MasterCard, Visa Report Strong Quarterly Results
Aug. 5, 2010
In the past week, MasterCard and Visa both reported profits for the April-to-June time period this year. MasterCard Worldwide said second-quarter net income rose 31 percent to $458 million over the same period in 2009. The Purchase, N.Y.-based card network reported revenue for the quarter increased 6.7 percent to $1.4 billion. The company said the increase was driven by a 15.2 percent jump in cross-border volumes and an 8.5 percent increase in transactions by gross dollar volume. “We are pleased with our performance in the second quarter,” said Ajay Banga, MasterCard president and CEO. “Solid GDV growth, particularly in markets outside the United States, continued momentum in worldwide cross-border volumes, and thoughtful expense management all contributed to good financial results this quarter.” Separately, Visa Inc. reported a fiscal third-quarter profit of $716 million. The San Francisco-based card network’s revenue increased 23 percent for the quarter to $2 billion on strong transaction growth. “Visa delivered a solid financial performance during our fiscal third quarter as we saw continued improvements in global cross-border and payments volume growth,” said Joseph Saunders, chairman and CEO of Visa Inc. “As we look to the remainder of our fiscal 2010 year, we remain focused on integrating our recent acquisition of CyberSource, maintaining strong financial performance and expense control discipline.” Visa reported that the dollar value of transactions made using its cards during the quarter rose 14 percent from the same time a year earlier to $803 billion. Total transactions also increased 14 percent to 11.7 billion.