Mastercard Investor Presentation — October 2019 - Mastercard

October 29, 2019 Mastercard Incorporated Third -Quarter 2019 Financial Results Conference Call

Document content

October 29, 2019 Mastercard

3rd Quarter Selected Financial Performance

($ in millions, except per share data)

3Q 19 3Q 18 Currency

Non-GAAP Non-GAAP As adjusted Neutral

Net revenue $ 4,467 $ 3,898 15% 16%

Adjusted operating expenses 1,812 1,582 15% 16%

Adjusted operating income 2,655 2,316 15% 17%

Adjusted operating margin 59.4 % 59.4 % 0.0 ppt 0.1 ppt

Adjusted net income $ 2,191 $ 1,856 18% 20%

Adjusted diluted EPS $ 2.15 $ 1.78 21% 23%

Adjusted effective tax rate 16.8 % 19.1 %

Note: See Appendix A for Non-GAAP reconciliation.

Thanks, Ajay. Turning to page 3 , you will see we delivered strong performance this quarter. Here are a few highlights, on a

currency-neutral basis, and excluding both special items related to certain legal and tax matters in 2018, as well as the

impact of gains and losses on the company's equity investments.

•Net Revenue grew 16% , driven by solid momentum in our core, and was slightly ahead of our expectations due to

stronger than expected services growth. Acquisitions contributed approximately 1 ppt to net revenue growth in the

•Total Operating Expenses increased 16% , which includes a 3 ppt increase related to acquisitions. The remaining 13%

was related to our ongoing investment in strategic initiatives and was slightly lower than expected.

•Operating Income grew by 17% , and Net Income was up 20% , reflecting our strong operating performance. Each

includes a 1 ppt reduction due to acquisitions. Net Income growth was also positively impacted by approximately 2 ppt

due to a one-time tax benefit and approximately 1 ppt due to certain nonrecurring gains within other income and

•EPS grew 23% year-over-year to $2.15 , which includes 4 cents related to the one-time tax benefit and 1 cent due to the

nonrecurring items in OIE that I just mentioned. The remaining $2.10 includes a 5 cent contribution from share

repurchases and 2 cents of dilution related to our recent acquisitions.

•During the quarter, we repurchased about $1.8 billion worth of stock and an additional $449 million through

Preview truncated — download the full document for the complete content.