MASTERCARD reported a higher quarterly profit yesterday as consumers around the world spent more money using credit and debit cards, but a litigation-related charge took a large bite out of its earnings.
The world’s second-largest credit and debit card processing network said it incurred a $495m (£312m) after-tax charge related to merchant litigations in the US over the fees they pay on credit card transactions.
“This special item represents the company’s financial portion of a potential settlement in these cases,” chief executive Ajay Banga said in a statement.
For the fourth quarter, the company, which has consistently beaten analysts’ expectations for seven straight quarters, posted a net income of $19m, or 15 cents a share, compared with $415m or $3.16 a share last year.
Total revenue was $1.72bn, up 20 per cent. Excluding items, the company posted a net income of $514m.
