MasterCard Incorporated (NYSE:MA) Q4 2014 Earnings Conference Call - Final Transcript

Jan 30, 2015 • 09:00 am ET

Previous

MasterCard Incorporated (NYSE:MA) Q4 2014 Earnings Conference Call - Final Transcript

Share
Close

Loading Event

Loading Transcript

Presentation
Operator
operator

Welcome to the MasterCard Fourth Quarter and Full-Year 2014 Earnings Conference Call. My name is Heather, and I will be your operator for today's call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session. Please note that this conference is being recorded.

I will now turn the call over to Ms. Barbara Gasper, Head of Investor Relations. Ms. Gasper, you may begin.

Executive
Barbara Gasper

Thank you, Heather, and good morning everyone. ***Part4***

Executive
Barbara Gasper

***Part05*** Thank you for joining us for a discussion about our fourth quarter and full-year 2014 financial results. With me on the call today are Ajay Banga, our President and CEO; and Martina Hund-Mejean, our CFO.

Following comments from Ajay and Martina, the operator will announce your opportunity to get into the queue for the Q&A session. Up until then, no one is actually registered to ask a question. Even if you think you have already dialed into the queue for the Q&A, you will need to register again following our prepared comments.

This morning's earnings release and the slide deck that will be referenced on this call can be found in the Investor Relations section of our website at mastercard.com. We've added a new table in the slide appendix to the deck that breaks out the impact of various items to our financial results as an easy reference for those of you who track that detail. These documents have also been attached to an 8-K that we filed with the SEC earlier this morning. A replay of this call will be posted on our website for one week through February 6, 2015.

(Forward-Looking Cautionary Statements)

With that, I will now turn the call over to Ajay.

Executive
Ajay Banga

Thank you, Barbara. Good morning everybody. I'm very pleased that we were able to deliver strong results for both our fourth quarter and the full-year performance despite what everybody knows is a mixed economic environment. In the fourth quarter, after adjusting for currency, we had net revenue growth of 17% and EPS growth of 25%, driven by solid underlying metrics.

For the full year, we saw net revenue growth of 14% and EPS growth of 19%. Both EPS growth figures exclude the impact of last year's special item for a charge related to the U.S. merchant litigation. So, in total, we had a good year where we were able to continue to meaningfully invest in growth initiatives that I think will position us very well for the future. And those initiatives included actions resulting in a restructuring charge in this past year's fourth quarter, which Martina is going to go through in some detail later.

So, moving on to look at some of the current underlying global economic trends, let's start with the United States, which is in relatively ***Part05***

Executive
Ajay Banga

***Part06*** is in relatively decent shape. Our SpendingPulse data showed U.S. retail sales growth, ex auto, was 2.9% in the fourth quarter, now that's down from the third quarter growth of 4.2%, and most of that