MasterCard (MA) Posts 15% Rise in Q3 Profit; Shares Up

November 2, 2010 9:51 AM EDT
MasterCard Inc. (NYSE: MA) posted a 15 percent increase in quarterly profit on Tuesday due to an increase of credit and debit card use overseas.

The payments processor reported third-quarter earnings of $518 million or $3.94 per share, compared to $452 million or $3.45 per share in the same quarter last year.

Revenue for the company rose 5 percent to $1.43 billion from $1.36 billion last year.

On average, analysts had been looking for more modest earnings of $3.54 per share from MasterCard on revenue of $1,41 billion.

The company added that gross dollar volume rose 8.5 percent, purchase volume increased 7.9 percent and processed transactions were up 0.6 percent to $5.8 billion.

"Consumers and businesses around the world continue to recognize the benefits of electronic payments and MasterCard remains at the heart of this evolution," said Ajay Banga, MasterCard president and chief executive officer. "Our year-to-date net income is up over 22 percent, aided by strong volume growth from markets outside of the U.S."

Shares of MasterCard are up $5.98 or 2.50 percent to $244.94 in early market movement on Tuesday.

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