Mastercard profit jumps 36% on vaccine-fueled spending boost

Reuters2021-07-29

July 29 (Reuters) - Mastercard Inc reported a second-quarter profit on Thursday that comfortably beat estimates, helped by an improvement in overall spending and a recovery in cross-border volumes.

Mastercard shares rose 1.7% in premarket trading.

Card companies have benefited from a rise in spending volumes as speedy vaccination programs and a drop in the number of COVID-19 infections allowed governments to lift pandemic-induced lockdowns.

Net income, excluding exceptional items, rose to $1.9 billion, or $1.95 per share, from $1.4 billion, or $1.36 per share a year earlier.

Analysts on average had expected a profit of $1.75 per share, according to Refinitiv IBES data.

Mastercard's cross-border volumes, which tracks spending on its cards beyond the country of issue, rose 58% on a local currency basis, driven by a pickup in international travel.

Volumes had dropped 45% in the same period a year ago.

"International travel is still in the early stages of recovery and represents additional upside potential," Chief Executive Officer Michael Miebach said in a statement.

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Comments

  • sreekumar
    2021-07-31
    sreekumar
    Share price didn’t really move up
  • Willretard8
    2021-07-30
    Willretard8
    $MasterCard(MA)$36% but 1.5% premkt? Retailors love exciting stocks instead
  • Viboon
    2021-07-30
    Viboon
    International travel is still in the early stages of recovery and represents additional upside potential
  • Hkh
    2021-07-30
    Hkh
    Great
  • Alex1709
    2021-07-30
    Alex1709
    Good news
  • Jadewu
    2021-07-29
    Jadewu
    Great 
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