MasterCard’s net income will likely top a record $1.2 billion in the first quarter of 2016. Forecaster RAM Research predicts MasterCard net income for the second quarter will be $1091 million, due to the continued strengthening of the U.S. dollar.
MASTERCARD NET INCOME PROJECTION
1Q/15: $1020 million
2Q/15: $1091 million
3Q/15: $1190 million
4Q/15: $ 943 million
1Q/16: $1201 million
Source: RAM Research; CardData; MasterCard
MasterCard (MC) first quarter profits rose 17.2% year-on-year (YOY) or 24.0% on a currency adjusted basis (FX) to a record $1020 million. Global purchase volume rose 12% (FX) to $783 billion and end-of-period (EOP) global cards-in-force (CIF) hit 2.2 billion.
Gross Dollar Volume (GDV) for Q1/15 (credit + debit) increased 6.6% YOY to $339 billion, while Purchase Dollar Volume (PDV) rose 7.1% YOY to $287 billion.
The number of Purchase Transactions (PTX) for credit + debit jumped 8.5% to 5.1 billion for the first quarter.
At the end of Q1/15 MasterCard had 328 million U.S. accounts representing 365 million credit and debit cards.
For U.S. credit cards, PDV increased 6.1% to $146 billion and the number of CIF rose 4.5% YOY to 184 million.
For U.S. debit cards, PDV rose 8.1% YOY to $141 billion and the number of CIF increased 12.4% to 181 million.
MasterCard noted net revenue for Q1/15 was $2.2 billion, a 3% increase versus the same period in 2014 as-reported and an 8% increase adjusted for currency. Net revenue growth was driven by the impact of an increase in cross-border volumes of 19%; a 12% increase in gross dollar volume, on a local currency basis, to $1.1 trillion; and an increase in processed transactions of 12%, to 11.0 billion.
MasterCard further noted these factors were partially offset by an increase in rebates and incentives, primarily due to new and renewed agreements and increased volumes. Acquisitions contributed 2 percentage points to total net revenue growth.
MASTERCARD PROFITS HISTORICAL
Q1/14: $870 million
Q2/14: $931 million
Q3/14: $1015 million
Q4/14: $801 million
Q1/15: $1020 million
Source: CardData; MasterCard
For data, background and forecasts on MasterCard: Search CardWeb.com’s CardFlash® Library of more than 58,000 archived articles; Access CardWeb.com’s CardData® for current and historical Performance, Portfolios, Profiles, etc. Visit RAM Research® (ramresearch.com) for quarterly and annual forecasts covering more than 150 metrics. [complimentary or deeply discounted access to CardWeb.com subscribers].
Additional database resources include CardWeb.com’s CardExecs® – comings & goings of payments movers & shakers; CardWeb.com’s CardWatch® – ears & eyes on marketing globally (57K items); and CardWeb.com’s CardPixes® – form & function of card design (7K items).