Summary
Mastercard Inc. (MA) reported a strong recovery in the third quarter of 2009, significantly reversing the net losses experienced in the same period of 2008. Net income attributable to Mastercard for the nine months ended September 30, 2009, reached $1.17 billion, a substantial improvement from a net loss of $493 million in the prior year. This turnaround was driven by a notable increase in transaction processing fees and effective cost management, including a significant reduction in litigation settlement expenses which heavily impacted the prior year's results. The company's financial health remains robust, with $2.3 billion in cash and cash equivalents and a strong equity position of $3.2 billion as of September 30, 2009. Despite a slight decrease in gross dollar volume (GDV) when measured in U.S. dollars due to currency fluctuations, volumes measured in local currencies showed resilience, indicating underlying transaction growth. The company's strategic focus on expanding its role in targeted geographies and higher-growth segments, alongside ongoing investment in its brands, positions it well for continued recovery and growth in the evolving global payments landscape.
Financial Highlights
53 data points| Revenue | $1.36B |
| Operating Expenses | $691.00M |
| Operating Income | $673.00M |
| Interest Expense | $24.00M |
| Net Income | $452.00M |
| EPS (Basic) | $0.35 |
| EPS (Diluted) | $0.34 |
| Shares Outstanding (Basic) | 1.30B |
| Shares Outstanding (Diluted) | 1.30B |
Key Highlights
- 1Net income attributable to Mastercard for the nine months ended September 30, 2009, was $1.17 billion, a significant turnaround from a net loss of $493 million in the same period of 2008.
- 2Operating expenses decreased substantially by 57.8% for the nine months ended September 30, 2009, primarily due to the resolution of significant litigation settlements in 2008.
- 3Transaction processing fees saw a strong increase of 12.9% for the nine months ended September 30, 2009, indicating healthy growth in transaction volumes.
- 4The company maintained a strong liquidity position with $2.3 billion in cash and cash equivalents and $3.2 billion in total equity as of September 30, 2009.
- 5Despite a 7.9% decrease in Gross Dollar Volume (GDV) on a U.S. dollar converted basis, GDV measured in local currency increased slightly (0.1%), suggesting underlying transaction resilience.
- 6General and administrative expenses decreased by 4.7% for the nine months ended September 30, 2009, reflecting cost containment initiatives.
- 7The effective income tax rate for the nine months ended September 30, 2009, was 33.6%, down from 40.4% in the prior year, partly due to the favorable impact of resolving prior year tax positions.