Second quarter loss leads to share fall in MasterCard

In the course of a 2004 lawsuit that incriminated MasterCard in blocking access for American Express to the bank-issued card market in the US MasterCard agreed to pay the rival card operator up to $1.8 billion.

As a result of the settlement the company had a $747 million loss for the second quarter in comparison with net income of $252.3 million a year ago. After the net loss was posted shares in MasterCard fell more than 10% to $238.90.

Apart from the settlement-related charge net income for the second quarter made up $276 million against adjusted net income of $195 million a year ago. MasterCard reports that revenue rose 25% to $1.25 billion.

"Businesses, consumers and governments around the world are demonstrating a growing preference for electronic payments, and our cross-border volumes remain healthy as cardholders come to rely on electronic payments and the ease, security and convenience they provide,” said Robert Selander, MasterCard president and CEO.

"Additionally, more than 50% of our revenue is generated outside of the US, which helps to moderate the impact of an economic downturn in one particular region," he added.