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By Bloomberg

MasterCard Inc., the second-largest payments network, posted profit that matched analysts’ estimates as expenses rose.

Second-quarter net income fell 1.1 percent to $921 million, or 81 cents a share, from $931 million, or 80 cents, a year earlier, the Purchase, New York-based company said Wednesday in a statement. Adjusted earnings, which exclude some items, were 85 cents a share, matching the average estimate of 32 analysts surveyed by Bloomberg. Revenue increased less than 1 percent to $2.39 billion, falling short of analysts’ estimates.

A stronger dollar has hurt revenue gains overseas and lower U.S. gas prices have crimped payments at the pump even as spending on MasterCard’s network climbed. Chief Executive Officer Ajay Banga has focused on working with governments abroad and expanding offerings outside the U.S., where MasterCard generates most of its revenue.

“There’s no real sign of those gas savings being spent on other categories yet,” Chris Hickey, an analyst at Atlantic Equities, said before results were released. “One of the less predictable elements is what the dollar strengthening does to cross-border volumes, which is a very important part of their business.”

MasterCard shares have climbed 10 percent this year to $95.16 in New York, trailing larger rival Visa Inc.’s 14 percent advance.

Visa Europe

Visa said last week that fiscal third-quarter net income increased 25 percent to $1.7 billion as revenue rose 12 percent. American Express Co., the biggest credit-card issuer by purchases, reported second-quarter profit fell 3.7 percent as card-spending growth slowed and revenue declined.

Visa said it expects to complete discussions by October about possibly reuniting with its former subsidiary Visa Europe Ltd. While Visa acquiring its European counterpart would mean more competition over time, a deal could benefit MasterCard in the short-term, Hickey said.

“Visa would likely have to raise its prices post-deal and the operational integration of the two companies could be a little disruptive,” Hickey said. “MasterCard would, benefit though long-term Visa Europe would make Visa a more formidable competitor.”