MasterCard (MC) fourth quarter (4Q/15) profits rose 11.0% year-on-year (YOY), or up 18% on a currency adjusted basis (FX) to $977 million.
Cross-border volume rose 12% and gross dollar volume (GDV) rose 13%, on a local currency basis, to $1.2 trillion; and processed transactions increased 12% to 13.0 billion and end-of-period (EOP) global cards-in-force (CIF) topped 1.5 billion.
U.S. Gross Dollar Volume (GDV) for 4Q/15 (credit + debit) increased 8.4% YOY to $378 billion, while U.S. Purchase Dollar Volume (PDV) rose 8.8% YOY to $324 billion.
The number of U.S. Purchase Transactions (PTX) for credit + debit jumped 11.0% YOY to 5.90 billion for the fourth quarter.
At the end of 4Q/15 MasterCard had 341 million U.S. accounts representing 377 million credit and debit cards.
For U.S. credit cards, 4Q/15 PDV increased 8.9% YOY to $174 billion and the number of CIF rose 6.1% YOY to 192 million.
For U.S. debit cards, PDV rose 8.5% YOY to $151 billion and the number of CIF for 4Q/15 increased 7.6% to 185 million.
MASTERCARD PROFITS HISTORICAL
4Q/14: $801 million
1Q/15: $1020 million
2Q/15: $965 million
3Q/15: $977 million
4Q/15: $890 million
MasterCard noted net revenue for the fourth quarter of 2015 was $2.5 billion, a 4% increase versus the same period in 2014. Adjusted for currency, net revenue increased 9%. Net revenue growth was driven by the impact of the following:
• A 12% increase in gross dollar volume, on a local currency basis, to $1.2 trillion;
• An increase in processed transactions of 12%, to 13.0 billion; and
• An increase in cross-border volumes of 12%.
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.
Total operating expenses increased 1%, or 4% when adjusted for currency, to $1.4 billion during the fourth quarter of 2015 compared to the same period in 2014. The increase was primarily due to continued investments to support strategic initiatives, as well as the impact of acquisitions, which contributed 4 percentage points of the FX-adjusted growth, partially offset by ongoing cost management initiatives.
Operating income for the fourth quarter of 2015 increased 9%, or 17% adjusted for currency, versus the year-ago period. The company delivered an operating margin of 44.0%.
MasterCard reported other expense of $82 million in the fourth quarter of 2015 versus $11 million in the fourth quarter of 2014. The change was mainly driven by impairment charges on certain investments and by higher interest expense related to the company’s Euro debt offering in November 2015, partially offset by tax reserve adjustments and investment gains.
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