Bolstered by jumps in international credit and debit card transactions, MasterCard posted a second quarter earnings increase of 31 percent.
The No. 2 payments processor said today that net income climbed to $458 million, or $3.49 per share, from $349 million, or $2.67 a share, a year ago. Revenue increased 7 percent to $1.37 billion.
MasterCard beat analysts’ estimates of $3.33 per share.
Although credit and debit card use in the United States was either down or flat, MasterCard’s international transactions pushed worldwide purchase volume in the quarter up 7.9 percent, on a local currency basis, to $493 billion, compared to a year ago.
Growth in MasterCard’s gross dollar volume increased 8.5 percent, on a local currency basis, to $656 billion.
“Solid GDV growth, particularly in markets outside the U.S., continued momentum in worldwide cross-border volumes, and thoughtful expense management all contributed to good financial results this quarter,” said Ajay Banga, MasterCard president and chief executive officer.
Total operating expenses decreased 10.4 percent, to $648 million, during the second quarter of 2010. This decrease was primarily due to lower personnel expense driven by decreased severance and compensation versus the year-ago quarter as a result of workforce reductions in 2009.
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