2007年8月1日星期三

Profit vs revenue

how to double the profit?
increase 20% of the revenue is ok.
listen to the story of masterCard....
MasterCard Inc., the second-biggest payment-card network, said profit almost doubled as customers' use of credit and debit cards increased.
Earnings excluding one-time items rose to $195 million, or $1.43 a share, from $101 million, or 74 cents, a year earlier, the Purchase, New York-based company said today in a statement.
The average estimate of 15 analysts surveyed by Bloomberg was for $1.31 a share.
The major issue is how to promote the usage of card instead of cash and check.
The value of MasterCard transactions increased 13 percent taking into account currency conversions as consumers continued to switch to credit and debit cards from cash and checks.
The company, led by Chief Executive Officer Robert Selander, increased spending on personnel and to defend against lawsuits even as marketing and advertising costs declined.
They definitely exceeded our expectations, said Tien- tsin Huang, an analyst at JPMorgan Securities Inc. in New York.
MasterCard's revenue rose 18 percent to $997 million, while operating expenses climbed 3.2 percent to $725 million.
General and administrative costs increased 18 percent to $432 million.
Advertising and marketing expenses fell 13 percent, to $268 million, with the end of MasterCard's World Cup soccer sponsorship.
Shares of MasterCard have more than quadrupled since first being offered at $39 a year ago.
The stock might take a breather because the magnitude of the beat was not as great as in past quarters..
increase income..reduce expense ..then you can double your profit.

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