US Markets
MA

Mastercard profit beats estimates on overall spending boost

Credit: REUTERS/Thomas White

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.

Adds CEO comment, cross-border volumes

July 29 (Reuters) - Mastercard Inc MA.N 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.

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.

(Reporting by Sohini Podder in Bengaluru; Editing by Saumyadeb Chakrabarty)

((Sohini.Podder@thomsonreuters.com;))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

MA

Latest Markets Videos

    Reuters

    Reuters, the news and media division of Thomson Reuters, is the world’s largest international multimedia news provider reaching more than one billion people every day. Reuters provides trusted business, financial, national, and international news to professionals via Thomson Reuters desktops, the world's media organizations, and directly to consumers at Reuters.com and via Reuters TV.

    Learn More