11/03/2009 Leave a comment
Less advertising, less profit. Simple as that.
Nov. 3 (Bloomberg) — MasterCard Inc., the world’s second- biggest payments network, fell in New York trading after cost cuts aided a jump in third-quarter profit, prompting one analyst to question the quality of earnings.Shares of MasterCard dropped as much as 5.9 percent, the most since April 20, after the company said it cut advertising and marketing spending by almost 30 percent in the third quarter. Chief Executive Officer Robert Selander said in July expenses would be “significantly higher” in the second half.
“MasterCard did beat the number, but a lot of that was on much lower than expected advertising expenditures,” said Robert Dodd, an analyst with Morgan Keegan Inc.