MasterCard double-digit growth beats forecasts

City A.M. Reporter
MasterCard has reported higher third quarter profit which easily beat Wall Street estimates, on double-digit increases in volumes.

Shares rose 7.6 per cent in premarket trading on the news.

The New York-based card processing company reported net income of $716m, or $5.63 per share, up from $519m, or $3.94 per share, a year before.

It was the company's biggest earnings beat in the last two years, according to Thomson Reuters data. Revenue rose more than 27 per cent to $1.8bn.

MasterCard said gross dollar volume rose 18.1 per cent, while transactions processed rose 20.5 per cent.

The company has increased its efforts to poach US business from rival Visa, just as Visa is expanding its international business.

Within the last year, MasterCard has signed contracts with banks like SunTrust Banks Inc to process card transactions, gaining clients that once worked with Visa.