Mastercard Reports 20% Increase in Q4 Net Income

By Tamara Parker • Thursday, January 30 11:05 • Permanent Link

Mastercard Incorporated has reported its financial results for the fourth quarter and full year 2024. In the fourth quarter of 2024, the company reported a net income of $3.3 billion, which marks a 20% increase from the same period in 2023. Diluted earnings per share (EPS) also saw a significant increase of 23% to $3.64.

The net revenue for the fourth quarter of 2024 was $7.5 billion, representing a notable 14% increase from the previous year, or a 16% increase on a currency-neutral basis. Moreover, the operating income for the same period stood at $3.9 billion, reflecting a 17% increase from the fourth quarter of 2023.

Focusing on non-GAAP metrics, the adjusted net income for the fourth quarter of 2024 was $3.5 billion, showing an 18% increase from the fourth quarter of 2023. The adjusted diluted EPS also increased by 20% to $3.82.

Looking at the full year 2024, Mastercard's net income was $12.9 billion, a 15% increase from the previous year, while diluted EPS increased by 17% to $13.89. The net revenue for the full year 2024 was $28.2 billion, marking a 12% increase from the prior year, or a 13% increase on a currency-neutral basis.

In terms of key business drivers, Mastercard experienced growth in gross dollar volume, cross-border volumes, and switched transactions for both the fourth quarter and full year of 2024. In the fourth quarter, gross dollar volume was up 12%, cross-border volumes increased by 20%, and switched transactions grew by 11% on a local currency basis.

For the full year 2024, gross dollar volume increased by 11%, cross-border volumes were up 18%, and switched transactions grew by 11% on a local currency basis.

During the fourth quarter of 2024, Mastercard repurchased 6.5 million shares at a cost of $3.4 billion and paid $606 million in dividends. Throughout the full year, the company repurchased 23.0 million shares at a cost of $11.0 billion and paid $2.4 billion in dividends.

The company also provided guidance on its share repurchase programs, indicating that it had repurchased 1.2 million shares at a cost of $644 million through January 27, leaving $14.5 billion remaining under the approved share repurchase programs.

Today the company's shares have moved 4.5% to a price of $573.44. For more information, read the company's full 8-K submission here.

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