Mastercard profit slumps on one-time charge related to new tax law

[BENGALURU] Mastercard Inc, the world's second-biggest payments network, reported a 76 per cent drop in quarterly profit on Thursday, hurt by a one-time charge of US$981 million related to changes to US tax laws.

Net income fell to US$227 million, or 21 cents per share, in the fourth quarter ended Dec 31, from $933 million, or 86 cents per share, a year earlier. Excluding items, the company earned US$1.14 per share.

Analysts on average had expected a profit of US$1.12 per share, according to Thomson Reuters I/B/E/S. It was not immediately clear if the numbers were comparable.

Net revenue rose to US$3.31 billion from US$2.76 billion.

REUTERS