MasterCard Profit Tops Expectations

MasterCard Inc. reported a stronger-than-expected 17% jump in first-quarter profit as the credit-card company posted higher purchase volumes.

Revenue for the quarter, meanwhile, came in slightly below Wall Street expectations.

The results come as the picture has brightened somewhat for U.S. consumers, while global economic uncertainties are heightened by a strengthening dollar and falling oil prices.

"We are managing well, despite a mixed economic environment and challenging currency situation," said Chief Executive Ajay Banga in an news release.

In the latest quarter, purchase volume rose 12%, in terms of local currency, to $783 billion.

Processed transactions rose 12% to 11 billion, while cross-border volumes grew 19%. MasterCard said gross dollar volume rose 12% to $1.1 trillion on a local-currency basis, though increase in rebates and incentives partially offset this growth.

In all, the company posted earnings of $1 billion, or 89 cents a share, up from $870 million, or 73 cents a share, in the prior-year period.

Revenue rose 2.7% to $2.23 billion.

Analysts had projected 80 cents a share in profit and $2.28 billion in revenue, according to Thomson Reuters.

The company has looked to expand into markets dominated by rival Visa Inc and in November announced plans to launch a debit-card service in Canada this year. Visa is scheduled to report results Thursday.

Write to Chelsey Dulaney at [e-mail]

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