The above graph represents the Mastercard operating expenses by quarter, starting from fiscal Q1 2002 to the recently completed quarter. Mastercard’s total operating expenses increased 7.3% YoY in Q1 2020, to $1,798 million. The growth was primarily driven by the increase in depreciation and amortization expenses and $6 million in provisions for litigation settlements with U.K. merchants. However, on a quarterly basis, the company reported a notable -11% decline in its operating expenses.
It is important to note that Mastercard quarterly revenue in Q1 2020 clocked $4,009 million, worldwide.
Growth in Mastercard Operating Expenses: History
|Source||Mastercard quarterly reports & SEC Filings|
|Note||Mastercard fiscal year starts from January 1st|
In Q1 2003, the quarterly expenses of Mastercard increased to a whopping $1,180 million, from just $315 million in Q1 2002. That represented 275% YoY growth due to the $721 million of U.S. merchant lawsuit costs.
In Q2 2008, Mastercard’s operating expenses shoot up to $2,480 million, representing a massive 240.6% YoY growth. This was including the litigation settlements of $1,649 million during the quarter.
In Q4 2019, the global payment company spent nearly 45.7% of its quarterly revenue on marketing, advertising, general and administrative, and other activities, amounting to $2,015 million. This was a strong 21.7% YoY decline from Q4 2018 when Mastercard’s total expenses hit a record-high of $2,573 million.
About Mastercard Inc.
Mastercard Incorporated (NYSE: MA) is an American multinational financial services company, offering an array of products and services to consumers, financial institutions, merchants, governments, digital partners, businesses and other organizations globally. The company has its headquarters in Purchase, New York, United States.
In 1966, the several bankcard associations joined together to form a company named “Interbank Card Association (ICA)”. After three years, in 1969, ICA started a new national brand “Master Charge: The Interbank Card”, which was renamed “MasterCard” in 1979.
Mastercard Inc. was incorporated as a Delaware corporation in May 2001.
Mastercard launched its IPO (initial public offering) on May 25, 2006, at a price of $39 per share. With market value of $247.1 billion as of May 2020, Mastercard stands at #334 on the Forbes 2000 list of the World’s Largest Public Companies.
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