Summary
Mastercard Inc.'s (MA) Q2 2015 report shows resilience with slight net revenue growth despite foreign currency headwinds. For the three and six months ended June 30, 2015, net revenue increased by 1% and 2% respectively, reaching $2.39 billion and $4.62 billion. This growth was primarily driven by an increase in processed transactions and overall transaction volumes, though partially offset by higher rebates and incentives and the negative impact of foreign currency translation. Net income for the quarter was $921 million, a slight decrease from $931 million in the prior year, impacted by a $61 million provision for a UK merchant litigation settlement. On a non-GAAP adjusted basis, excluding this settlement, net income saw a healthy increase of 4% and 10% for the respective periods. Operating expenses saw a notable increase, largely due to acquisition activity and litigation provisions. Acquisitions contributed significantly to operating expense growth, impacting the bottom line by $(0.03) and $(0.06) per diluted share for the respective periods. Despite these pressures, the company generated strong operating cash flow of $1.7 billion for the first six months of 2015. Mastercard continues its strategic focus on growing its core business, diversifying into new areas, and building value through technology and partnerships, underscored by substantial share repurchase programs and consistent dividend payments.
Financial Highlights
52 data points| Revenue | $2.39B |
| Operating Expenses | $1.14B |
| Operating Income | $1.25B |
| Interest Expense | $17.00M |
| Net Income | $921.00M |
| EPS (Basic) | $0.81 |
| EPS (Diluted) | $0.81 |
| Shares Outstanding (Basic) | 1.14B |
| Shares Outstanding (Diluted) | 1.14B |
Key Highlights
- 1Net revenue increased by 1% for the quarter and 2% for the year-to-date period compared to 2014, driven by higher transaction volumes and processed transactions.
- 2Net income for the quarter was $921 million, down slightly from $931 million in Q2 2014, primarily due to a $61 million provision for UK merchant litigation settlement.
- 3Adjusted net income (excluding the litigation provision) increased by 4% for the quarter and 10% for the year-to-date period, demonstrating underlying operational strength.
- 4Operating expenses rose by 15% for the quarter and 8% for the year-to-date period, significantly impacted by acquisition activity and the litigation settlement provision.
- 5Acquisitions had a negative impact on net income growth of 4% and 3% for the quarter and year-to-date periods, respectively, and a negative impact of 9 percentage points on operating expense growth in both periods.
- 6The company generated $1.7 billion in net cash from operating activities for the first six months of 2015, an increase from $1.3 billion in the prior year.
- 7Mastercard returned significant capital to shareholders through $1.8 billion in share repurchases and $367 million in dividends paid during the first six months of 2015.