MasterCard Returns To Profit

7th August 2007

Higher credit card usage and the weak dollar helped profits recover at MasterCard, the credit card issuer, in the 3 month period of April to June this year. Revenue during the second quarter of 2007 were up nearly 18% and earnings increased to 124 million for the quarter.

Mastercard said in it's results statement that it processed 15.2% more transactions during the quarter and that global purchase volumes rose nearly 15% on a local currency basis.

The earnings figures for the second quarter of this year were boosted by a one off $90 million payment from FIFA, the world football governing body, in settlement of their world cup sponsorship lawsuit. MasterCard had sued FIFA in April 2006 after FIFA awarded the sponsorship for the next two World cups to rival Visa.

MasterCard made a loss of some $310 million in the second quarter of 2006, largely as a result of expenses relating to the flotation of the company on the New York stock exchange.