MASTERCARD INC FORM 8-K. (Current report filing) Filed 11/13/02 for the Period Ending 11/13/02

Transcription

1 MASTERCARD INC FORM 8-K (Current report filing) Filed 11/13/02 for the Period Ending 11/13/02 Address 2000 PURCHASE STREET PURCHASE, NY Telephone CIK Symbol MA SIC Code Business Services, Not Elsewhere Classified Fiscal Year 12/31 Copyright 2014, EDGAR Online, Inc. All Rights Reserved. Distribution and use of this document restricted under EDGAR Online, Inc. Terms of Use.

2 MASTERCARD INC FORM 8-K (Unscheduled Material Events) Filed 11/13/2002 For Period Ending 11/13/2002 Address 2000 PURCHASE STREET PURCHASE, New York Telephone CIK Fiscal Year 12/31

3 UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of Report (Date of earliest event reported): November 13, 2002 MASTERCARD INCORPORATED (Exact name of registrant as specified in its charter) DELAWARE (State or other jurisdiction (Commission (IRS Employer of incorporation) File Number) Identification No.) 2000 PURCHASE STREET PURCHASE, NEW YORK (Address of principal executive offices) (Zip Code) (914) (Registrant's telephone number, including area code) NOT APPLICABLE (Former name or former address, if changed since last report)

4 ITEM 9. REGULATION FD DISCLOSURE. On November 13, 2002, MasterCard International Incorporated ("MasterCard"), the principal operating subsidiary of MasterCard Incorporated, issued a press release announcing performance results for its payment programs for the three and nine month periods ended September 30, 2002 (the "Release"). The Release is attached to this Current Report on Form 8-K as Exhibit The tables below provide further information regarding MasterCard's payment programs for the three and nine month periods ended September 30, In addition, included below are tables that provide further information regarding MasterCard's payment programs for the years ended December 31, 2000 and 2001, in each case restated to present the information on the same basis as the information in the tables for the three and nine month periods ended September 30, The tables set forth the gross dollar volume ("GDV"), purchase volume, cash volume and the number of purchase transactions, cash transactions, accounts and cards on a regional basis for MasterCard(R)-branded cards. Growth rates over prior periods are provided for volumebased data. All Programs except On-Line Debit Programs For the 3 Months ended September 30, Purchase Purchase Cash Cash GDV Growth Volume Growth Transactions Volume Growth Transactions Accounts Cards (Billions) (Local) (Billions) (Local) (Millions) (Billions) (Local) (Millions) (Millions) (Millions) South Asia/Middle East Africa $ % $ % 35.4 $ % Asia/Pacific % % % Europe % % % Latin America % % % Canada % % % United States % % 1, % Worldwide % % 3, % Credit Programs United States % % 1, % Worldwide % % 2, % Off-Line Debit Programs United States % % % Worldwide % % % All Programs except On-Line Debit Programs For the 9 Months ended September 30, Purchase Purchase Cash Cash GDV Growth Volume Growth Transactions Volume Growth Transactions Accounts Cards (Billions) (Local) (Billions) (Local) (Millions) (Billions) (Local) (Millions) (Millions) (Millions) South Asia/Middle East Africa $ % $ % $ % Asia/Pacific % % % Europe % % 2, % Latin America % % % Canada % % % United States % % 4, % Worldwide % % 8, % 1, Credit Programs United States % % 3, % Worldwide % % 6, % Off-Line Debit Programs United States % % 1, % Worldwide % % 1, %

5 For the Year ended December 31, GDV Growth Purchase Growth Purchase Cash Growth All Programs except Volume Transactions Volume On-Line Debit Programs (Billions) (Local) (Billions) (Local) (Millions) (Billions) (Local) South Asia/Middle East Africa $ % $ % $ % Asia/Pacific % % % Europe % % 2, % Latin America % % % Canada % % % United States % % 4, % Worldwide % % 8, % Credit Programs United States % % 3, % Worldwide % % 7, % Off-Line Debit Programs United States % % 1, % Worldwide % % 1, % For the Year ended December 31, Cash Accounts Cards All Programs except Transactions On-Line Debit Programs (Millions) (Millions) (Millions) South Asia/Middle East Africa Asia/Pacific Europe Latin America Canada United States Worldwide 1, Credit Programs United States Worldwide Off-Line Debit Programs United States Worldwide For the Year ended December 31, GDV Growth Purchase Growth Purchase Cash Growth All Programs except Volume Transactions Volume On-Line Debit Programs (Billions) (Local) (Billions) (Local) (Millions) (Billions) (Local) South Asia/Middle East Africa $ % $ % $ % Asia/Pacific % % 1, % Europe % % 2, % Latin America % % % Canada % % % United States % % 5, % Worldwide % % 10, % Credit Programs United States % % 4, % Worldwide % % 8, % Off-Line Debit Programs United States % % 1, % Worldwide % % 2, % For the Year ended December 31, Cash Accounts Cards All Programs except Transactions On-Line Debit Programs (Millions) (Millions) (Millions) South Asia/Middle East Africa Asia/Pacific Europe Latin America Canada United States Worldwide 1, Credit Programs United States Worldwide

6 Off-Line Debit Programs United States Worldwide Maestro(R) and Cirrus(R) on-line debit transactions, Mondex(R) transactions and other branded transactions are not included in the preceding tables. For purposes of the tables: GDV represents purchase volume plus cash volume and includes the impact of balance transfers and convenience checks; purchase volume means the aggregate dollar amount of purchases made with MasterCard-branded cards for the relevant period; and cash volume means the aggregate dollar amount of cash disbursements obtained with MasterCard-branded cards for the relevant period. The number of cards includes virtual cards, which are MasterCard-branded payment accounts in connection with which functional cards are not generally issued. The MasterCard payment product is comprised of both credit programs and off-line debit programs, and certain data relating to each type of program is included in the tables. Credit programs include MasterCard-branded credit and charge programs. Off-line debit programs include MasterCard-branded debit programs where the primary means of cardholder validation at the point of sale is for cardholders to sign a sales receipt.

7 Information denominated in U.S. dollars is calculated by applying an established U.S. dollar/local currency exchange rate for each local currency in which MasterCard volumes are reported. These exchange rates are calculated on a quarterly basis using the average exchange rate for each quarter. However, MasterCard reports period-over-period rates of change in GDV, purchase volume and cash volume solely on the basis of local currency information, in order to eliminate the impact of changes in the value of foreign currencies against the U.S. dollar in calculating such rates of change. Accordingly, the period-over-period rates of change set forth in the tables cannot be extrapolated directly by reference to dollar volume information presented by MasterCard for the current and historical periods. The data set forth in the GDV, purchase volume, purchase transactions, cash volume and cash transactions columns are derived from information provided by MasterCard members that is subject to logical and statistical verification by MasterCard and partial cross-checking against information provided by MasterCard's transaction processing systems. The data set forth in the accounts and cards columns are derived from information provided by MasterCard members and certain limited logical and statistical verification by MasterCard. A portion of the data set forth in the tables is estimated. In addition, a portion of the data set forth in the accounts and cards columns reflects the impact of routine portfolio changes among members and other practices that may lead to over counting of the underlying data in certain circumstances. The tables include information with respect to MasterCard-branded transactions that are not processed by MasterCard and transactions for which MasterCard does not earn revenues. Certain information in the preceding tables has been the subject of prior public release by MasterCard. The information in the preceding tables relating to the years ended December 31, 2000 and 2001 has been restated to conform to the presentation of information in the tables for the three and nine month periods ended September 30, 2002 and to reflect revisions to certain historical statistical information provided by MasterCard's members subsequent to the previous release of this information by MasterCard. The Release may contain other information relating to the performance of MasterCard's payment programs not described in the tables. Among other things, the Release describes the total number of acceptance locations where MasterCard-branded cards may be used by cardholders. Acceptance locations include merchant locations, automated teller machines and other locations where cash may be obtained using a MasterCard-branded card. In certain countries, merchant locations include data relating to all acceptance terminals deployed at individual merchants.

8 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. MASTERCARD INCORPORATED Date: November 13, 2002 By /s/ ROBERT W. SELANDER Robert W. Selander President and Chief Executive Officer

9 EXHIBIT INDEX EXHIBIT NUMBER EXHIBIT DESCRIPTION Press Release, dated as of November 13, 2002, issued by MasterCard International Incorporated announcing performance results for its payment programs for the three and nine month periods ended September 30, 2002.

10 NEWS RELEASE [MASTERCARD LOGO] Contacts: Sharon Gamsin, , Veronika Clough, , MASTERCARD REPORTS STRONG GROWTH IN ITS PAYMENT PROGRAMS FOR THIRD QUARTER, FIRST NINE MONTHS OF 2002 NUMBER OF MASTERCARD CARDS ISSUED GLOBALLY GROWS BY 15.6% ALMOST 10 BILLION PURCHASE AND CASH TRANSACTIONS REGISTERED PURCHASE, NY, NOVEMBER 13, MasterCard International today reported performance results for its payment programs for the three and nine month periods ended September 30, 2002, indicating continued growth across all regions and in all key measures of success in the payments industry. "Although most economies around the world remained weak during the year, MasterCard continues to see strong growth in all aspects of our payment programs," said Robert W. Selander, MasterCard's president and CEO. "These results demonstrate the continued progress our payment solutions are making against cash and checks as consumers and merchants around the world increasingly recognize the convenient and secure options we offer." In addition, Selander attributed MasterCard's success to the company's strategic focus on providing exceptional customer service and technological capabilities, unsurpassed acceptance, and customized payments solutions for its member financial institutions around the globe. "Our growth continues to reflect that more and more often, our members and their customers are turning to MasterCard as their payment brand of choice." Highlights of the first nine months of 2002 include: - Cardholders around the globe used MasterCard(R)-branded cards (excluding Cirrus(R) and Maestro(R) online debit activity) for more than 9.84 billion purchase and cash transactions in the first nine months of 2002, generating gross dollar volume (GDV) of $831.7 billion, an increase of 16.1% over the same period in Third quarter 2002 purchase and cash transactions reached 3.50 billion, generating GDV of $296 billion, a 16.5% gain over third quarter 2001; - As of September 30, 2002, MasterCard's 25,000 member financial institutions around the world had issued nearly million MasterCardbranded cards, a 15.6 % increase over September 30, These cards could be used at 29.6 million acceptance locations around the world; - The value of purchases on MasterCard cards, a significant measure of success, continued to show substantial gains. Globally, purchase volume (excluding cash transactions) rose 14.4% to $580.3 billion for the first nine months of 2002 compared to the same period in During the first nine months of 2002, MasterCard-branded cards were used for 8.59 billion purchase transactions. Purchase volume was $207.8 billion in the third quarter of 2002, a 16.1% increase from the 2001 period, with 3.07 billion transactions recorded. -more-

11 MasterCard International - Page 2 MasterCard Reports Strong Growth in Its Payment Programs For Third Quarter, First Nine Months of 2002 November 13, 2002 MasterCard's strong growth in the first nine months of 2002 was fueled by growth in both credit and debit programs. GDV for worldwide MasterCard credit programs grew 15.1% to $690.6 billion, and GDV for MasterCard off-line debit programs rose 21.6% to $141.1 billion, in each case compared to the first nine months of STRONG REGIONAL RESULTS Strong MasterCard-branded GDV growth was reported for all regions, with each reporting double-digit gains in the first nine months of 2002 compared to the same period in 2001: the U.S. rose 17.8%; Europe, 13.6%; Asia/Pacific, 12.7%; Latin America, 26.3%; South Asia, Middle East/Africa, 23.1%; and Canada, 19.8%. In the United States, which accounts for more than half of total GDV, MasterCard-branded cards were used in almost five billion purchase and cash transactions in the first nine months of 2002, generating $439.7 billion in GDV, a 17.8% GDV increase over the same period in Both strong purchase volume growth of 16.6% and strong cash volume growth of 21.0% drove this high growth rate. At September 30, 2002, the number of MasterCard cards issued in the United States increased 15.1% to almost 309 million. GDV in Europe for MasterCard-branded cards rose 13.6% in the first nine months of 2002, to $172.6 billion, compared to the same period in MasterCard-branded card issuance and GDV growth increased 13.5% and 14.9% respectively, for the third quarter of 2002 over the same period last year. The Asia Pacific region reported MasterCard GDV growth of 12.7% for the first nine months of 2002, to almost $165.9 billion, compared to the same period in These regional results were driven by strong MasterCard GDV growth in Korea (up 28.3%), Australia (up 15.7%) and Japan (up 11.5%) between the periods. Third quarter MasterCard GDV in Asia Pacific rose 8.8% in 2002 over the same period in The number of MasterCard-branded cards issued in the region at September 30, 2002 rose 17.2%, to million, compared to September 30, In Canada, MasterCard GDV rose 19.8% for the first nine months of 2002, and 21.1% for the third quarter of 2002, in each case compared to the same period in Purchase volume in Canada remained strong in the first nine months of 2002, representing over 82.2% of GDV in that region. At September 30, 2002, Canadian banks had increased the number of MasterCard cards issued by 19.1% compared to September 30, Latin America reported a strong 26.3% increase in MasterCard GDV for the first nine months of 2002 compared to the same period in 2001, as the number of MasterCard cards issued in the region at September 30, 2002 jumped 16.4% compared to September 30, Driven by strong third quarter 2002 performance in Mexico and Brazil, Latin America experienced an increase in GDV of 25.9% for the third quarter of 2002 compared to the third quarter of more-

12 MasterCard International - Page 3 MasterCard Reports Strong Growth in Its Payment Programs For Third Quarter, First Nine Months of 2002 November 13, 2002 In South Asia, Middle East/Africa, MasterCard GDV grew 23.1% during the first nine months of 2002, and 24.9% for third quarter of 2002, in each case compared to the same period in Strong purchase volume growth of 26.3%, strong cash volume growth rates and a very strong GDV growth rate in South Africa fueled the region's growth in the third quarter of 2002 compared to For further information on the performance results described in this press release, please review MasterCard Incorporated's Current Report on Form 8-K filed with the U.S. Securities and Exchange Commission on November 13, 2002, including the narrative description therein of the sources of, and bases of presentation for, the performance results for MasterCard's payment programs. ABOUT MASTERCARD INTERNATIONAL MasterCard International has a comprehensive portfolio of well-known, widely accepted payment brands including MasterCard, Cirrus and Maestro. More than 1.7 billion MasterCard, Cirrus and Maestro logos are present on credit, charge and debit cards in circulation today. With approximately 25,000 MasterCard, Cirrus and Maestro members worldwide, MasterCard serves consumers and businesses, both large and small, in 210 countries and territories. MasterCard is a leader in quality and innovation, offering a wide range of payment solutions in the virtual and traditional worlds. MasterCard's award-winning Priceless(R) advertising campaign is now seen in 90 countries and in 45 languages, giving the MasterCard brand a truly global reach and scope. With more than 29 million acceptance locations, no payment card is more widely accepted globally than MasterCard. For the nine months ended September 30, 2002, gross dollar volume exceeded US$831.7 billion. MasterCard can be reached through its website at #### End of Filing 2005 EDGAR Online, Inc.