How did Mastercard's revenue perform in the first quarter of 2013 compared to the previous year?

Mastercard's net revenue increased by 8% to $1.9 billion for the three months ended March 31, 2013, compared to $1.76 billion in the same period of 2012. This growth was primarily driven by a 10% increase in volume-based (domestic assessments and cross-border volume fees) and transaction-based revenues, supported by higher dollar volumes and transaction counts on its network.

What was the company's profitability and earnings per share in Q1 2013?

The company reported a net income of $766 million for the first quarter of 2013, a 12% increase from $682 million in the prior year. Diluted earnings per share rose by 16% to $6.23, up from $5.36 in the first quarter of 2012.

How did Mastercard manage its operating expenses and what was the impact on margins?

Operating expenses increased by 6% to $799 million, which was less than the revenue growth rate. This led to an improvement in the operating margin to 58.1% in the first quarter of 2013, compared to 56.9% in the same period of 2012. General and administrative expenses were the primary driver of the increase in operating expenses.

What is Mastercard's strategy for returning capital to shareholders?

Mastercard demonstrated a strong commitment to returning capital through share repurchases and dividends. During the first quarter of 2013, the company repurchased approximately $766 million of its Class A common stock and paid out $37 million in cash dividends.

What is the company's liquidity position and access to capital?

Mastercard maintained a robust liquidity position, with $5.02 billion in cash, cash equivalents, and available-for-sale investment securities as of March 31, 2013. Additionally, the company had an unused $3 billion revolving credit facility available for general corporate purposes, including settlement risk mitigation.

MA 10-Q Quarterly Report Q1 FY2013 — Revenue, Net Income, EPS

Summary

Mastercard Inc. (MA) reported a solid first quarter for 2013, demonstrating robust revenue and net income growth compared to the prior year. Net revenue increased by 8% to $1.9 billion, driven by a 10% rise in volume-based and transaction-based revenues. This growth was fueled by an increase in both dollar volume and the number of processed transactions across its global network. The company also managed operating expenses effectively, with a 6% increase that was outpaced by revenue growth, leading to an improved operating margin and a 12% increase in net income to $766 million. Diluted earnings per share saw a significant rise of 16% to $6.23. The company continued its commitment to returning capital to shareholders through share repurchases and dividends, reflecting a strong financial position and confidence in future performance. Financially, Mastercard maintained a healthy liquidity position, with significant cash, cash equivalents, and investment securities. The company's strategic focus on expanding electronic payments, diversifying its business, and building new ventures through innovation appears to be yielding positive results. While the report acknowledges ongoing global economic uncertainties and legal/regulatory challenges, the first quarter performance indicates resilience and sustained operational strength.

Financial Highlights

51 data points

Beta

Revenue

$1.91B

Net Income

$766.00M

0.4% Net Margin

EPS (Diluted)

$0.62

Total Assets

$11.81B

Cash & Equivalents

$1.98B

Free Cash Flow

$852.00M

Financial Statements

Beta

Revenue	$1.91B
Operating Expenses	$799.00M
Operating Income	$1.11B
Interest Expense	$5.00M
Net Income	$766.00M
EPS (Basic)	$0.62
EPS (Diluted)	$0.62
Shares Outstanding (Basic)	1.23B
Shares Outstanding (Diluted)	1.23B

Key Highlights

1Net revenue increased by 8% to $1.9 billion for the three months ended March 31, 2013, compared to the prior year.
2Net income grew by 12% to $766 million, with diluted earnings per share rising 16% to $6.23.
3Volume-based and transaction-based revenues increased by 10%, supported by a 12% rise in processed transactions and a 12% increase in Gross Dollar Volume (GDV) on a local currency basis.
4Operating expenses increased by 6% to $799 million, a slower pace than revenue growth, leading to an improved operating margin of 58.1% from 56.9%.
5The company actively returned capital to shareholders, with $766 million used for share repurchases and $37 million for dividends during the quarter.
6Mastercard maintained a strong liquidity position with $5.02 billion in cash, cash equivalents, and available-for-sale investment securities, and an unused $3 billion credit facility.
7Foreign currency fluctuations had a moderate impact, reducing net revenue by approximately 1% due to a strengthening US dollar against the Euro and Brazilian Real.

Mastercard Inc Quarterly Report for Q1 Ended Mar 31, 2013

Summary

Financial Highlights

Key Highlights

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