July 26, 2018 / 12:14 PM / in 9 months

Mastercard reiterates FY expenses outlook (July 26)

FILE PHOTO: A Mastercard logo is seen on a credit card in this picture illustration August 30, 2017. REUTERS/Thomas White/Illustration/File Photo

(Reuters) - Mastercard Inc (MA.N) beat second-quarter profit estimates on Thursday and the world’s second-largest payments processor reiterated its full-year forecast for expenses.

The company continues to expect operating expense growth to be in the “mid-teens” for 2018.

Operating expenses rose 23.5 percent to $1.73 billion (1.32 billion pounds) in the second quarter ended June 30, as the company continues to invest in safety and security and digital products.

Mastercard, which processes more than 65,000 transactions a minute, said gross dollar volumes rose 15.3 percent to $1.48 trillion in the quarter. The United States, the company’s largest market, accounted for about 30 percent of the total.

Cross-border volumes - the value of transactions made by card holders abroad - increased 23.6 percent on a U.S. dollar basis.

Net income jumped 33 percent to $1.57 billion, or $1.50 per share, in the quarter ended June 30. (mstr.cd/2NLUpL3)

On an adjusted basis, the company earned $1.66 per share, beating the average analyst estimate of $1.53, according to Thomson Reuters I/B/E/S.

The Purchase, New York-based company’s total revenue rose 20 percent to $3.67 billion, topping estimates of $3.65 billion.

(This version of the story corrects to say company reiterated its full-year expense forecast, not raised the full-year expense forecast in headline and paragraphs 1, 2).

Reporting by Nikhil Subba in Bengaluru; Editing by Maju Samuel

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