PURCHASE, N.Y.- MasterCard Incorporated (NYSE:MA) today announced financial results for the second quarter of 2016. The company reported net income of $983 million, an increase of 7% or 8% on a currency-neutral basis, and earnings per diluted share of $0.89, up 10% or 11% on a currency-neutral basis versus the year-ago period. Excluding special items related to separate U.K. merchant litigations taken in both this quarter and the previous year’s quarter, the company reported net income of $1.1 billion, an increase of 10% or 11% on a currency-neutral basis, and earnings per diluted share of $0.96, up 13% or 14% on a currency-neutral basis versus the year-ago period.
Net revenue for the second quarter of 2016 was $2.7 billion, a 13% increase versus the same period in 2015. On a currency-neutral basis, net revenue increased 14%. Net revenue growth was driven by the impact of the following:
An increase in processed transactions of 14%, to 13.7 billion; An 11% increase in gross dollar volume, on a local currency basis, to $1.2 trillion; and An increase in cross-border volumes of 10%.These factors were partially offset by an increase in rebates and incentives, primarily due to increased volumes and new and renewed agreements.
Worldwide purchase volume during the quarter was up 9% on a local currency basis versus the second quarter of 2015, to $897 billion. As of June 30, 2016, the company’s customers had issued 2.3 billion MasterCard and Maestro-branded cards.
“We carried solid momentum into the second quarter, delivering 14 percent revenue growth for the first half of the year, after adjusting for currency,” said Ajay Banga, president and CEO, MasterCard. “With last week’s VocaLink announcement, we will expand our capabilities beyond core card-based solutions into a broader set of transactions and payments. The collective technology and experience will provide consumers, businesses and governments more choice and value in how they pay and are paid.”
Total operating expenses increased 15%, or 17% on a currency-neutral basis, to $1.3 billion during the second quarter of 2016 compared to the same period in 2015. Excluding special items, total operating expenses were $1.2 billion, an increase of 12%, or 13% on a currency-neutral basis, compared to the year-ago period. The increase was primarily due to continued investments in strategic initiatives, as well as higher legal costs.
Operating income for the second quarter of 2016 increased 10%, or 11% on a currency-neutral basis, versus the year-ago period. Excluding special items, operating income increased 13%, or 15% on a currency-neutral basis, versus the year-ago period. The company delivered an operating margin of 51.2% or 55.2% excluding special items.
MasterCard reported other expense of $15 million in the second quarter of 2016, versus $10 million in the second quarter of 2015. The change was mainly driven by higher interest expense related to the company’s Euro bond debt issuance in November 2015.
MasterCard’s effective tax rate was 28.0% in the second quarter of 2016, versus a rate of 25.7% in the comparable period in 2015. Excluding special items, the effective tax rate was 27.9% in the second quarter of 2016, versus a rate of 25.8% in the comparable period in 2015. The increase was primarily due to the recognition of a discrete U.S. foreign tax credit benefit which occurred in the second quarter of 2015, as well as a larger 2015 repatriation benefit.
During the second quarter of 2016, MasterCard repurchased approximately 5 million shares of Class A common stock at a cost of $462 million. Quarter-to-date through July 21, the company did not repurchase any additional shares, which leaves $2.7 billion remaining under the current repurchase program authorization.
Year-to-Date 2016 Results
For the six months ended June 30, 2016, MasterCard reported net income of $1.9 billion, essentially flat, or an increase of 2% on a currency-neutral basis, and earnings per diluted share of $1.75, up 4% or 6% on a currency-neutral basis versus the year-ago period. Excluding special items, net income was $2.0 billion, up 2% or 4% on a currency-neutral basis, and earnings per diluted share was $1.82, up 5%, or 8% on a currency-neutral basis, compared to the same period in 2015.
Net revenue for the first half of 2016 was $5.1 billion, an increase of 11%, or 14% on a currency-neutral basis, versus the same period in 2015. Transaction processing growth of 14%, gross dollar volume growth of 12% and cross-border volume growth of 11% contributed to the net revenue growth in the year-to-date period. These factors were partially offset by an increase in rebates and incentives.
Total operating expenses were $2.4 billion, an increase of 20%, or 22% on a currency-neutral basis for the first half of 2016, compared to the same period in 2015. Excluding special items, total operating expenses were $2.3 billion, an increase of 18%, or 20% on a currency-neutral basis, compared to the same period in 2015. The increase was primarily due to continued investments to support strategic initiatives, as well as higher legal costs. In addition, the impact from foreign currency hedging activity and balance sheet remeasurement had a negative impact of approximately 6 percentage points on operating expense growth, compared to the same period in 2015.
Operating income for the six months ended June 30, 2016 was $2.7 billion, an increase of 5%, or 8% on a currency-neutral basis, versus the same period in 2015. Excluding special items, operating income was $2.8 billion, an increase of 6%, or 9% on a currency-neutral basis, compared to the same period in 2015. The company delivered an operating margin of 53.1% or 55.2% excluding special items.
MasterCard’s effective tax rate was 28.1% for six months ended June 30, 2016, versus a rate of 24.8% in the same period in 2015. Excluding special items, the effective tax rate was 28.1% in the first half of 2016, versus a rate of 24.9% in the comparable period in 2015. The increase was primarily due to the recognition of a discrete U.S. foreign tax credit benefit which occurred in 2015, as well as a larger 2015 repatriation benefit.
Second-Quarter Financial Results Conference Call Details
At 9:00 a.m. ET today, the company will host a conference call to discuss its second-quarter financial results.
The dial-in information for this call is 877-201-0168 (within the U.S.) and 647-788-4901 (outside the U.S.), and the passcode is 40840885. A replay of the call will be available for 30 days and can be accessed by dialing 855-859-2056 (within the U.S.) and 404-537-3406 (outside the U.S.), and using passcode 40840885.
This call can also be accessed through the Investor Relations section of the company’s website at www.mastercard.com/investor. Presentation slides used on this call are also available on the website.
Non-GAAP Financial Information
The company has presented certain financial data that are considered non-GAAP financial measures that are reconciled to their most directly comparable GAAP measures in the accompanying tables.
The presentation of growth rates on a currency-neutral basis represent a non-GAAP measure and are calculated by remeasuring the prior period’s results using the current period’s exchange rates for both the translational and transactional impacts in our operating results.
About MasterCard Incorporated
Mastercard (NYSE:MA), www.mastercard.com, is a technology company in the global payments industry. We operate the world’s fastest payments processing network, connecting consumers, financial institutions, merchants, governments and businesses in more than 210 countries and territories. Mastercard products and solutions make everyday commerce activities – such as shopping, traveling, running a business and managing finances – easier, more secure and more efficient for everyone. Follow us on Twitter @MastercardNews, join the discussion on the Beyond the Transaction Blog and subscribe for the latest news on the Engagement Bureau.
Forward-Looking Statements
This press release contains forward-looking statements pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical facts may be forward-looking statements. When used in this press release, the words “believe”, “expect”, “could”, “may”, “would”, “will”, “trend” and similar words are intended to identify forward-looking statements. Examples of forward-looking statements include, but are not limited to, statements that relate to the MasterCard’s future prospects, developments and business strategies. We caution you to not place undue reliance on these forward-looking statements, as they speak only as of the date they are made. Except for the company’s ongoing obligations under the U.S. federal securities laws, the company does not intend to update or otherwise revise the forward-looking information to reflect actual results of operations, changes in financial condition, changes in estimates, expectations or assumptions, changes in general economic or industry conditions or other circumstances arising and/or existing since the preparation of this press release or to reflect the occurrence of any unanticipated events.
Many factors and uncertainties relating to our operations and business environment, all of which are difficult to predict and many of which are outside of our control, influence whether any forward-looking statements can or will be achieved. Any one of those factors could cause our actual results to differ materially from those expressed or implied in writing in any forward-looking statements made by MasterCard or on its behalf, including, but not limited to, the following factors:
payments system-related legal and regulatory challenges (including interchange fees, surcharging and the extension of current regulatory activity to additional jurisdictions or products); the impact of preferential or protective government actions; regulation to which we are subject based on our participation in the payments industry; regulation of privacy, data protection and security; the impact of competition in the global payments industry (including disintermediation and pricing pressure); the challenges relating to rapid technological developments and changes; the impact of information security failures, breaches or service disruptions on our business; issues related to our relationships with our customers (including loss of substantial business from significant customers, competitor relationships with our customers and banking industry consolidation); the impact of our relationships with stakeholders, including issuers and acquirers, merchants and governments; exposure to loss or illiquidity due to settlement guarantees and other significant third-party obligations; the impact of global economic and political events and conditions, including global financial market activity, declines in cross-border activity; negative trends in consumer spending and the effect of adverse currency fluctuation; reputational impact, including impact related to brand perception, account data breaches and fraudulent activity; issues related to acquisition integration, strategic investments and entry into new businesses; and potential or incurred liability and limitations on business resulting from litigation.For additional information on these and other factors that could cause MasterCard’s actual results to differ materially from expected results, please see the company’s filings with the Securities and Exchange Commission, including the company’s Annual Report on Form 10-K for the year ended December 31, 2015 and any subsequent reports on Forms 10-Q and 8-K.
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MASTERCARD INCORPORATED CONSOLIDATED STATEMENT OF OPERATIONS (UNAUDITED) |
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| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||
| 2016 | 2015 | 2016 | 2015 | |||||||||||||||||||
| (in millions, except per share data) | ||||||||||||||||||||||
| Net Revenue | $ | 2,694 | $ | 2,390 | $ | 5,140 | $ | 4,620 | ||||||||||||||
| Operating Expenses | ||||||||||||||||||||||
| General and administrative | 930 | 810 | 1,798 | 1,460 | ||||||||||||||||||
| Advertising and marketing | 184 | 176 | 319 | 318 | ||||||||||||||||||
| Depreciation and amortization | 93 | 92 | 188 | 179 | ||||||||||||||||||
| Provision for litigation settlements | 107 | 61 | 107 | 61 | ||||||||||||||||||
| Total operating expenses | 1,314 | 1,139 | 2,412 | 2,018 | ||||||||||||||||||
| Operating income | 1,380 | 1,251 | 2,728 | 2,602 | ||||||||||||||||||
| Other Income (Expense) | ||||||||||||||||||||||
| Investment income | 10 | 6 | 20 | 15 | ||||||||||||||||||
| Interest expense | (22 | ) | (17 | ) | (42 | ) | (34 | ) | ||||||||||||||
| Other income (expense), net | (3 | ) | 1 | (4 | ) | (2 | ) | |||||||||||||||
| Total other income (expense) | (15 | ) | (10 | ) | (26 | ) | (21 | ) | ||||||||||||||
| Income before income taxes | 1,365 | 1,241 | 2,702 | 2,581 | ||||||||||||||||||
| Income tax expense | 382 | 320 | 760 | 640 | ||||||||||||||||||
| Net Income | $ | 983 | $ | 921 | $ | 1,942 | $ | 1,941 | ||||||||||||||
| Basic Earnings per Share | $ | 0.89 | $ | 0.81 | $ | 1.76 | $ | 1.70 | ||||||||||||||
| Basic Weighted-Average Shares Outstanding | 1,098 | 1,138 | 1,104 | 1,143 | ||||||||||||||||||
| Diluted Earnings per Share | $ | 0.89 | $ | 0.81 | $ | 1.75 | $ | 1.69 | ||||||||||||||
| Diluted Weighted-Average Shares Outstanding | 1,101 | 1,141 | 1,107 | 1,146 | ||||||||||||||||||
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MASTERCARD INCORPORATED CONSOLIDATED BALANCE SHEET (UNAUDITED) |
|||||||||||||
| June 30, 2016 |
December 31, 2015 |
||||||||||||
| (in millions, except per share data) | |||||||||||||
| ASSETS | |||||||||||||
| Cash and cash equivalents | $ | 5,176 | $ | 5,747 | |||||||||
| Restricted cash for litigation settlement | 542 | 541 | |||||||||||
| Investments | 1,271 | 991 | |||||||||||
| Accounts receivable | 1,203 | 1,079 | |||||||||||
| Settlement due from customers | 1,005 | 1,068 | |||||||||||
| Restricted security deposits held for customers | 936 | 895 | |||||||||||
| Prepaid expenses and other current assets | 865 | 663 | |||||||||||
| Total Current Assets | 10,998 | 10,984 | |||||||||||
| Property, plant and equipment, net of accumulated depreciation of $561 and $491, respectively | 680 | 675 | |||||||||||
| Deferred income taxes | 337 | 317 | |||||||||||
| Goodwill | 1,834 | 1,891 | |||||||||||
| Other intangible assets, net of accumulated amortization of $910 and $816, respectively | 762 | 803 | |||||||||||
| Other assets | 1,671 | 1,580 | |||||||||||
| Total Assets | $ | 16,282 | $ | 16,250 | |||||||||
| LIABILITIES AND EQUITY | |||||||||||||
| Accounts payable | $ | 452 | $ | 472 | |||||||||
| Settlement due to customers | 828 | 866 | |||||||||||
| Restricted security deposits held for customers | 936 | 895 | |||||||||||
| Accrued litigation | 810 | 709 | |||||||||||
| Accrued expenses | 2,753 | 2,763 | |||||||||||
| Other current liabilities | 683 | 564 | |||||||||||
| Total Current Liabilities | 6,462 | 6,269 | |||||||||||
| Long-term debt | 3,306 | 3,268 | |||||||||||
| Deferred income taxes | 83 | 79 | |||||||||||
| Other liabilities | 562 | 572 | |||||||||||
| Total Liabilities | 10,413 | 10,188 | |||||||||||
| Commitments and Contingencies | |||||||||||||
| Stockholders’ Equity | |||||||||||||
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Class A common stock, $0.0001 par value; authorized 3,000 shares, 1,373 and 1,370 shares issued and 1,077 and 1,095 outstanding, respectively |
— | — | |||||||||||
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Class B common stock, $0.0001 par value; authorized 1,200 shares, 20 and 21 issued and outstanding, respectively |
— | — | |||||||||||
| Additional paid-in-capital | 4,072 | 4,004 | |||||||||||
| Class A treasury stock, at cost, 295 and 275 shares, respectively | (15,284 | ) | (13,522 | ) | |||||||||
| Retained earnings | 17,746 | 16,222 | |||||||||||
| Accumulated other comprehensive income (loss) | (697 | ) | (676 | ) | |||||||||
| Total Stockholders’ Equity | 5,837 | 6,028 | |||||||||||
| Non-controlling interests | 32 | 34 | |||||||||||
| Total Equity | 5,869 | 6,062 | |||||||||||
| Total Liabilities and Equity | $ | 16,282 | $ | 16,250 | |||||||||
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MASTERCARD INCORPORATED CONSOLIDATED STATEMENT OF CASH FLOWS (UNAUDITED) |
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| Six Months Ended June 30, | |||||||||||||
| 2016 | 2015 | ||||||||||||
| (in millions) | |||||||||||||
| Operating Activities | |||||||||||||
| Net income | $ | 1,942 | $ | 1,941 | |||||||||
| Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||||
| Amortization of customer and merchant incentives | 396 | 358 | |||||||||||
| Depreciation and amortization | 188 | 179 | |||||||||||
| Share-based payments | (11 | ) | (23 | ) | |||||||||
| Deferred income taxes | (8 | ) | 1 | ||||||||||
| Other | (28 | ) | (23 | ) | |||||||||
| Changes in operating assets and liabilities: | |||||||||||||
| Accounts receivable | (100 | ) | (51 | ) | |||||||||
| Income taxes receivable | — | (63 | ) | ||||||||||
| Settlement due from customers | 75 | (290 | ) | ||||||||||
| Prepaid expenses | (522 | ) | (522 | ) | |||||||||
| Accrued litigation and legal settlements | 107 | (49 | ) | ||||||||||
| Accounts payable | (18 | ) | 37 | ||||||||||
| Settlement due to customers | (50 | ) | 261 | ||||||||||
| Accrued expenses | — | (120 | ) | ||||||||||
| Net change in other assets and liabilities | 96 | 96 | |||||||||||
| Net cash provided by operating activities | 2,067 | 1,732 | |||||||||||
| Investing Activities | |||||||||||||
| Purchases of investment securities available-for-sale | (561 | ) | (789 | ) | |||||||||
| Purchases of investments held-to-maturity | (139 | ) | (744 | ) | |||||||||
| Proceeds from sales of investment securities available-for-sale | 107 | 716 | |||||||||||
| Proceeds from maturities of investment securities available-for-sale | 162 | 322 | |||||||||||
| Proceeds from maturities of investments held-to-maturity | 130 | — | |||||||||||
| Acquisition of businesses, net of cash acquired | — | (584 | ) | ||||||||||
| Purchases of property, plant and equipment | (101 | ) | (56 | ) | |||||||||
| Capitalized software | (80 | ) | (87 | ) | |||||||||
| Increase in restricted cash for litigation settlement | (2 | ) | (1 | ) | |||||||||
| Other investing activities | (11 | ) | 1 | ||||||||||
| Net cash used in investing activities | (495 | ) | (1,222 | ) | |||||||||
| Financing Activities | |||||||||||||
| Purchases of treasury stock | (1,819 | ) | (1,795 | ) | |||||||||
| Dividends paid | (421 | ) | (367 | ) | |||||||||
| Tax benefit for share-based payments | 33 | 34 | |||||||||||
| Cash proceeds from exercise of stock options | 16 | 21 | |||||||||||
| Other financing activities | (3 | ) | (9 | ) | |||||||||
| Net cash used in financing activities | (2,194 | ) | (2,116 | ) | |||||||||
| Effect of exchange rate changes on cash and cash equivalents | 51 | (170 | ) | ||||||||||
| Net decrease in cash and cash equivalents | (571 | ) | (1,776 | ) | |||||||||
| Cash and cash equivalents – beginning of period | 5,747 | 5,137 | |||||||||||
| Cash and cash equivalents – end of period | $ | 5,176 | $ | 3,361 | |||||||||
| Non-Cash Investing and Financing Activities | |||||||||||||
| Fair value of assets acquired, net of cash acquired | $ | — | $ | 625 | |||||||||
| Fair value of liabilities assumed related to acquisitions | $ | — | $ | 41 | |||||||||
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MASTERCARD INCORPORATED OPERATING PERFORMANCE |
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| For the 3 Months ended June 30, 2016 | ||||||||||||||||||||||||||||||||||||||||||
| All MasterCard Credit, | GDV | Growth | Growth | Purchase
Volume |
Growth | Purchase
Trans. |
Cash
Volume |
Growth | Cash
Trans. |
Accounts | Cards | |||||||||||||||||||||||||||||||
| Charge and Debit Programs | (Bil.) | (USD) | (Local) | (Bil.) | (Local) | (Mil.) | (Bil.) | (Local) | (Mil.) | (Mil.) | (Mil.) | |||||||||||||||||||||||||||||||
| APMEA | $ | 371 | 7.9 | % | 12.8 | % | $ | 247 | 11.0 | % | 3,565 | $ | 124 | 16.7 | % | 1,259 | 547 | 584 | ||||||||||||||||||||||||
| Canada | 36 | 5.8 | % | 10.9 | % | 34 | 10.7 | % | 511 | 2 | 13.8 | % | 6 | 43 | 49 | |||||||||||||||||||||||||||
| Europe | 351 | 9.7 | % | 13.7 | % | 234 | 8.8 | % | 5,158 | 117 | 25.0 | % | 888 | 412 | 427 | |||||||||||||||||||||||||||
| Latin America | 79 | -1.6 | % | 14.7 | % | 47 | 14.8 | % | 1,558 | 32 | 14.6 | % | 248 | 149 | 167 | |||||||||||||||||||||||||||
| Worldwide less United States | 837 | 7.6 | % | 13.3 | % | 562 | 10.3 | % | 10,792 | 275 | 19.8 | % | 2,401 | 1,151 | 1,227 | |||||||||||||||||||||||||||
| United States | 391 | 7.5 | % | 7.5 | % | 335 | 8.0 | % | 6,169 | 56 | 4.8 | % | 351 | 349 | 384 | |||||||||||||||||||||||||||
| Worldwide | 1,228 | 7.6 | % | 11.4 | % | 897 | 9.4 | % | 16,961 | 331 | 17.0 | % | 2,752 | 1,500 | 1,611 | |||||||||||||||||||||||||||
| MasterCard Credit and Charge Programs | ||||||||||||||||||||||||||||||||||||||||||
| Worldwide less United States | 458 | 2.7 | % | 7.9 | % | 419 | 8.4 | % | 6,213 | 39 | 2.5 | % | 189 | 526 | 583 | |||||||||||||||||||||||||||
| United States | 184 | 6.9 | % | 6.9 | % | 177 | 6.9 | % | 2,018 | 8 | 5.8 | % | 9 | 164 | 195 | |||||||||||||||||||||||||||
| Worldwide | 642 | 3.9 | % | 7.6 | % | 596 | 8.0 | % | 8,231 | 46 | 3.0 | % | 198 | 690 | 778 | |||||||||||||||||||||||||||
| MasterCard Debit Programs | ||||||||||||||||||||||||||||||||||||||||||
| Worldwide less United States | 379 | 14.2 | % | 20.5 | % | 143 | 16.3 | % | 4,579 | 236 | 23.2 | % | 2,213 | 625 | 644 | |||||||||||||||||||||||||||
| United States | 207 | 8.1 | % | 8.1 | % | 159 | 9.2 | % | 4,152 | 49 | 4.7 | % | 342 | 185 | 189 | |||||||||||||||||||||||||||
| Worldwide | 586 | 11.9 | % | 15.8 | % | 302 | 12.4 | % | 8,730 | 285 | 19.6 | % | 2,554 | 810 | 833 | |||||||||||||||||||||||||||
| For the 6 Months ended June 30, 2016 | ||||||||||||||||||||||||||||||||||||||||||
| All MasterCard Credit, | GDV | Growth | Growth | Purchase
Volume |
Growth | Purchase
Trans. |
Cash
Volume |
Growth | Cash
Trans. |
Accounts | Cards | |||||||||||||||||||||||||||||||
| Charge and Debit Programs | (Bil.) | (USD) | (Local) | (Bil.) | (Local) | (Mil.) | (Bil.) | (Local) | (Mil.) | (Mil.) | (Mil.) | |||||||||||||||||||||||||||||||
| APMEA | $ | 720 | 6.9 | % | 12.8 | % | $ | 479 | 11.3 | % | 6,831 | $ | 241 | 16.0 | % | 2,468 | 547 | 584 | ||||||||||||||||||||||||
| Canada | 65 | 2.2 | % | 9.9 | % | 62 | 10.2 | % | 956 | 4 | 4.8 | % | 11 | 43 | 49 | |||||||||||||||||||||||||||
| Europe | 668 | 10.4 | % | 15.7 | % | 451 | 11.4 | % | 10,014 | 217 | 25.8 | % | 1,684 | 412 | 427 | |||||||||||||||||||||||||||
| Latin America | 152 | -5.1 | % | 14.6 | % | 89 | 14.9 | % | 3,041 | 63 | 14.1 | % | 486 | 149 | 167 | |||||||||||||||||||||||||||
| Worldwide less United States | 1,606 | 6.8 | % | 14.1 | % | 1,082 | 11.6 | % | 20,842 | 524 | 19.6 | % | 4,649 | 1,151 | 1,227 | |||||||||||||||||||||||||||
| United States | 764 | 8.6 | % | 8.6 | % | 652 | 9.1 | % | 11,942 | 112 | 6.0 | % | 689 | 349 | 384 | |||||||||||||||||||||||||||
| Worldwide | 2,369 | 7.4 | % | 12.3 | % | 1,733 | 10.6 | % | 32,783 | 636 | 16.9 | % | 5,339 | 1,500 | 1,611 | |||||||||||||||||||||||||||
| MasterCard Credit and Charge Programs | ||||||||||||||||||||||||||||||||||||||||||
| Worldwide less United States | 879 | 1.4 | % | 8.2 | % | 804 | 8.8 | % | 11,988 | 75 | 2.3 | % | 366 | 526 | 583 | |||||||||||||||||||||||||||
| United States | 354 | 9.1 | % | 9.1 | % | 339 | 8.9 | % | 3,861 | 15 | 11.8 | % | 18 | 164 | 195 | |||||||||||||||||||||||||||
| Worldwide | 1,233 | 3.5 | % | 8.5 | % | 1,143 | 8.9 | % | 15,849 | 90 | 3.7 | % | 384 | 690 | 778 | |||||||||||||||||||||||||||
| MasterCard Debit Programs | ||||||||||||||||||||||||||||||||||||||||||
| Worldwide less United States | 727 | 14.1 | % | 22.0 | % | 278 | 20.3 | % | 8,853 | 449 | 23.0 | % | 4,283 | 625 | 644 | |||||||||||||||||||||||||||
| United States | 410 | 8.3 | % | 8.3 | % | 313 | 9.3 | % | 8,081 | 97 | 5.1 | % | 671 | 185 | 189 | |||||||||||||||||||||||||||
| Worldwide | 1,137 | 11.9 | % | 16.7 | % | 590 | 14.2 | % | 16,934 | 546 | 19.4 | % | 4,954 | 810 | 833 | |||||||||||||||||||||||||||
| For the 3 Months ended June 30, 2015 | ||||||||||||||||||||||||||||||||||||||||||
| All MasterCard Credit, | GDV | Growth | Growth | Purchase
Volume |
Growth | Purchase
Trans. |
Cash
Volume |
Growth | Cash
Trans. |
Accounts | Cards | |||||||||||||||||||||||||||||||
| Charge and Debit Programs | (Bil.) | (USD) | (Local) | (Bil.) | (Local) | (Mil.) | (Bil.) | (Local) | (Mil.) | (Mil.) | (Mil.) | |||||||||||||||||||||||||||||||
| APMEA | $ | 344 | 7.3 | % | 15.1 | % | $ | 232 | 15.7 | % | 2,907 | $ | 112 | 14.1 | % | 1,074 | 476 | 509 | ||||||||||||||||||||||||
| Canada | 34 | 3.8 | % | 17.3 | % | 33 | 19.2 | % | 453 | 2 | -8.2 | % | 6 | 39 | 45 | |||||||||||||||||||||||||||
| Europe | 320 | -7.1 | % | 16.4 | % | 220 | 14.9 | % | 4,389 | 100 | 19.8 | % | 756 | 371 | 389 | |||||||||||||||||||||||||||
| Latin America | 80 | -9.1 | % | 15.4 | % | 47 | 18.3 | % | 1,386 | 33 | 11.6 | % | 225 | 139 | 157 | |||||||||||||||||||||||||||
| Worldwide less United States | 778 | -1.0 | % | 15.8 | % | 532 | 15.8 | % | 9,135 | 247 | 15.7 | % | 2,061 | 1,025 | 1,100 | |||||||||||||||||||||||||||
| United States | 364 | 7.2 | % | 7.2 | % | 310 | 7.1 | % | 5,582 | 54 | 7.6 | % | 344 | 326 | 360 | |||||||||||||||||||||||||||
| Worldwide | 1,142 | 1.5 | % | 12.9 | % | 842 | 12.4 | % | 14,718 | 300 | 14.2 | % | 2,404 | 1,351 | 1,460 | |||||||||||||||||||||||||||
| MasterCard Credit and Charge Programs | ||||||||||||||||||||||||||||||||||||||||||
| Worldwide less United States | 446 | -3.1 | % | 11.3 | % | 406 | 12.6 | % | 5,544 | 40 | -0.6 | % | 189 | 510 | 572 | |||||||||||||||||||||||||||
| United States | 172 | 6.7 | % | 6.7 | % | 165 | 6.4 | % | 1,836 | 7 | 13.4 | % | 9 | 155 | 186 | |||||||||||||||||||||||||||
| Worldwide | 618 | -0.5 | % | 10.0 | % | 571 | 10.8 | % | 7,380 | 48 | 1.3 | % | 198 | 665 | 757 | |||||||||||||||||||||||||||
| MasterCard Debit Programs | ||||||||||||||||||||||||||||||||||||||||||
| Worldwide less United States | 332 | 2.0 | % | 22.4 | % | 126 | 27.2 | % | 3,591 | 206 | 19.6 | % | 1,871 | 515 | 528 | |||||||||||||||||||||||||||
| United States | 192 | 7.6 | % | 7.6 | % | 145 | 7.9 | % | 3,746 | 46 | 6.8 | % | 335 | 171 | 174 | |||||||||||||||||||||||||||
| Worldwide | 524 | 4.0 | % | 16.5 | % | 271 | 16.1 | % | 7,338 | 252 | 17.0 | % | 2,206 | 686 | 702 | |||||||||||||||||||||||||||
| For the 6 Months ended June 30, 2015 | ||||||||||||||||||||||||||||||||||||||||||
| All MasterCard Credit, | GDV | Growth | Growth | Purchase
Volume |
Growth | Purchase
Trans. |
Cash
Volume |
Growth | Cash
Trans. |
Accounts | Cards | |||||||||||||||||||||||||||||||
| Charge and Debit Programs | (Bil.) | (USD) | (Local) | (Bil.) | (Local) | (Mil.) | (Bil.) | (Local) | (Mil.) | (Mil.) | (Mil.) | |||||||||||||||||||||||||||||||
| APMEA | $ | 674 | 8.1 | % | 15.1 | % | $ | 452 | 15.4 | % | 5,588 | $ | 222 | 14.5 | % | 2,099 | 476 | 509 | ||||||||||||||||||||||||
| Canada | 64 | 3.1 | % | 16.3 | % | 60 | 18.3 | % | 846 | 4 | -8.9 | % | 11 | 39 | 45 | |||||||||||||||||||||||||||
| Europe | 605 | -7.7 | % | 15.8 | % | 420 | 14.1 | % | 8,329 | 185 | 19.8 | % | 1,427 | 371 | 389 | |||||||||||||||||||||||||||
| Latin America | 160 | -6.1 | % | 15.2 | % | 95 | 18.7 | % | 2,725 | 65 | 10.4 | % | 439 | 139 | 157 | |||||||||||||||||||||||||||
| Worldwide less United States | 1,504 | -0.6 | % | 15.4 | % | 1,028 | 15.3 | % | 17,488 | 476 | 15.7 | % | 3,976 | 1,025 | 1,100 | |||||||||||||||||||||||||||
| United States | 703 | 6.9 | % | 6.9 | % | 597 | 7.1 | % | 10,698 | 106 | 5.7 | % | 669 | 326 | 360 | |||||||||||||||||||||||||||
| Worldwide | 2,206 | 1.7 | % | 12.6 | % | 1,625 | 12.2 | % | 28,187 | 581 | 13.7 | % | 4,645 | 1,351 | 1,460 | |||||||||||||||||||||||||||
| MasterCard Credit and Charge Programs | ||||||||||||||||||||||||||||||||||||||||||
| Worldwide less United States | 867 | -2.4 | % | 11.1 | % | 788 | 12.5 | % | 10,707 | 79 | -0.9 | % | 368 | 510 | 572 | |||||||||||||||||||||||||||
| United States | 324 | 6.0 | % | 6.0 | % | 311 | 6.3 | % | 3,445 | 13 | 1.2 | % | 16 | 155 | 186 | |||||||||||||||||||||||||||
| Worldwide | 1,191 | -0.2 | % | 9.7 | % | 1,099 | 10.7 | % | 14,151 | 93 | -0.6 | % | 384 | 665 | 757 | |||||||||||||||||||||||||||
| MasterCard Debit Programs | ||||||||||||||||||||||||||||||||||||||||||
| Worldwide less United States | 637 | 2.0 | % | 21.9 | % | 240 | 25.7 | % | 6,781 | 396 | 19.7 | % | 3,607 | 515 | 528 | |||||||||||||||||||||||||||
| United States | 379 | 7.6 | % | 7.6 | % | 286 | 8.0 | % | 7,254 | 92 | 6.3 | % | 654 | 171 | 174 | |||||||||||||||||||||||||||
| Worldwide | 1,015 | 4.0 | % | 16.1 | % | 526 | 15.4 | % | 14,035 | 489 | 16.9 | % | 4,261 | 686 | 702 | |||||||||||||||||||||||||||
| APMEA = Asia Pacific / Middle East / Africa | ||||||||||||||||||||||||||||||||||||||||||
| Note that the figures in the preceding tables may not sum due to rounding; growth represents change from the comparable year-ago period | ||||||||||||||||||||||||||||||||||||||||||
Footnote
The tables set forth the gross dollar volume (“GDV”), purchase volume, cash volume and the number of purchase transactions, cash transactions, accounts and cards on a regional and global basis for MasterCard®-branded and MasterCard Electronic™-branded cards. Growth rates over prior periods are provided for volume-based data.
Debit transactions on Maestro® and Cirrus®-branded cards and transactions involving brands other than MasterCard are not included in the preceding tables.
For purposes of the table: GDV represents purchase volume plus cash volume and includes the impact of balance transfers and convenience checks; “purchase volume” means the aggregate dollar amount of purchases made with MasterCard-branded cards for the relevant period; and “cash volume” means the aggregate dollar amount of cash disbursements obtained with MasterCard-branded cards for the relevant period. The number of cards includes virtual cards, which are MasterCard-branded payment accounts that do not generally have physical cards associated with them.
The MasterCard payment product is comprised of credit, charge and debit programs, and data relating to each type of program is included in the tables. Debit programs include MasterCard-branded debit programs where the primary means of cardholder validation at the point of sale is for cardholders either to sign a sales receipt or enter a PIN. The tables include information with respect to transactions involving MasterCard-branded cards that are not processed by MasterCard and transactions for which MasterCard does not earn significant revenues.
Information denominated in U.S. dollars is calculated by applying an established U.S. dollar/local currency exchange rate for each local currency in which MasterCard volumes are reported. These exchange rates are calculated on a quarterly basis using the average exchange rate for each quarter. MasterCard reports period-over-period rates of change in purchase volume and cash volume on the basis of local currency information, in order to eliminate the impact of changes in the value of foreign currencies against the U.S. dollar in calculating such rates of change.
The data set forth in the GDV, purchase volume, purchase transactions, cash volume and cash transactions columns is provided by MasterCard customers and is subject to verification by MasterCard and partial cross-checking against information provided by MasterCard’s transaction processing systems. The data set forth in the accounts and cards columns is provided by MasterCard customers and is subject to certain limited verification by MasterCard. A portion of the data set forth in the accounts and cards columns reflects the impact of routine portfolio changes among customers and other practices that may lead to over counting of the underlying data in certain circumstances. All data is subject to revision and amendment by MasterCard’s customers subsequent to the date of its release.
In 2015 Q3, several customers purged inactive MasterCard cards and accounts. Data for the comparable periods has been revised to be consistent with this approach.
Performance information for prior periods can be found in the “Investor Relations” section of the MasterCard website at www.mastercard.com/investor.
|
Non-GAAP Reconciliations ($ in millions, except per share data) |
||||||||||||||||||||||||||||||||||||||||||||||||||||
| Three Months Ended June 30, |
Percent Increase/(Decrease) |
|||||||||||||||||||||||||||||||||||||||||||||||||||
| 2016 | 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Actual |
Special Item |
Non- GAAP 1 |
Actual |
Special Item |
Non- GAAP 1 |
Actual |
Special Items |
Non- GAAP 1 |
||||||||||||||||||||||||||||||||||||||||||||
| Total operating expenses | $ | 1,314 | $ | (107 | ) | $ | 1,207 | $ | 1,139 | $ | (61 | ) | $ | 1,078 | 15 | % | 3 | % | 12 | % | ||||||||||||||||||||||||||||||||
| Operating income | $ | 1,380 | $ | 107 | $ | 1,487 | $ | 1,251 | $ | 61 | $ | 1,312 | 10 | % | (3 | )% | 13 | % | ||||||||||||||||||||||||||||||||||
| Operating Margin | 51.2 | % | 55.2 | % | 52.4 | % | 54.9 | % | ||||||||||||||||||||||||||||||||||||||||||||
| Income tax expense | $ | 382 | $ | 29 | $ | 411 | $ | 320 | $ | 17 | $ | 337 | 20 | % | (2 | )% | 22 | % | ||||||||||||||||||||||||||||||||||
| Effective Tax Rate | 28.0 | % | 27.9 | % | 25.7 | % | 25.8 | % | ||||||||||||||||||||||||||||||||||||||||||||
| Net Income | $ | 983 | $ | 78 | $ | 1,061 | $ | 921 | $ | 44 | $ | 965 | 7 | % | (3 | )% | 10 | % | ||||||||||||||||||||||||||||||||||
| Diluted Earnings per Share | $ | 0.89 | $ | 0.07 | $ | 0.96 | $ | 0.81 | $ | 0.04 | $ | 0.85 | 10 | % | (3 | )% | 13 | % | ||||||||||||||||||||||||||||||||||
| Six Months Ended June 30, |
Percent Increase/(Decrease) |
|||||||||||||||||||||||||||||||||||||||||||||||||||
| 2016 | 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Actual |
Special Item |
Non- GAAP 1 |
Actual |
Special Item |
Non- GAAP 1 |
Actual |
Special Items |
Non- GAAP 1 |
||||||||||||||||||||||||||||||||||||||||||||
| Total operating expenses | $ | 2,412 | $ | (107 | ) | $ | 2,305 | $ | 2,018 | $ | (61 | ) | $ | 1,957 | 20 | % | 2 | % | 18 | % | ||||||||||||||||||||||||||||||||
| Operating income | $ | 2,728 | $ | 107 | $ | 2,835 | $ | 2,602 | $ | 61 | $ | 2,663 | 5 | % | (1 | )% | 6 | % | ||||||||||||||||||||||||||||||||||
| Operating Margin | 53.1 | % | 55.2 | % | 56.3 | % | 57.7 | % | ||||||||||||||||||||||||||||||||||||||||||||
| Income tax expense | $ | 760 | $ | 29 | $ | 789 | $ | 640 | $ | 17 | $ | 657 | 19 | % | (1 | )% | 20 | % | ||||||||||||||||||||||||||||||||||
| Effective Tax Rate | 28.1 | % | 28.1 | % | 24.8 | % | 24.9 | % | ||||||||||||||||||||||||||||||||||||||||||||
| Net income | $ | 1,942 | $ | 78 | $ | 2,020 | $ | 1,941 | $ | 44 | $ | 1,985 | — | % | (2 | )% | 2 | % | ||||||||||||||||||||||||||||||||||
| Diluted Earnings per Share | $ | 1.75 | $ | 0.07 | $ | 1.82 | $ | 1.69 | $ | 0.04 | $ | 1.73 | 4 | % | (1 | )% | 5 | % | ||||||||||||||||||||||||||||||||||
| Note: Figures may not sum due to rounding | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| 1 Represents effect of excluding the U.K. merchant litigation provisions | ||||||||||||||||||||||||||||||||||||||||||||||||||||
MasterCard Incorporated
Investor Relations:
Barbara Gasper or Jesal Meswani, 914-249-4565
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or
Media Relations:
Seth Eisen, 914-249-3153
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