Exhibit 99.1
MasterCard Incorporated Reports
Second-Quarter 2012 Financial Results
| • | Net income of $713 million, or $5.65 per diluted share, excluding a special item |
| • | Net income of $700 million, or $5.55 per diluted share, including a special item |
| • | Net revenue increase of 9%, to $1.8 billion |
| • | Gross dollar volume up 15% and purchase volume up 13% |
Purchase, NY, August 1, 2012 – MasterCard Incorporated (NYSE: MA) today announced financial results for the second quarter of 2012. Excluding a special item, the company reported net income of $713 million, up 17%, and earnings per diluted share of $5.65, up 19%, in each case versus the year-ago period. Including the special item, an incremental $13 million after-tax charge related to the U.S. merchant litigations, the company reported net income of $700 million, or $5.55 per diluted share. The company’s total operating expenses, operating income, net income and earnings per share, excluding the special item, are non-GAAP financial measures that are reconciled to their most directly comparable GAAP measures in the accompanying financial tables.
Net revenue for the second quarter of 2012 was $1.8 billion, a 9% increase versus the same period in 2011. On a constant currency basis, net revenue increased 13% compared to the same period in 2011. Net revenue growth was driven by the impact of the following:
| • | A 15% increase in gross dollar volume on a local currency basis, to $890 billion; |
| • | An increase in processed transactions of 29%, to 8.5 billion; and |
| • | An increase in cross-border volumes of 17%. |
These factors were partially offset by an increase in rebates and incentives, primarily due to new and renewed agreements and increased volumes.
Worldwide purchase volume during the quarter was up 13% on a local currency basis versus the second quarter of 2011, to $661 billion. As of June 30, 2012, the company’s customers had issued 1.8 billion MasterCard and Maestro-branded cards.
“Though economic uncertainties continued to persist, we experienced solid volume and processed transaction growth in all regions as we are focused on driving our global business to expand the reach of electronic payments,” said Ajay Banga, MasterCard president and CEO. “We are executing on strategic partnerships as demonstrated by our recent announcement with Deutsche Telekom and the completion of AliPay’s integration with the DataCash payment platform, which will expand AliPay’s reach to online retailers outside of China. We also continue to work with government entities around the world, like the South African Social Security Agency, to help them implement more efficient and secure ways to deliver social benefits and to increase transparency and financial inclusion.”
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MasterCard Incorporated – Page 2
Based on the company’s decision to enter into settlement agreements in the U.S. merchant litigations, the company recorded a $20 million pre-tax charge, or $13 million on an after-tax basis, in the second quarter of 2012. This special item is incremental to the charge taken in the fourth quarter of 2011 to reflect the company’s total financial portion of $790 million in the settlement of these cases.
Excluding the special item, total operating expenses increased 6%, to $826 million in the second quarter of 2012. On a constant currency basis, operating expenses increased 9%. The increase in total operating expenses was primarily driven by higher personnel costs related to strategic initiatives. Including the special item, total operating expenses for the second quarter of 2012 increased 8% versus the year-ago period, to $846 million.
Excluding the special item, operating income for the second quarter of 2012 increased 12% over the year-ago period and the company delivered an operating margin of 54.6%.
MasterCard reported other expense of $1 million in the second quarter of 2012 versus other income of $7 million in the second quarter of 2011. The change was primarily driven by increased expenses from investments in joint ventures.
Including the special item, the effective tax rate was 28.0% in the second quarter of 2012, versus a rate of 31.8% in the comparable period in 2011. The decrease was primarily due to discrete benefits relating to additional export incentives and the conclusion of tax examinations in certain jurisdictions. A more favorable geographic mix of earnings also contributed to the decrease.
During the second quarter of 2012, MasterCard repurchased approximately 1.6 million shares of Class A common stock at a cost of $671 million. Quarter-to-date through July 26, the company repurchased an additional 132,250 shares at a cost of approximately $57 million, with $1.4 billion remaining under the most recent $1.5 billion repurchase program authorization.
Year-to-Date 2012 Results
For the six months ended June 30, 2012, MasterCard reported net income of $1.4 billion, or $11.01 per diluted share, excluding the special item from the second quarter of 2012. Including the special item, diluted earnings per share was $10.91.
Net revenue for the six months ended June 30, 2012 was $3.6 billion, an increase of 13% versus the same period in 2011, or 16% on a constant currency basis. Gross dollar volume growth of 17%, transaction processing growth of 29% and cross-border volume growth of 18% contributed to the net revenue growth in the year-to-date period. These factors were partially offset by an increase in rebates and incentives, primarily due to new and renewed customer agreements and increased volumes.
MasterCard Incorporated – Page 3
Excluding the special item, total operating expenses increased 9%, to $1.6 billion, for the six months ended June 30, 2012, primarily due to higher personnel costs related to strategic initiatives. Excluding currency fluctuations, total operating expenses increased 12%. Including the special item, total operating expenses increased 11%.
Excluding the special item, operating income increased 16% for the first half of 2012 versus the first half of 2011, delivering an operating margin of 55.7%.
MasterCard reported total other expense of $2 million for the six months ended June 30, 2012, versus other income of $7 million in the same period last year. This change was primarily driven by increased expenses from investments in joint ventures.
MasterCard’s effective tax rate was 30.0% in the six months ended June 30, 2012, including and excluding the special item, versus a rate of 32.3% in the comparable period in 2011. The decrease was primarily due to discrete benefits relating to additional export incentives and the conclusion of tax examinations in certain jurisdictions. A more favorable geographic mix of earnings also contributed to the decrease.
Second-Quarter Financial Results Conference Call Details
At 9:00 a.m. ET today, the company will host a conference call to discuss its second-quarter results.
The dial-in information for this call is 866-383-8008 (within the U.S.) and 617-597-5341 (outside the U.S.) and the passcode is 96010404. A replay of the call will be available for one week following the meeting. The replay can be accessed by dialing 888-286-8010 (within the U.S.) and 617-801-6888 (outside the U.S.) and using passcode 11595402.
The live call and the replay, along with supporting materials, can also be accessed through the Investor Relations section of the company’s website at mastercard.com.
About MasterCard Incorporated
MasterCard (NYSE: MA),www.mastercard.com, is a global payments and technology company. It operates the world’s fastest payments processing network, connecting consumers, financial institutions, merchants, governments and businesses in more than 210 countries and territories. MasterCard’s products and solutions make everyday commerce activities – such as shopping, traveling, running a business and managing finances – easier, more secure and more efficient for everyone. Follow us on Twitter@MasterCardNews,join the discussion on theCashless Conversations Blog andsubscribe for the latestnews.
MasterCard Incorporated – Page 4
Forward-Looking Statements
Statements in this press release which are not historical facts, including statements about MasterCard’s plans, strategies, beliefs and expectations, are forward-looking and subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements speak only as of the date they are made. Accordingly, except for the company’s ongoing obligations under the U.S. federal securities laws, the company does not intend to update or otherwise revise the forward-looking information to reflect actual results of operations, changes in financial condition, changes in estimates, expectations or assumptions, changes in general economic or industry conditions or other circumstances arising and/or existing since the preparation of this press release or to reflect the occurrence of any unanticipated events. Such forward-looking statements include, without limitation, statements related to the Company’s ability to execute on strategic partnerships and partner with governments around the world to expand the reach of electronic payments.
Actual results may differ materially from such forward-looking statements for a number of reasons, including those set forth in the company’s filings with the Securities and Exchange Commission (SEC), including the company’s Annual Report on Form 10-K for the year ended December 31, 2011, the company’s Quarterly Reports on Form 10-Q and Current Reports on Form 8-K that have been filed with the SEC during 2012, as well as reasons including difficulties, delays or the inability of the company to achieve its strategic initiatives set forth above. Factors other than those listed above could also cause the company’s results to differ materially from expected results.
###
Contacts:
Investor Relations: Barbara Gasper,investor_relations@mastercard.com, 914-249-4565
Media Relations: Jim Issokson,james_issokson@mastercard.com, 914-249-6286
MasterCard Incorporated – Page 5
MASTERCARD INCORPORATED
CONSOLIDATED STATEMENT OF OPERATIONS
(UNAUDITED)
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
| 2012 | 2011 | 2012 | 2011 | |||||||||||||
| (in millions, except per share data) | ||||||||||||||||
Revenues, net | $ | 1,820 | $ | 1,667 | $ | 3,578 | $ | 3,168 | ||||||||
Operating Expenses | ||||||||||||||||
General and administrative | 591 | 540 | 1,170 | 1,034 | ||||||||||||
Advertising and marketing | 179 | 193 | 304 | 322 | ||||||||||||
Depreciation and amortization | 56 | 49 | 110 | 91 | ||||||||||||
Provision for litigation settlement | 20 | — | 20 | — | ||||||||||||
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Total operating expenses | 846 | 782 | 1,604 | 1,447 | ||||||||||||
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Operating income | 974 | 885 | 1,974 | 1,721 | ||||||||||||
Other Income (Expense) | ||||||||||||||||
Investment income | 9 | 11 | 18 | 23 | ||||||||||||
Interest expense | (3 | ) | (2 | ) | (9 | ) | (12 | ) | ||||||||
Other income (expense), net | (7 | ) | (2 | ) | (11 | ) | (4 | ) | ||||||||
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Total other income (expense) | (1 | ) | 7 | (2 | ) | 7 | ||||||||||
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Income before income taxes | 973 | 892 | 1,972 | 1,728 | ||||||||||||
Income tax expense | 273 | 284 | 591 | 558 | ||||||||||||
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Net income | 700 | 608 | 1,381 | 1,170 | ||||||||||||
Loss attributable to non-controlling interests | — | — | 1 | — | ||||||||||||
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Net Income Attributable to MasterCard | $ | 700 | $ | 608 | $ | 1,382 | $ | 1,170 | ||||||||
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Basic Earnings per Share | $ | 5.56 | $ | 4.77 | $ | 10.95 | $ | 9.08 | ||||||||
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Basic Weighted Average Shares Outstanding | 126 | 127 | 126 | 129 | ||||||||||||
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Diluted Earnings per Share | $ | 5.55 | $ | 4.76 | $ | 10.91 | $ | 9.05 | ||||||||
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Diluted Weighted Average Shares Outstanding | 126 | 128 | 127 | 129 | ||||||||||||
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MasterCard Incorporated – Page 6
MASTERCARD INCORPORATED
CONSOLIDATED BALANCE SHEET
(UNAUDITED)
| June 30, 2012 | December 31, 2011 | |||||||
| (in millions, except share data) | ||||||||
| ASSETS | ||||||||
Cash and cash equivalents | $ | 3,153 | $ | 3,734 | ||||
Investment securities available-for-sale | 1,803 | 1,215 | ||||||
Accounts receivable | 844 | 808 | ||||||
Settlement due from customers | 807 | 601 | ||||||
Restricted security deposits held for customers | 726 | 636 | ||||||
Prepaid expenses and other current assets | 592 | 404 | ||||||
Deferred income taxes | 358 | 343 | ||||||
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Total Current Assets | 8,283 | 7,741 | ||||||
Property, plant and equipment, net | 458 | 449 | ||||||
Deferred income taxes | 116 | 88 | ||||||
Goodwill | 1,009 | 1,014 | ||||||
Other intangible assets, net of accumulated amortization | 656 | 665 | ||||||
Other assets | 718 | 736 | ||||||
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Total Assets | $ | 11,240 | $ | 10,693 | ||||
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| LIABILITIES AND EQUITY | ||||||||
Accounts payable | $ | 330 | $ | 360 | ||||
Settlement due to customers | 803 | 699 | ||||||
Restricted security deposits held for customers | 726 | 636 | ||||||
Accrued litigation | 790 | 770 | ||||||
Accrued expenses | 1,475 | 1,610 | ||||||
Other current liabilities | 183 | 142 | ||||||
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Total Current Liabilities | 4,307 | 4,217 | ||||||
Deferred income taxes | 105 | 113 | ||||||
Other liabilities | 552 | 486 | ||||||
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Total Liabilities | 4,964 | 4,816 | ||||||
Commitments and Contingencies | ||||||||
Stockholders’ Equity | ||||||||
Class A common stock, $0.0001 par value; authorized 3,000,000,000 shares, 133,196,600 and 132,771,392 shares issued and 119,783,424 and 121,618,059 outstanding, respectively | — | — | ||||||
Class B common stock, $0.0001 par value; authorized 1,200,000,000 shares, 5,114,123 and 5,245,676 issued and outstanding, respectively | — | — | ||||||
Additional paid-in-capital | 3,571 | 3,519 | ||||||
Class A treasury stock, at cost, 13,413,176 and 11,153,333 shares, respectively | (3,311 | ) | (2,394 | ) | ||||
Retained earnings | 6,052 | 4,745 | ||||||
Accumulated other comprehensive loss | (47 | ) | (2 | ) | ||||
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Total Stockholders’ Equity | 6,265 | 5,868 | ||||||
Non-controlling interests | 11 | 9 | ||||||
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Total Equity | 6,276 | 5,877 | ||||||
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Total Liabilities and Equity | $ | 11,240 | $ | 10,693 | ||||
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MasterCard Incorporated – Page 7
MASTERCARD INCORPORATED
CONSOLIDATED STATEMENT OF CASH FLOWS
(UNAUDITED)
| Six Months Ended June 30, | ||||||||
| 2012 | 2011 | |||||||
| (in millions) | ||||||||
Operating Activities | ||||||||
Net income | $ | 1,381 | $ | 1,170 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Depreciation and amortization | 110 | 91 | ||||||
Share-based payments | 41 | 36 | ||||||
Stock units withheld for taxes | (38 | ) | (32 | ) | ||||
Tax benefit for share-based compensation | (33 | ) | (10 | ) | ||||
Deferred income taxes | (55 | ) | 94 | |||||
Other | 24 | 13 | ||||||
Changes in operating assets and liabilities: | ||||||||
Accounts receivable | (51 | ) | (22 | ) | ||||
Income taxes receivable | (31 | ) | — | |||||
Settlement due from customers | (213 | ) | 42 | |||||
Prepaid expenses | (140 | ) | (73 | ) | ||||
Obligations under litigation settlements | 20 | (300 | ) | |||||
Accounts payable | (27 | ) | 34 | |||||
Settlement due to customers | 112 | (127 | ) | |||||
Accrued expenses | (50 | ) | (84 | ) | ||||
Net change in other assets and liabilities | 18 | 61 | ||||||
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Net cash provided by operating activities | 1,068 | 893 | ||||||
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Investing Activities | ||||||||
Acquisition of business, net of cash acquired | — | (460 | ) | |||||
Purchases of investment securities available-for-sale | (1,054 | ) | (39 | ) | ||||
Purchases of property, plant and equipment | (40 | ) | (35 | ) | ||||
Capitalized software | (67 | ) | (37 | ) | ||||
Proceeds from sales of investment securities available-for-sale | 104 | 30 | ||||||
Proceeds from maturities of investment securities available-for-sale | 386 | 28 | ||||||
Proceeds from maturities of investment securities held-to-maturity | — | 301 | ||||||
Investment in nonmarketable equity investments | (19 | ) | (2 | ) | ||||
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Net cash used in investing activities | (690 | ) | (214 | ) | ||||
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Financing Activities | ||||||||
Purchases of treasury stock | (919 | ) | (1,041 | ) | ||||
Dividends paid | (57 | ) | (39 | ) | ||||
Payment of debt | — | (21 | ) | |||||
Tax benefit for share-based compensation | 33 | 10 | ||||||
Cash proceeds from exercise of stock options | 18 | 8 | ||||||
Contribution by non-controlling interest | 3 | — | ||||||
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Net cash used in financing activities | (922 | ) | (1,083 | ) | ||||
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Effect of exchange rate changes on cash and cash equivalents | (37 | ) | 101 | |||||
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Net decrease in cash and cash equivalents | (581 | ) | (303 | ) | ||||
Cash and cash equivalents - beginning of period | 3,734 | 3,067 | ||||||
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Cash and cash equivalents - end of period | $ | 3,153 | $ | 2,764 | ||||
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Non-Cash Investing and Financing Activities | ||||||||
Fair value of assets acquired, net of cash acquired | $ | — | $ | 549 | ||||
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Fair value of liabilities assumed related to an acquisition | $ | — | $ | 89 | ||||
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MasterCard Incorporated – Page 8
MASTERCARD INCORPORATED OPERATING PERFORMANCE
| For the 3 Months ended June 30, 2012 | ||||||||||||||||||||||||||||||||||||||||||||||||
| GDV (Bil.) | Growth (USD) | Growth (Local) | Purchase Volume (Bil.) | Growth (Local) | Purchase Trans. (Mil.) | Cash Volume (Bil.) | Growth (Local) | Cash Trans. (Mil.) | Accounts (Mil.) | Cards (Mil.) | Acceptance Locations (Mil.) | |||||||||||||||||||||||||||||||||||||
All MasterCard Credit, Charge and Debit Programs | ||||||||||||||||||||||||||||||||||||||||||||||||
APMEA | $ | 233 | 19.2 | % | 22.8 | % | $ | 158 | 21.9 | % | 1,662 | $ | 75 | 24.9 | % | 573 | 326 | 353 | 10.2 | |||||||||||||||||||||||||||||
Canada | 32 | 3.4 | % | 7.9 | % | 29 | 8.9 | % | 324 | 3 | -1.2 | % | 6 | 40 | 49 | 0.9 | ||||||||||||||||||||||||||||||||
Europe | 263 | 5.1 | % | 16.4 | % | 184 | 12.0 | % | 2,574 | 79 | 28.3 | % | 475 | 242 | 258 | 9.7 | ||||||||||||||||||||||||||||||||
Latin America | 71 | 3.2 | % | 18.7 | % | 43 | 24.2 | % | 795 | 28 | 11.2 | % | 177 | 113 | 137 | 4.8 | ||||||||||||||||||||||||||||||||
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Worldwide less United States | 599 | 9.8 | % | 18.6 | % | 414 | 16.6 | % | 5,355 | 185 | 23.5 | % | 1,231 | 721 | 797 | 25.6 | ||||||||||||||||||||||||||||||||
United States | 291 | 8.7 | % | 8.7 | % | 246 | 8.7 | % | 4,395 | 44 | 8.5 | % | 302 | 278 | 310 | 8.7 | ||||||||||||||||||||||||||||||||
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Worldwide | 890 | 9.4 | % | 15.2 | % | 661 | 13.5 | % | 9,750 | 229 | 20.3 | % | 1,533 | 999 | 1,107 | 34.3 | ||||||||||||||||||||||||||||||||
MasterCard Credit and Charge Programs | ||||||||||||||||||||||||||||||||||||||||||||||||
Worldwide less United States | 380 | 8.5 | % | 15.7 | % | 333 | 16.3 | % | 3,817 | 48 | 11.7 | % | 202 | 465 | 527 | |||||||||||||||||||||||||||||||||
United States | 142 | 3.2 | % | 3.2 | % | 135 | 5.2 | % | 1,574 | 6 | -27.3 | % | 7 | 147 | 176 | |||||||||||||||||||||||||||||||||
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Worldwide | 522 | 7.0 | % | 12.0 | % | 468 | 12.9 | % | 5,391 | 54 | 5.2 | % | 209 | 612 | 703 | |||||||||||||||||||||||||||||||||
MasterCard Debit Programs | ||||||||||||||||||||||||||||||||||||||||||||||||
Worldwide less United States | 219 | 12.3 | % | 24.0 | % | 82 | 17.6 | % | 1,538 | 137 | 28.2 | % | 1,029 | 256 | 270 | |||||||||||||||||||||||||||||||||
United States | 149 | 14.4 | % | 14.4 | % | 111 | 13.3 | % | 2,821 | 38 | 18.0 | % | 296 | 131 | 134 | |||||||||||||||||||||||||||||||||
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Worldwide | 368 | 13.1 | % | 20.0 | % | 193 | 15.1 | % | 4,359 | 175 | 25.8 | % | 1,324 | 387 | 404 | |||||||||||||||||||||||||||||||||
| For the 6 Months ended June 30, 2012 | ||||||||||||||||||||||||||||||||||||||||||||||||
| GDV (Bil.) | Growth (USD) | Growth (Local) | Purchase Volume (Bil.) | Growth (Local) | Purchase Trans. (Mil.) | Cash Volume (Bil.) | Growth (Local) | Cash Trans. (Mil.) | Accounts (Mil.) | Cards (Mil.) | ||||||||||||||||||||||||||||||||||||||
All MasterCard Credit, Charge and Debit Programs | ||||||||||||||||||||||||||||||||||||||||||||||||
APMEA | $ | 456 | 22.0 | % | 23.2 | % | $ | 309 | 22.7 | % | 3,213 | $ | 147 | 24.2 | % | 1,095 | 326 | 353 | ||||||||||||||||||||||||||||||
Canada | 61 | 5.8 | % | 9.0 | % | 55 | 10.4 | % | 613 | 6 | -3.3 | % | 11 | 40 | 49 | |||||||||||||||||||||||||||||||||
Europe | 505 | 8.8 | % | 17.4 | % | 357 | 13.1 | % | 4,934 | 148 | 29.1 | % | 896 | 242 | 258 | |||||||||||||||||||||||||||||||||
Latin America | 143 | 9.5 | % | 21.0 | % | 87 | 26.7 | % | 1,548 | 57 | 13.1 | % | 350 | 113 | 137 | |||||||||||||||||||||||||||||||||
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Worldwide less United States | 1,165 | 13.5 | % | 19.6 | % | 808 | 17.8 | % | 10,309 | 357 | 23.7 | % | 2,352 | 721 | 797 | |||||||||||||||||||||||||||||||||
United States | 574 | 11.2 | % | 11.2 | % | 482 | 10.8 | % | 8,571 | 92 | 13.4 | % | 604 | 278 | 310 | |||||||||||||||||||||||||||||||||
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Worldwide | 1,739 | 12.8 | % | 16.7 | % | 1,290 | 15.1 | % | 18,881 | 449 | 21.4 | % | 2,955 | 999 | 1,107 | |||||||||||||||||||||||||||||||||
MasterCard Credit and Charge Programs | ||||||||||||||||||||||||||||||||||||||||||||||||
Worldwide less United States | 742 | 12.0 | % | 16.8 | % | 649 | 17.6 | % | 7,365 | 93 | 11.8 | % | 389 | 465 | 527 | |||||||||||||||||||||||||||||||||
United States | 273 | 5.1 | % | 5.1 | % | 260 | 6.6 | % | 3,031 | 13 | -18.3 | % | 13 | 147 | 176 | |||||||||||||||||||||||||||||||||
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Worldwide | 1,015 | 10.1 | % | 13.4 | % | 909 | 14.2 | % | 10,397 | 106 | 6.9 | % | 402 | 612 | 703 | |||||||||||||||||||||||||||||||||
MasterCard Debit Programs | ||||||||||||||||||||||||||||||||||||||||||||||||
Worldwide less United States | 423 | 16.3 | % | 24.7 | % | 159 | 18.9 | % | 2,944 | 264 | 28.5 | % | 1,963 | 256 | 270 | |||||||||||||||||||||||||||||||||
United States | 301 | 17.5 | % | 17.5 | % | 222 | 16.2 | % | 5,540 | 79 | 21.4 | % | 590 | 131 | 134 | |||||||||||||||||||||||||||||||||
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Worldwide | 724 | 16.8 | % | 21.6 | % | 381 | 17.3 | % | 8,484 | 343 | 26.8 | % | 2,554 | 387 | 404 | |||||||||||||||||||||||||||||||||
| For the 3 Months ended June 30, 2011 | ||||||||||||||||||||||||||||||||||||||||||||||||
| GDV (Bil.) | Growth (USD) | Growth (Local) | Purchase Volume (Bil.) | Growth (Local) | Purchase Trans. (Mil.) | Cash Volume (Bil.) | Growth (Local) | Cash Trans. (Mil.) | Accounts (Mil.) | Cards (Mil.) | ||||||||||||||||||||||||||||||||||||||
All MasterCard Credit, Charge and Debit Programs | ||||||||||||||||||||||||||||||||||||||||||||||||
APMEA | $ | 196 | 36.3 | % | 24.7 | % | $ | 132 | 27.2 | % | 1,394 | $ | 64 | 20.0 | % | 443 | 287 | 313 | ||||||||||||||||||||||||||||||
Canada | 31 | 15.0 | % | 8.1 | % | 28 | 10.3 | % | 293 | 3 | -9.1 | % | 5 | 39 | 48 | |||||||||||||||||||||||||||||||||
Europe | 250 | 30.8 | % | 17.4 | % | 181 | 14.2 | % | 2,231 | 69 | 26.8 | % | 395 | 208 | 223 | |||||||||||||||||||||||||||||||||
Latin America | 69 | 34.9 | % | 24.7 | % | 40 | 28.4 | % | 671 | 29 | 19.8 | % | 170 | 105 | 129 | |||||||||||||||||||||||||||||||||
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Worldwide less United States | 546 | 32.2 | % | 20.3 | % | 382 | 19.5 | % | 4,589 | 164 | 22.0 | % | 1,013 | 639 | 713 | |||||||||||||||||||||||||||||||||
United States | 267 | 9.9 | % | 9.9 | % | 227 | 11.3 | % | 3,987 | 41 | 2.6 | % | 270 | 268 | 302 | |||||||||||||||||||||||||||||||||
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Worldwide | 813 | 23.9 | % | 16.6 | % | 608 | 16.3 | % | 8,576 | 205 | 17.6 | % | 1,283 | 907 | 1,014 | |||||||||||||||||||||||||||||||||
MasterCard Credit and Charge Programs | ||||||||||||||||||||||||||||||||||||||||||||||||
Worldwide less United States | 351 | 27.7 | % | 16.3 | % | 305 | 18.7 | % | 3,348 | 46 | 2.9 | % | 182 | 447 | 509 | |||||||||||||||||||||||||||||||||
United States | 137 | 5.3 | % | 5.3 | % | 129 | 6.0 | % | 1,522 | 9 | -4.9 | % | 7 | 144 | 173 | |||||||||||||||||||||||||||||||||
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Worldwide | 488 | 20.5 | % | 13.0 | % | 433 | 14.6 | % | 4,871 | 54 | 1.6 | % | 190 | 592 | 683 | |||||||||||||||||||||||||||||||||
MasterCard Debit Programs | ||||||||||||||||||||||||||||||||||||||||||||||||
Worldwide less United States | 195 | 41.3 | % | 28.0 | % | 77 | 23.0 | % | 1,240 | 118 | 31.5 | % | 830 | 192 | 203 | |||||||||||||||||||||||||||||||||
United States | 130 | 15.2 | % | 15.2 | % | 98 | 19.0 | % | 2,465 | 32 | 4.8 | % | 263 | 124 | 128 | |||||||||||||||||||||||||||||||||
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Worldwide | 325 | 29.5 | % | 22.5 | % | 175 | 20.8 | % | 3,705 | 150 | 24.7 | % | 1,093 | 316 | 331 | |||||||||||||||||||||||||||||||||
| For the 6 Months ended June 30, 2011 | ||||||||||||||||||||||||||||||||||||||||||||||||
| GDV (Bil.) | Growth (USD) | Growth (Local) | Purchase Volume (Bil.) | Growth (Local) | Purchase Trans. (Mil.) | Cash Volume (Bil.) | Growth (Local) | Cash Trans. (Mil.) | Accounts (Mil.) | Cards (Mil.) | ||||||||||||||||||||||||||||||||||||||
All MasterCard Credit, Charge and Debit Programs | ||||||||||||||||||||||||||||||||||||||||||||||||
APMEA | $ | 374 | 31.9 | % | 22.5 | % | $ | 252 | 24.4 | % | 2,688 | $ | 122 | 18.7 | % | 850 | 287 | 313 | ||||||||||||||||||||||||||||||
Canada | 57 | 13.8 | % | 7.3 | % | 51 | 8.8 | % | 550 | 6 | -4.1 | % | 10 | 39 | 48 | |||||||||||||||||||||||||||||||||
Europe | 464 | 23.3 | % | 16.4 | % | 339 | 13.5 | % | 4,245 | 125 | 24.9 | % | 735 | 208 | 223 | |||||||||||||||||||||||||||||||||
Latin America | 131 | 31.0 | % | 22.4 | % | 76 | 26.8 | % | 1,286 | 55 | 16.8 | % | 333 | 105 | 129 | |||||||||||||||||||||||||||||||||
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Worldwide less United States | 1,026 | 26.7 | % | 18.7 | % | 718 | 18.1 | % | 8,770 | 308 | 20.2 | % | 1,928 | 639 | 713 | |||||||||||||||||||||||||||||||||
United States | 516 | 7.9 | % | 7.9 | % | 435 | 9.4 | % | 7,632 | 81 | 0.7 | % | 524 | 268 | 302 | |||||||||||||||||||||||||||||||||
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Worldwide | 1,542 | 19.7 | % | 14.9 | % | 1,153 | 14.7 | % | 16,402 | 389 | 15.5 | % | 2,452 | 907 | 1,014 | |||||||||||||||||||||||||||||||||
MasterCard Credit and Charge Programs | ||||||||||||||||||||||||||||||||||||||||||||||||
Worldwide less United States | 663 | 22.3 | % | 14.5 | % | 575 | 17.0 | % | 6,412 | 87 | 0.5 | % | 347 | 447 | 509 | |||||||||||||||||||||||||||||||||
United States | 260 | 5.1 | % | 5.1 | % | 244 | 5.5 | % | 2,892 | 16 | -0.5 | % | 14 | 144 | 173 | |||||||||||||||||||||||||||||||||
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Worldwide | 922 | 16.9 | % | 11.7 | % | 819 | 13.3 | % | 9,304 | 103 | 0.3 | % | 361 | 592 | 683 | |||||||||||||||||||||||||||||||||
MasterCard Debit Programs | ||||||||||||||||||||||||||||||||||||||||||||||||
Worldwide less United States | 364 | 35.5 | % | 27.3 | % | 143 | 22.9 | % | 2,358 | 221 | 30.3 | % | 1,581 | 192 | 203 | |||||||||||||||||||||||||||||||||
United States | 256 | 11.0 | % | 11.0 | % | 191 | 14.8 | % | 4,740 | 65 | 1.0 | % | 510 | 124 | 128 | |||||||||||||||||||||||||||||||||
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Worldwide | 620 | 24.2 | % | 20.0 | % | 334 | 18.1 | % | 7,098 | 285 | 22.2 | % | 2,091 | 316 | 331 | |||||||||||||||||||||||||||||||||
APMEA = Asia Pacific / Middle East / Africa
Note that the figures in the preceding tables may not sum due to rounding; growth represents change from the comparable year-ago period
MasterCard Incorporated – Page 9
Footnote
The tables set forth the gross dollar volume (“GDV”), purchase volume, cash volume and the number of purchase transactions, cash transactions, accounts, cards and acceptance locations on a regional and global basis for MasterCard®-branded and MasterCard Electronic™-branded cards. Growth rates over prior periods are provided for volume-based data.
Debit transactions on Maestro® and Cirrus®-branded cards, Mondex® transactions and transactions involving brands other than MasterCard are not included in the preceding tables.
For purposes of the table: GDV represents purchase volume plus cash volume and includes the impact of balance transfers and convenience checks; “purchase volume” means the aggregate dollar amount of purchases made with MasterCard-branded cards for the relevant period; and “cash volume” means the aggregate dollar amount of cash disbursements obtained with MasterCard-branded cards for the relevant period. The number of cards includes virtual cards, which are MasterCard-branded payment accounts that do not generally have physical cards associated with them. Acceptance locations include merchant locations, ATMs and other locations where cash may be obtained.
The MasterCard payment product is comprised of credit, charge and debit programs, and data relating to each type of program is included in the tables. Debit programs include MasterCard-branded debit programs where the primary means of cardholder validation at the point of sale is for cardholders either to sign a sales receipt or enter a PIN. The tables include information with respect to transactions involving MasterCard-branded cards that are not processed by MasterCard and transactions for which MasterCard does not earn significant revenues.
Information denominated in U.S. dollars is calculated by applying an established U.S. dollar/local currency exchange rate for each local currency in which MasterCard volumes are reported. These exchange rates are calculated on a quarterly basis using the average exchange rate for each quarter. MasterCard reports period-over-period rates of change in purchase volume and cash volume on the basis of local currency information, in order to eliminate the impact of changes in the value of foreign currencies against the U.S. dollar in calculating such rates of change.
The data set forth in the GDV, purchase volume, purchase transactions, cash volume and cash transactions columns is provided by MasterCard customers and is subject to verification by MasterCard and partial cross-checking against information provided by MasterCard’s transaction processing systems. The data set forth in the accounts and cards columns is provided by MasterCard customers and is subject to certain limited verification by MasterCard. A portion of the data set forth in the accounts and cards columns reflects the impact of routine portfolio changes among customers and other practices that may lead to over counting of the underlying data in certain circumstances. In order to provide a true indication of how broadly our cards can be used, MasterCard seeks to provide the most accurate acceptance figures possible and to maintain that MasterCard acceptance is unsurpassed worldwide by periodically validating our results with third parties. The data set forth in the acceptance locations column is derived through a proprietary methodology designed to minimize the impact of multiple acquiring in certain markets. This data is based on information provided by our customers and other third parties and is subject to certain limited verification by MasterCard and partial cross-checking against information provided by MasterCard’s transaction processing systems. All data is subject to revision and amendment by MasterCard’s customers subsequent to the date of its release.
Performance information for prior periods can be found in the “Investor Relations” section of MasterCard’s website at www.mastercard.com.
###
MasterCard Incorporated – Page 10
GAAP Reconciliations
($ in millions, except per share data)
| Three Months Ended June 30, 2012 | Three Months Ended June 30, 2011 | |||||||||||||||
| Actual | Special Item | Non-GAAP | Actual | |||||||||||||
Provision for litigation settlement | $ | 20 | $ | (20 | ) | $ | — | $ | — | |||||||
Total operating expenses | 846 | (20 | ) | 826 | 782 | |||||||||||
Operating income | 974 | 20 | 994 | 885 | ||||||||||||
Operating Margin | 53.5 | % | 54.6 | % | 53.1 | % | ||||||||||
Income before income taxes | 973 | 20 | 993 | 892 | ||||||||||||
Income tax expense | 273 | 7 | a | 280 | 284 | |||||||||||
Net Income Attributable to MasterCard | 700 | 13 | 713 | 608 | ||||||||||||
Basic Earnings per Share | $ | 5.56 | $ | 0.11 | $ | 5.67 | $ | 4.77 | ||||||||
Diluted Earnings per Share | $ | 5.55 | $ | 0.10 | $ | 5.65 | $ | 4.76 | ||||||||
a- Tax effect of provision for litigation settlement
| Six Months Ended June 30, 2012 | Six Months Ended June 30, 2011 | |||||||||||||||
| Actual | Special Item | Non-GAAP | Actual | |||||||||||||
Provision for litigation settlement | $ | 20 | $ | (20 | ) | $ | — | $ | — | |||||||
Total operating expenses | 1,604 | (20 | ) | 1,584 | 1,447 | |||||||||||
Operating income | 1,974 | 20 | 1,994 | 1,721 | ||||||||||||
Operating Margin | 55.2 | % | 55.7 | % | 54.3 | % | ||||||||||
Income before income taxes | 1,972 | 20 | 1,992 | 1,728 | ||||||||||||
Income tax expense | 591 | 7 | a | 598 | 558 | |||||||||||
Net Income Attributable to MasterCard | 1,382 | 13 | 1,395 | 1,170 | ||||||||||||
Basic Earnings per Share | $ | 10.95 | $ | 0.10 | $ | 11.05 | $ | 9.08 | ||||||||
Diluted Earnings per Share | $ | 10.91 | $ | 0.10 | $ | 11.01 | $ | 9.05 | ||||||||
a- Tax effect of provision for litigation settlement
Note: Figures may not sum due to rounding