MasterCard Q3 Profits Soars Nearly 63%

MasterCard posted record net income of more than $314 million for the third quarter compared to $193 million one-year ago, as net revenues climbed 20% to more than $1 billion for the quarter. In the prior quarter, MasterCard earned $252 million on revenues of $997 million. Gross dollar volume climbed 13% for 3Q/07 to $577 billion and worldwide purchase volume increased 14% to $430 billion. As of September 30th, the Company’s customers had issued 878 million MasterCard, an increase of 11% over the same period in 2006. General & Administrative Expenses rose 10% to $432.8 million. However, Advertising & Market Development Expenses rose about 26% to $268.3 million. Total operating expenses increased 16.3%, to $730 million, in the third quarter compared to the same period in 2006. For complete details on MasterCard’s third quarter performance, visit CardData ([www.carddata.com][1]).

MASTERCARD HISTORICAL ($ millions)
3Q/06 4Q/06 1Q/07 2Q/07 3Q/07
G&A: $392.1 $399.3 $398.5 $431.5 $432.8
A&M: $209.2 $352.9 $178.5 $268.3 $264.4
Net Income: $193.0 $ 40.9 $214.9 $252.3 $314.5
Note: G&A: General & Administrative Expenses;
A&M: Advertising & Market Development Expenses.
Source: CardData (www.carddata.com)

[1]: http://www.carddata.com

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DCS CardWizard is VISA PABP Validated

Dynamic Card Solutions’ CardWizard is the first instant issuance application in the financial marketplace to have validated compliance with VISA Payment Application Best Practices (PABP). Adherence to Visa’s PABP requires participating payment application vendors to conduct an extensive independent assessment by a Visa-approved independent security assessor. This audit looks at all areas that might pose security threats for issuers and customers and examines details such as how customers select a pin, how the application transfers information from the branch to the server, and how the software transmits data to the card personalization device. Dynamic Card Solutions is a developer of instant issuance and PIN selection solutions for banks, credit unions and retailers.

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Wright Express Q3 Profits Leap 40%

Fuel card specialist Wright Express posted third quarter revenues of $87.7 million, up 10% from 3Q/06. On a non-GAAP basis, the Company’s adjusted net income increased 40% to $22.4 million. Payment processing transactions increased 15% to 53.6 million and transaction processing decreased 35% to 9.8 million, primarily reflecting the conversion to payment processing of the Company’s ExxonMobil portfolio in December. Total fuel transactions processed increased 3% from the third quarter of 2006 to 63.4 million. Total MasterCard purchase volume grew 40% to $511 million from $366 million for the comparable period in 2006. For the fourth quarter the Company is projecting revenue in the range of $81 million to $86 million. For complete details on Wright Express’ current and past performance, visit CardData (www.carddata.com)

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Nearly Two-Thirds to Buy Gift Cards in 07

A new survey from PayPal has found that more shoppers are playing it safe this holiday season by buying gift cards, rather than purchasing tailored gifts for their loved ones. About 64% of shoppers said they plan to give gift cards. According to the survey, consumers plan to spend roughly $412 online during the holiday gift giving season, and conduct an average of 40% of their holiday shopping online, compared to 28.9% in 2006.

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T.G.I. Friday’s Intros Bonus Bite Cards

T.G.I. Friday’s restaurants have introduced “Bonus Bite Gift Cards”. With this product, the card provides cardholders with a $5 “Bonus Bites” card for every $25 spent at Friday’s. T.G.I. Friday’s Gift Cards are available in $10, $25 and $50 increments with no expiration date or hidden charges. However, the “Bonus Bites” cards are redeemable only between January 1, 2008 and February 29, 2008.

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Simon Property to Offer an AmEx Gift Card

Simon Property Group has joined forces with American Express to introduce the “Simon American Express Giftcard, an open-system gift card, just in time for the 2007 holiday shopping season. Simon currently markets the nation’s largest bank-issued gift card program. The new AmEx cards will be offered beginning in November at four Florida malls. The card, which will bear the Simon and American Express logos, will be available in any denomination from $20 to $500. IN-based Simon Property Group owns or has an interest in 378 properties nationwide.

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i2c Launches Payment Webinars

Stored value card solution provider i2c has rolled out a series of webinars that are available exclusively to their managed card program solution clients. The series of free webinars will provide education and background on the stored value market, industry best practices, key references, and will highlight the full benefits of deploying end-to-end solutions that offer cost reductions and improved operational efficiencies. The initial focus of the webinars will be in the area of Transaction Research; Reporting; Fraud; and Velocity Monitoring.

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HSBC Finance and Pathmark Stores Partner

HSBC Finance Corporation and Pathmark Stores have entered into an agreement to offer the “Pathmark Advantage Payment Card” for supermarket customers. The Pathmark Advantage Payment Card program is the first of its kind for a major supermarket chain in the United States that combines loyalty and rewards with decoupled debit functionality all on one card. The key benefit to customers links a customer’s Advantage Club card to their existing bank checking account offering customers a convenient way to earn rewards and pay for purchases with PIN debit, all on a single Pathmark-branded card.

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SAV & MARBLES CARD

SAV Credit has completed the purchase of a portfolio of credit
card accounts from HSBC Bank for GBP 385 million. The acquisition includes the “marbles” credit card brand and has 338,000 accounts.
SAV, which was founded in 2001, has opened more than 150,000 credit card accounts to-date for its lead product the “aqua MasterCard.” The deal was funded by a new debt facility from The Royal Bank of
Scotland and by SAV Credit’s existing private equity partners including
Palamon Capital Partners, Electra Private Equity, and Morgan Stanley
Alternative Investment Partners.

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NCR’s ATM Revenues Rise 17% in Q3

NCR reported that third quarter revenue for its ATM business was $407 million, a 17% gain compared to one-year ago. The ATM segment was driven by strong revenue growth in Europe and Asia which outpaced a revenue decline in the Americas region and led to the year-over-year revenue increase. Operating income of $56 million increased from the $43 million generated in the third quarter of 2006 due to higher volume. Retail Store Automation reported revenue of $278 million and operating income of $20 million, up substantially from 3Q/06. Customer Services revenue of $497 million increased 9% from the $457 million recorded in the third quarter of 2006. For complete details on NCR’s current and past performance, visit CardData ([www.carddata.com][1])

NCR ATM REVENUE HISTORICAL
3Q/06: $349 million
4Q/06: $472 million
1Q/07: $312 million
2Q/07: $380 million
3Q/07: $407 million
Source: CardData (www.carddata.com)

[1]: http://www.carddata.com

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STM IPAD

STMicroelectronics has announced the introduction of its integrated chip,
“the EMIF06-SD02F3”, which uses Integrated Passive and Active Devices
(IPAD) technology to provide memory card function. In doing so, the new
chip integrates signal conditioning, bidirectional level shifting, ESD
(electrostatic discharge) protection, EMI (electromagnetic interference)
filtering,
and a 2.9V voltage regulator into a single monolithic chip. This
integration is
designed to increase system reliability with the installation
requirement of less
than 7 square millimeters of board space. The “EMIF06-SD02F3” is a
lead-free,
24-bump, 400-micron pitch flip-chip priced at $1.10 for quantities up to
1 million
units and $0.95 in quantities of 1 to 5 million units.
STMicroelectronics develops
and delivers semiconductor solutions with a 2006 net revenue of $9.85
billion and net earnings of $782 million.

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