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. Continue reading