MasterCard Inc. today reported net income of $349.1 million for the second quarter ended June 30, up 26.4% from what it would have earned during the same period a year ago excluding special items. Last year, a $1 billion after-tax charge associated with MasterCard's settlement of a lawsuit with American Express Co. led to a net loss of $746.7 million for the quarter. Net revenue totaled $1.28 billion, up 2.4% from $1.25 billion. MasterCard cut operating expenses by 70.9% , to $722.7 million from $2.48 billion during last year's second quarter. Litigation made up $1.65 billion of MasterCard's operating expenses during the second quarter last year, compared with only $500,000 during the same period this year. The card brand also trimmed general and administrative costs by 3%, to $506 million from $521.4 million. And the company cut advertising and marketing costs by 35.8%, to $180.5 million from $281.1 million.