MasterCard (MA), a provider of transaction processing and payment-related services, has posted a 9.79 percent increase in profit for the quarter ended Jun. 30, 2014.

The company earned $931 million or $0.80 a share in the second-quarter compared with $848 million or $0.70 a share a year ago. Analysts on average had predicted net income of $0.77 a share.

Revenue during the second-quarter grew 13.41 percent to $2,377 million from $2,096 million in the last year period.

Total expenses as a percentage of revenues increased to 41.82 percent from 41.41 percent in the same period last year. That has resulted in contraction of 41 basis points in operating margins to 58.18 percent.

The company disclosed operating income of $1,383 million, compared with $1,228 million in the last year period.

''We are pleased with another quarter of solid performance, driven by healthy volume and revenue growth,'' said Ajay Banga, president and CEO, MasterCard. ''We continue to invest in our strategic initiatives, including acquisitions, while strengthening partnerships with banks, merchants, governments and mobile operators to grow and improve our business and theirs.''

Cash Flow

Mastercard has generated cash of $1,297 million from operating activities during the first half, down 19.64 percent or $317 million when compared with the last year period.

The company has spent $432 million cash to meet operating activities during the first half, as against cash inflow of $118 million in the last year period. It has made net capital expenditure of $102 million during the first half, which was lower by 0.97 percent or $1 million, from a year ago.

The company's free cash flow accounted for 92.14 percent of operating cash flow for the first half, compared with 93.62 percent in the last year period.

The company has spent $1,585 million cash to meet financing activities during the first half, as against cash outgo of $1,421 million in the last year period. It has borrowed net of $1,487 million through debt during the first half. It has spent net of $2,811 million on repurchase of common stocks.

The company's cash dividend payment increased 2.36 times or $150 million to $260 million.

As on Jun. 30, 2014, the company's cash balance stood at $2,878 million, up 22.57 percent or $530 million from Jun. 30, 2013.

Working Capital

Mastercard has witnessed an increase in the working capital over the last one year. The company's working capital stood at $4,787 million as at Jun. 30, 2014, up $152 million or 3.28 percent from $4,635 million on Jun. 30, 2013. It registered a decrease in current ratio to 1.83 as at Jun. 30, 2014 from 2.07 on Jun. 30, 2013.

Shares of the company declined $1.76 or 2.32 percent to settle at $74.15 on Thursday.