Mastercard see profits rise
Mastercard have recently gone through a re-design of their globally recognisable logo. But, one thing that hasn’t changed is the card, finance and payments firms’ performance, as they have just released their financial figures for the fourth quarter and the full fiscal year.
The American financial firm have announced net income of $933 million for the fourth quarter, which was a 5% increase (or 4% on a constant currency basis) on the same period a year ago. This translated through to earnings per share of $0.86, up 9% on the previous year’s Q4 figure.
Net revenue for the quarter came in at $2.8 billion, with an increase of 9% (or 10% on a constant currency basis) against the same period last year. Mastercard said that this rise in revenue was driven by: an increase in switched transactions of 17%, a 9% increase in gross dollar volume on a local currency basis and an increase in cross-border volumes of 13%.
For the full fiscal year, Mastercard reported net income of $4.1 billion, which was an increase of 7%, or 8% on a constant currency basis.
A press release from the company said: ‘Net revenue for the full-year 2016 was $10.8 billion, an increase of 11%, or 13% on a currency-neutral basis, versus the same period in 2015. Contributing to this growth were switched transactions growth of 16%, cross-border volume growth of 12% and gross dollar volume growth of 11%, on a local currency basis and adjusting for the impact of recent EU regulatory changes. These factors were partially offset by an increase in rebates and incentives.’
Mastercard share price over the last five years
As of 01 February 2017: 104.84
Source: Yahoo Finance
These figures, released by Mastercard earlier in the week, will sit well with investors, as the company continues to perform well.
Ajay Banga, president and CEO of Mastercard, said: “We’re pleased to have delivered strong results for the quarter and full year, driven by solid execution of our strategy and leveraging our differentiated service offerings. Our continued investments in digital, safety and security, data analytics, loyalty and processing position us well for future growth in our core business and new payment flows.”
Dominion holds Mastercard in its Global Trends Ecommerce Fund.
If you would you like to receive the Newsfeeds daily, please click here to sign up now!Help us make this Newsfeed better by rating this article. 1 star = Poor and 5 stars = Excellent
- Click here to print this story: Print
The views expressed in this article are those of the author at the date of publication and not necessarily those of Dominion Fund Management Limited. The content of this article is not intended as investment advice and will not be updated after publication. Images, video, quotations from literature and any such material which may be subject to copyright is reproduced in whole or in part in this article on the basis of Fair use as applied to news reporting and journalistic comment on events.