Mastercard Inc reported better-than-expected first-quarter earnings on Friday as the world's second-largest credit card network slashed expenses and increased fees.

Net income fell to $367 million, or $2.80 per share, from $447 million, or $3.37 per share, a year earlier.

Analysts, on average, had expected earnings of $2.62 per share, according to Reuters Estimates.

Net revenue fell 2.2 percent to $1.2 billion, while operating expenses decreased 10.8 percent.

Gross dollar volume inched up 0.3 percent to $550 billion on a local currency basis, but the growth was slower than in recent quarters. Purchase volume grew only 0.3 percent, hit by lower use of credit cards in the United States and a slowdown in Europe, Canada, Asia and Latin America.

MasterCard shares were up 0.5 percent at $184.50 in premarket trading. The stock closed at $183.45 Thursday, after touching its highest level in seven months, and is up 33 percent this year.

(Reporting by Juan Lagorio; Editing by John Wallace)