Friday, March 1, 2024
HomeearningsMasterCard 2014 revenue to come in at low end of forecast

MasterCard 2014 revenue to come in at low end of forecast

MasterCard posted a lower-than-expected quarterly profit and said its net revenue for the year would come in at the low end of its three-year forecast range as customers migrate to Visa as part of a previously announced deal.

In 2013, JPMorgan Chase, which issues both MasterCard and Visa-branded cards, signed a 10-year agreement under which the bank will commit more credit and debit card transaction volumes to Visa.

"We don't have any specifics on how these cards will migrate, but we are now assuming an impact in 2014. Given the size of this portfolio we can offset some, but not all, of this attrition with our wins," MasterCard Chief Financial Officer Martina Hund-Mejean said on a post-earnings conference call.

MasterCard shares were down 5 percent at $75.98 in late-morning trading. They fell as much as 10 percent. (Click here to track the company's shares following the report.)

The company had forecast net revenue growth of between 11 and 14 percent for the period between 2013 and 2015.

(Read more: Visa earnings top expectations)

MasterCard reported a 21.1 percent rise in operating expenses at $1.21 billion as the company set aside $95 million for litigation settlements.

The company also saw its rebates and incentives it offers to customers increase 23 percent to $925 million as it signed up more business.

RELATED ARTICLES
- Advertisment -

Most Popular