FILE PHOTO: Credit card is seen in front of displayed Master Card logo in this illustration taken, July 15, 2021. REUTERS/Dado Ruvic/Illustration
July 29, 2021
(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.
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)
Source: One America News Network
