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MasterCard 3rd-quarter net income rises 14 pct, boosted by higher spending with cards overseas

NEW YORK, N.Y. – MasterCard said its third-quarter profit rose 14 per cent as it got a boost from overseas growth and processed more payments.

The payments network, based in Purchase, N.Y., on Thursday said its net income rose to $879 million, or $7.27 per share, for the three months ended Sept. 30. That compared with $772 million, or $6.17 per share, last year.

Revenue rose 16 per cent to $2.22 billion, from $1.92 billion in the 2012 third quarter.

The company’s earnings were boosted by its overseas business. Excluding the U.S., the amount people spent using MasterCard-branded cards rose almost 19 per cent on a local-currency basis. In the U.S., spending rose close to 10 per cent.

MasterCard Inc.’s results beat analysts’ average expectations compiled by FactSet for profit of $6.94 per share, on revenue of $2.14 billion.

The company’s stock rose $8.19 to $733.87 in pre-market trading. The stock has advanced 48 per cent this year, ending Wednesday’s regular session at $725.68..

The upbeat results contrasted with Visa’s results, which were released late Wednesday.

Visa, the world’s largest processor of debit and credit card payments, said that its quarterly earnings fell 28 per cent, as it set aside money for taxes and said it was making plans based on a slow recovery for the U.S. economy.

Growth in the number of U.S. transactions slowed from August into September and showed constrained consumer spending, Visa’s Chief Financial Officer Byron Pollitt said on a conference call.