Mastercard, which employs more than 200 at its Dublin fintech-focused research and development centre, reported a €29.3 million loss at its Irish subsidiary last year despite turnover doubling.
This compares with a €26.3 million loss for the 12 months ending December 2014, recently filed accounts show.
Turnover rose to €15.9 million from €7 million a year earlier. Mastercard Ireland’s revenue is generated through service agreements with other company entities.
The company's MasterCard Labs office opened in Dublin in 2012, although the operator of the world's second largest payments network has had a base in Ireland since 2008 following its $100 million (€89m) acquisition of Orbiscom.
The lab is focused on digital payment solutions, such as the QKR app, which is being used by Wagamama, Zizzi and Ask Italian in the UK
“The company is in a loss-making position, and is dependent on the continued financial support of its ultimate holding company Mastercard Incorporated. The directors expect, however, that the company’s results will continue to improve over the coming 18 months,” the group said in a note accompanying the accounts.
The deficit on shareholders’ funds amounted to €73.3 million, compared to €30.5 million in the previous year.
Funding support
The company has continued funding support in the form of an intercompany loan. Last December the firm’s existing loan facilities were restructured and it entered into a new €130 million loan with a repayment date of December 2024 with Mastercard European Partners.
The new loan was used to replace existing loans with Purchase Street Research of €62 million and with Mastercard Europe for €59 million.
Subsequent to the year end, Mastercard Ireland Limited accepted a capital contribution of €61 million from Purchase Street Research, the latest accounts show.
Mastercard Ireland employed 223 at the end of 2015, up from 193 a year earlier. Staff costs, including wages and salaries, rose to €26.8 million versus €22.4 million in the previous year.
