Net revenue for full-year 2011 was $6.7 billion, an increase of 21.2 percent versus 2010. On a constant currency basis, net revenue increased 19.5 percent. Cross-border volume growth of 18.7 percent, gross dollar volume growth of 16.1 percent and processed transaction growth of 18.3 percent, contributed to the net revenue growth in the full-year period. These increases were partially offset by an increase in rebates and incentives due to increased volumes and new and renewed customer agreements.
Excluding the special item, total operating expenses increased 16.0 percent, to $3.2 billion, for 2011 compared to 2010, primarily due to higher personnel costs related to strategic initiatives and the inclusion of expenses related to acquisitions. Excluding currency fluctuations, total operating expenses increased 14.5 percent. Including the special item, operating expenses in 2011 increased 43.6 percent, to $4.0 billion, versus 2010.
For the full-year 2011, excluding acquisitions, net revenue grew approximately 19 percent; excluding acquisitions and the special item, operating expenses grew approximately 10 percent. Excluding the special item, operating income increased 26.6 percent for 2011 versus 2010 delivering an operating margin of 51.9 percent for the full-year period. Including the special item, the operating margin was 40.4 percent for full-year 2011.
Total other income was $33 million for full-year 2011 versus total other income of $5 million in 2010. This was primarily driven by a decrease in interest expense due to lower interest accretion related to previous litigation settlements.
MasterCard’s effective tax rate, excluding the special item, was 31.8 percent for full-year 2011, versus a rate of 33.0 percent for full-year 2010. Including the special item, the effective tax rate was 30.6 percent for full-year 2011. The decrease in the 2011 effective tax rate was primarily due to a more favorable geographic mix of earnings, including the tax benefit related to the special item, and the recognition of discrete adjustments in 2011 and 2010.
For full-year 2011, MasterCard repurchased 4.4 million shares at a cost of approximately $1.1 billion.
