Lets grow up the revenue

MasterCard’s (MA)  shares continued to rise Thursday, after posting better-than-expected second quarter results, as the credit processor said it didn’t feel any significant impact from Brexit, is winning deals to expand its market share and is strengthening its international presence.

“This is a company that’s really standing out from a performance perspective with double digit earnings and revenue growth,” said Jim Tierney, AllianceBernstein chief investment officer of U.S. concentrated growth, in a phone interview. “This is a company in a really lousy global environment that grew their revenues 13% and grew their earnings 13%.”

New and renewed partnerships and acquisitions, along with a strong U.S. economy allowed the credit card processor to be upbeat about the future, while also being cautious about China’s new rule regarding payment networks and pending litigation. In June China released its final payment network regulations, allowing Visa and MasterCard to operate in its country, however MasterCard needs more clarification on how to move forward in the new environment.

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Purchase, N.Y.-based card-processing network posted adjusted earnings of 96 cents a share, compared with the 90-cent average of estimates in a Bloombergsurvey, benefited from strong consumer spending, as purchase and transaction volumes were up by double digits.

Revenue increased 13% from a year ago to $2.7 billion, beating estimates of $2.6 billion, as worldwide transactions climbed 14% to $13.7 billion.

Other revenue, which includes MasterCards’s advising and consulting services businesses, was up 25%, mostly due to the newly acquired acquisition of cloud-based analytics provider, Applied Predictive Technologies (APT) in April and its safety and security product offerings, the company said.

Still, the bottom-line benefits of revenue growth were curbed by a 15% increase in expenses, which reached $1.3 billion as the company invested in strategic initiatives and grappled with increasing legal cost. Net income increased 7% to $983 million, reflecting costs related to legal cases in the U.K., the company said.

In the U.K. retailers said that MasterCard’s cross-border interchange fees were “anticompetitive,” and the company estimated a settlement of $270 million. In June of 2015, the company paid $61 million to retailer Tesco.

“The court ordered a portion of the damages it had been seeking and that amount, along with anticipated legal fees and cost, was taken as a charge in the second quarter,” Ajay Banga, MasterCard president and CEO said on the conference call.