MasterCard Reports Third-Quarter Financial Results
MasterCard Incorporated has announced financial results for the third quarter of 2006, reporting net income of $193 million on net revenues of $902 million, a 13.9% increase versus the same period in 2005. MasterCard reported growth in gross dollar volume (GDV), increasing 15.0%, on a local currency basis, to $502 billion and an 18.9% increase in the number of transactions processed. Worldwide purchase volume rose 17.2%, on a local currency basis, during the quarter to $365 billion with the company's customers having issued 818 million MasterCard cards, an increase of 12.6% percent over the same period in 2005. MasterCard held a conference call this morning to discuss the results and has also provided some additional materials online.
"These strong results underscore our success in displacing paper-based forms of payment in all corners of the globe in the face of a highly competitive payments market," said Robert W. Selander, MasterCard president and chief executive officer. "This marks the twelfth consecutive quarter of double-digit purchase volume growth and the tenth consecutive quarter of double-digit GDV growth. Over our forty year history, we have invested heavily in our global brand and payments network. We believe that merchants, consumers, corporations and governments have recognized the convenient and secure electronic payment solutions which this investment has enabled."With our unified global organization and our unique structure as a franchisor, processor and advisor, we are focusing our efforts full time on delivering value-added products and services that enhance the profitability of our customers' businesses, and provide innovative programs that meet and exceed their cardholders' and merchants' needs," Selander said. "At the same time, we recognize that results are best delivered locally, and our structure allows us to develop solutions that work for our customers wherever, and however, they do business."
Chris A. McWilton, MasterCard's chief financial officer, noted that "In our first full quarter as a publicly listed company, MasterCard delivered strong revenue and earnings growth while further improving operating margins. The third-quarter results continue to demonstrate the strength of our business model and the momentum within the overall payments industry. These results are particularly notable when measured against last year's strong third- quarter performance."
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