First Quarter Profits Surge at MasterCard

PURCHASE, N.Y. – MasterCard Inc. shares soared 12% yesterday as the credit card giant reported yesterday that growth in cardholder transactions pushed first quarter earnings up 69% to $215 million, or $1.57 a share. Revenues for the card giant rose 24% to $915 million for the quarter, compared to the same period last year. MasterCard shares closed at $127 yesterday, more than triple the $39 a share price they opened at last May’s initial public offering. Fueling the first quarter earnings growth were a 16% rise in the gross dollar volume of transactions for the first quarter; a 19% increase in the number of transactions; and a rise in cross-border transactions fees, which contributed 5% to revenue growth. The bank-owned cards network went public a year ago in a hugely successful IPO, prompting cards competitors Visa USA and Discover to also plan IPOs.