Mastercard's profit rises on higher consumer spending

[NEW YORK] Mastercard Inc posted a quarterly profit on Tuesday that was higher than Wall Street's expectations, fuelled by increased consumer spending globally and maintaining market share over other payment channels.

The total value of transactions processed world wide, known as 'gross dollar volume', rose 11 per cent to US$1.35 trillion.

Mastercard, which has a large international business, got a big boost from consumer spending outside the United States, with its cross-border volumes - the value of transactions made by overseas card-holders - rising 15.1 per cent on a local currency basis.

Total operating expenses rose 20.4 per cent to US$1.46 billion on costs partly related to buying digital payments company Vocalink.

Shares rose 1.4 per cent to US$151 in premarket trading.

Net income rose to US$1.43 billion or $1.34 per share in the third quarter ended Sept 30, from US$1.18 billion or US$1.08 per share.

Analysts on average were looking for US$1.23 per share, according to Thomson Reuters I/B/E/S.

Net revenue rose 18 per cent to US$3.40 billion.

Mastercard's bigger rival Visa Inc posted a rise in quarterly profit that beat estimates, fuelled by higher spending.

REUTERS