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MasterCard Inc. Q3 2009 Earnings Call Transcript
Author: 123jump.com Staff
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Last Update: 11:36 PM ET November 09 2009

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MasterCard Incorporated third quarter revenues rose 1.5% to $1.36 billion and net income was $452.2 million or $3.45 a share.


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Hi. Good morning. You noted in the discussion that the rebates were a little higher, as some volume benefit was offset by some contract renewals. Can you just give us a little bit of color on where you see that line going in 2010? Obviously, it''s going to depend on volume, but I guess my question is do you expect the rebates to increase next year, as you see the slow economic recovery?

Martina Hund-Mejean

Chris, I think you need to let us finish out our year here as well as get us through the budget season. The only comment that we are really prepared to make is for the fourth quarter where we do believe and you heard Bob talk about all the new and renewed agreements, where we do believe that there will be a significant increase from a contra point of view, but it''s too early for us to be talking about 2010.

Chris Brendler - Stifel Nicolaus

Maybe ask it a different way. If you do see spending rebound, does that line necessarily need to come back up?

Martina Hund-Mejean

Chris, typically, yes, because as volume increases, our customers will be able to get into different tiers from a rebates point of view and, of course, you should be seeing that line going up and that''s good news. If you have the growth revenues go up, you want the contra to go up and obviously your bottom net revenues will go up, too.

Chris Brendler - Stifel Nicolaus

Okay. Different question. On the October trends you cited, particularly across border, are we seeing any real improvement in the October trends or just the easy comparisons from the year ago in your opinion?

Martina Hund-Mejean

You know, we have seen, I mean, every month that we can look at in the third quarter you have seen an improvement in the cross border side, as well as it has really gone into every quarter -- every week of October, so we''re seeing, I would say, a stabilization. We have to acknowledge it was a pretty easy compare versus the fourth quarter of last year, but we''re seeing a pretty good stabilization and an improvement in the numbers pretty much every week for the last little while.

Chris Brendler - Stifel Nicolaus

Thank you.

Operator

Your next question comes from the line of Moshe Orenbuch with Credit Suisse. Please proceed.

Moshe Orenbuch - Credit Suisse

Actually, my questions have been asked and answered. Thank you.

Robert Selander

Thanks, Moshe.

Martina Hund-Mejean
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