-
Second-quarter net income of $965 million, excluding a special
item, or $0.85 per diluted share
-
Second-quarter net income of $921 million, including a special
item, or $0.81 per diluted share
-
Second-quarter net revenue increase of 1%, to $2.4 billion
-
Second-quarter gross dollar volume up 13% and purchase volume up
12%
PURCHASE, N.Y.--(BUSINESS WIRE)--
MasterCard Incorporated (NYSE:MA) today announced financial results for
the second quarter of 2015. Excluding a special item, the company
reported net income of $965 million, up 4%, or 12% after adjusting for
currency, and earnings per diluted share of $0.85, up 6% or 15% adjusted
for currency, versus the year-ago period. Including the special item, a
$44 million after-tax charge related to a U.K. merchant litigation
settlement, the company reported net income of $921 million, a decrease
of 1%, or an increase of 7% after adjusting for currency, and earnings
per diluted share of $0.81, up 1%, or 9% adjusted for currency, versus
the year-ago period. The net income and earnings per diluted share
figures, excluding the special item, are reconciled to their comparable
GAAP measures in the accompanying tables. Acquisitions had a $0.03
dilutive impact on earnings per diluted share.
Net revenue for the second quarter of 2015 was $2.4 billion, a 1%
increase versus the same period in 2014. Adjusted for currency, net
revenue increased 7%. Net revenue growth was driven by the impact of the
following:
-
An increase in cross-border volumes of 17%;
-
A 13% increase in gross dollar volume, on a local currency basis, to
$1.1 trillion; and
-
An increase in processed transactions of 13%, to 12.0 billion.
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.
Worldwide purchase volume during the quarter was up 12% on a local
currency basis versus the second quarter of 2014, to $841 billion. As of
June 30, 2015, the company’s customers had issued 2.2 billion MasterCard
and Maestro-branded cards.
“Our business continues to perform well with good transaction and volume
growth, particularly in cross-border, despite the mixed global economic
environment and foreign exchange headwinds,” said Ajay Banga, president
and CEO, MasterCard. “We are executing on our strategy to grow our
business by focusing on winning new deals in our core payments business,
while building out our data analytics, processing and safety
applications. A blend of acquisitions and organic investments in these
spaces remain at the foundation of our strategy.”
Excluding the special item, total operating expenses increased 9%, or
increased 14% when adjusted for currency, to $1.1 billion during the
second quarter of 2015 compared to the same period in 2014. Acquisitions
contributed 10 percentage points of the FX-adjusted growth, with the
remainder primarily due to higher data processing and advertising &
marketing expenses. Including the special item, total operating expenses
increased 15%, or 21% when adjusted for currency, from the year-ago
period.
Operating income for the second quarter of 2015 decreased 5%, or
increased 2% adjusted for currency, versus the year-ago period,
excluding the special item. The company delivered an operating margin of
54.9%.
MasterCard reported other expense of $10 million in the second quarter
of 2015, unchanged from the second quarter of 2014.
MasterCard’s effective tax rate was 25.8% in the second quarter of 2015,
versus a rate of 32.2% in the comparable period in 2014, excluding the
special item. The decrease was primarily due to a larger repatriation
benefit, the recognition of a discrete U.S. foreign tax credit benefit
and a more favorable mix of taxable earnings.
During the second quarter of 2015, MasterCard repurchased approximately
9 million shares of Class A common stock at a cost of approximately $849
million. Quarter-to-date through July 22nd, the company
repurchased an additional 1.9 million shares at a cost of approximately
$182 million, with $2.0 billion remaining under the current repurchase
program authorization.
Year-to-Date 2015 Results
For the six months ended June 30, 2015, excluding the special item,
MasterCard reported net income of $2.0 billion, an increase of 10%, or
18% after adjusting for currency, and earnings per diluted share of
$1.73, up 13%, or 21% adjusting for currency versus the year-ago period.
Including the special item, net income was $1.9 billion and earnings per
diluted share was $1.69. Acquisitions had a $0.06 dilutive impact on
earnings per diluted share.
Net revenue for the first half of 2015 was $4.6 billion, an increase of
2%, or 8% after adjusting for currency, versus the same period in 2014.
Gross dollar volume growth of 12%, transaction processing growth of 13%
and cross-border volume growth of 18% contributed to the net revenue
growth in the year-to-date period. These factors were partially offset
by an increase in rebates and incentives. Acquisitions contributed 2
percentage points to total net revenue growth.
Excluding the special item, total operating expenses increased 4%, or 9%
after adjusting for currency, to $2.0 billion, for the first half of
2015, compared to the same period in 2014. The increase was entirely due
to the impact of acquisitions. Including the special item, total
operating expenses increased 8%, or 12% after adjusting for currency.
Excluding the special item, operating income of $2.7 billion was
essentially unchanged versus the first half of 2014 or increased 7%
adjusted for currency, resulting in an operating margin of 57.7%.
MasterCard’s effective tax rate was 24.9% for the first half of 2015
versus a rate of 32.1% in the same period in 2014, excluding the special
item. The decrease was primarily due to the recognition of a discrete
U.S. foreign tax credit benefit, a larger repatriation benefit and a
more favorable mix of taxable earnings.
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 866-393-4306 (within the U.S.)
and 734-385-2616 (outside the U.S.), and the passcode is 66650115. 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 66650115.
This call can also be accessed through the Investor Relations section of
the company’s website at www.mastercard.com/investor.
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 adjusted for currency represent a
non-GAAP measure and are calculated by remeasuring the prior period’s
results using the current period’s exchange rates.
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’s 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 Cashless Pioneers Blog and subscribe for the latest
news on the Engagement Bureau.
Forward-Looking Statements
Statements in this press release which are not historical facts,
including statements about MasterCard’s plans, strategies, beliefs and
expectations, are forward-looking and subject to the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995.
Forward-looking statements speak only as of the date they are made.
Accordingly, 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. Such forward-looking statements include,
without limitation, statements related to our business performance and
the execution of our strategy.
Actual results may differ materially from such forward-looking
statements for a number of reasons, including those set forth in the
company’s filings with the Securities and Exchange Commission (SEC),
including the company’s Annual Report on Form 10-K for the year ended
December 31, 2014, the company’s Quarterly Reports on Form 10-Q and
Current Reports on Form 8-K that have been filed with the SEC during
2015, as well as reasons including difficulties, delays or the inability
of the company to achieve its strategic initiatives set forth above.
Factors other than those listed above could also cause the company’s
results to differ materially from expected results.
|
MASTERCARD INCORPORATED
CONSOLIDATED STATEMENT OF OPERATIONS
(UNAUDITED)
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
|
(in millions, except per share data)
|
|
Net Revenue
|
|
$
|
2,390
|
|
|
$
|
2,368
|
|
|
$
|
4,620
|
|
|
$
|
4,540
|
|
|
Operating Expenses
|
|
|
|
|
|
|
|
|
|
General and administrative
|
|
810
|
|
|
731
|
|
|
1,460
|
|
|
1,396
|
|
|
Advertising and marketing
|
|
176
|
|
|
173
|
|
|
318
|
|
|
322
|
|
|
Depreciation and amortization
|
|
92
|
|
|
81
|
|
|
179
|
|
|
154
|
|
|
Provision for litigation settlement
|
|
61
|
|
|
—
|
|
|
61
|
|
|
—
|
|
|
Total operating expenses
|
|
1,139
|
|
|
985
|
|
|
2,018
|
|
|
1,872
|
|
|
Operating income
|
|
1,251
|
|
|
1,383
|
|
|
2,602
|
|
|
2,668
|
|
|
Other Income (Expense)
|
|
|
|
|
|
|
|
|
|
Investment income
|
|
6
|
|
|
6
|
|
|
15
|
|
|
13
|
|
|
Interest expense
|
|
(17
|
)
|
|
(15
|
)
|
|
(34
|
)
|
|
(21
|
)
|
|
Other income (expense), net
|
|
1
|
|
|
(1
|
)
|
|
(2
|
)
|
|
(6
|
)
|
|
Total other income (expense)
|
|
(10
|
)
|
|
(10
|
)
|
|
(21
|
)
|
|
(14
|
)
|
|
Income before income taxes
|
|
1,241
|
|
|
1,373
|
|
|
2,581
|
|
|
2,654
|
|
|
Income tax expense
|
|
320
|
|
|
442
|
|
|
640
|
|
|
853
|
|
|
Net Income
|
|
$
|
921
|
|
|
$
|
931
|
|
|
$
|
1,941
|
|
|
$
|
1,801
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic Earnings per Share
|
|
$
|
0.81
|
|
|
$
|
0.80
|
|
|
$
|
1.70
|
|
|
$
|
1.53
|
|
|
Basic Weighted-Average Shares Outstanding
|
|
1,138
|
|
|
1,165
|
|
|
1,143
|
|
|
1,175
|
|
|
Diluted Earnings per Share
|
|
$
|
0.81
|
|
|
$
|
0.80
|
|
|
$
|
1.69
|
|
|
$
|
1.53
|
|
|
Diluted Weighted-Average Shares Outstanding
|
|
1,141
|
|
|
1,169
|
|
|
1,146
|
|
|
1,179
|
|
|
MASTERCARD INCORPORATED
CONSOLIDATED BALANCE SHEET
(UNAUDITED)
|
|
|
|
|
|
|
|
|
|
June 30, 2015
|
|
December 31, 2014
|
|
|
|
(in millions, except share data)
|
|
ASSETS
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
3,361
|
|
|
$
|
5,137
|
|
|
Restricted cash for litigation settlement
|
|
541
|
|
|
540
|
|
|
Investments
|
|
1,716
|
|
|
1,238
|
|
|
Accounts receivable
|
|
1,128
|
|
|
1,109
|
|
|
Settlement due from customers
|
|
1,274
|
|
|
1,052
|
|
|
Restricted security deposits held for customers
|
|
1,000
|
|
|
950
|
|
|
Prepaid expenses and other current assets
|
|
903
|
|
|
671
|
|
|
Deferred income taxes
|
|
294
|
|
|
300
|
|
|
Total Current Assets
|
|
10,217
|
|
|
10,997
|
|
|
Property, plant and equipment, net of accumulated depreciation of
$474 and $437, respectively
|
|
632
|
|
|
615
|
|
|
Deferred income taxes
|
|
32
|
|
|
96
|
|
|
Goodwill
|
|
1,940
|
|
|
1,522
|
|
|
Other intangible assets, net of accumulated amortization of $743 and
$663, respectively
|
|
862
|
|
|
714
|
|
|
Other assets
|
|
1,589
|
|
|
1,385
|
|
|
Total Assets
|
|
$
|
15,272
|
|
|
$
|
15,329
|
|
|
LIABILITIES AND EQUITY
|
|
|
|
|
|
Accounts payable
|
|
$
|
481
|
|
|
$
|
419
|
|
|
Settlement due to customers
|
|
1,330
|
|
|
1,142
|
|
|
Restricted security deposits held for customers
|
|
1,000
|
|
|
950
|
|
|
Accrued litigation
|
|
722
|
|
|
771
|
|
|
Accrued expenses
|
|
2,385
|
|
|
2,439
|
|
|
Other current liabilities
|
|
558
|
|
|
501
|
|
|
Total Current Liabilities
|
|
6,476
|
|
|
6,222
|
|
|
Long-term debt
|
|
1,495
|
|
|
1,494
|
|
|
Deferred income taxes
|
|
101
|
|
|
115
|
|
|
Other liabilities
|
|
764
|
|
|
674
|
|
|
Total Liabilities
|
|
8,836
|
|
|
8,505
|
|
|
Commitments and Contingencies
|
|
|
|
|
|
Stockholders’ Equity
|
|
|
|
|
|
Class A common stock, $0.0001 par value; authorized 3,000,000,000
shares, 1,367,937,580
and 1,352,378,383 shares issued and
1,110,771,314 and 1,115,369,640 outstanding, respectively
|
|
—
|
|
|
—
|
|
|
Class B common stock, $0.0001 par value; authorized 1,200,000,000
shares, 23,247,190
and 37,192,165 issued and outstanding,
respectively
|
|
—
|
|
|
—
|
|
|
Additional paid-in-capital
|
|
3,936
|
|
|
3,876
|
|
|
Class A treasury stock, at cost, 257,166,266 and 237,008,743 shares,
respectively
|
|
(11,785
|
)
|
|
(9,995
|
)
|
|
Retained earnings
|
|
14,746
|
|
|
13,169
|
|
|
Accumulated other comprehensive income (loss)
|
|
(493
|
)
|
|
(260
|
)
|
|
Total Stockholders’ Equity
|
|
6,404
|
|
|
6,790
|
|
|
Non-controlling interests
|
|
32
|
|
|
34
|
|
|
Total Equity
|
|
6,436
|
|
|
6,824
|
|
|
Total Liabilities and Equity
|
|
$
|
15,272
|
|
|
$
|
15,329
|
|
|
MASTERCARD INCORPORATED
CONSOLIDATED STATEMENT OF CASH FLOWS
(UNAUDITED)
|
|
|
|
|
|
|
|
Six Months Ended June 30,
|
|
|
|
2015
|
|
2014
|
|
|
|
(in millions)
|
|
Operating Activities
|
|
|
|
|
|
Net income
|
|
$
|
1,941
|
|
|
$
|
1,801
|
|
|
Adjustments to reconcile net income to net cash provided by
operating activities:
|
|
|
|
|
|
Amortization of customer and merchant incentives
|
|
358
|
|
|
325
|
|
|
Depreciation and amortization
|
|
179
|
|
|
154
|
|
|
Share-based payments
|
|
(23
|
)
|
|
(46
|
)
|
|
Deferred income taxes
|
|
1
|
|
|
(77
|
)
|
|
Other
|
|
(23
|
)
|
|
22
|
|
|
Changes in operating assets and liabilities:
|
|
|
|
|
|
Accounts receivable
|
|
(51
|
)
|
|
(121
|
)
|
|
Income taxes receivable
|
|
(63
|
)
|
|
—
|
|
|
Settlement due from customers
|
|
(290
|
)
|
|
1
|
|
|
Prepaid expenses
|
|
(522
|
)
|
|
(443
|
)
|
|
Accrued litigation and legal settlements
|
|
(49
|
)
|
|
(87
|
)
|
|
Accounts payable
|
|
37
|
|
|
29
|
|
|
Settlement due to customers
|
|
261
|
|
|
(90
|
)
|
|
Accrued expenses
|
|
(120
|
)
|
|
(209
|
)
|
|
Net change in other assets and liabilities
|
|
96
|
|
|
38
|
|
|
Net cash provided by operating activities
|
|
1,732
|
|
|
1,297
|
|
|
Investing Activities
|
|
|
|
|
|
Purchases of investment securities available-for-sale
|
|
(789
|
)
|
|
(1,473
|
)
|
|
Purchases of other short-term investments held-to-maturity
|
|
(744
|
)
|
|
—
|
|
|
Acquisition of businesses, net of cash acquired
|
|
(584
|
)
|
|
(341
|
)
|
|
Purchases of property, plant and equipment
|
|
(56
|
)
|
|
(39
|
)
|
|
Capitalized software
|
|
(87
|
)
|
|
(63
|
)
|
|
Proceeds from sales of investment securities available-for-sale
|
|
716
|
|
|
426
|
|
|
Proceeds from maturities of investment securities available-for-sale
|
|
322
|
|
|
887
|
|
|
(Increase) decrease in restricted cash for litigation settlement
|
|
(1
|
)
|
|
183
|
|
|
Other investing activities
|
|
1
|
|
|
(12
|
)
|
|
Net cash used in investing activities
|
|
(1,222
|
)
|
|
(432
|
)
|
|
Financing Activities
|
|
|
|
|
|
Purchases of treasury stock
|
|
(1,795
|
)
|
|
(2,827
|
)
|
|
Proceeds from debt
|
|
—
|
|
|
1,487
|
|
|
Dividends paid
|
|
(367
|
)
|
|
(260
|
)
|
|
Tax benefit for share-based payments
|
|
34
|
|
|
42
|
|
|
Cash proceeds from exercise of stock options
|
|
21
|
|
|
16
|
|
|
Other financing activities
|
|
(9
|
)
|
|
(43
|
)
|
|
Net cash used in financing activities
|
|
(2,116
|
)
|
|
(1,585
|
)
|
|
Effect of exchange rate changes on cash and cash equivalents
|
|
(170
|
)
|
|
(1
|
)
|
|
Net decrease in cash and cash equivalents
|
|
(1,776
|
)
|
|
(721
|
)
|
|
Cash and cash equivalents - beginning of period
|
|
5,137
|
|
|
3,599
|
|
|
Cash and cash equivalents - end of period
|
|
$
|
3,361
|
|
|
$
|
2,878
|
|
|
|
|
|
|
|
|
Non-Cash Investing and Financing Activities
|
|
|
|
|
|
Fair value of assets acquired, net of cash acquired
|
|
$
|
625
|
|
|
$
|
572
|
|
|
Fair value of liabilities assumed related to acquisitions
|
|
$
|
41
|
|
|
$
|
128
|
|
|
|
|
|
|
|
|
|
|
|
|
MASTERCARD INCORPORATED OPERATING PERFORMANCE
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
7.1%
|
|
14.9%
|
|
$232
|
|
15.4%
|
|
2,895
|
|
$112
|
|
13.9%
|
|
1,055
|
|
478
|
|
511
|
|
Canada
|
|
34
|
|
3.8%
|
|
17.3%
|
|
33
|
|
19.1%
|
|
453
|
|
2
|
|
-8.2%
|
|
6
|
|
46
|
|
55
|
|
Europe
|
|
320
|
|
-7.0%
|
|
16.5%
|
|
220
|
|
15.0%
|
|
4,391
|
|
100
|
|
19.9%
|
|
753
|
|
371
|
|
388
|
|
Latin America
|
|
80
|
|
-9.5%
|
|
14.9%
|
|
47
|
|
17.9%
|
|
1,378
|
|
32
|
|
10.9%
|
|
221
|
|
144
|
|
164
|
|
Worldwide less United States
|
|
777
|
|
-1.1%
|
|
15.7%
|
|
531
|
|
15.7%
|
|
9,117
|
|
246
|
|
15.6%
|
|
2,035
|
|
1,039
|
|
1,118
|
|
United States
|
|
364
|
|
7.3%
|
|
7.3%
|
|
310
|
|
7.1%
|
|
5,580
|
|
54
|
|
8.0%
|
|
344
|
|
334
|
|
371
|
|
Worldwide
|
|
1,141
|
|
1.4%
|
|
12.8%
|
|
841
|
|
12.4%
|
|
14,697
|
|
300
|
|
14.2%
|
|
2,379
|
|
1,373
|
|
1,489
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MasterCard Credit and Charge Programs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Worldwide less United States
|
|
447
|
|
-2.9%
|
|
11.5%
|
|
406
|
|
12.7%
|
|
5,549
|
|
41
|
|
0.8%
|
|
195
|
|
520
|
|
586
|
|
United States
|
|
172
|
|
6.7%
|
|
6.7%
|
|
165
|
|
6.4%
|
|
1,836
|
|
7
|
|
13.4%
|
|
9
|
|
156
|
|
188
|
|
Worldwide
|
|
619
|
|
-0.4%
|
|
10.1%
|
|
571
|
|
10.8%
|
|
7,385
|
|
48
|
|
2.6%
|
|
203
|
|
676
|
|
774
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MasterCard Debit Programs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Worldwide less United States
|
|
331
|
|
1.6%
|
|
21.9%
|
|
126
|
|
26.6%
|
|
3,568
|
|
205
|
|
19.2%
|
|
1,840
|
|
519
|
|
532
|
|
United States
|
|
192
|
|
7.8%
|
|
7.8%
|
|
145
|
|
8.0%
|
|
3,744
|
|
47
|
|
7.3%
|
|
336
|
|
178
|
|
183
|
|
Worldwide
|
|
522
|
|
3.8%
|
|
16.3%
|
|
271
|
|
15.9%
|
|
7,312
|
|
251
|
|
16.8%
|
|
2,176
|
|
697
|
|
715
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
$673
|
|
7.9%
|
|
14.9%
|
|
$452
|
|
15.2%
|
|
5,553
|
|
$221
|
|
14.4%
|
|
2,064
|
|
478
|
|
511
|
|
Canada
|
|
64
|
|
3.0%
|
|
16.2%
|
|
60
|
|
18.2%
|
|
846
|
|
4
|
|
-8.9%
|
|
11
|
|
46
|
|
55
|
|
Europe
|
|
605
|
|
-7.7%
|
|
15.8%
|
|
420
|
|
14.1%
|
|
8,329
|
|
185
|
|
19.8%
|
|
1,420
|
|
371
|
|
388
|
|
Latin America
|
|
159
|
|
-6.6%
|
|
14.5%
|
|
95
|
|
17.9%
|
|
2,709
|
|
65
|
|
9.9%
|
|
434
|
|
144
|
|
164
|
|
Worldwide less United States
|
|
1,501
|
|
-0.7%
|
|
15.3%
|
|
1,027
|
|
15.2%
|
|
17,437
|
|
474
|
|
15.5%
|
|
3,929
|
|
1,039
|
|
1,118
|
|
United States
|
|
702
|
|
6.9%
|
|
6.9%
|
|
596
|
|
7.0%
|
|
10,687
|
|
106
|
|
5.9%
|
|
670
|
|
334
|
|
371
|
|
Worldwide
|
|
2,203
|
|
1.6%
|
|
12.5%
|
|
1,623
|
|
12.0%
|
|
28,125
|
|
580
|
|
13.7%
|
|
4,599
|
|
1,373
|
|
1,489
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MasterCard Credit and Charge Programs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Worldwide less United States
|
|
868
|
|
-2.3%
|
|
11.2%
|
|
788
|
|
12.5%
|
|
10,706
|
|
80
|
|
0.4%
|
|
380
|
|
520
|
|
586
|
|
United States
|
|
324
|
|
6.0%
|
|
6.0%
|
|
311
|
|
6.3%
|
|
3,445
|
|
13
|
|
1.2%
|
|
16
|
|
156
|
|
188
|
|
Worldwide
|
|
1,192
|
|
-0.2%
|
|
9.8%
|
|
1,099
|
|
10.6%
|
|
14,151
|
|
94
|
|
0.5%
|
|
395
|
|
676
|
|
774
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MasterCard Debit Programs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Worldwide less United States
|
|
633
|
|
1.6%
|
|
21.3%
|
|
239
|
|
25.1%
|
|
6,731
|
|
394
|
|
19.2%
|
|
3,550
|
|
519
|
|
532
|
|
United States
|
|
378
|
|
7.6%
|
|
7.6%
|
|
285
|
|
7.9%
|
|
7,242
|
|
93
|
|
6.6%
|
|
654
|
|
178
|
|
183
|
|
Worldwide
|
|
1,011
|
|
3.7%
|
|
15.8%
|
|
525
|
|
15.1%
|
|
13,974
|
|
487
|
|
16.6%
|
|
4,204
|
|
697
|
|
715
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the 3 Months ended June 30, 2014
|
|
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
|
|
$321
|
|
14.6%
|
|
17.9%
|
|
$214
|
|
17.6%
|
|
2,419
|
|
$107
|
|
18.5%
|
|
928
|
|
417
|
|
447
|
|
Canada
|
|
33
|
|
-1.4%
|
|
4.9%
|
|
31
|
|
6.7%
|
|
380
|
|
2
|
|
-14.4%
|
|
6
|
|
40
|
|
48
|
|
Europe
|
|
344
|
|
14.1%
|
|
13.1%
|
|
233
|
|
10.1%
|
|
3,575
|
|
111
|
|
19.9%
|
|
669
|
|
328
|
|
344
|
|
Latin America
|
|
88
|
|
4.3%
|
|
13.0%
|
|
54
|
|
20.1%
|
|
1,232
|
|
34
|
|
3.4%
|
|
205
|
|
128
|
|
148
|
|
Worldwide less United States
|
|
786
|
|
12.4%
|
|
14.6%
|
|
531
|
|
13.8%
|
|
7,606
|
|
254
|
|
16.4%
|
|
1,808
|
|
913
|
|
987
|
|
United States
|
|
339
|
|
9.4%
|
|
9.4%
|
|
290
|
|
10.2%
|
|
5,146
|
|
50
|
|
4.7%
|
|
328
|
|
304
|
|
339
|
|
Worldwide
|
|
1,125
|
|
11.5%
|
|
13.0%
|
|
821
|
|
12.5%
|
|
12,752
|
|
304
|
|
14.3%
|
|
2,137
|
|
1,217
|
|
1,326
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MasterCard Credit and Charge Programs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Worldwide less United States
|
|
460
|
|
9.1%
|
|
11.0%
|
|
411
|
|
12.5%
|
|
4,976
|
|
49
|
|
0.4%
|
|
210
|
|
498
|
|
562
|
|
United States
|
|
161
|
|
9.8%
|
|
9.8%
|
|
155
|
|
10.3%
|
|
1,713
|
|
6
|
|
-0.9%
|
|
7
|
|
144
|
|
173
|
|
Worldwide
|
|
622
|
|
9.3%
|
|
10.7%
|
|
566
|
|
11.9%
|
|
6,689
|
|
56
|
|
0.3%
|
|
217
|
|
641
|
|
735
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MasterCard Debit Programs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Worldwide less United States
|
|
325
|
|
17.3%
|
|
20.1%
|
|
121
|
|
18.5%
|
|
2,629
|
|
205
|
|
21.1%
|
|
1,598
|
|
416
|
|
425
|
|
United States
|
|
178
|
|
8.9%
|
|
8.9%
|
|
134
|
|
10.0%
|
|
3,433
|
|
43
|
|
5.6%
|
|
321
|
|
160
|
|
166
|
|
Worldwide
|
|
503
|
|
14.2%
|
|
15.9%
|
|
255
|
|
13.9%
|
|
6,062
|
|
248
|
|
18.1%
|
|
1,919
|
|
576
|
|
591
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the 6 Months ended June 30, 2014
|
|
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
|
|
$623
|
|
13.6%
|
|
18.5%
|
|
$417
|
|
18.1%
|
|
4,636
|
|
$207
|
|
19.3%
|
|
1,812
|
|
417
|
|
447
|
|
Canada
|
|
62
|
|
-1.7%
|
|
6.0%
|
|
58
|
|
7.7%
|
|
716
|
|
5
|
|
-12.1%
|
|
11
|
|
40
|
|
48
|
|
Europe
|
|
656
|
|
13.8%
|
|
13.8%
|
|
445
|
|
10.5%
|
|
6,821
|
|
211
|
|
21.5%
|
|
1,266
|
|
328
|
|
344
|
|
Latin America
|
|
171
|
|
3.6%
|
|
14.2%
|
|
103
|
|
20.9%
|
|
2,427
|
|
67
|
|
5.2%
|
|
404
|
|
128
|
|
148
|
|
Worldwide less United States
|
|
1,512
|
|
11.8%
|
|
15.4%
|
|
1,023
|
|
14.3%
|
|
14,599
|
|
489
|
|
17.7%
|
|
3,492
|
|
913
|
|
987
|
|
United States
|
|
657
|
|
8.8%
|
|
8.8%
|
|
557
|
|
9.5%
|
|
9,864
|
|
100
|
|
5.3%
|
|
639
|
|
304
|
|
339
|
|
Worldwide
|
|
2,169
|
|
10.9%
|
|
13.3%
|
|
1,580
|
|
12.6%
|
|
24,463
|
|
589
|
|
15.4%
|
|
4,131
|
|
1,217
|
|
1,326
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MasterCard Credit and Charge Programs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Worldwide less United States
|
|
889
|
|
8.4%
|
|
11.7%
|
|
791
|
|
12.9%
|
|
9,599
|
|
97
|
|
2.5%
|
|
408
|
|
498
|
|
562
|
|
United States
|
|
306
|
|
9.0%
|
|
9.0%
|
|
293
|
|
9.2%
|
|
3,223
|
|
13
|
|
3.5%
|
|
13
|
|
144
|
|
173
|
|
Worldwide
|
|
1,195
|
|
8.5%
|
|
11.0%
|
|
1,084
|
|
11.9%
|
|
12,822
|
|
111
|
|
2.6%
|
|
421
|
|
641
|
|
735
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MasterCard Debit Programs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Worldwide less United States
|
|
623
|
|
17.0%
|
|
21.2%
|
|
231
|
|
19.5%
|
|
5,000
|
|
392
|
|
22.2%
|
|
3,084
|
|
416
|
|
425
|
|
United States
|
|
351
|
|
8.7%
|
|
8.7%
|
|
265
|
|
9.8%
|
|
6,641
|
|
87
|
|
5.5%
|
|
626
|
|
160
|
|
166
|
|
Worldwide
|
|
975
|
|
13.9%
|
|
16.4%
|
|
496
|
|
14.1%
|
|
11,640
|
|
479
|
|
18.8%
|
|
3,710
|
|
576
|
|
591
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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.
Performance information for prior periods can be found in the “Investor
Relations” section of the MasterCard website at www.mastercard.com/investor.
|
GAAP Reconciliations
($ in millions, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, 2015
|
|
Three
Months
Ended
June 30,
2014
|
|
Percent Increase / (Decrease)
|
|
|
|
Actual
|
|
Special
Item 1
|
|
Non-
GAAP
|
|
Actual
|
|
Actual
|
|
Special
Item 1
|
|
Non-
GAAP
|
|
Total operating expenses
|
|
$
|
1,139
|
|
|
$
|
(61
|
)
|
|
$
|
1,078
|
|
|
$
|
985
|
|
|
15%
|
|
6%
|
|
9%
|
|
Operating income
|
|
$
|
1,251
|
|
|
$
|
61
|
|
|
$
|
1,312
|
|
|
$
|
1,383
|
|
|
(10)%
|
|
(5)%
|
|
(5)%
|
|
Operating Margin
|
|
52.4
|
%
|
|
|
|
54.9
|
%
|
|
58.4
|
%
|
|
|
|
|
|
|
|
Income tax expense
|
|
$
|
320
|
|
|
$
|
17
|
|
|
$
|
337
|
|
|
$
|
442
|
|
|
(28)%
|
|
(4)%
|
|
(24)%
|
|
Effective Tax Rate
|
|
25.7
|
%
|
|
|
|
25.8
|
%
|
|
32.2
|
%
|
|
|
|
|
|
|
|
Net Income
|
|
$
|
921
|
|
|
$
|
44
|
|
|
$
|
965
|
|
|
$
|
931
|
|
|
(1)%
|
|
(5)%
|
|
4%
|
|
Diluted Earnings per Share
|
|
$
|
0.81
|
|
|
$
|
0.04
|
|
|
$
|
0.85
|
|
|
$
|
0.80
|
|
|
1%
|
|
(5)%
|
|
6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended June 30, 2015
|
|
Six
Months
Ended
June 30,
2014
|
|
Percent Increase / (Decrease)
|
|
|
|
Actual
|
|
Special
Item 1
|
|
Non-
GAAP
|
|
Actual
|
|
Actual
|
|
Special
Item 1
|
|
Non-
GAAP
|
|
Total operating expenses
|
|
$
|
2,018
|
|
|
$
|
(61
|
)
|
|
$
|
1,957
|
|
|
$
|
1,872
|
|
|
8%
|
|
4%
|
|
4%
|
|
Operating income
|
|
$
|
2,602
|
|
|
$
|
61
|
|
|
$
|
2,663
|
|
|
$
|
2,668
|
|
|
(2)%
|
|
(2)%
|
|
—%
|
|
Operating Margin
|
|
56.3
|
%
|
|
|
|
57.7
|
%
|
|
58.8
|
%
|
|
|
|
|
|
|
|
Income tax expense
|
|
$
|
640
|
|
|
$
|
17
|
|
|
$
|
657
|
|
|
$
|
853
|
|
|
(25)%
|
|
(2)%
|
|
(23)%
|
|
Effective Tax Rate
|
|
24.8
|
%
|
|
|
|
24.9
|
%
|
|
32.1
|
%
|
|
|
|
|
|
|
|
Net Income
|
|
$
|
1,941
|
|
|
$
|
44
|
|
|
$
|
1,985
|
|
|
$
|
1,801
|
|
|
8%
|
|
(2)%
|
|
10%
|
|
Diluted Earnings per Share
|
|
$
|
1.69
|
|
|
$
|
0.04
|
|
|
$
|
1.73
|
|
|
$
|
1.53
|
|
|
10%
|
|
(3)%
|
|
13%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note: Figures may not sum due to rounding
|
|
1 Represents effect of UK Merchant Litigation Settlement
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20150729005836/en/
Source: MasterCard Investor Relations