Currency Impact Drags Down Master Card’s Q1 Earnings But Fundamentals Still Strong

-1.67%
Downside
479
Market
471
Trefis
MA: Mastercard logo
MA
Mastercard

Master Card reported a 6% drop in earnings per share for the first quarter of fiscal year 2016. The company reported a close to 10% increase in revenue, but the impact of currency fluctuations dragged down its operating income by 5.5% compared to the previous year, as general and administrative expenses rose by 34% year-over-year. The impact of these costs filtered down into the pre-tax and net income as well, which declined by 5.5% and 5.9%, respectively. Despite these factors, the company’s reported fundamentals were strong, with cross-border volumes, processed transactions and and purchase volumes all registering double digit increases.

mastercard q1 results

 

Note: Key account lines highlighter in red.

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Notes:

1) The purpose of these analyses is to help readers focus on a few important things. We hope such lean communication sparks thinking, and encourages readers to comment and ask questions on the comment section, or email content@trefis.com
2) Figures mentioned are approximate values to help our readers remember the key concepts more intuitively. For precise figures, please refer to our complete analysis for MasterCard
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