MasterCard Revenue Bolstered By Strong Growth in International Markets (MA)

MastercardMasterCard Inc. (NYSE: MA) reported a sharp rise in its fourth-quarter earnings as the payment network company continued to gain traction in overseas markets. The Company has also announced number of partnerships in the U.S. Credit Card market to improve its market share.

Shares however slipped 0.08% in aftermarket trading.

For the fiscal fourth quarter ended December 31, the Company reported net income of $605 million, or $4.86 a share, up from $19 million or 15 cents a share, in the year-earlier quarter. In the same quarter of last year MasterCard took a big charge of almost $500 million.

Net revenue during the period climbed 10% to $1.90 billion thanks to 20% more transactions it processed compared to year ago period, which included 17% growth in overseas volumes.

In fiscal 2012, MasterCard net income stood at $2.76 billion or $21.94 a share, on revenue of $7.39 billion.

The company is gaining foothold very rapidly in international markets that include Latin America, Asia, the MENA region (Middle East and Africa). The volume of cash processed, excluding United States, jumped 23.5% while the in the United States, volume of cash processed rose 9.7%, in the fiscal  fourth quarter.

Now, in order to become stronger force in the United States credit card market, MasterCard has announced number of partnerships with leading consumer brands such as shell oil, Bass Pro Shops and InterContinental Hotel Group.

According to MasterCard’s Chief Financial Officer, Martina Hund-Mejean,  partnerships will help boosting dollar revenue in the long run, although it will take some time to bring desired effects in the immediate future .

“When you sign an agreement, you have to actually roll out the cards to the consumer in the market, and then you have to get the consumer to use those cards,” said Hund-Mejean, according to the Wall Street Journal.




Ed Liston is a senior contributing editor at An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.