCard due to the continued stability of global economy.
Despite the current financial performance, MasterCard is still looking to improve and further increase investors’ confidence in it. It is heavily investing in making and developing a safer and more secure payment system. This development in this sector will allow retailers to stay safe from hackers and other cyber thieves who are continuously looking to steal customer’s financial information. This enhanced security will further attract customers to use MasterCard, especially due to recent hacking incidents that made an impact on some of the biggest names in the world. They will feel more secure and confident that their money will not be stolen by anyone.
MasterCard has already joined other card companies such as VISA on Apple Pay mobile payments platform to increase the services it provides to its valued customers. All these investments and acquisitions have sent up MasterCard’s operating expenses by 12% to $1.08 Billion. However, better than expected quarterly profits have made up for its expenses and now the directors of MasterCard have announced a Plan to buy-back $5billion shares.
Present situation and the future, at this point, looks fairly bright for MasterCard.