MasterCard reported a profit for full-year 2004 of $238 million, compared to a net loss of $386 million for 2003. However, fourth quarter profits came in at $1.27 million due to a huge increase in advertising and market development expenses. For the full-year, advertising and market development expenses were only up 8% over 2003 to $915.8 million. MasterCard noted that it spent $192 million last year as part of a four-year plan to build brand recognition worldwide. The 2003 loss was related to the settlement of the U.S. merchant lawsuit, which unfavorably impacted 2003 net income by $469 million. Operating expenses as a percentage of total revenue were reduced to 86% from 93% in 2003, excluding the impact of the U.S. merchant lawsuit and other legal settlements, resulting from an emphasis on cost control and streamlining of operations. For complete details on MasterCard fourth quarter performance, visit CardData ([www.carddata.com]).
MASTERCARD 2004 HISTORICAL ($ millions)
1Q/04 2Q/04 3Q/04 4Q/04
G&A: $276.8 $284.6 $284.9 $338.7
A&M: $167.5 $228.8 $190.1 $329.5
Net Income: $ 73.6 $ 65.7 $ 97.5 $ 1.3
Note: G&A: General & Administrative Expenses; A&M:
Advertising & Market Development Expenses.
Source: CardData (www.carddata.com)