MasterCard Boosts Long-Term Profit Targets

MasterCard Worldwide predicted double-digit net-revenue growth for the year and boosted its long-term profit outlook yesterday during a conference with analysts, marking the second anniversary of the company going public in May 2006. Robert W. Selander, MasterCard president and CEO, told analysts that while the U.S. economy's growth has slowed and retail sales are down in nearly every category, emerging international markets continue to show strong growth, including Brazil, Hungary, Poland and Russia. MasterCard revised its long-term performance goal for the next three years beginning in 2009 to an average annual net income growth of 20% to 30% from its previous goal of 15% to 20% growth, fueled by debit card growth, cross-border transaction and processing fees, and expansion into new markets, particularly in China and India. The company said it expects to see average annual net-revenue growth in the 12% to 15% range, up from its previous 8% to 10% growth goal. Selander noted that since MasterCard's initial public offering, the company's share price has increased sevenfold, and he expects the company to continue to produce strong results despite present economic challenges. "We are clearly operating with weakened economic conditions in many parts of the world," Selander said. MasterCard stock was trading at about $314 per share at midday today, close to its all-time high of $316 per share