MasterCard earned USD 766 million in the first three months of the year, up 12 per cent from the same period a year ago, the company reported today. That worked out to USD 6.23 per share, beating the USD 6.18 per share expected by analysts polled by FactSet.
Revenue rose 8 per cent to USD 1.9 billion, slightly less than the USD 1.93 billion forecast by financial analysts who follow the company.
The Purchase, New York, company does business all over the world, and its results are a window into how people are spending, and how they're feeling about the economy, on all different income levels.
MasterCard's results were helped by an increase in cross-border volumes, which measures how much customers spend in countries other than the one they live in. That can be a gauge for how affluent customers are faring. Those transactions also benefit the company, because it is able to charge more in fees for currency conversion and related services.
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MasterCard reported stronger growth outside the US than at home. Purchases in Asia, the Middle East and Africa grew 20 per cent over the year measured in US dollars, 13 per cent in Europe and almost 11 per cent in Latin America. In the US, growth was just 4 per cent.
MasterCard is focusing on developing countries, where most transactions are still done in cash. The company has been expanding in the region that includes Asia, the Middle East and Africa, and signed an agreement to "explore opportunities" in China. It's also spending on new technology to encourage customers to pay for purchases via phone.