What is the primary purpose of this 8-K filing?

The primary purpose of this 8-K filing is to disclose Mastercard's operational performance results for its payment programs during the first three months of 2005. It provides key metrics like Gross Dollar Volume (GDV), purchase volume, and transaction counts, along with comparative data for prior periods, enabling investors to assess the company's recent business activity and growth trends.

Which payment programs are included in the reported data?

The reported data includes information for MasterCard-branded and MasterCard Electronic-branded cards across credit programs and off-line debit programs. It specifically excludes certain transaction types such as Maestro and Cirrus on-line debit transactions, Mondex transactions, and other branded transactions, as well as on-line debit programs generally.

How are the growth rates calculated, and are they affected by currency fluctuations?

The growth rates for GDV, purchase volume, and cash volume are reported solely on the basis of local currency. This method is used to eliminate the impact of changes in foreign currency exchange rates against the U.S. dollar, providing a clearer view of underlying operational growth.

What does Gross Dollar Volume (GDV) represent?

Gross Dollar Volume (GDV) represents the aggregate dollar amount of purchases made with MasterCard-branded cards plus the aggregate dollar amount of cash disbursements obtained with MasterCard-branded cards. It also includes the impact of balance transfers and convenience checks.

MA 8-K: Regulation FD — May 3, 2005

Summary

This 8-K filing from Mastercard Inc., dated May 3, 2005, primarily discloses performance results for its payment programs for the three months ended March 31, 2005, with comparative data for the full years 2004 and 2003. The report focuses on key metrics such as Gross Dollar Volume (GDV), purchase volume, cash volume, and transaction counts across various regions and program types (credit, off-line debit, and all programs except on-line debit). Investors can gain insight into the company's operational growth and market penetration during this period. The filing highlights robust growth in several key areas, particularly in off-line debit programs globally and in specific regions like Latin America and South Asia/Middle East/Africa for overall program performance. The data presented is crucial for understanding Mastercard's top-line performance drivers and regional strengths, though it's important to note that certain transaction types and revenue-generating activities are excluded from the presented tables.

Key Highlights

1Mastercard reported strong double-digit growth in Gross Dollar Volume (GDV) and Purchase Volume for the three months ended March 31, 2005, across its global programs (excluding on-line debit).
2Off-line debit programs showed particularly impressive growth, with worldwide GDV increasing by 27.3% and Purchase Volume by 21.4% for Q1 2005 compared to the prior year.
3Latin America and South Asia/Middle East/Africa demonstrated significant GDV growth of 35.4% and 24.9% respectively for the first quarter of 2005, indicating strong performance in emerging markets.
4The United States remains the largest market by volume, with Q1 2005 GDV of $174.5 billion for all programs (excluding on-line debit), showing a healthy 9.0% growth.
5Worldwide cash volume for all programs (excluding on-line debit) grew by 9.5% in Q1 2005, with a notable 37.8% increase in Latin America.
6Credit programs, while smaller in growth rate compared to debit, still showed positive worldwide GDV growth of 7.3% for Q1 2005.
7The filing provides restated full-year 2004 and 2003 data on the same basis as Q1 2005 data, allowing for consistent year-over-year comparisons.

Mastercard Inc 8-K Report, Regulation FD Disclosure (May 3, 2005)

Summary

Key Highlights

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