Summary
Mastercard Inc. reported strong financial performance for the nine months ended September 30, 2011, with net income increasing by 31.9% year-over-year to $1,887 million and diluted earnings per share rising to $14.66. This growth was driven by a substantial 21.6% increase in net revenues, primarily fueled by higher transaction volumes and dollar spending on cards bearing its brands. The company also successfully integrated the acquisition of Access Prepaid Worldwide, expanding its prepaid card program management capabilities. Despite a challenging global economic environment, Mastercard demonstrated resilience and strategic expansion. Key financial highlights include robust revenue growth across domestic assessments, cross-border volume fees, and transaction processing fees. The company maintained healthy operating margins and generated significant cash flow from operations, underscoring its financial strength. Management expressed confidence in its liquidity and capital resources to meet future obligations, including potential litigation outcomes, while actively returning capital to shareholders through share repurchases and dividends.
Financial Highlights
50 data points| Revenue | $1.82B |
| Operating Expenses | $816.00M |
| Operating Income | $1.00B |
| Interest Expense | $6.00M |
| Net Income | $717.00M |
| EPS (Basic) | $0.56 |
| EPS (Diluted) | $0.56 |
| Shares Outstanding (Basic) | 1.27B |
| Shares Outstanding (Diluted) | 1.27B |
Key Highlights
- 1Net income for the nine months ended September 30, 2011, increased by 31.9% to $1,887 million compared to the same period in 2010.
- 2Net revenues grew by 21.6% to $4,986 million for the nine months ended September 30, 2011, driven by increased transaction volumes and dollar spending.
- 3Diluted earnings per share rose significantly to $14.66 for the nine months ended September 30, 2011, up from $10.89 in the prior year period.
- 4The company successfully acquired Access Prepaid Worldwide on April 15, 2011, expanding its presence in program management services for prepaid cards.
- 5Operating expenses increased by 18.0% to $2,263 million for the nine months ended September 30, 2011, largely due to increased general and administrative expenses, including acquisition-related costs.
- 6Mastercard generated $1,900 million in net cash from operating activities for the nine months ended September 30, 2011, indicating strong operational cash generation.
- 7The company's Board of Directors authorized an incremental $1 billion share repurchase program, increasing the total authorization to $2 billion, with $1.1 billion repurchased year-to-date as of September 30, 2011.